Arrive AI reports Q3 2025 net loss of $2.2 million; emphasizes focus on workforce expansion and strategic partnerships for future growth.

Good day and thank you for standing by. Welcome to the ArriveAI third quarter 2025 earnings call. @ this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising. Your hand is raised to withdraw your question. Please press star 11 again. If. If you wish to ask a question via the webcast, please use the Q and A box available on the webcast link at any time during the conference. Please be advised that today's conference is being recorded. I'd now like to hand the call over to Kylie Conway, Senior Manager of Marketing and Communications. Please go ahead.

Thank you, Liz. And good morning everyone. Thank you for joining us today. With me on the call are Dan O'Toole, Arrive AI's Chairman, CEO and founder, Mark Ham, Chief Operating Officer Nirav Shah, Chief Strategy Officer Todd Pettmeyer, Chief Financial Officer and John Richardson, Chief Legal Officer. The earnings press release issued this morning is available in the Investor Relations section of our website@arriveai.com. before we begin, please note that today's remarks may include forward looking statements regarding future financial results, operations and performance. These statements are not guarantees of future results and and are subject to risks and uncertainties that could cause actual outcomes to differ materially. We encourage investors to review the risk factors detailed in our SCC filings which are also available on our website. Now I'll turn the call over to Dan o'. Toole. Dan?

Thank you, Kylie. Good morning everyone and welcome to ArriveAI's Q3 2025 earnings call. It's a privilege to speak with you today and reaffirm what we're building here today at Arrive AI, building the foundational infrastructure for the future of autonomous last mile logistics. But before I get going here, I want to hit you with a quick question. What's blue and doesn't weigh very much?

Light blue. Light blue? That's obviously a joke. Everybody knows that light blue and blue weigh the same. Right guys?

Okay, so let's get this going here. Today the team and I will update you on the progress we made during the third quarter on our operating instrument strategic goals. Take you through our numbers and discuss our next steps. As you know, at Arrive AI we are pioneering an autonomous last mile platform centered on our patented Arrive Points AI-powered powered delivery nodes that serve as critical endpoints in our connected logistics network. These units provide secure, verifiable and frictionless delivery for human couriers, ground robots and drones alike. But we are not simply building a product. We are building a system that solves the most complex problem in logistics, solving the last inch of a $440 billion infrastructure problem and driving measurable ROI through reduced carrier operating cost and failed delivery avoidance. Our platform enables full chain of custody, tracking every delivery from arrival through authenticated retrieval. Arrive points are equipped with climate assist technology for sensitive goods such as pharmaceuticals and grocery items as they integrate with smart home and smart city systems. Collectively, these components form the central nervous system of autonomous logistics, one that ensures packages arrive securely, intelligently and precisely where they're needed in Q3 following our public launch, we launched a major hiring initiative to triple our workforce, adding more than 30 new roles across AI, software and product engineering. With these key new hires and our need for expanded space, we took possession of a new corporate facility located in Fishers, Indiana. Our new headquarters is designed to unlock the full capabilities of our expanding team. Fishers offers a high tech environment with the infrastructure and talent ecosystem needed to execute our growth plan effectively. We expanded our IP portfolio by securing our ninth US patent, further reinforcing our leadership in autonomous delivery innovation. We integrated time of flight sensors into arrive points to optimize pickup efficiency, lower energy use and improve data analytics. We expanded our partnerships with Al Mart Act Antigua in the Caribbean and Sky Air Mobility in India for international module deployment. And we benefited from regulatory momentum following the FAA's proposed Beyond Visual Line of Sight rule, which represents a key enabler for autonomous operations in the U.S. our team will discuss each of these initiatives further in a moment. Now I'm going to turn this over to Mark Ham, our coo. Mark, take it away.

Thanks, Dan. Hello everyone. First, as a quick reminder, Arrive AI's five-year roadmap, which began in Q3 of 2025, positions the company as the essential autonomous logistics management network and platform for all drone and robotic delivery, with revenue split evenly between our network as a service and marketplace and AI services all aiming for a 20x valuation increase by year five beginning in the first quarter. The plan progresses from product design and R and D transformation into scalable solutions in year one to interoperable pilots, networks and strategic relationships in year two, product refinement and manufacturing ramping up in year three and scale production of 10,000 arrive points and 100,000 in years four and five respectively. This quarter's primary focus was successfully recruiting and onboarding a new product team of more than 20 professionals achieved entirely in house without external recruiters or those associated fees. We accomplished this by leveraging Spark Hire our new recruiting and applicant tracking system along with the guidance of our new head of hr, Tom Hunley. Together we screened and conducted multiple rounds of interviews with over 1500 candidates. We were able to attract strong talent across engineering, development, design, AI and robotics, providing the expertise needed to support our ongoing product work. More than half of these hires were sourced locally from the Indianapolis area which has a solid industrial and engineering base and as Dan mentioned, is increasingly expanding in other high tech areas such as AI and it. As Dan also briefly mentioned, to accommodate this growth and support our development and prototyping efforts, we relocated the entire company to a new headquarters building in Fishers, Indiana. We also continue to build out our IT security and compliance infrastructure in partnership with synoptic and the new product team is already well aligned and working on our next generation Arrive point and autonomous Last Mile platform which we plan to advance further next quarter. Now I'd like to pass it over to Todd, our cfo.

