Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $8 million or $0.46 per share in Q1 2025, an improvement from a GAAP net loss of $8.5 million or $0.93 per share in Q4 2024, primarily due to a non-cash adjustment related to lease liabilities [27][28] - Non-GAAP net loss was $5.8 million or $0.33 per share in Q1 2025, compared to a non-GAAP net loss of $6.3 million or $0.69 per share in the prior quarter [28] - Cash burn for Q1 2025 was $8 million, which included $3.1 million of one-time payroll expenses, with expectations for a normalized run rate of about $5 million per quarter moving forward [25][29] Business Line Data and Key Metrics Changes - The Apollo LiDAR solution has reached a critical milestone with the first units produced, marking a significant step towards high-volume production [6][13] - The company is in the final testing and validation stage of integration with NVIDIA DRIVE, which is expected to enhance customer engagement and sales opportunities [7][18] Market Data and Key Metrics Changes - The company has successfully raised $24 million over the past fourteen months, including $13 million in Q1 2025, which reflects strong market enthusiasm for its technology [22][12] - The total addressable market (TAM) for intelligent transportation systems (ITS) alone is estimated at $20 billion, indicating substantial growth potential beyond the automotive sector [58] Company Strategy and Development Direction - The company has pivoted its strategy to focus on the automotive sector, developing a single high-quality product for Advanced Driver Assistance Systems (ADAS) while maintaining flexibility for adjacent markets [8][11] - A capital-light model has been adopted, significantly reducing operating expenses by 75% and headcount by nearly 60%, which positions the company for sustainable growth [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and adapt to industry changes, emphasizing a culture of operational discipline and innovation [10][19] - The company is optimistic about future growth opportunities, particularly in the automotive and non-automotive sectors, as it continues to engage with OEMs and expand into international markets [12][19] Other Important Information - The company resolved a lease dispute, reducing potential cash liability exposure from $6.4 million to $1.4 million, which is expected to provide a solid foundation for future operations [22][48] - The Apollo sensor's software-defined capabilities allow for rapid modifications, enabling the company to engage with various customers across different markets without significant increases in spending [17][56] Q&A Session Summary Question: Clarification on the real estate litigation timing - The lease liability was adjusted in Q1, with actual cash payout expected in Q2 [35] Question: Cash burn trend for the rest of the year - A normalized run rate is expected to be about $5 million per quarter, with Q2 anticipated to be slightly higher due to lease settlement liabilities [38] Question: Integration with NVIDIA and its impact on manufacturing scaling - The integration process is in the final testing phase, which will open up NVIDIA's ecosystem for scaling conversations with OEMs [42] Question: Inventory levels and manufacturing scaling timing - The company has sufficient inventory for anticipated short-term demand, with some ramp expected this year [45] Question: Market size comparison between automotive and non-automotive sectors - The automotive market is vast with 90 million vehicles sold annually, while non-automotive markets also present significant opportunities, particularly in ITS [58]

Strategic Priorities & Achievements - AEye launched Apollo lidar sensor into global markets[14] - The company reduced operating expenses by 75%[16] - AEye raised $24 million and secured access to up to $74 million in liquidity[17] - Apollo manufacturing line at LITEON is now operational[20] - The company raised $13 million in gross proceeds in Q1[25] Financial Performance - Q1 2025 GAAP Net Loss was $(80) million[35] - Q1 2025 GAAP EPS was $(046)[35] - Q1 2025 Non-GAAP Net Loss was $(58) million[35] - Q1 2025 Non-GAAP EPS was $(033)[35] - The company updated FY 2025 cash burn guidance to be in the range of $27 million to $29 million[37]

[Q1 2025 Earnings Release Overview](index=1&type=section&id=Q1%202025%20Earnings%20Release%20Overview) [Business & Operational Highlights](index=1&type=section&id=Business%20%26%20Operational%20Highlights) AEye achieved significant operational milestones in Q1 2025, including manufacturing the first Apollo units with its Tier 1 partner LITEON and advancing integration with NVIDIA's DRIVE platform, while expanding its customer pipeline beyond automotive into new markets - The first units of the Apollo lidar sensor have been manufactured by Tier 1 partner LITEON, with B-sample deliveries to automotive OEMs expected in **Q2 2025**[4](index=4&type=chunk)[6](index=6&type=chunk) - Reached the final testing stage for Apollo's integration into the NVIDIA DRIVE platform, aiming for wider adoption in ADAS and autonomous driving[4](index=4&type=chunk)[6](index=6&type=chunk) - Secured new customer agreements in Intelligent Transportation Systems and Defense, demonstrating product versatility[6](index=6&type=chunk) - Over **20 potential customer engagements** are moving towards proof-of-concept deployments, indicating a growing sales