Arrive AI Inc. has announced the resignation of its independent registered public accounting firm, Stephano Slack LLC, effective October 13, 2026. The separation was described as amicable, with the Company stating that both parties intend to cooperate in facilitating an orderly transition to a successor firm.
The Audit Committee of the Board of Directors acknowledged the resignation and approved the change. According to the filing, Stephano Slack’s audit report on the Company’s financial statements for the fiscal year ended December 31, 2025, did not contain an adverse opinion or a disclaimer of opinion. However, the report included an explanatory paragraph regarding substantial doubt about the Company’s ability to continue as a going concern.
The filing details that during the fiscal year ended December 31, 2025 and the subsequent interim period, there were no disagreements between the Company and Stephano Slack regarding accounting principles, financial statement disclosure, or auditing scope. However, the Company disclosed a reportable event related to a material weakness in internal control over financial reporting. This weakness stemmed from the Company’s failure to maintain sufficient controls to ensure the proper identification, bifurcation, and fair value measurement of embedded derivatives in hybrid financial instruments, or to ensure the effective interest method was applied over the accretion period for host debt instruments containing a discount.
As a result of this material weakness, the Company filed amended Quarterly Reports on Form 10-Q/A for the quarters ended June 30, 2025, and September 30, 2025, to restate financial statements. As of June 30, 2026, the material weakness had not been fully remediated. The Company has authorized Stephano Slack to respond to inquiries from the new auditor, M&K CPAS, regarding this subject matter.
On October 13, 2026, the Audit Committee approved the engagement of M&K CPAS as the Company’s new independent registered public accounting firm. M&K was engaged to review the Company’s interim financial statements for the quarter ending September 30, 2026, and to audit the Company’s financial statements for the fiscal year ending December 31, 2026. The filing confirms that neither the Company nor its representatives consulted with M&K regarding accounting principles, audit opinions, disagreements, or reportable events prior to the engagement.