Thanks Mark. From a financial perspective, our strategy remains rooted in disciplined investment and long term scalability. Some key highlights for quarter three of this year Revenue saw an increase in recurring subscription revenue as we operationalized two new Arrive points into monthly service. At this early stage in our business, we expect quarterly fluctuations in revenue as we build out and ramp customer agreements over time. In particular, project based consulting revenue will not be linear throughout the year. These projects are typically three to four month engagements to establish use cases and design the automation in a client's facility. Importantly, though, these deals are structured to culminate in a recurring subscription for our iPoint service, our net loss of 2.2 million compares to 0.8 million in the same quarter of 2024 and 4.7 million net loss in the second quarter of this year. Through through strict cost management, we kept our spending to a minimum while still investing in our future growth. Although the hiring ramp in this quarter was aggressive, we came in approximately a million dollars lower than planned on our operating expenses. We'll continue to exert this kind of cost discipline going forward. Our cash and short term liquid investments were 2.7 million at the end of the quarter. This was an increase of 2.1 million from the end of the prior quarter. In August we did receive net proceeds from our capital line of $4 million. We still have approximately 32 million remaining on that structured capital facility.. We continue to manage expenses with precision while investing in the areas that will create recurring value. Additionally, we announced a $10 million share buyback program in quarter three. It's set to continue through the end of quarter one next year. To date, the company has repurchased 19,700 shares, representing less than 1% of the total authorized amount. This buyback reflects our confidence in the company's intrinsic value and an ongoing commitment to shareholder return. We have fully implemented real time financial controls and compliance dashboards, ensuring transparency and operational readiness for our next phase of growth. Now I'll turn the call over to Nirav Shah, our Chief Strategy Officer.

Thanks Todd. Appreciate that. In Q3 our focus on strategic verticals and partnerships continues to yield meaningful traction. Recent highlights include in the healthcare pharma space, ongoing deployments at Hancock Health in Indiana where we are optimizing robotic delivery of biospecimens, lab samples and medications, and we're looking forward to bringing their satellite campuses from the satellites to the 29th facility outside the hospital by a drone to the network we have built inside International Delivery we're expanding operations with Sky Air Mobility in India for drone to ground transportation logistics technology integration. We're advancing TOF sensors and edge AI optimization to increase delivery accuracy, reduce wasted stops and enhance route intelligence. We are also pursuing an America-first manufacturing strategy to strengthen domestic production capacity and reduce dependency on foreign supply chain. We are evaluating onshore manufacturing solutions both in house and through U.S. partners to mitigate global tariff risks and enhance production resilience. This initiative aligns with our vision to create to scale responsibly while supporting national competitiveness and supply chain integrity. Now I'll turn it over to the call to John Richardson, our Chief Legal Officer.

Thank you Neera. In quarter three, we strengthened our legal and regulatory position globally. We secured our ninth US patent, reinforcing the Arrive AI's IP leadership. This patent completes a package that actually addresses drone deliveries, automated robots and courier packages and deliveries by humans. It permits all three modes of delivery to be received, secured and cared for with a similar notice to the client that the package has arrived. Internationally, we are gaining speed with a total of 80 foreign or non US patent applications. Eight of these have been approved. Three of those eight were issued late in July, with an additional three this quarter but not yet published. These applications are including both our single and multi user type units which we call Arrive points. We are also monitoring the FAA BVLOS for the Beyond Visual Line of Sight, which will serve as a catalyst for autonomous delivery operations in the United States. Our compliance systems have been expanded to manage data privacy and cybersecurity across the domestic and international markets. We've also recently filed a trade secret lawsuit to protect a proprietary technology and strategic assets. Our Legal and compliance infrastructure is built to safeguard the innovation that's driving our long term growth. And now I'll turn it back to Dan o' Toole for some closing remarks.

Thank you John and thanks to everyone on our team. We believe we stand at the precipice of several catalyzing events that combined with our current share price and small float, can really serve to synergize and create substantial share price appreciation. And as we advance execution and scale looking forward, we are transitioning from pilot programs to scalable deployments. Our projects with hospitals, retail partners and municipalities are not trials. They are proof points and templates for nationwide expansion. The future of logistics is interoperable, intelligent and autonomous. And Arrive AI is positioned to be the connective tissue linking shippers, carriers and autonomous fleets. Our Focus continues across three strategic pillars. Excuse me, commercialization and operational excellence. Productizing our first generation AP3 units and refining our platform for scale. Similar in impact to how Tesla their Supercharger network has accelerated E mobility and become the standard patents and partnerships. Expanding our intellectual property moat and forging alliances with strategic partners that have been our technology in their operations and recurring value creation. Building a platform as a service model where every installation, delivery and data point captured drives recurring revenue. We are focused on executing on our strategic priorities for the remainder of this year. One is team expansion. We are continuing our plan to triple our workforce focusing on AI engineering and business development. We're also advancing the AP3 line and ongoing AP5 development to drive scalability and cost efficiency. Commercialization and recurring revenue transition from pilots to commercial deployments while expanding our recurring revenue streams through network usage and data monetization. We are building the last inch of the logistics layer, a critical infrastructure that enables the future of of autonomous delivery. With every deployment, patent and partnership, we are laying the foundation for sustainable scalable growth. Thank you to our shareholders for your continued trust and support. As I often emphasize, Arrive AI is at the intersection of AI and autonomy. These are two of the hottest spaces in the world today. You get both of those with one company. Arrive AI, ticker symbol ARK AI we are executing with disciplined intent and vision building a company for the long term. Arrive AI started with an idea, an idea that we have executed on for the past 11 years. Pre revenue raising money and delivering on the promise of the future is what we've done. We have seen countless companies come and go and today we are bigger, faster and stronger than ever before. My promise to every shareholder is to hold true to the values and culture that have gotten us to where we are today and and to move ahead with speed, agility and the success that this market has rarely seen. I love Arrive AI and being a part of this exciting moment is what gets me up every single day. Thank you all for being with us. I'm gonna open up the floor for questions now. Kylie, do you have anything you wanna say here?

