Arrive AI Q2 2026 Earnings Report

Arrive AI EPS Results

• Actual EPS: -$0.28
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Arrive AI Revenue Results

• Actual Revenue: $0.01 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Arrive AI Announcement Details

• Quarter: Q2 2026
• Date: 8/13/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 13, 2026
• Conference Call Time: 8:30AM ET

We were incorporated on April 30, 2020, in the State of Delaware under the name of Dronedek Corporation. The Company changed its name to Arrive Technology Inc. on July 27, 2023. The Company changed its name to Arrive AI (NASDAQ:ARAI) on September 30, 2024. We are a developmental technology company with a focus on designing and implementing a commercially viable smart mailbox and platform system for smart, secure, and seamless exchange of packages, goods, supplies, food, and medications between people, through the use of robots, and drones. We have not started conducting commercial operations and we had no revenues for fiscal years 2022, 2023 or 2024. Arrive executed an exclusive patent license agreement on May 26, 2020 with its CEO, Mr. O’Toole and amended in December 2024 and March 2025, whereby Mr. O’Toole granted Arrive rights to use, sell, manufacture and otherwise commercialize certain technologies relating to secured drone delivery ALM mailboxes in exchange for license fees. Such technologies helped jumpstart our business operations and will continue to play such a critical role in our growth that we became heavily reliant on the right to use them. Our corporate address is in Fishers, Indiana.

Arrive AI Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Commercial pipeline is expanding across healthcare, manufacturing, specialty pharmacy, and autonomous delivery. The company cited later-stage discussions, Hancock Regional Hospital’s additional deployment, and partnerships with Nexus AMR and DXC, though only signed agreements will be treated as firm.
• Positive Sentiment: Arrive AI expects more than a dozen AP3 Plus units to be in stock and ready to ship by mid-September, while AP4 is targeted for the first quarter of 2027. Management said the AP4 supply chain is designed to support hundreds of units during 2027, with later generations intended to scale further.
• Negative Sentiment: Financial results remain very small relative to the company’s spending needs. Second-quarter revenue was $14,700, while net loss was $14.1 million, or $4.3 million excluding $9.7 million of non-cash note-conversion expenses; cash and liquid investments totaled $5.1 million against an approximately $1.1 million monthly burn rate.
• Negative Sentiment: Management emphasized that additional financing will be needed or may be pursued, citing a $100 million S-3 registration, a potential $15 million ATM offering, and $19 million of remaining equity-line capacity. Executives said the company is not at immediate risk of running out of funds, but these financing options could result in dilution and reflect ongoing liquidity pressure.
• Positive Sentiment: The company highlighted a growing intellectual-property portfolio, including 10 issued U.S. patents, 13 international patents—primarily in Asia—and a recently approved European patent. Arrive AI plans to explore licensing opportunities in Asia and Europe, although the commercial value of these efforts has not yet been demonstrated.

Presentation

[Operator]

Good morning, everyone, and thank you for joining us today. On the call is Dan O'Toole, Arrive AI's Chairman, CEO, and Founder, along with Ian Geise, our Head of Commercialization, who's joining us for the first time today. The rest of Arrive AI's leadership team is also here to answer questions later in the call. The earnings press release issued this morning is available in the investor relations section of the company's website at 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 are subject to risks and uncertainties that could cause actual outcomes to differ materially. We encourage investors to review the risk factors section detailed in Arrive AI's SEC filings, which are also available on the company's website.

[Operator]

Now, I will turn the call over to Arrive AI CEO, Dan O'Toole.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thank you. Hey, everyone. Dan O'Toole here. Thank you for joining us today. We're going to keep our prepared comments concise, so let's get right to it. I also want to say, why don't you ever see elephants hiding in trees? Because they're definitely not good at it. But I really want to say the elephant in the room is Arrive AI. We're seeing a huge uptick in big players wanting to explore deploying our technology, and that is what is really exciting. So, let's get this going. To start this morning, I'd like to welcome Piyush Phadke as Arrive AI's new CFO, Chief Financial Officer, effective August 17th. As detailed in this morning's press release, Piyush brings more than two decades of Wall Street experience, including senior capital markets roles at Bank of America, BTIG, and Jefferies before moving into public company CFO leadership.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

