Arrive AI Inc. — financial distress indicators
Financial-health summary
Arrive AI Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 51/100). The main indicators are cash runway under 12 months, operations consume cash and share price down >80% from 52-week high. In its favour: high insider/promoter ownership (61%) aligns management with survival.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
At the current free-cash-flow burn, cash covers ~7 months.
Going-concern standard: management must assess ability to continue for 12 months (ASC 205-40). Runway below that horizon forces dilution, asset sales or default.
Operating cash flow negative in 2 of the last 2 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -97% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Last price $0.18.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- High insider/promoter ownership (61%) aligns management with survival.
📰 Recent news scan
- Arrive AI Inc. (ARAI) Stock Price, News, Quote & History - Yahoo! Finance CanadaGoogle News · 2026-10-08
- Arrive AI (NASDAQ:ARAI) Announces $0.65 per Share Direct Investment at 213% Premium to Market; Institutional Investor Signals Interest in Up to $10 Million - USA TodayGoogle News · 2026-10-07
- A drone delivered a package to a handoff point at Arrive AI's showcase. - Stock TitanGoogle News · 2026-10-07
- Arrive AI set its investment price about 213% above its recent trading price. - Stock TitanGoogle News · 2026-10-06
- Arrive AI (NASDAQ:ARAI) Announces $0.65 per Share Direct Investment at 213% Premium to Market; Institutional Investor Signals Interest in Up to $10 Million - MoomooGoogle News · 2026-10-06
- Arrive AI rises on receiving premium-priced direct investment from US firm - TradingViewGoogle News · 2026-10-06
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Arrive AI Inc.'s financial-health indicators show?
As of 2026-10-08, Arrive AI Inc.'s public financial data places it in the 'Weak' band with a distress score of 51/100, driven by cash runway under 12 months, operations consume cash and share price down >80% from 52-week high. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Arrive AI Inc.'s financial distress score?
51/100 ('Weak').
What works in Arrive AI Inc.'s favour?
High insider/promoter ownership (61%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Hardware & Electronics companies with distress indicators
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- Telesat Corporation (TSAT)Very weak 79/100
- Q/C Technologies, Inc. (QCLS)Very weak 77/100
- Boxlight Corporation (BOXL)Very weak 76/100
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.