No, Liz, you can open up for the calls.

As a reminder, if you'd like to ask a question at this time, please press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. If you wish to ask a question via the webcast, please use the Q and A box available on the webcast link. Please stand by while we compile the Q&A roster. I'm not showing any phone questions currently. I'd like to turn it back to Kylie.

All right, Liz, thank you. We did have some question submissions ahead of the call on our new Arrive AI Ideas board which we will use going forward for all of our earnings calls. For everyone listening right now, you can also we'll be monitoring the live webcast questions as well. So if anyone listening would like to ask anything in this call, we are going to get to every single one of them right now. We will go to the pre call submission questions. The most popular question that was upvoted 10 times was expansion structure from Greg. Once the current hospital testing is complete, what is the thought of the next expansion step? For example, are you thinking corporate corporation, home offices, apartment complexes, gated home communities next to their existing mailboxes, et cetera?

Thanks for reading that, Kylie. This is Dan o', Toole, CEO. I'm going to the way we're going to do this, I'm going to filter the questions with Kylie and then I'll designate who in our company is going to answer it. I'm going to give this one to nirav, our Chief Strategy Officer.

Thanks Dan. Greg, great question. Really appreciate that. Currently we're operating inside Hancock, right? I mentioned earlier about the network and then going outside. The next step is to link Hancock satellite facilities to the main hospital by we're super excited to link the inside and the outside autonomously. So we'll be able to move product by ground robot from our arrive point outside the internal network of arrive points via ground robot than outside by a drone. So Greg, I hope that answers your question.

And the next question is about drones. Nirav, I see the biggest potential for arrive AI in the drone space. This is coming from Ryan. Help me understand what competitive advantages your company has in this area and what initiatives you've launched to grow this area. Has the company struck any corporate partnerships with other drone manufacturing companies? With recent beyond visual line of sight rule changes, the this seems like a big opportunity.

Why don't you take that one too? But I'd also like you to talk a little bit about our patent for the witch delivery.

Yeah, absolutely. And a couple of things. Dan, thank you for pointing that out. I just wanted to say. Just Greg, just wrap up the last question. Beyond healthcare, we're looking to establish private networks in other campus settings. Think corporate research campuses, office parks, et cetera. Until of course, we establish a large scale public network to really blanket zip codes. So now, Ryan. Sorry Greg, I just want to wrap that up. Ryan, great question. We're eagerly awaiting FAA Part 108 and the massive opportunities John mentioned this earlier that await us. We're very bullish on the future. We are excited the administration. We're excited that the administration supports our vision. And to quote Transportation Secretary Sean Duffy, we are making the future of aviation a reality and unleashing America's draw dominance. As you know, we aren't the drone, but we are future proofed by our multimodal strategy to are agnostic to human, ground, robot or drone delivery. But opening the skies makes our utility that much better. Thanks, Ryan.

Next question is about growth strategy coming from Rahul. I would like to know the detailed growth plan for Arrive AI in the next few years. What is your strategy to acquire customers to generate revenue to reduce costs and become a household staple? Are you planning a top down approach such as start with the larger companies and then work to smaller companies, individuals? Thank you Arrive AI.

Thanks for reading that Kylie. Mark Ham, our coo, I think can take that one. Mark.

Yes, we have several approaches to growth in that five year plan. Right now we're laying a foundation of learning and innovation with our AP3 and improved versions of that coming. And that will continue for the next 18 months or so. That's primarily aimed at where we see the most activity in medical, healthcare and some other areas. And then layering into that, we are moving in the direction year two, three, testing the ArrivePoint network with some improved models to facilitate that next generation that will focus more on citywide kinds of delivery applications with some of the biggest partners that are operating drone and robotic networks now and then. We believe once we kind of establish that network paradigm with those players, then we believe it'll be natural for the market to swing to rolling out geographically. Kind of like Uber rolled out an area at a time it makes a lot of sense for our type of network with associated partners to target an area to provide enough delivery and service density using our network. And we think that'll be the growth path and that will also usher in more integration with smart city types of applications. And so there'll be all kinds of go to market activity and sales and marketing that help drive that. But that's the trajectory of applications that we'll be targeting over the next five years and how that ramps.