That combination gives him a rare vantage point. He sat on the banking side structuring financing for growth companies, and he sat in the CFO seat managing the balance sheet and investor relationships that come with public company life. What stood out to me most is how aligned Piyush is with our vision for Arrive AI. He understands the scale of the opportunity in front of us in autonomous logistics, and he's just as focused as we are on translating this quarter's commercial traction into long-term shareholder value, which I will elaborate on shortly. We'll hear directly from him on future calls and in the investor conversations as we move forward. I also want to thank Todd Pepmeier for his contributions while here at Arrive AI. Now let's get into it.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

What is driving the business forward, including real commercial traction, continued technology progress, and a clear opportunity ahead for Arrive AI. The prepared remarks you are about to hear will be delivered using the AI-generated versions of both mine and our Head of Commercialization's voice, Ian Geise. That is the same format that we have used in the past. For us, this reflects how we think about artificial intelligence as a practical tool that can improve efficiency, scalability, and communication, the same philosophy that drives our platform and autonomous logistics network. After the prepared remarks conclude, we will return to a live question and answer session of questions that were submitted ahead of this call. With that said, let us begin the prepared remarks. Thanks, everyone.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

This quarter, we want to spend less time talking about where we are headed in the abstract and more time talking about the deals and partnerships and the progression we have made over the past several months. We expect to have more than a dozen AP3 Plus Arrive Points in stock and ready to ship by mid-September, representing our first wave of expanded availability and the solidification of our supply chain. Looking ahead, we are already developing the AP4, which is targeted for the first quarter of 2027 and will build on what AP3 Plus brings to the network. This is ideal timing to take advantage of the commercial traction we are seeing in the second half of the year. To walk through that in detail, I have asked Ian Geise, our Head of Commercialization, to join us today for the first time.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Ian leads our commercial pipeline, and he is going to provide you with an inside look at where things stand.

[Ian Geise, Head of Commercialization at Arrive AI]

Thanks, Dan. It is easiest to think about our pipeline across three industries where we are seeing the strongest traction right now: healthcare, manufacturing, and specialty pharmacy delivery. In healthcare, Nexus AMR is pleased to partner with us to deliver end-to-end autonomous solutions for customers across multiple industries. The integration of Arrive AI's products into their automation portfolio enhances productivity and expands the value they deliver to healthcare organizations and other businesses facing persistent and growing labor challenges. Customers from around the world regularly visit the TechNexus Innovation Center, where they showcase best-in-class autonomous mobile robots and emerging technologies. Nexus is proud to feature Arrive AI's innovative solutions and has welcomed us as a key strategic partner. Hancock Regional Hospital remains our anchor healthcare deployment, and this quarter, Hancock expanded their network by adding an additional Arrive Point, enabling building-to-building movement.

[Ian Geise, Head of Commercialization at Arrive AI]

This is a significant milestone since demand for building-to-building movement and secure exchange will be paramount in healthcare and large campus facilities. In manufacturing, we've partnered with DXC to bring our technology into large pharmaceutical manufacturing environments, facilities with a global footprint. Each spanning 500,000 sq ft or more, where moving product across the campus, including by drone for longer distances, is a real operational need. DXC's systems integration expertise also helps us plug into large enterprise customers faster than we could on our own. We've also announced a letter of intent with LifeSpan Pharmacy and CarDon & Associates to explore an autonomous drone pharmacy delivery program. We are also engaged in early-stage discussions with several Fortune 500 companies regarding potential pharmaceutical delivery opportunities. We're also seeing broader momentum with our autonomous delivery partners.

[Ian Geise, Head of Commercialization at Arrive AI]

Avride, which builds autonomous delivery robots backed by one of the industry's longest-running autonomous driving programs, became the continuity partner for universities when Starship Technologies exited U.S. campus operations. By the end of this year, Avride expects to be operating on more than 20 campuses nationwide, working with Grubhub, Uber Eats, and major food service operators. What's next for Avride is more campuses, expanded city deployments, faster and more reliable service, and most importantly, where we fit in, creating partnerships across the ordering and logistics stack, so last-mile delivery becomes truly autonomous end-to-end. This mutual goal will be key as we identify potential partners. As of today, we have a growing number of commercialization conversations underway, and a meaningful subset of those have already progressed into second and third-round discussions. These later-stage conversations are with partners we believe are the most likely to move forward into formal agreements.

