Company: LIDRW
Filing Date: 2025-05-12
Form Type: POS AM
Source: 0000947871-25-000486
Chunk: 19

Company: AEye, Inc.
Filing Date: 2025-05-12
Form: POS AM
Chunk 19
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 shares will dilute our stockholders.

Sales of a substantial number of shares of our Common Stock in the public
market or the perception that these sales might occur could depress the market price of our Common Stock and could impair our ability
to raise capital through the sale of additional equity securities. We are unable to predict the effect that sales may have on the prevailing
market price of our Common Stock. In addition, the sale of substantial amounts of our Common Stock could adversely impact its price.

Management will have broad discretion as to the use of the proceeds from our sale of Common Stock to New Circle under the Purchase Agreement, and uses may not improve our financial condition or market value.

Because we have not designated the amount of net proceeds from our sale
to New Circle of shares of our Common Stock to be used for any particular purpose, our management will have broad discretion as to the
application of such net proceeds and could use them for purposes other than those contemplated hereby. Our management may use the net
proceeds for corporate purposes that may not improve our financial condition or advance our business objectives.

| 10 |

<div align='center'>THE NEW CIRCLE TRANSACTION</div>

On July 25, 2024, we entered into the Purchase Agreement
with New Circle, pursuant to which New Circle has committed to purchase up to $ 50.0 million of our Common Stock, at our sole direction
from time to time over the term of the Purchase Agreement, subject to certain terms, conditions and limitations in the Purchase Agreement.
We also entered into the Registration Rights Agreement with New Circle, pursuant to which we agreed to file with the SEC the registration
statement that includes this prospectus to register for resale under the Securities Act, the shares of our Common Stock that have been
and may be issued to New Circle under the Purchase Agreement.

Under the terms and subject to the conditions of
the Purchase Agreement, we have the right, but not the obligation, to sell to New Circle, and New Circle is obligated to purchase, up
to $ 50.0 million of our Common Stock. Such sales of Common Stock by us, if any, are subject to certain limitations, and may
occur from time-to-time in our sole discretion, over the period commencing on August 15, 2024 (the “Commencement,” and the
date of the Commencement, the “Commencement Date”), and ending on the first day of the month following the (i) the 36-month
anniversary