All right, Mark, thank you. Next question is from Michael Speed, structure and trust. As an early stage public company operating in a fast moving AI and logistics space, how are you balancing the need to innovate quickly with the discipline required for governance, financial transparency and and investor communication, especially as you build long term trust and credibility in your execution.

Michael, this is Dan. I'm going to take that one. I appreciate the question. If you've been with us, you know pre public we had 5,000 investors prior to joining the Nasdaq and they all know that transparency and communication have been the bedrock of our company and we have kept that culture. You know, I always say that this is the company. I want this to be the company that I would invest in. And what I mean by that is I want to know in real time what's happening. So we're true to that. Kylie and I do a regular update show called the Dan show where we give in as real time as we can, updates that are relevant to the company. Obviously being public, there's a lot of compliance that is built into that that we execute on every day. I'm really proud of how we've started this company. We've always conducted it as a public company. We did regular PC AOB audits which are public company audits. Even when we're a private company, we've always had board oversight and we've always ran this like we would run it if it had our last dollar at stake. So really proud of that. As far as moving fast, we believe speed is everything. I always say if you have your foot all the way down on the gas pedal, you went up for one second and reapply, you never get back to where you were. So we've got our ears pinned back going downhill in Mach 3 and we're having a lot of fun doing it and we've got some great outcomes that you guys will be seeing. Great question. I appreciate it and I think I'll turn it back to Kyla here.

Thanks Dan. And the next question is from Isabella. Keep in mind As I asked this question, we were founded under the name Drone Deck. We have since rebranded to Arrive AI. So clearly this is one of our early investors. So Isabella, thanks for hanging with us and submitting a question. The question is time schedule for the Drone Decks to be available for customers. I'd like to know where we are standing on this. Are we looking at 2 years, 4 or more?

Isabella thanks Kylie. Great recognition of the OG drone deck. I really appreciate that. I love that. Since the company is no longer called Drone Deck, that hurts my feelings every day. I want to turn this one over to Mark.

Hey everybody. Yeah, There's a natural progression of how end users get exposure to and ultimately obtain Arrive points in the early going. As I just explained in my prior question or answer, we have to work with partners to establish the network capabilities and build ecosystems of partners that can autonomously serve a network of Arrive points. And so it does little good if an individual consumer orders an Arrive point in the middle of an area that has no services supporting it. So it will take a couple years to go through the pilots with the partners, establish the network and then develop a cadence where this rolls out an area at a time. This is more of a B2B to C rollout where many partners will be responsible and help get Arrived points to end users, both business and consumer. So that'll be a progression. We will find ways to communicate when it's coming to an area near you, but that's still a work in process that I would say is going to take several years to complete according to our current plans.

Mark, thanks. This other question kind of piggybacks off of that. It's about subscription questions. It's from Eric. He says, I know in the past it's been mentioned that the goal for Arrive points would be to provide them on a monthly subscription basis rather than a large upfront purchase. If memory serves me correctly, I believe the Target was around $15 a month. Is this still the goal target price or has that had to change significantly?

Hey Mark, why don't you go ahead and finish?

Well, we continue to innovate on the pricing. That's part of what we're doing in our present pilots and it is definitely the case that we'll have network as a service fees to obtain these and that we're aiming at very low price points right now. Future projection here we are targeting business models that may actually supply them for free or all the way up to points that exceed $15 a month. Those are all well within the range. We expect that there may be partners that will ultimately sponsor these to certain businesses and consumers, and we'll provide other mechanisms for businesses and consumers to access them affordably and maybe even free in some instances. So that's the direction we're working. Yes, the details are changing. That's kind of part of innovation and getting traction in the market, but that's still a relevant target for us that we're pursuing.

Mark, thanks. Next question is from Jason about partnership updates. Have heard a lot about Hancock Health, rightfully so. But can you give any updates on the following partnerships go to Delivery, Peachtree Corner, Sky, Air Mobility, All Mart act and Tiga.

Thank you, Kylie. Chief Strategy Officer, you want to continue and answer this one?

Yeah, thanks, Dan. That's a great list. Looks like you're gunning for my job with a comprehensive list and really appreciate you keeping track of track of our progress. All of our opportunities have met their initial deliverables and working to grow the relationships further. We have a bunch of exciting prospects coming up and hopefully we can announce a deal before the end of the year and give an early Christmas present to Dan. So fingers crossed guys. But yeah, thanks. Great question. Just a quick note, I kind of. Forgot to mention it earlier. So in the drone space, we see drone deliveries happening in many ways. You can land, you can winch, you can drop. But I just wanted to just highlight our winch patent and we think that in the short term, at a minimum, winches will represent a vast majority of. Deliveries in the short term. And I just wanted to mention that. So thank you.

All right, Nairav, thank you. Next question from Dexter States and cities expansion. Any ideas on how we as individuals can help the company get recognized in urban cities such where we live? We understand that this is a system that all cities will have. How can we help get the city expansion process going as individuals who are in the company?

Darrell, I'll throw that back to you too.

Thanks, Dan. So we're really.

