Company: LIDRW
Filing Date: 2025-03-04
Form Type: 424B3
Source: 0000947871-25-000265
Chunk: 11

Company: AEye, Inc.
Filing Date: 2025-03-04
Form: 424B3
Chunk 11
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 companies and will be able to take advantage
of these scaled disclosures for so long as the market value of our Common Stock held by non-affiliates is less than $250.0 million
measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most
recently completed fiscal year and the market value of our Common Stock held by non-affiliates is less than $700.0 million measured
on the last business day of our second fiscal quarter.

As a result, the information in this prospectus, any accompanying
prospectus supplement or the documents incorporated by reference herein that we provide to our investors in the future may be different
than what you might receive from other public reporting companies.

Recent Developments

The Convertible Note and Warrant Transaction

On January 2, 2025, we entered into a Securities
Purchase Agreement with an accredited investor pursuant to which we issued to such accredited investor a senior unsecured convertible
promissory note in the aggregate principal amount of $3.2 million for an aggregate purchase price of $3 million (the “Convertible
Note”) and a warrant to purchase up to 805,263 shares of Common Stock (the “Warrant” and the transaction, the “Convertible
Note and Warrant Transaction”).

The Convertible Note has an eighteen month term and an interest rate of
7.0% per annum. The Convertible Note is convertible into Common Stock at a per share conversion price equal to $2.22, subject to adjustments
contained in the Convertible Note (the “Conversion Price”). Pursuant to theConvertible
Note, commencing on the date that is 90 days from the date of the closing, and on the first trading day of each month thereafter and the maturity date (each, an “Installment Date”) until theConvertible Note is fully redeemed, the Company is generally obligated to pay the holder of theConvertible Note an amount equal to the sum of (A) (x), with respect to any Installment Date other than the maturity date, one-fifteenth of the initial principal amount under theConvertible Note and (y), with respect to the Installment Date that is the maturity date, the principal amount then outstanding under theConvertible Note as of such Installment Date, (B) any amount deferred pursuant to the terms of theConvertible Note; (C) any amount accelerated pursuant to the terms of theConvertible Note and (D), in each of the foregoing