AEye (NASDAQ:LIDR) stock is taking off on Friday after the lidar systems company announced a new partnership with LiteOn Technology Corporation.This is a follow-up to the company’s non-binding Letter of Intent that was announced in March. LiteOn Technology Corporation is the company that was talked about in that announcement but wasn’t named until now.According to AEye, this partnership with LiteOn Technology Corporation secures it a channel and industrialization partner. This will see the two companies wor ...

Financial Performance - The company incurred net losses of approximately $87.1 million and $98.7 million for the years ended December 31, 2023 and 2022, respectively, and expects to continue incurring significant losses for several years [70]. - As of December 31, 2023, the company had an accumulated deficit of approximately $337.6 million, indicating ongoing financial challenges [71]. - The company has received a notice from Nasdaq regarding non-compliance with the $1.00 per share minimum bid price requirement, with a deadline to regain compliance by January 16, 2024 [87]. - A reverse stock split at a ratio of one-for-thirty was approved to help meet Nasdaq listing requirements, effective December 27, 2023 [87]. - The company does not expect to declare any dividends in the foreseeable future, requiring stockholders to rely on share price appreciation for potential gains [218]. - The company has cash, cash equivalents, and marketable securities totaling $36,523 as of December 31, 2023, primarily consisting of deposits in bank accounts, money market funds, and marketable securities [307]. - The company recorded a provision for expected credit losses of $35 for the twelve months ended December 31, 2023, compared to $0 in 2022, with no write-offs during this period [309]. - The company has experienced volatility in its stock price due to retail and individual investor interest, which may not correlate with its operating performance [215]. Capital and Financing - The company plans to raise additional capital to execute its business plan, but may face challenges in securing financing on favorable terms due to current market conditions [76]. - The company has entered into a Common Stock Purchase Agreement (CSPA) with Tumim Stone Capital LLC, allowing for the potential sale of up to $125 million in common stock, subject to certain limitations [138]. - As of December 31, 2023, the company has issued 67,754 post-split shares under the CSPA for proceeds of $3.0 million, indicating limited access to the full $125 million commitment [138]. - The company may face significant expenses and operational disruptions due to stockholder activism, which has been increasing recently [207]. Market and Industry Risks - The company relies heavily on relationships with Tier 1 automotive suppliers, and the loss of a partnership with Continental AG in late 2023 could materially affect its business [73]. - The company continues to face significant pricing pressures from automotive OEMs and Tier 1 suppliers, which may adversely affect revenue and profitability [96]. - The company is subject to risks related to the successful integration of its technology into customers' vehicles, which could delay commercialization [91]. - The company faces risks related to global events, including the COVID-19 pandemic and geopolitical conflicts, which could adversely affect its operations and market conditions [69]. - The company is subject to various international risks due to reliance on foreign manufacturing, including supply chain disruptions and political instability, which could adversely affect financial conditions [144]. - The company is dependent on the automotive industry, which is highly cyclical and influenced by economic conditions, consumer spending, and interest rates [120]. - The company may face challenges in accurately forecasting customer demand, leading to excess inventory or shortages [117]. Product Development and R&D - The company continues to invest in R&D, albeit at a reduced level compared to prior years, which could affect profitability [69]. - R&D expenses were approximately $26.2 million in 2023, down from $37.6 million in 2022, with expectations for future increases [97]. - The company is investing in R&D and commercialization to enhance its product offerings and market position [86]. - The complexity of the company's products may lead to unforeseen delays or expenses, potentially impacting market adoption and reputation [73]. - Development cycles for new products in the automotive market can take five to seven years, impacting revenue realization [92]. - The company has decided to wind down its industrial product line to focus on achieving scale in automotive products, which represent a larger market opportunity [105]. Supply Chain and Operational Risks - Supply chain disruptions and shortages of key components may negatively impact product adoption and financial results [93]. - Supply chain risks are present due to reliance on third-party suppliers, which could lead to shortages and delays in product deliveries [102]. - The reliance on complex machinery for production introduces risks related to operational performance and maintenance costs [107]. - The company has experienced inventory write-downs for obsolete and excess components, impacting financial results, including gross margin [118]. Competition and Market Position - The company faces significant competition in the lidar technology market, with competitors having greater financial and technical resources, which may impact market share and pricing strategies [133]. - The company must continuously innovate and reduce costs to maintain margins amid competitive pressures in the autonomous driving market [119]. - The company is investing in educating customers about the advantages of lidar technology, but these efforts may not lead to increased sales, especially if negative perceptions persist [131]. - The company operates in a highly competitive market characterized by rapid technological changes, necessitating continuous product development and innovation to maintain market relevance [135]. Legal and Regulatory Risks - The company is subject to U.S. export control laws and regulations, which could result in substantial civil or criminal penalties if not complied with [165]. - The company has been involved in litigation and regulatory proceedings that could significantly impact its profitability and financial position [167]. - The company must comply with stringent automotive safety regulations, which could result in significant civil penalties for violations [180]. - The company is subject to evolving privacy and data protection laws, which may require significant compliance measures and costs [183]. - The company faces risks related to compliance with anti-corruption and anti-money laundering laws, which could result in severe penalties [177]. Human Resources and Management - The company is highly dependent on its executive officers, with potential adverse effects on business operations due to recent executive departures [151]. - Competition for highly skilled personnel is intense, particularly in the San Francisco Bay Area, which may impact the company's ability to attract and retain talent [152]. - The company has experienced difficulty in hiring and retaining qualified personnel, especially those with engineering skills, which could delay product market launches [152]. - The management team has limited experience managing a public company, which may affect operational efficiency [206]. Environmental and Compliance Risks - The company must continuously monitor and adapt to changing environmental laws, which could materially affect its business operations and financial condition [174]. - Environmental regulations may impose substantial costs and delays in building production facilities, affecting the company's operations [173]. - The company is subject to the Dodd-Frank Act, which may increase costs and limit the supply of certain metals used in manufacturing [186]. Intellectual Property Risks - The company faces risks related to intellectual property protection, which may be costly and difficult to enforce [187]. - There is uncertainty regarding the issuance of patents and trademarks, which may not provide adequate protection against competitors [188]. - The company may incur substantial costs and management resource diversion due to potential litigation over intellectual property rights [190]. - Competitors may have greater resources to defend against intellectual property claims, potentially affecting the company's competitive advantage [191]. - The company may face claims of intellectual property infringement, which could lead to costly litigation and impact customer relationships [194].