And Mark, if you want to jump in. I know we kind of talked about this earlier, but we're looking at expanding in zip codes and I think it's a function of a private network and a public network. Right now we're kind of in the private network space. And Mark, if you want to talk a little bit about the public network. Yeah. So as Neerab just mentioned, typically these pilots are private networks, maybe surrounding a hospital or working with certain company on automated deliveries. And we see how they increasingly progress to become public networks. And we're targeting the bigger arrive point network type pilots in year Two of our plan, which will exercise large numbers of public units which are generally, I think what people are thinking of when they think about accessing Arrive points. And then it, as we said kind of earlier, it will ultimately progress where individuals can have those subscriptions or have them at their localities and that will be kind of their choice and or network decision whether those are public and private. So again, the rate at which those roll out, we have to go through this progression of establishing the partnerships, the network capability and then we'll learn a lot from that process and that will dictate how we roll out area by area, whether they're public, they're private, and how people obtain access to them. So it is going to be a journey, but we're underway.

Thanks, Mark. Next question from John about Amazon Prime. It would be great if my Amazon prime membership came with an arrivepoint box. Why don't you read the next one too, Kyla? I think they kind of go, sure. The next one is also about Amazon from Andrew. It says obviously the biggest potential partner for long term business growth in this sector is Amazon. What steps are being taken to build relations with Amazon to increase likelihood of future business relationships as their drone delivery program expands?

I'm Dan. I'll take that one. We love Amazon. Obviously. I don't think it's a secret that everybody knows that Amazon would be a great partner, acquirer, you know, whatever of Arrive AI. There's a lot of synergies there. You know, obviously we whiteboard a lot of ideas and one of the things that we thought of, if you're an Arrive prime member, you get a free. Arrive point and we think that'd be great. Yet to be seen. It's not hard decision to make. But if you guys are all thinking along those lines, obviously, you know, we're thinking along those lines and maybe Amazon is too. We don't really comment on strategic partnerships that haven't been disclosed yet. So not trying to be evasive. Transparency and communication. We can state anything. You guys will always hear it first. We want people to hear things from our company, not on the street. So we're always in a race to disclose things and if anything like that were to come about, you guys would be the first one to know about it. You're all co owners with me in this company and we take a lot of pride in that. So I'll turn it back to Kylie here.

All right, Dan, thank you. Next question is from Chad about stock says hello. I would like to know about prior stock purchases. When I bought the Stock, it was under the Drone Deck name. Now that the name has changed, what happens to the stock? Thanks. I'm going to pair that with another one right after that. Asking from Lee what to do with those shares that were purchased before we were public, before Ravai was public. Do I need to do something to convert these shares? I don't want to. But what if I wanted to sell them? How would I do that? And so kind of together we can answer this, Chad and Lee, in one answer, I believe. Thanks, Kylie. I'm going to turn this one to Todd Kepmeyer, our cfo. Todd, you want to grab that?

Yeah. First of all, thanks to both questions. More early investors interested in the company. Whether you bought stock as Drone when we were Drone Deck or arrived, all of the shares reside with our transfer agent, Odyssey Trust. And you can send us an email@investorrelationsriveai.com or contact us@odysseytrust.com your shares are there. They're safe. They can be transferred to the broker of your choice through Odyssey, our transfer agent.

All right, Todd, thank you. And the last question that was pre call submitted. We'll get to the live webcast questions right after this. But it's from Sergio. He says commercialization roadmap and expansion milestone. Marcus touched on this a little bit in the five year roadmap. I'll still go ahead and read this question. He says, as an investor, I'd like to understand where Rive currently stands in its commercialization journey, whether the company has moved beyond pilot operations into a defined expansion phase and what metrics best reflect that progress, such as active customers or fully operational smart mailboxes. As Arrive advances toward large scale deployment, how's the company balancing vertical growth across key sectors with horizontal expansion into new regions while ensuring that governance, capital efficiency and data integrity scale alongside operations. Finally, could you share a high level roadmap outlining the expected milestones in the short, medium and long term so investors can better track commercialization progress and market expansion over time.

Kylie, can you restate that question? Let me take a drink of water first. Sergio, come up for air, man. That's a great question. Mark. I'm going to throw that over to you and I'm also going to say if anybody in the room wants to answer any component of that, that's a big. There's a lot to unpack there. A lot of it. We did cover in this call already, but Sergio, we love you. So Mark, jump in there.

Yeah, so a couple things on this one. We do have a public investors Deck, which has a graphic and a lot of detail on the five year plan. So you don't just have to hear it verbally on this call. But again, that plan starting this past quarter is to continue building on our customer relationships, learning and innovation with AP3. And you've heard about that. Simultaneous and in parallel with that, we're building a next generation platform for all drone and robotic delivery. That vision that Dan mentioned being the horizontal interoperable network, kind of like the Tesla network is for EV vehicles. So that's where we are in the current year. That's going to progress to arrive point network pilots in year two and then scaling manufacturing and product improvements in year three, the product improvements coming from the pilot and ultimately helping us configure that very scalable unit. And then we're aiming at volumes of 10,000 and 100,000 respectively in years four and five. And so that's kind of the progression of the product. You also asked about how we're doing that in the progression of markets. So right now our efforts are testing lots of markets. The network as it goes out is really more like infrastructure and will support many types of businesses, business models and end customers in a given area. So it really is like infrastructure there. And each of those over time will develop specific strategies for selling into and increasing utilization of the network for specific industries, customer types, partner types, specific autonomous networks. So all of that will start occurring towards the end of the four year of the five year plan. As we start to scale the volume prior to that, we're trying to get the right product, the right partners tested in the right environment as a network. And then we'll simultaneously scale production, go to market and roll out a geography at a time really starting in year five and beyond. I'd add to that that ultimately just in the US alone, I believe the number is 170 million business and residential addresses. And our ambition is to reach at least half of that. That's a long term goal. It'll take a long time, but you can see that ultimately we have to deliver millions of units so that this infrastructure is everywhere. Because we think the Jetsons were right. The future is drone and robotic delivery.

