Company: LIDRW
Filing Date: 2025-01-03
Form Type: 8-K
Source: 0000947871-25-000004
Chunk: 1

Company: AEye, Inc.
Filing Date: 2025-01-03
Form: 8-K
Item: Item 1.01
Chunk 1
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 if any, payable pursuant to the terms of the Note as of such Installment Date
(the “ Installment Amount”). The Company, if certain equity conditions are satisfied, may elect to pay all or part of
the Installment Amount in shares of Common Stock based on a conversion price equal to the lower of (i) the Conversion Price and (ii) the
greater of (x) the floor price of $0.30 and (y) 90% of the VWAP (as defined in the Note) in the five (5) trading days immediately prior
to the applicable Installment Date. If the Company fails to satisfy certain equity conditions or at the election of the Company in its
sole discretion, the Company may redeem the Installment Amount in cash.

The Company is restricted from issuing shares
of Common Stock upon conversion of the Note or otherwise pursuant to the terms of the Note if such issuance would exceed the aggregate
number of shares permissible under the rules and regulations of the Principal Market (as defined in the Note), including NASDAQ Listing
Rule 5635(d) (the“ Exchange Cap”). This limitation is waived if the Company either obtains stockholder approval as
required by the Principal Market’s rules or secures a satisfactory written opinion from its counsel stating that such approval is
unnecessary. Until such approval or opinion is obtained, Purchaser is restricted from receiving shares of Common Stock exceeding the Exchange
Cap. If, after June 15, 2025, the Company receives a conversion notice from the Purchaser and is unable to issue shares due to the Exchange
Cap, it is required to pay the Purchaser a certain cash payment pursuant to the terms of the Note in lieu of issuing shares of Common
Stock.