pipeline[6](index=6&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) In Q1 2025, AEye reported a GAAP net loss of **$8.0 million** and a non-GAAP net loss of **$5.8 million**, ending the quarter with **$25.9 million** in cash and marketable securities and a total potential liquidity of approximately **$74 million** - Ended Q1 2025 with **$25.9 million** in cash, cash equivalents, and marketable securities[8](index=8&type=chunk) - Total potential liquidity stands at approximately **$74 million**, intended to fund the production ramp-up of Apollo[8](index=8&type=chunk) - Q1 2025 cash burn was **$8.0 million** (excluding net financing), which is expected to decrease throughout the year[7](index=7&type=chunk) - Successfully resolved a lease litigation, reducing the potential cash liability from **$6.4 million** to **$1.4 million**[7](index=7&type=chunk) [Key Financial Results (Q1 2025)](index=1&type=section&id=Key%20Financial%20Results%20%28Q1%202025%29) For the first quarter of 2025, AEye reported a GAAP net loss of **$8.0 million**, or **$(0.46)** per share, an improvement from a **$10.2 million** loss in Q1 2024, with revenue increasing to **$64 thousand** Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $64 thousand | $20 thousand | | Gross Loss | $(32) thousand | $(243) thousand | | GAAP Net Loss | $(8.0) million | $(10.2) million | | GAAP EPS (basic & diluted) | $(0.46) | $(1.61) | | Non-GAAP Net Loss | $(5.8) million | $(7.2) million | | Non-GAAP EPS (basic & diluted) | $(0.33) | $(1.13) | | Adjusted EBITDA | $(5.9) million | $(7.7) million | - The weighted average common shares outstanding increased significantly to **17.4 million** from **6.4 million** year-over-year, impacting per-share metrics[19](index=19&type=chunk)[21](index=21&type=chunk) [Financial Position (Balance Sheet)](index=5&type=section&id=Financial%20Position%20%28Balance%20Sheet%29) As of March 31, 2025, AEye had total assets of **$28.8 million** and total liabilities of **$11.8 million**, with cash and marketable securities totaling **$25.9 million** Balance Sheet Summary (As of March 31, 2025) | Account | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $26,962 | $25,171 | | *Cash and cash equivalents* | *$5,267* | *$10,266* | | *Marketable securities* | *$20,659* | *$12,012* | | **Total Assets** | **$28,796** | **$27,120** | | **Total Current Liabilities** | $10,769 | $11,307 | | **Total Liabilities** | **$11,798** | **$11,996** | | **Total Stockholders' Equity** | **$16,998** | **$15,124** | [Statement of Operations](index=6&type=section&id=Statement%20of%20Operations) For the three months ended March 31, 2025, AEye's revenue was **$64 thousand** with a gross loss of **$32 thousand**, while total operating expenses significantly reduced to **$6.8 million** - Revenue increased to **$64 thousand** in Q1 2025 from **$20 thousand** in Q1 2024[19](index=19&type=chunk) - Total operating expenses decreased by **35.5% YoY** to **$6.8 million**, driven by a **$1.0 million** reduction in R&D and a **$2.7 million** reduction in G&A expenses[19](index=19&type=chunk) - Loss from operations improved to **$(6.8) million** from **$(10.7) million** in the prior-year quarter[19](index=19&type=chunk) [Statement of Cash Flows](index=7&type=section&id=Statement%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities was **$7.8 million**, with **$8.6 million** used in investing activities, while **$11.4 million** was provided by financing activities, resulting in a net decrease in cash of **$5.0 million** - Net cash used in operating activities was **$(7.8) million**, comparable to **$(7.9) million** in Q1 2024[20](index=20&type=chunk) - Net cash used in investing activities was **$(8.6) million**, a significant shift from **$0.4 million** provided in Q1 2024, mainly due to higher purchases of marketable securities[20](index=20&type=chunk) - Net cash provided by financing activities was **$11.4 million**, a substantial increase from **$0.1 million** in Q1 2024, primarily from **$2.95 million** in convertible note proceeds and **$9.5 million** from common stock issuance[20](index=20&type=chunk) [GAAP to Non-GAAP Reconciliation](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) AEye reconciled its Q1 2025 GAAP net loss of **$8.0 million** to a non-GAAP net loss of **$5.8 million**, adjusting for items like stock-based compensation and changes in fair value of liabilities Q1 2025 GAAP to Non-GAAP Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(8,016)** | | Stock-based compensation | $2,501 | | Stock issuance and debt issuance costs | $2,095 | | Gain on termination of operating lease, net | $(1,685) | | Change in fair value of convertible note and warrant liabilities | $(680) | | **Non-GAAP net loss** | **$(5,785)** | [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) AEye has revised its full-year 2025 cash burn forecast to a range of **$27 million** to **$29 million**, an increase attributed to a one-time litigation settlement and potential convertible note repayment - Full-year 2025 cash burn is now expected to be between **$27 million** and **$29 million**[9](index=9&type=chunk) - The increase from the previous **$25 million** forecast is due to a one-time litigation settlement and potential repayment of a convertible note[9](index=9&type=chunk) - Excluding these one-time costs, the underlying cash burn rate is consistent with previous