All right, Mark, thank you. So now we're going to go to the submissions through the webcast link that we're coming in live during the call. The first one we want to get to is from an analyst from Maxon Group, Jack Van der Aard submitted a few questions here. I'll start with one that we've touched on here and there, but it gets a little bit more specific. He says, can you speak to your five year plan to scale arrive points to 1,000, 10,000 and beyond? What are some of the key partnerships and initiatives? You're focused. Can you speak to the pricing model as it relates to the commercial and residential verticals? Are you working on both verticals simultaneously? I think Mark kind of touched on this in and we did this in our call as well, Jack. But I'm going to let Mark readdress this. Mark, you want to jump in with Jack here?

Yeah. We did answer a lot of elements around this and there is a level of detail that Dan referred to, that we can't share yet. Some of it's being learned and innovated on and other parts of it are strategic and other parts are, you know, theses that are yet to be proven with partners. So we can't reveal any of that ahead of time. It is the case that we are looking working at a network level solution ultimately. So we have to simultaneously be working on end customers that are both consumers and residential as well as the ecosystem that provides the services they'll want and the autonomous networks, both drone and robotic, that will help those service providers deliver to the end customers using our network. So that's all part of the plan. You asked for many specifics in there that I think we're just not prepared to answer yet while we work on them and hash them out over this multi year plan.

Okay. And to continue on with Jack Van Der Aard's submissions, can you touch on your hiring plans and sales and marketing initiatives? Can you touch on Hancock Health? What is some of the feedback on product design? Mark?

I'm sorry, I'm going to hand that one over to Nero.

Thanks, Dan. I'll let Mark jump in on the hiring plans on the team, but I'll address the second last 2/3 of the question. So we hired. So a lot of the sales to date have been founder driven. Dan's been involved very heavily. But we just recently hired a wonderful salesperson named Robert Rex who comes out of the workplace automation industry and he's going to be leading. He's the new VP of sales. So regarding Hancock Health, I earlier mentioned the drone part of it. Right. We're connecting the inside of the network to the outside by a drone. And then Jack, thanks for the question on product design. Great question. We've really been spending a ton of time looking at the door design and thinking about what's required inside a hospital versus outside a hospital. And so we are interestingly looking at optional other ideas for the inside units and maybe a garage door style opening. So yeah, stay tuned. A lot of exciting things happening.

Mark, you want to take the other. Part of that, Mark? Product team hiring. Product team hiring.

Yeah. Can we repeat the part of the question that is remaining?

Can you touch on your hiring plans and then sales and marketing initiatives?

Okay, yeah. So we just achieved a major goal of I think the number is about 5x our employee base in this last quarter we're over 40 folks, the vast majority of which are focused on.

The.

Current go to market the current product and now more than half of that is on the next gen product technologies necessary to deliver the network and the platform. As those go into pilot next year that will create a pull for an equal scale of hiring to support it in the field to work with those partners. And so that's kind of directionally where our hiring will be going and there'll be gaps and other things to fill in between and then that all is aligning with our go to market. So our go to market isn't just kind of blanket marketing. It will be really targeted relationships and business development with those strategic partners. And then as we focus on an area within customers then we'll jointly market the arrive point network and the services from our partners for that area. So you'll see more of that activity the end of the second year of the plan and then we'll be scaling that as we go.

Thanks, Mark. Next question from rahul. Is the 20x valuation from the original share price when the shares were first listed or from what point of time is that? Thank you.

Thank you, Rahul.

I'm going to let our CFO Todd handle that question. So we don't as a rule don't comment on share price directly but when we talk in terms of growth potential, we look at that in terms of today's market cap.

So it'd be the current market cap. All right, Todd, thank you. Next From Rick, your Q2 earnings reported over $90,000 in revenue but Q3 dropped to less than 8,000 with partnerships claimed in both quarters. Can you reconcile the source and timing of Q2 revenue on the record specifying which customer contracts generated this revenue and why similar contracts disappeared in Q3 as confirmed by SEC, filed invoice or payment receipts.

Yeah, thanks Rick. I'm going to ask Todd to continue. And take this one too. Rick.

Yeah, thanks dan. So in Q2 I think in that call we described the nature of consulting, short term project type engagements versus recurring subscription revenue. And we've always Said that the project type consulting revenue will not be linear. For example, in Q2, a big chunk of that revenue reported was a project we completed in the quarter with Hancock Health. In Q3, we didn't have any revenue recognition on consulting and project based revenue. But what we did see in Q3 was growth in our recurring subscription revenue, which always comes at the culmination of those consulting projects. So importantly, some of the big subscriptions that came online in Q3 were only sort of a third third reflected in. About a third of the quarter. So it's going to be really difficult at this early stage to give a completely predictable quarter by quarter view of our revenue. But that's essentially the explanation the lumpiness. Associated with projects versus the stickiness of recurring revenue.

