Company: LIDRW
Filing Date: 2025-08-11
Form Type: S-3
Source: 0000947871-25-000731
Chunk: 10

Company: AEye, Inc.
Filing Date: 2025-08-11
Form: S-3
Chunk 10
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 its small size and modest heat generation
enable very flexible placement options on the interior or exterior of a vehicle. 4Sight also leverages a common architecture
to create application-specific products across different markets.

| 7 |

Our systems-based approach encourages partnerships
from the well-established automotive supply chain, including original equipment manufacturers (OEMs), as well as Tier 1 and Tier 2 OEM
suppliers. There is strong alignment between us and our partners given what is required to produce high-performance automotive grade products
at scale, including quality, reliability, and affordability. We anticipate our Tier 1 partners will add value with OEM customers through
industrialization, manufacturing, integration, sales, marketing, product liability, and warranty. We anticipate our Tier 2 partners will
provide automotive-grade sub-components, which are used not only in automotive lidar for ADAS use cases, but could also be used for products
we may sell into the Non-Automotive market. We expect the result will be a high-quality, high-performance product at the right price point,
which we believe to be a key enabler in accelerating adoption of lidar across various markets in Automotive and beyond.

In pursuing this strategy, we have partnered, and
will continue seeking partnerships, with leading Tier 1 automotive suppliers. It is anticipated that our Tier 1 partners will bid for
long-range lidar series production awards with OEMs and that these awards will represent a substantial portion of our future revenues;
however, there is no guarantee that this Tier 1 partnership strategy will be successful. If we fail to remain engaged with one or more
Tier 1 automotive suppliers, it may have an adverse effect on our business. The markets for lidar are projected to see significant growth
in both the near and long term. We believe this expected growth will allow us to capture market share as well as pursue specialized opportunities
like highway autonomous driving applications that benefit from our products. We expect that lidar will be a required sensing solution
across many end markets, and we intend to be one of the leading solutions providers in these spaces.

As is common in early-stage companies with limited
operating histories, we are subject to risks and uncertainties such as our ability to develop and commercialize our products; produce
and deliver lidar and software products meeting acceptable performance metrics; attract new and retain existing customers; develop, obtain,
or progress strategic partnerships; secure an automotive OEM design win; secure additional capital to support the business plan; and other
ris