guidance[9](index=9&type=chunk) [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides standard corporate disclosures, including a description of AEye's software-defined lidar technology, an explanation of non-GAAP financial measures, and a detailed list of forward-looking statements and associated risks - The company uses non-GAAP net loss and Adjusted EBITDA to provide additional insight into ongoing performance, adjusting for items like stock-based compensation and changes in fair value of liabilities[12](index=12&type=chunk)[13](index=13&type=chunk) - The press release contains numerous forward-looking statements regarding production, partnerships (NVIDIA, LITEON), market expansion, and financial projections (cash burn, liquidity), along with extensive risk factors that could cause actual results to differ[14](index=14&type=chunk)[15](index=15&type=chunk)

Part I [Business](index=4&type=section&id=Item%201.%20Business) AEye develops high-performance, active lidar systems for vehicle autonomy and robotic vision, primarily through Tier 1 automotive partnerships - AEye provides high-performance, active lidar systems for vehicle autonomy, ADAS, and robotic vision applications, utilizing its proprietary **4Sight™ Intelligent Sensing Platform**[14](index=14&type=chunk) - The company employs a **channel model** for the Automotive market, partnering with **Tier 1 suppliers** who manufacture and sell lidar solutions incorporating AEye's technology, from which AEye expects to receive **royalty payments**[18](index=18&type=chunk)[30](index=30&type=chunk) - In **June 2024**, AEye launched **Apollo**, its next-generation lidar sensor, suitable for both automotive and non-automotive applications with a detection range of up to **1 km**[39](index=39&type=chunk) - The company has partnered with **Accelight Technologies, Inc.** and **LighTekton Co., Ltd.** to deliver its lidar solutions to the **China market**, which is expected to grow to **$2.5 billion** over the next 3 years[33](index=33&type=chunk) - As of February 1, 2025, AEye owned **94 U.S. and foreign issued patents** and had **44 pending patent applications**[53](index=53&type=chunk) - The company is involved in a legal dispute with a former landlord over a terminated lease, with the landlord demanding approximately **$4.35 million**, net of a retained security deposit[66](index=66&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) AEye faces significant risks from historical losses, reliance on Tier 1 partnerships, uncertain lidar market adoption, and intense competition - The company is an early-stage company with a history of losses, incurring a net loss of approximately **$35.5 million** in 2024, and expects to continue incurring losses for the next few years[73](index=73&type=chunk) - AEye's business model relies heavily on relationships with **Tier 1 automotive suppliers**. The company's previous Tier 1 partner, **Continental**, discontinued their joint program in late 2023, and the company is now working with **LITEON**[79](index=79&type=chunk) - The company will need to raise **additional capital** to execute its business plan. Its ability to do so may be limited by "baby shelf" rules under SEC regulations, as its public float is **below $75 million**[80](index=80&type=chunk)[81](index=81&type=chunk)[83](index=83&type=chunk) - Market adoption of lidar is **uncertain** and may develop more **slowly** than expected, which would adversely affect the business. The company faces **competition** from other lidar developers as well as alternative technologies like cameras and radar[109](index=109&type=chunk)[146](index=146&type=chunk)[151](index=151&type=chunk) - The company relies on third-party suppliers, with some key components coming from **limited or single sources**, making it susceptible to **supply shortages** and **cost fluctuations**[113](index=113&type=chunk) - A lawsuit was filed against the company's subsidiary in **August 2024** regarding a breach of a former office lease, with the landlord claiming damages could be up to **$8.5 million**[187](index=187&type=chunk) [Unresolved Staff Comments](index=51&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[243](index=243&type=chunk) [Cybersecurity](index=51&type=section&id=Item%201C.%20Cybersecurity) AEye manages cybersecurity risks through established processes, Board oversight, and expert IT management, reporting no material threats to date - The company has **established processes** to identify, manage, and **mitigate material risks** from cybersecurity threats, including monitoring IT infrastructure, employing security tools, and engaging external experts[244](index=244&type=chunk) - Cybersecurity oversight is handled by the **Board of Directors**, primarily through delegation to the **Audit Committee**, which receives periodic reports from management[246](index=246&type=chunk) - The day-to-day cybersecurity program is managed by the **Director of IT**, who reports to the Chief Financial Officer and has over **39 years of IT experience**[247](index=247&type=chunk) - As of the date of the report, the company is **not aware of any cybersecurity threats** that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[245](index=245&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties) AEye's corporate headquarters is a leased 6,522 square foot facility in Pleasanton, California, with its lease expiring in November 2027 - AEye's corporate headquarters is a leased facility of approximately **6,522 square feet** in Pleasanton, California[248](index=248&type=chunk) - The current lease expires on **November 30, 2027**, and the company has an option to renew for an additional **five years**[248](index=248&type=chunk) [Legal Proceedings](index=52&type=section&id=Item%203.