[Ian Geise, Head of Commercialization at Arrive AI]

We're introducing this framing to give you a clearer view into the momentum we're seeing and our traction with potential partners. At the same time, we'll continue to only treat agreements as firm once they're signed, and we'll announce each finalized partnership individually as it's secured. We expect to keep building on this across healthcare, manufacturing, and specialty delivery in the coming quarters.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks, Ian. On the financial side, given the very recent CFO transition, I will walk through the highlights for the second quarter results. Second quarter revenue was in line with Q1 at $14,700 for the quarter. Our recently announced expansion with Hancock Regional Hospital is expected to produce incremental revenue in the third and fourth quarters this year. Excluding revenue from a non-recurring consulting project in the year-ago quarter, revenue was up slightly year-over-year. Net loss for the second quarter was $14.1 million, compared to the $3.7 million net loss in the second quarter of 2025. However, the reported net loss includes $9.7 million in non-cash expenses related to the conversion of our outstanding notes. Excluding these non-cash expenses on a non-GAAP basis, net loss for the second quarter was $4.3 million.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Cash and liquid investments on hand were $5.1 million at June 30, an increase from $2.1 million in cash at December 31. Our current cash burn rate is approximately $1.1 million per month. During the quarter, we completed the filing of an S-3 registration statement for up to $100 million. We also finalized the terms of our at-the-market offering, or ATM offering, up to a maximum capacity of approximately $15 million. The amount and timing of sales under that agreement will be disclosed quarterly as required. In addition, we retain the available capacity of $19 million in future prepaid advances under our previous 2025 equity line facility. I also want to speak directly to something I know is on a lot of people's minds, our ability to keep funding this business going forward.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

We continue to have real optionality in front of us right now on financing, and Piyush's capital markets background is already helping us sharpen how we think about those paths. Our current cash burn reflects deliberate investment in the team, technology, and infrastructure required to convert our commercial pipeline into scaled revenue, and we're being careful about which financing and operating decisions we make and when to do what's right for shareholders over the long term. At the same time, we are prudently managing operating and investment spend to drive growth while maintaining a disciplined focus on the balance sheet. I want to be direct about this. We are not in a position where we're at risk of running out of funds. We have options, and with Piyush's experience structuring financing for growth companies, we're working through them strategically and with real discipline.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

To wrap up, this quarter is about proof, real partnerships, real deployments, and real momentum in our pipeline across healthcare, manufacturing, and specialty delivery. We appreciate your continued support and engagement. With that, Ian and I will now return live for Q&A along with the rest of our team.

[Operator]

Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. Our first question comes from Jack Codera with Maxim Group. You may proceed.

[Jack Codera, Analyst at Maxim Group]

Hi. Thank you. This is Jack Codera calling in from Maxim Group. Thanks for taking my questions. You guys highlighted a couple partnerships. You mentioned there about a dozen Arrive Points kind of targeted to be ready to ship, I think you said by the end of this year. I am wondering how many Arrive Points do you have out there operating right now, and how does that connect to, for example, this 20 campuses you are taking over? Is that an incremental 20 Arrive Points? How should we be thinking about that?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. Hey, real quick, thanks for being on the call here, Jack. Dan O'Toole, CEO. I just want to say that the over dozen units that we mentioned in the earnings call represents a huge multiplier of our past deployments. While over a dozen isn't a huge number in the abstract, it really marks a lot of traction that we are seeing, and it is a huge multiplier on what we have had deployed so far. I think the trajectory is really vertical from where we are going and what we are doing. I am going to let Ian Geise, our Head of Commercialization, take the last part of that question. Go ahead, Ian.

[Ian Geise, Head of Commercialization at Arrive AI]

Yeah, just to clarify the statement on campuses, the news that was iterated in that statement had to do with Avride's takeover of Starship's departure from campuses to do on-campus delivery. We are in early conversations with Avride right now of employing the Arrive Point network into potential pilot programs, of which we could increase efficiencies for unattended delivery.

[Jack Codera, Analyst at Maxim Group]

Okay. Yeah, that is perfect clarification. It is exciting to see that you are getting a multiplier on kind of what was existing out there. The big question is, what are the big sticking points that you are kind of seeing that will enable you to start talking about Arrive Points in hundreds of Arrive Points or thousands of Arrive Points? Is it more about adoption? Do you need more manufacturing scope? I would just like to get your thoughts on the main sticking points.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. Thanks, Jack. We appreciate the thoughtful questions and the opportunity to share these answers that I'm sure a lot of people are thinking about. I'm going to ask Mark Hamm, our COO, to take that one. Mark?

