Company: LIDRW
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001437749-25-004906
Chunk: 639

Company: AEye, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 4
Chunk 639
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1.03 years. The total unrecognized compensation expense for the ESPP was $282 as of  December 31, 2024 which is expected to be recognized over an estimated weighted average period of 1.00 years.  There is no unrecognized compensation expense for stock options as of  December 31, 2024.

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   The Company uses the Black-Scholes option-pricing model to estimate the grant-date fair value of ESPP purchase rights. The fair value of each of the four purchase periods is estimated separately. The Company uses the Monte-Carlo simulation model to estimate the grant date fair value of awards with a market condition. Both models require the input of subjective assumptions such as expected term, expected stock price volatility, risk-free interest rate and dividend yield as discussed below.
    
   Expected Term—The expected term for ESPP is the length of time from the grant date to the date on which the stock is purchased by the employees. The expected term for awards with a market condition is the length of time from the grant date to the date the market condition expires.
    
   Expected Volatility—Expected volatility is estimated using a combination of the average historical volatility of the Company's own stock and those of comparable companies’ stock at the time of the grant.
    
   Risk-Free Interest Rate—The risk-free interest rates are based on US Treasury yields in effect at the grant date for notes with comparable terms as the awards.
    
   Dividend Yield—The expected dividend-yield assumption is based on the Company’s current expectations about its anticipated dividend policy.
    
   The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:

       Year ended  
   December 31, 2024  
 Expected term (years)   0.50 - 2.00 
 Expected volatility   122.2% - 165.9% 
 Risk-free interest rate   4.2% - 5.5% 
 Dividend yield   —%

    16.  Segment Reporting  

   The Company adopted ASU 2023-07 during the year ended  December 31, 2024 retrospectively to all periods presented in the consolidated financial statements. The Company has one reportable segment managed on a consolidated basis by the Chief Executive Officer (CEO) who is the chief operating decision maker (“CODM”). In identifying one reportable segment, the Company considered the basis