%20Legal%20Proceedings) AEye's subsidiary faces a lawsuit over a breached office lease, with the landlord demanding $4.35 million, potentially impacting financial condition - AEye's subsidiary is facing a lawsuit filed on **August 26, 2024**, for an alleged breach of an office lease due to failure to pay rent[249](index=249&type=chunk) - The landlord's informal demand for damages is approximately **$4.35 million**, which is net of a **$2.15 million** security deposit that the landlord retained[249](index=249&type=chunk) - The company warns that if it is found liable for the amounts claimed, it could have a **material adverse effect** on its liquidity, financial condition, and results of operations[249](index=249&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[251](index=251&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AEye's common stock is listed on Nasdaq under "LIDR", with approximately 57 record holders, and the company has never paid cash dividends - The company's common stock is listed on The **Nasdaq Global Select Market** under the trading symbol "**LIDR**"[254](index=254&type=chunk) - As of **February 18, 2025**, there were approximately **57 holders of record** of the common stock[255](index=255&type=chunk) - The company has **never paid cash dividends** and does not expect to pay any in the foreseeable future[256](index=256&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2024, AEye's revenue decreased by 86% to $0.2 million, while net loss narrowed by 59% to $35.5 million due to significant operating expense reductions Consolidated Results of Operations (in thousands) | | 2024 | 2023 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $202 | $1,464 | $(1,262) | (86)% | | **Gross loss** | $(576) | $(13,855) | $13,279 | (96)% | | **Total operating expenses** | $35,252 | $73,921 | $(38,669) | (52)% | | **Loss from operations** | $(35,828) | $(87,776) | $51,948 | (59)% | | **Net loss** | $(35,460) | $(87,126) | $51,666 | (59)% | - Revenue from development contracts decreased by **89%** to **$105 thousand** in 2024, primarily due to the fulfillment of obligations under a Tier 1 automotive supplier contract in Q4 2023[302](index=302&type=chunk) - Operating expenses decreased significantly due to the implementation of a revised strategic plan in 2023. R&D expenses fell **37%**, Sales & Marketing expenses fell **96%**, and General & Administrative expenses fell **27%**[304](index=304&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk) - The company recorded **no impairment** of long-lived assets in 2024, compared to a **$10.0 million** impairment charge in 2023 related to restructuring and the termination of a partnership with a large Tier 1 supplier[307](index=307&type=chunk) - As of December 31, 2024, the company's cash, cash equivalents, and marketable securities totaled **$22.3 million**. Management believes this is sufficient to fund operations for **at least the next 12 months**[314](index=314&type=chunk)[326](index=326&type=chunk) - The company has engaged in **multiple financing activities**, including a Common Stock Purchase Agreement with New Circle for **up to $50 million**, an "at-the-market" agreement with A.G.P., and a convertible note financing in January 2025[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) AEye is exposed to market risks including interest rate, concentrated credit, and foreign currency exchange risk, without current hedging - The company's interest rate risk is **low** due to the **short-term nature** of its cash, cash equivalents, and marketable securities[346](index=346&type=chunk) - As of December 31, 2024, there was a **concentration of credit risk** with **three customers** each accounting for **10% or more** of accounts receivable[347](index=347&type=chunk) - The company is exposed to **foreign currency exchange risk** from fluctuations in the **euro and Japanese yen** against the U.S. dollar, but **does not currently engage in hedging**[349](index=349&type=chunk) [Financial Statements and Supplementary Data](index=69&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited FY2024 financial statements show a net loss reduction to $35.5 million, decreased assets and liabilities, and a net cash use from operations Consolidated Balance Sheet Data (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $25,171 | $39,754 | | **Total Assets** | $27,120 | $54,317 | | **Total Current Liabilities** | $11,307 | $10,027 | | **Total Liabilities** | $11,996 | $25,294 | | **Total Stockholders' Equity** | $15,124 | $29,023 | Consolidated Statement of Operations Data (in thousands) | | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | **Total Revenue** | $202 | $1,464 | | **Gross Loss** | $(576) | $(13,855) | | **Loss from Operations** | $(35,828) | $(87,776) | | **Net Loss** | $(35,460) | $(87,126) | | **Net Loss Per Share** | $(4.89) | $(14.95) | Consolidated Cash Flow Summary (in thousands) | | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(26,620) | $(50,725) | | **Net cash provided by investing