Company: LIDRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001437749-25-015868
Chunk: 98

Company: AEye, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 98
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4SightTM capabilities to our customers’ applications, typically involving software implementation to assist with sensor connection and control, customization of scan patterns, and enhancement of perception capabilities to meet specific customer needs. Revenue from development contracts is recognized when we satisfy performance obligations in the contract, which can result in recognition at either a point in time or over time. This assessment is made at the outset of the arrangement for each performance obligation.

Cost of Revenue

Cost of revenue includes the costs directly associated with the production of prototypes and certain costs associated with development contracts. Such costs for prototypes include direct materials, direct labor, indirect labor, inventory write downs, losses on purchase commitments, warranty expense, and allocation of overhead. Costs associated with development contracts include the direct costs and allocation of overhead costs involved in the execution of the contracts.

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Operating Expenses

Research and Development

Our research and development, or R&D, efforts are focused primarily on hardware, software, and system engineering related to the design and development of our advanced lidar solutions. R&D expenses include:

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      personnel-related expenses, including salaries, benefits, bonuses, one-time termination benefits, and stock-based compensation expense; 

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      third-party engineering and contractor costs; 

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      lab equipment; 

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      engineering parts and test units; 

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      new hardware and software expenses; and 

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      allocated personnel and overhead expenses. 

R&D costs are expensed as they are incurred. We expect our R&D costs to increase slightly from 2024 as we continue to invest in the development of our Apollo product.

Sales and Marketing

Our sales and marketing, or S&M, efforts are focused primarily on sales, business development, and marketing programs in pursuit of revenue contracts from potential and existing customers. S&M expenses include:

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      personnel-related expenses, including salaries, benefits, bonuses, one-time termination benefits, and stock-based compensation expense; 

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      demonstration equipment; 

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      trade shows expenses, advertising, and promotions expenses for press releases and other public relations services; and 

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      allocated personnel and overhead expenses. 

We expect our S&M expenses to increase as we pursue Non-Automotive opportunities to accelerate profitability while continuing to leverage our Tier 1 partners to commercialize our products and manage relationships with the OEMs in the Automotive market. 

General and Administrative

Our general and administrative, or G&A, spending supports all business functions. G&A