[Mark Hamm, COO at Arrive AI]

Yeah. Thanks, Jack, for the question. In Q1, we consolidated our roadmap, our product plan, our supply chain, and the delivery of the 12 units in September. That's the first installment on new units, it's called AP3 Plus, that have our new operating system and our new software that enables operators and customers to see everything that's going on with their Arrive Points and their network. What comes in Q1 is AP4, which is the first product that will support multiple deliveries at once, AMR pickup and drop off at the same time, drone delivery. That supply chain has been designed to scale to hundreds over the course of 2027. Remains to be seen if we deploy that many, but that's what we're looking at supply chain-wise.

[Mark Hamm, COO at Arrive AI]

The following year, we would have prototypes at the end of next year for APX, the future generation, or AP5 you may hear it called, which is designed for even greater capacity and more automated handoffs in more situations. That supply chain is being designed for thousands, tens of thousands. So it's a progression, a ramp, and kind of in parallel, once the supply chains are in place for that, go-to-market follows that and provides the opportunities.

[Jack Codera, Analyst at Maxim Group]

Okay. Yeah, that's super helpful color. Congrats on the continued progress, and thanks for taking my questions.

[Mark Hamm, COO at Arrive AI]

Yep.

[Operator]

Thank you. I would now like to turn the call back over to Arrive AI for questions.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah, real quick. This is Dan. I am going to take this opportunity to introduce Piyush Phadke, our new CFO. Piyush, thanks for joining the call, and thanks for joining the company. I am really excited. I want to give a quick shout-out, I guess, to Adele with Alliance Advisors, our trusted partner, our investor relations firm. They knew we were looking to get a really like-minded, educated, or street-wise, I guess you could say, CFO. My personal wish list was somebody that was entrepreneurial, somebody that could navigate the capital markets, could narrate an earnings report to analysts and investors, and be M&A-minded. I think we got exactly what we are looking for.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Piyush, if you are there, I would like to say hey to you and have you give a little bit of a background on yourself to our investors.

[Piyush Phadke, CFO at Arrive AI]

Sure. Thank you. Thank you, Dan, and thank you to the team and to investors who have joined this call. So I am Piyush Phadke. I am the new CFO of Arrive AI. I am very excited to be here. I really believe in the mission and believe we are the future of autonomous deliveries. For me, joining was all about fit. I came to the office near Indianapolis last week and spent three days there with everyone, from Dan to all the C-suite, developers, engineers. The thing that I noticed was just really the energy that flows from Dan, but really everyone was just so excited to be there and to be able to be building something that is going to be big. I was able to see a kind of a demo of an Arrive Point, and I had never seen it before other than on the website.

[Piyush Phadke, CFO at Arrive AI]

It was really interesting to see that live and see how the different technology works. So I am really excited for the opportunity, and I am looking forward to doing a lot of great things with Dan and team.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks so much, man. We're looking forward to really leveraging your relationships and getting our sleeves rolled up and getting us to the next level. Really excited to have you on our team, man. I can't wait to hit the ground running here. I want to turn this over to Tasha Jones, our head of marketing, and she's going to tee up some questions, I think. Tasha?

[Tasha Jones, Marketing Communications Manager at Arrive AI]

Yep. The first question we have here, we received several questions about the stock price and the NASDAQ compliance, including concerns about a potential delisting or liquidity issues. This comes from Leon, Jake, Robert, and Frans Guy.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

The way we're going to format this, I'm going to assign questions so we're not tripping over each other. I'll assign answers, and I'm going to take this one myself, Dan O'Toole, CEO. Obviously, the big thing every day is share price, traction, delisting, all these kind of things. I can tell you this. We went public over a year ago, 5,000 pre-public investors on our cap table. We have everyone shoulder to shoulder with us, and we think about share price, market traction, having a great product. There's a whole formula of specifics that come together that equal your share price, your market cap, and how you're viewed in the market. I can tell you, when we went public a year ago, it was never in the plan to be profitable day one. It was never in the plan to be revenue neutral day one.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