activities** | $7,744 | $55,351 | | **Net cash provided by (used in) financing activities** | $10,060 | $(6,758) | - In 2023, the company implemented a revised strategic plan focusing on automotive commercialization, which led to restructuring charges of **$19.2 million**, including a **$10.0 million** impairment of long-lived assets. In 2024, restructuring resulted in a **net gain of $0.4 million**, primarily from a lease termination[527](index=527&type=chunk)[529](index=529&type=chunk)[530](index=530&type=chunk) - As of December 31, 2024, the company had federal and state net operating loss carryforwards of approximately **$284 million** and **$242 million**, respectively, to reduce future taxable income, though their use may be **limited under Section 382**[537](index=537&type=chunk)[539](index=539&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=111&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[550](index=550&type=chunk) [Controls and Procedures](index=111&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management evaluated disclosure controls and procedures and concluded they were **effective** as of December 31, 2024[552](index=552&type=chunk) - Management assessed internal control over financial reporting based on the 2013 COSO framework and concluded it was **effective** as of December 31, 2024[553](index=553&type=chunk) - The company is an emerging growth company and is **not required to provide an attestation report** from its independent registered public accounting firm on internal controls[554](index=554&type=chunk) [Other Information](index=111&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of fiscal year 2024 - **No director or officer** adopted or terminated a **Rule 10b5-1 trading arrangement** during the fourth quarter of fiscal year 2024[557](index=557&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=113&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) AEye's Board of Directors comprises six members, with four independent, overseeing four committees, and non-employee director compensation was modified - The Board of Directors consists of **six members**: Timothy J. Dunn, Sue E. Zeifman, Luis C. Dussan, Matthew Fisch, Prof. Dr. Bernd Gottschalk, and Jonathon B. Husby[561](index=561&type=chunk) - The Board is divided into **three classes**, with **four of the six directors** determined to be **independent**. Matthew Fisch serves as **Chairman and CEO**[573](index=573&type=chunk)[608](index=608&type=chunk)[609](index=609&type=chunk) - The Board has an **Audit Committee**, **Compensation Committee**, **Nominating and Corporate Governance Committee**, and a **Strategic Financing and M&A Committee**[576](index=576&type=chunk) - In May 2024, the Board **eliminated initial and annual equity grants** for non-employee directors. In August 2024, to compensate for this, the annual cash retainer was **increased by $175,000** per non-employee director[600](index=600&type=chunk) [Executive Compensation](index=120&type=section&id=Item%2011.%20Executive%20Compensation) AEye's 2024 Named Executive Officers received total compensation of $1.47 million for CEO Matthew Fisch, $1.02 million for General Counsel Andrew S. Hughes, and $0.89 million for CFO Conor B. Tierney 2024 Summary Compensation Table | Name | Position | Salary ($) | Stock Awards ($) | Non-Equity Incentive Plan Comp ($) | All Other Comp ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Matthew Fisch | CEO | 500,000 | 344,470 | 109,375 | 517,592 | 1,471,437 | | Andrew S. Hughes | General Counsel | 385,000 | 63,983 | 164,227 | 402,250 | 1,015,460 | | Conor B. Tierney | CFO | 330,000 | 164,372 | 46,922 | 347,586 | 888,880 | - Each NEO received a **retention bonus**, included in 'All other compensation', **equal to their respective annual base salary** for remaining employed through December 31, 2024[633](index=633&type=chunk)[638](index=638&type=chunk) - NEOs have **Change in Control Severance Agreements** providing for **1.5x base pay and target bonus**, **prorated bonus**, **full equity acceleration**, and **18 months of paid health insurance** upon a qualifying termination following a change in control[638](index=638&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=123&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of February 18, 2025, directors and executive officers beneficially owned 4.90% of common stock, with no beneficial owners exceeding 5% - As of **February 18, 2025**, all directors and executive officers as a group beneficially owned 914,878 shares, representing **4.90%** of the outstanding common stock[647](index=647&type=chunk) - The company has **no known beneficial owners of more than 5%** of its common stock[650](index=650&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2024) | Plan Category | Securities to be issued upon exercise | Securities remaining available for future issuance | | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 524,041 | 718,581 | | Equity compensation plans not approved by security holders | 0 | 0 | | **Total** | **524,041** | **718,581** | [Certain Relationships and Related Transactions, and Director Independence](index=125&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company disclosed one related party transaction involving a director's sibling and maintains a formal policy for reviewing such transactions - The company employed Miguel Dussan, a sibling of