Next question from Sergio. As the company accelerates expansion, adding new hires, relocating to a larger facility and increasing operating expenses, how is this growth being financed given the current revenue trajectory? And how is the company funding its share repurchase activities in the absence of meaningful revenue? Additionally, what compensation strategy, including equity based incentives such as stock options or restricted shares is being used to attract or retain top talent? And what key partnerships or strategic initiatives support this phase? Finally, how much operational Runway does the company have before requiring additional capital? I think this will need to be answered by a few different team members. So first, starting with the first question about new hires, larger facility, how is the growth being financed given the current revenue?

I think I can actually take most of this one, Kylie. This is talk about Myron cfo. So good question. We are expanding. We're expanding our expenditure rate. Consequence of ramping up hiring, R and D expenditures, etc. In the absence of significant revenue to date, we're using the proceeds from our equity line to fund this investment in operations and research and development. As I mentioned on the call we've taken in the quarter, we took 4 million down off of the facility and as as needed, we will tap into that facility in the future. So we still have most of that 40 million available. And in terms of Runway, I can say again that based on our forecast, based on our burn rate, that current equity line will take us into 2027 before you know we would be looking to do a substantial capital raise. And also about the share repurchase activities. Yeah, and I also skipped over the compensation strategy. So lot to unpick here, Sergio, but I'm gonna hit the compensation piece first. So we are aggressively pursuing talent with a combination of cash, salaries and equity. We want every employee to be an owner in this company and that's what we've created here. So yes, we have used equity in those agreements. And then what was the other one. About the share repurchase? Oh, share repurchase, yeah. So we used operational funds and we'll continue to do that when strategically viable. Okay, and then do you want to operational Runway?

I think I covered that. Okay, next question from rick. You announced a 4 million capital line. Todd, you just touched on this briefly, but I'll go ahead and ask the question. Claimed expansion and new arrive points yet SEC quarterly filings show a minimal cash balance of under $300,000 until the end of Q3. Can you detail how these funds were used operationally and whether any were allocated to undisclosed party transactions or non core expenses with supporting documentation?

Todd? Yeah, so I think. Thanks, Rick. I think there's. I think it might be some misinterpretations of some of these numbers. So when we went public, we secured a $40 million. We secured access to a $40 million capital facility over the next three years in Q3, we took 4 million off that line. And in fact, at the end of Q3, as our financial statements show, we ended with cash and short term investments. So that's the other thing to consider here is we do have a Treasury strategy that puts idle cash in places where we can earn a reasonable return. So we actually ended the quarter with about 2.7 million between cash and short term investments. So that's just trying to clarify some of the facts here.

So. All right, Todd, thanks. Next one from Benjamin. What happens between year four and five that allows you to go from 10,000 units annually to 100,000 units? Also, even though I'm crying myself to sleep over the stock price, I stand behind you all and what you are doing. Thanks for all the communication and doing what you said you would do. Can't wait to see how everything unfolds. Looking forward to meeting you all someday.

Hey, Ben, I'm going to jump in and I'm going to hand this to Mark, but I just want to acknowledge that you're crying yourself to sleep. I don't even sleep, ma'. Am. But we're all owners here. I know you've been loyal with us since day one and we appreciate that and we're doing everything we can to build the next big thing. And you know, unfortunately we can't control the day to day market price. But we know if we execute and do what we're on the path to do, we're going to get to where we all want us to be. So thanks for being with us. Mark, I'm going to let you jump in and talk about the 10,000 units.

Yeah, thanks Dan. So as partially described before, when we come out of arrive point network deployments that exercise that with partners midway through the plan that that on our roadmap is being executed with a unit called AP5, a next gen unit called AP5 or 5.5. The improvements from going to market and learning with those large scale customers, partners will be incorporated into AP6 which is what will be scaled in the second half of the plan. So and it's being designed even further for to support that scaling. So the first part of that scaling will happen in year four. You know, you can take 10,000 and roughly say that's a target of 1,000amonth. Those will, you know, on average be what we hope to achieve in that time frame and then we'll continue down that path 10xing that on a per month basis to achieve that 100,000 number. We also know that as we get into the manufacturing design, the supply chain Design associated with AP6 that the team will identify a natural kind of break point between low volume production and high volume production that as I said ultimately a decade from now has to be producing millions of units to reach our level of aspiration. So what those exact break points are that we transition from low volume to high volume production facilities. And in year four and five we don't know exactly at this point, we just know that we'll be supporting both activities. One, ramping at low volume in the short term that'll be responsible for 10,000 or more may be able to reach 100,000 on that capability. But in parallel with that we'll be building and ramping either ourselves or with partners TBD the strategy for reaching larger volumes of arrive points.

Thanks Mark. Next one is another submission from Maxim Group analyst Jack Vanderaard. Can you touch on Arai's perspective on M and A and how that fits into the five year plan? Have you been approached by any industry players interested in ma?

