Company: LIDRW
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025747
Chunk: 88

Company: AEye, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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recorded a lease termination loss of $5,463, representing estimated unpaid rent for the remaining term. The net gain was recorded in general and administrative expenses in the condensed consolidated statement of operations and comprehensive loss. The lease termination liability was reduced by the draw-down of the $2,150 letter of credit by the landlord in  August 2024; the remaining liability of $3,313 as of  December 31, 2024 was recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet.  
    
   On  April 28, 2025, the Company and the former landlord entered into a settlement agreement to resolve all outstanding disputes related to the early termination of the lease. Under the terms of the agreement, the Company paid $1,400 in cash and will issue a warrant to purchase up to 350,000 shares of the Company's common stock at an initial exercise price of $2.22 per share with an estimated fair value of $301. The Company recorded a net gain on termination of operating lease of $1,612 during the six months ended  June 30, 2025. See Note 17, Commitments and Contingencies, for further discussion. 
     
   The components of operating lease expenses, excluding the gain on early termination of operating lease, for the six months ended  June 30, 2025 and 2024, are as follows (in thousands):

       Three months ended June 30,    Six months ended June 30,  
   2025    2024    2025    2024  
 Operating lease cost  $70  $582  $141  $1,171 
 Variable lease cost   4   85   8   169 
 Total operating lease cost  $74  $667  $149  $1,340 

   Maturities of lease liabilities, excluding the lease termination liability, are as follows (in thousands):

       Operating leases  
 Years ending - December 31:   (unaudited)  
 2025 (remaining six months)  $139 
 2026   283 
 2027   258 
 Total lease payments   680 
 Less amount to discount to present value   (67)