director Luis C. Dussan, until December 15, 2023. In 2023, his total cash compensation was **$149,000** and he was granted **2,000 RSUs**[657](index=657&type=chunk) - The Board has adopted a **written policy** for the review and approval of related party transactions **exceeding $120,000**, which is managed by the **Audit Committee**[660](index=660&type=chunk) - The company has entered into **indemnification agreements** with each of its executive officers and directors[659](index=659&type=chunk) [Principal Accounting Fees and Services](index=125&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the company's 2025 Proxy Statement - Information required by this item is **incorporated by reference** from the company's 2025 Proxy Statement[661](index=661&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=126&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed as part of the Annual Report on Form 10-K, including key agreements and certifications - The report includes a **list of exhibits** filed or incorporated by reference, such as the **Merger Agreement**, Certificate of Incorporation, various stock purchase and registration rights agreements, and **executive certifications**[663](index=663&type=chunk) - **No financial statement schedules** are filed with this report[662](index=662&type=chunk) [Form 10-K Summary](index=129&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[668](index=668&type=chunk)

Financial Data and Key Metrics Changes - In Q4 2024, AEye reported a GAAP net loss of $8.5 million or $0.93 per share, compared to a loss of $8.7 million or $1.01 per share in Q3 2024, indicating a slight improvement [26] - Non-GAAP net loss was $6.3 million or $0.69 per share in Q4 2024, compared to a loss of $6 million or $0.70 per share in the previous quarter [27] - Cash, cash equivalents, and marketable securities at the end of Q4 2024 totaled $22.3 million, with total potential liquidity around $80 million including capital raised post-quarter [20][28] Business Line Data and Key Metrics Changes - The Apollo LiDAR sensor has undergone significant improvements, demonstrating high-resolution long-range detection capabilities at 1 kilometer, and has been positively received in various market sectors [9][10] - The manufacturing line for Apollo is ramping up with a Tier 1 partner, with the first units expected in Q1 2025 [12] Market Data and Key Metrics Changes - AEye is seeing increased interest in Apollo across multiple sectors, including security, rail, and intelligent transportation systems, indicating a broadening market appeal beyond automotive [16][23] - The partnership with NVIDIA is facilitating access to new OEMs, enhancing AEye's market position [14][23] Company Strategy and Development Direction - AEye's strategy focuses on leveraging its capital-light model and partnerships to extend its cash runway and support high-volume production of Apollo [11][18] - The company aims to position Apollo for mass production and is actively engaging with global OEMs for rigorous testing [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting OEM demands, emphasizing that LiDAR technology is essential for future automotive success [18] - The company anticipates cash burn for 2025 to be $25 million, slightly up from 2024, primarily due to increased investments for Apollo's ramp-up [28] Other Important Information - AEye has the lowest cash burn rate in the industry, which provides resilience amid challenging market conditions [18] - The company has successfully raised approximately $18 million since the beginning of Q4 2024, extending its financial runway to mid-2026 [21] Q&A Session Summary Question: Could you speak about non-automotive opportunities? - Management highlighted Apollo's capabilities in security applications, noting significant interest and ongoing testing in China, the U.S., and Europe [34][37] Question: Does greater liquidity give you more confidence in meeting OEM financial due diligence requirements? - Management confirmed that liquidity is crucial for OEMs to feel comfortable with AEye's ability to reach high-volume production [40][42] Question: Can you frame what high volume means? - Management defined high volume as starting in the tens of thousands of units, with potential to ramp above 100,000 units annually [46][49] Question: What is the current market appetite for LiDAR in vehicles? - Management indicated that several OEMs are committed to Level 3 programs, which include LiDAR, and that there is a strong push for eyes-off, hands-free driving [58][61] Question: What is the expected cash spend in R&D? - Management estimated that R&D constitutes roughly half of the overall operating expenses, with a focus on Apollo support and customer integration [73][76] Question: Is AEye more geographically fluid in pursuing opportunities? - Management affirmed that AEye's partnerships allow for a global presence, enabling operations across multiple regions including the U.S., China, and Europe [81][84]

Fourth Quarter 2024 Earnings CEO Matt Fisch CFO Conor Tierney February 20, 2025 Disclaimer Forward-Looking Statements This presentation of AEye, Inc. ("AEye" or the "Company") includes statements that are not historical facts, but rather are forward- looking statements within the meaning of the federal securities laws, including safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as "believe," "continue," ...