What was in the plan was to lose money. That wasn't because we wanted to lose money. It's just a reality. When you're running in a race, you don't start at the fastest speed. You start from a standing stop, and you get faster and faster. I can tell you, we are getting faster and faster. The amount of inbound inquiries that are coming into our company are bigger than we've ever seen. In the last 30 days, we've had more inquiries than we've had in the history of the company put together. The market is taking note of what we're doing, and they're realizing that autonomous delivery and pickup of all sorts will not happen without an Arrive Point in that ecosystem. We unlock autonomy. We're creating a frictionless environment between drones, robots, AVs, and people, and that is what the market needs.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Shareability, when you are dropping things on the ground or picking them up from the ground, is a non-starter. When you add unattended delivery from Arrive AI, it all changes. When you guys invested in this company, you invested in our IP. Where our IP starts, where autonomous delivery and pickup starts. So if you have a locker or a mailbox, that is fine, that is public domain, that is old. When you have this new element of autonomous delivery and pickup, where everything is going, that is Arrive AI. We are building that infrastructure. We own the doorstep to every home and business throughout the world. So that is what you are investing in. Tash, I am going to hand it back to you.

[Tasha Jones, Marketing Communications Manager at Arrive AI]

Yeah. So we also received a couple questions asking us to describe our growth plan for the remainder of this year and next, including how we plan to scale revenue and secure purchase orders, letters of intent, and strategic partners agreements. This was Raul and Albert's question.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I am going to hand that one to Ian. Ian is our head of commercialization. Go ahead, Ian.

[Ian Geise, Head of Commercialization at Arrive AI]

Thank you for the question. I think we addressed most of that in my prepared statement, but I will go ahead and answer it, especially off the great words that Dan just stated, and that is the amount of awareness that is now for the inefficiencies of drop-off, pickup throughout all of the different companies that have been launched, whether it is drone companies or robotics companies. There is more and more awareness for what is lacking, and that is indeed the Arrive Point of being able to do the handoff and the pickup. Nexus saw this clearly, and we created that partnership with Nexus, and we are getting more and more leads that are coming in the pipeline for hospital systems, medical, pharmaceutical, and they keep growing exponentially. So we anticipate very big things from all of these different elements of our pipeline.

[Ian Geise, Head of Commercialization at Arrive AI]

As Mark stated, in terms of the product deployments, we are being very careful with how we are allocating that product and getting it in the best fit for the next 12 months and forward.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Tash?

[Tasha Jones, Marketing Communications Manager at Arrive AI]

Okay, so this next one comes from Ryan, who has been with us since those DroneDek days. What do you feel has been the biggest challenge with running a new publicly traded company in front of such a broad audience with the ability to say whatever they want, whenever they want, and what has been the biggest advantage?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I would say no challenge, Ryan, just opportunity. Thanks for asking. Thanks for being with us since the beginning. Never forget the OG guys. Brian Grigsby, Jeff Kong, others. Appreciate everybody that is out there listening today. We know that you care. Just opportunity. No two days are the same. Every day is an exciting new day. You come in, I know Piyush mentioned the energy in the office. Every day I come in here, it is palpable. You can see high morale. You can see a dizzying evolution of projects. The people are prideful. Everyone is trying to outmaneuver the next guy with great ideas and pride and being able to show off. We have a normal showcase of sharing what is happening here, and we all rally and share that every day. I would be a hypocrite if I said anything was a negative.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

While there are things that are not great sometimes, you got to take the bad with the good. This is everything that I signed up for. It is better than I could have ever imagined. I know our share price is down, and I am not diminishing that. But what I am saying is, I have come up with a mantra, what goes down must go up. It is anti-gravity, and that is what we are doing here at Arrive AI. I welcome questions, not just on these earnings calls, but everybody knows how to reach me, and I want to be there for you guys. So, thank you for that question, Ryan.

[Tasha Jones, Marketing Communications Manager at Arrive AI]

Okay. This next one is, we received a question about brand awareness, specifically how we are approaching marketing, given that many investors say they do not hear Arrive AI's name come up in their industries.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Mark, do you want to take that one?

[Mark Hamm, COO at Arrive AI]

Yeah. Just as we go through phases on developing our product and our supply chain, there are natural phases to how we develop our capabilities to go to market, and along with that, our brand. While it took a lot of attention and evangelizing the future of drone and robotic delivery to get here and to get funded and to put these resources and team in place, I think everybody is well aware of all the efforts from Walmart and Zipline and just everybody out there, DoorDash. That is no longer in question. What we are focused on now is kind of that rifle shot approach to enterprise accounts and partners that are really the early innovators, the strategic investors in infrastructure like ours, and what does it mean to market to them account by account.