Financial Data and Key Metrics Changes - The company reduced its net cash burn by $3.4 million to $9.4 million from the prior quarter's cash burn of $12.8 million, marking the third consecutive quarter of cash burn reductions [25] - Fourth quarter revenues were $69,000 compared to $188,000 in the prior quarter, with gross margins decreasing due to lower revenue and increased noncash inventory write-downs of $2.2 million [26] - GAAP operating expenses for the fourth quarter were $21.8 million, up 69% from the prior quarter, primarily due to cash restructuring charges and noncash impairment charges [27] - The fourth quarter GAAP net loss was $27.8 million or $4.44 per share, compared to a GAAP net loss of $17 million or $2.78 per share in the previous quarter [28] - The company closed the fourth quarter with $36.5 million in cash, cash equivalents, and marketable securities, with no debt [31] Business Line Data and Key Metrics Changes - The company continues to focus on key automotive milestones under its automotive-first strategy, which has led to a reduction in revenue as it winds down its current industrial product line [26] - Non-GAAP operating expenses were $6.5 million, down from $8.5 million in the previous quarter, due to ongoing cost reduction initiatives [28] Market Data and Key Metrics Changes - The company has signed a letter of intent with a global Tier 1 automotive ADAS sensor supplier, indicating increased engagement from OEMs and a rise in RFI and RFQ activity [7][10] - The road safety crisis is worsening, with pedestrian fatalities in the U.S. increasing by nearly 80% from 2010 to 2021, highlighting the urgent need for LiDAR technology [17] Company Strategy and Development Direction - The company emphasizes a capital-light business model, which is expected to extend its cash runway well into 2025 and allows it to weather current industry headwinds [12][34] - The focus remains on market-leading product performance and go-to-market strategies via Tier 1 partners, leveraging existing supply chain infrastructure for efficient integration [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that broader market conditions have caused delays in LiDAR adoption within OEM vehicle programs but remains optimistic about ongoing discussions with OEMs [10] - The company expects cash burn for 2024 to be in the range of $20 million to $25 million, representing a 75% reduction compared to Q1 2023 [32] - Management is confident in the differentiation of its technology and the potential for significant opportunities with OEM partners [34] Other Important Information - The company underwent a reverse stock split in December 2023, and all financial information presented has been adjusted accordingly [24] - The company has access to an equity line of credit facility and a shelf registration statement, allowing it to raise up to $200 million over the next 2.5 years [31] Q&A Session Summary Question: Can you provide more details about the Tier 1 announcement and its implications? - The company is already working with the Tier 1 partner on inbound RFI and RFQs, indicating a strong collaboration moving forward [38] Question: How is the LOI structured in comparison to the previous partnership with Continental? - The company expects a similar revenue-sharing structure as with Continental, which fits into its capital-light model [55] Question: What are the expectations for the LiDAR market in 2024? - While the market has been challenging, there has been significant activity in Q1, leading to cautious optimism regarding series production agreements [56][58]