[Performance Overview and Management Commentary](index=1&type=section&id=Performance%20Overview%20and%20Management%20Commentary) AEye achieved a transformational 2024, marked by the successful U.S. launch of its Apollo lidar system, advancing manufacturing with a Tier 1 partner, and extending its cash runway to mid-2026 - The **Apollo lidar system** was successfully launched in the U.S. at CES and is currently undergoing customer testing for high-visibility applications[1](index=1&type=chunk)[3](index=3&type=chunk)[5](index=5&type=chunk) - Financial runway extended to **mid-2026** through additional growth capital, bolstering the balance sheet for Apollo's high-volume production ramp[1](index=1&type=chunk)[3](index=3&type=chunk)[5](index=5&type=chunk) - Production of the first **Apollo B samples** commenced, marking a critical milestone for customer quoting across multiple sectors[5](index=5&type=chunk) - Strategic partnerships in China are enhancing exposure to prospective customers via established networks and supply chains[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=Recent%20Financial%20Highlights) AEye surpassed its Q4 2024 cash burn guidance for the fourth consecutive quarter, reporting a GAAP net loss of **$8.5 million** and holding **$22.3 million** in cash and equivalents Q4 2024 Key Financial Metrics (In millions, except EPS) | Metric | Q4 2024 Value | | :--- | :--- | | Cash Burn | $4.8 million | | GAAP Net Loss | $(8.5) million | | GAAP EPS | $(0.93) | | Non-GAAP Net Loss | $(6.3) million | | Non-GAAP EPS | $(0.69) | | Cash, Cash Equivalents, & Marketable Securities | $22.3 million (as of Dec 31, 2024) | - Quarterly cash burn guidance was surpassed for the **fourth consecutive quarter**, reflecting disciplined cost management[5](index=5&type=chunk)[7](index=7&type=chunk) - Common shares outstanding increased to **13.7 million** by Q4 2024 end, up from **6.3 million** in Q4 2023[6](index=6&type=chunk) [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) AEye projects a **$25 million** cash burn for full-year 2025, driven by investments in Apollo lidar system production, supported by **$80 million** in total potential liquidity - Full-year 2025 cash burn is projected to total **$25 million**[8](index=8&type=chunk) - The increase in cash burn is attributed to investments necessary for ramping Apollo to high-volume production[8](index=8&type=chunk) - An additional **$12.7 million** was raised in 2025, bringing total potential liquidity to approximately **$80 million**[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides unaudited consolidated financial statements for Q4 and full-year 2024, including Balance Sheets, Statements of Operations, Cash Flows, and GAAP to Non-GAAP reconciliations [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets decreased to **$27.1 million** from **$54.3 million** in 2023, while total liabilities reduced to **$12.0 million** Consolidated Balance Sheet Highlights (In thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,266 | $16,932 | | Total current assets | $25,171 | $39,754 | | **Total assets** | **$27,120** | **$54,317** | | **Liabilities & Equity** | | | | Total current liabilities | $11,307 | $10,027 | | **Total liabilities** | **$11,996** | **$25,294** | | **Total stockholders' equity** | **$15,124** | **$29,023** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Full-year 2024 total revenue was **$0.2 million**, with loss from operations significantly reduced to **$35.8 million** and net loss improving to **$35.5 million** Statement of Operations Highlights (In thousands, except per share data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $46 | $69 | $202 | $1,464 | | Gross Loss | $(3) | $(6,599) | $(576) | $(13,855) | | Loss from Operations | $(8,995) | $(28,419) | $(35,828) | $(87,776) | | Net Loss | $(8,548) | $(27,782) | $(35,460) | $(87,126) | | Net Loss Per Share | $(0.93) | $(4.44) | $(4.89) | $(14.95) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for FY2024 significantly decreased to **$26.6 million**, with **$7.7 million** generated from investing and **$10.1 million** from financing activities, ending with **$10.3 million** in cash Statement of Cash Flows Highlights (In thousands) | Cash Flow Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,620) | $(50,725) | | Net cash provided by investing activities | $7,744 | $55,351 | | Net cash provided by (used in) financing activities | $10,060 | $(6,758) | | **Net decrease in cash** | **$(8,816)** | **$(2,132)** | | **Cash at end of period** | **$10,266** | **$19,082** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, showing how the FY2024 GAAP net loss of **$35.5 million** adjusts to a non-GAAP net loss of **$25.8 million** GAAP to Non-GAAP Reconciliation Highlights (In thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | GAAP net loss | $(8,548) | $(27,782) | $(35,460) | $(87,126) | | Stock-based compensation | $2,045 | $3,364 | $9,047 | $18,071 | | **Non-GAAP net loss** | **$(6,330)** | **$(6,876)** | **$(25,780)** | **$(45,796)** | | **Adjusted EBITDA** | **$(6,712)** | **$(7,118)** | **$(27,143)** | **$(46,013)** | [Legal Disclosures](index=2&type=section&id=Legal%20Disclosures) This section outlines the purpose of non-GAAP financial measures and provides a comprehensive disclaimer regarding forward-looking statements and associated risks - The report presents non-GAAP financial measures, including **Non-GAAP net loss** and **Adjusted EBITDA**, as supplemental information for evaluating ongoing operations[11](index=11&type=chunk)[13](index=13&type=chunk) - Forward-looking statements are subject to various risks and uncertainties, such as potential delays in the **Apollo manufacturing ramp**, market adoption of lidar, and broader economic conditions[12](index=12&type=chunk)[14](index=14&type=chunk)

Financial Data and Key Metrics Changes - AEye reported a second quarter GAAP net loss of $8 million or $1.16 per share, an improvement from a GAAP net loss of $10.2 million or $1.61 per share in the first quarter of 2024 [13][14] - Non-GAAP net loss was $6.2 million or $0.91 per share in the second quarter, compared to a non-GAAP net loss of $7.2 million or $1.13 per share in the first quarter [14] - Cash burn for the second quarter was $6.2 million, down from $7.6 million in the first quarter, and the company closed the quarter with $28 million in cash, cash equivalents, and marketable securities [13][14] Business Line Data and Key Metrics Changes - The launch of the Apollo product has driven significant interest from OEMs, with positive feedback leading to increased engagement [4][5] - AEye has successfully completed technology transfer to its Tier 1 partner LITEON, which is expected to enhance product cost reduction initiatives [6][8] - The company is actively engaged with multiple OEMs, with discussions primarily driven by interest in the Apollo product [5][6] Market Data and Key Metrics Changes - The Chinese market is leading globally in lidar adoption, with AEye estimating a market opportunity of $2.5 billion for ultra-long range lidar over the next three years [10][11] - AEye's partnerships in China have resulted in multiple OEM engagements following the Apollo launch in Suzhou [8][10] - The NHTSA's new requirement for automatic emergency braking is driving increased interest in high-performance lidar solutions [5][21] Company Strategy and Development Direction - AEye's capital-light model allows for a focus on key fundamentals and technology advancement with modest capital requirements compared to peers [9][11] - The company aims to execute its go-to-market strategy for Apollo and pursue product design wins, leveraging partnerships to drive OEM interest [10][15] - AEye is committed to reducing BOM costs to catalyze market adoption and engage in quoting activity with OEMs [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about AEye's future, highlighting strengthened balance sheets and extended cash runway [15] - The company is on track to outperform its cash burn guidance for the full year, with a target of a 75% reduction in quarterly cash burn compared to the first quarter of 2023 [14][15] - Management noted that the market is demanding speed and innovation, particularly in China, which is seen as a leading indicator for lidar technology [8][22] Other Important Information - AEye raised $5.2 million in new capital during the second quarter, extending its cash runway into the second half of 2025 [12] - The company closed a new equity line of credit facility that provides access to up to $50 million in additional liquidity [12] Q&A Session Summary Question: Timelines for potential series production agreement announcements and new use cases - Management indicated that series production agreements could be as early as 2027, with ongoing interest in long-range higher performance products [19][20] Question: Pushes to the right for RFIs and RFQs - Management noted steady interest and timelines, with increased focus on high-speed applications due to the NHTSA requirement [21] Question: Hesitation from Chinese customers due to U.S.-China tensions - Management emphasized the importance of local supply chains and quick adaptation to customer needs, indicating no significant concerns from Chinese OEMs [22]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 333-259554 AEye, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE – DRAFT AEye Reports First Quarter 2024 Results Kicked off key strategic partnership that will bring AEye's lidar into the China market Fourth consecutive quarter of cash burn reduction DUBLIN, Calif. – (BUSINESS WIRE) – May 14, 2024 – AEye, Inc. (Nasdaq: LIDR), a global leader in adaptive, high performance lidar solutions, today announced its results for the first quarter ended March 31, 2024. Management Commentary "AEye made incredible progress with our capital-light par ...