[Mark Hamm, COO at Arrive AI]

You probably do not run into a lot of advertising for GE or Rolls-Royce aircraft engines in your life because you are not the purchaser of those things. We are looking for those equivalents in our industry that need to understand the awareness, the trade-offs, the chain of custody advantages, the efficiency advantages that our network brings to their fleets and their communities and their campuses, and that is where our marketing is focused and our branding is focused on.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thank you. Yeah?

[Tasha Jones, Marketing Communications Manager at Arrive AI]

Yeah. Finally, you guys have had some strong patent news internationally. What's next? Are you guys looking at Asia? This one's from Rohan.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Let's give that one to John Ritchison, our Chief Legal Counsel and our patent attorney. John?

[John Ritchison, Corporate Counsel at Arrive AI]

Thanks, Dan. That's a great question. Appreciate that question from the standpoint it gives me a lead-in to talk a little bit about our IP. I'm going to break it up into twfour parts. First, let me speak to the U.S. IP. We currently have 10 approved patent or issued patents. We've got 4 more pending in the patent office. With that, we believe we've got covered the initial IP that we need for a strong moat to keep us in a competitive position. I think Piyush mentioned about the energy that he saw when he was there. I'd say it's more than energy. There's a lot of strength in our young engineers. The men and women that are out there have come up with a lot of great ideas.

[John Ritchison, Corporate Counsel at Arrive AI]

I'm sure they're out there, but I don't know of any other company right off the top that's got their IP attorney right on site with their engineers. That's one thing that we do, and we try to strongly take those ideas. Currently, we've got about 19 ideas that are in the hopper. Those are coming through at the rate as the engineers finish up their design and development. But again, that's the U.S. Now let me turn to the second part, and that's the international. We haven't talked much about the international, but we've been very strong in getting our patents across the pond and working out there. The specific question was Asia. To date, we've got 13 issued patents. Most of those are in Asia, with the exception, I think, of South African and Brazil patent. The rest of them are in Asia proper, India, Singapore, Australia, Japan.

[John Ritchison, Corporate Counsel at Arrive AI]

I could list them, but that takes too much time. That's exciting from the standpoint that Asia is an immediate place that we have decided to start working hard on trying to look at how we can take these international patents and doing some licensing with local concerns. The other part of international that we don't talk about much, and I don't want to get too technical, but that's Europe. Most of the people in this room know it, but I'm sure the people on the call don't. We just recently got approved with our first patent for the European Union. That opens up the entire European for us to go ahead and open up those additional countries. Along with the Asian efforts, we now have the strong results, and we'll start heading up into Europe with our international licensing opportunities. Turn it back to Dan.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

John, another quick question. You would agree that we have a strong first position patent portfolio in this space, wouldn't we?

[John Ritchison, Corporate Counsel at Arrive AI]

Yeah. I don't have it memorized like Dan does, but we beat several strong companies, Amazon, UPS. With that X, a few others, and with that, when I say beat, our patents got out and approved by the patent office before theirs did. So that put us in a first position. But I'd also be less than honest with you if I didn't say that a first position's nice, but our first position also comes with a strong number of claims. So we've got a lot of components and features in there. I thought that they were pretty well complete, and then I met these 40 engineers that we've got on site that are thinking totally out of the box, so we've got a lot more stuff coming down the pipe.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

One more patent that people don't think about us for, if you could just throw something up about this, our winch patent for a drone elevator.

[John Ritchison, Corporate Counsel at Arrive AI]

Yeah. That was one of the things with our strategic purchase. We pulled in a, what we call around here, a winch patent, which is a different way to handle the product coming from the drones. It's unique, and it allows you to focus or drop that package in a much more organized and controlled method.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. Thanks a lot. Hey, I just want to say, appreciate everybody listening to the call, caring enough to want to know what we're up to. From a bird's-eye view here at Arrive AI, I just want to say that the trajectory is strong. We are on track with every deliverable that we mark and take note of. We are right on pace with every aspect of this business. We're running on all cylinders. Things are amazing in regard of getting recognized in the marketplace. I want to thank everybody for joining the call today. Also want to give a shout-out to my son, Bryce O'Toole, who's listening from his investment banking internship in New York City right now. Go get them, Bryce. Thanks, everybody. Back to our operator.

[Operator]

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

Participants

Executives

• Dan O'Toole, Chairman, CEO, and Founder
• Ian Geise, Head of Commercialization
• Mark Hamm, COO
• Piyush Phadke, CFO
• Tasha Jones, Marketing Communications Manager
• John Ritchison, Corporate Counsel

Analysts

• Jack Codera, Analyst at Maxim Group