EX-99.1 2 ss3175926_ex9901.htm EARNINGS TABLE FOR IMMEDIATE RELEASE AEye Reports Fourth Quarter 2023 Results Signed LOI with global Tier 1 automotive supplier Third consecutive quarter of cash burn reduction DUBLIN, Calif. -- (BUSINESS WIRE) – March 26, 2024 – AEye, Inc. (Nasdaq: LIDR), a global leader in adaptive, high performance lidar solutions, today announced its results for the fourth quarter and year ended December 31, 2023. Management Commentary "AEye is pleased to announce that we have signed an LO ...

Matt Fisch November 9, 2023 Nasdaq 1 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," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "op ...

AEye, Inc. (NASDAQ:LIDR) Q3 2023 Earnings Conference Call November 9, 2023 5:00 PM ET Company Participants Jennifer Deitsch - Communications Director Matt Fisch - Chief Executive Officer Conor Tierney - Chief Financial Officer Conference Call Participants Brooks O'Neil - Lake Street Capital Markets Jeffrey Cohen - Ladenburg Thalmann Scott Henry - ROTH Capital Operator Good day, and thank you for standing by. Welcome to the AEye Third Quarter 2023 Financial Results Conference Call. At this time all participa ...

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 September 30, 2023 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) Delaware 37-1827430 (State or other jurisdic ...

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 June 30, 2023 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 ...

Matt Fisch August 7, 2023 Nasdaq Forward-Looking Statements price of AEye's securities; the timing of when AEye's customers may adopt AEye's technology into their products on a commercial basis, which could be delayed for issues related to or unrelated to AEye's technology, including regulatory, safety, or reliability issues; changes in competitive and regulated industries in which AEye operates; variations in operating performance across competitors, changes in laws and regulations affecting AEye's busines ...

AEye, Inc. (NASDAQ:LIDR) Q1 2023 Earnings Conference Call May 11, 2023 4:30 PM ET Company Participants Matt Fisch - CEO Norbert Hammerschmidt - VP Components, Continental AG Conor Tierney - Chief Financial Officer Conference Call Participants John Roy - Water Tower Research Kevin Garrigan - WestPark Capital Operator Good afternoon, and thank you for joining AEye's First Quarter 2023 Earnings Call. With me today are Matt Fisch, Chief Executive Officer; and Conor Tierney, Chief Financial Officer. Earlier toda ...