Thanks for the question. Jack, this is Dan. I'll take this one. I want to say that we are aggressive and opportunistic about M and A of all kinds. You know we everyone asked me for the last several years, do you want to sell? Do you want to do this? Do you want to do that? My answer has always been I'm not hyper focused on any specific strategy because I believe if you're so focused on one thing, you might very well miss the biggest opportunity that's looming. Because you're so focused on the wrong thing. We explore every opportunity as it comes across our horizon. And I always look at everything through the prism of the last guy that invested $1 in this company. And how would he view that outcome? I know that if he would be happy, I would be ecstatic. So that's how we look at things. Had plenty of chances to divest over the years, sell out, cash out, didn't take any of those. I call us a we the people story. 5000 people pre public beat Amazon by 4 days on our first patent. And we're executing on what I believe is the biggest market opportunity in the world today. I have a kind of a secret aspiration. I say in the next five years we may be acquired by the largest company in the world or we may very well be one of the biggest companies in the world. And that's something that we, that we're guiding toward every single day. If any M and A makes sense. Strategic accretive, something that's going to add value and accelerate what we're doing. We're going to look at it very hard and we're going to get it done if it's something that should be done. And I think that's part of the great opportunity that you get here at Arrive AI is a young aggressive company that's poised to, to really change the world. So thanks for that question, Jack.

And as of right now, this next question is the final question unless any last second submissions come in. But this is from Bill. Oh, we just got another one, so we'll get to it. Two more questions at least. So this next one is from Bill. Is there an advantage of keeping the shares of stock with Odyssey Trust or do you recommend moving the shares to a personal brokerage account?

Thanks Bill. Thanks a lot for your question. Thanks for being with us. There's no advantage or disadvantage being with Odyssey. Odyssey is a safe trust that's holding shares that have yet to be moved. To a brokerage account. One thing I always say is if you do move to a brokerage account, you know we don't want our shares shorted out there. So you can put them in a non margin account where you can have them marked as not available for borrow and that would help all of us. Some people aren't shorting against our interest. But if you don't have any plans to transact your shares, they're perfectly great at Odyssey. I've got shares there and I think it's a great place. And this next one is from Rick, one of the perks of having these live Q and A's is we can clear up some maybe misinformation or get all on the same page. So keep that in mind as I read this question and we will clarify all of these numbers and stats for you. But again from Rick, According to your SEC filing, your current liquid cash assets are $295,000 in the bank. In Q3, you spent 1.6 million on salaries and wages. Your revenue in Q3 was 7,000 for one subscription from Hancock Health. In order to stop drawing from your 40 million equity line to just come cover wages, you would need 228 new similarly sized customers per quarter. He's doing the math here. 1.6 million divided by a 7,000 subscription. What percentage of your workforce is focused on sales to get to 230 new customers per quarter? I'm going to jump in on this Rick. Appreciate the question. Thanks for the math. Now we all know it. I appreciate that. What I would say is, you know, we're executing something bigger than a quarterly cadence. You know, we're building something that's going to change and revolutionize last mile delivery, which is one of the biggest revenue sources of our whole economy. To do that takes a lot of money, takes a lot of brain power. We are recruiting and retaining some of the top mines in the world right here in Fishers, Indiana. I just look back at the track record of what we've done here for the first 11 years. I funded for the first six and a half years, had the idea in 2014. I funded the company out of my own pocket for six and a half years. I always believed that your equity in your company is the way that you finance and capitalize your company. So we didn't take the short money. I was very frugal, spent every dollar like it was our last. We took our first money about four and a half years ago and acquired 5,000 shareholders prior to going public. Raised 15 million in the last four years prior to going public and really built something that a lot of companies try to do and fail. 3/10 of 1% of crowdfunded companies ever go public. The promise of investing in any company is always liquidity. And I promise that to every person that put a dime into this company. And I am proud of the fact that we got there. When we went public on May 15th of this year on the NASDAQ, there was a big drumbeat for us to lock up every shareholder that came into this company. Our whole C team, every employee, every investor. And I would not allow it. I believe the promise of investing in a company is liquidity and I promised I would get everyone to that and we did. And in the event we had a huge up surprise and the stock traded great. I didn't want any person that took the earliest risk on us to be shut out from that. We did trade up to $40 on our first day and that was great. Unfortunately, we didn't sustain that in market conditions. And where we are today is where we are. But I know the best part of this company is ahead of us. We're spending money very frugally. All the money that comes in is very linear to development. We conducted this company squeaky clean from day one prior to even being public. And I'm so proud of that. I stand by that. And you know, if you look at the granular numbers, if we did that, we probably would be afraid to spend another dollar. The reality is we've got the capitalization in place to do what needs to be done. We're building the team. We're committed to doing things the right way. We've got a great world class facility that's creating the ability to streamline efficiently everything that we need to do under a roof in one location. And I'd invite anyone to come to our building, meet our team and if anyone wants to give me a call. My number is 317-694-7520. It's the same number I've had for 40 years. So call me up. I'd love to talk to you more. I love Arav AI. I believe in this more than anything. I sold the business to put every dime I have into this thing and we're going someplace and I hope that Rick, you're going to be with us. So thanks for all your questions everyone.

Kylie. Yep, thanks Dan. That does conclude our question and answer. I'll turn it back over to Liz.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.