Company: LIDRW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033677
Chunk: 88

Company: AEye, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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, 2025, and an amendment thereto on  February 25, 2025, which was declared effective by the U.S. Securities and Exchange Commission on  March 4, 2025.
    
   The Company elected to apply the fair value option to the measurement of the 2025 Note. As a result of adopting the fair value option, no embedded derivatives are bifurcated from the 2025 Note. The Company classifies the 2025 Note as a liability at fair value and will remeasure the 2025 Note to fair value at each reporting period. The total proceeds received from the investor of $3,000 is allocated between the 2025 Note and the related warrants issued using the relative fair value method at issuance date. This resulted in an initial fair value of $3,266 being allocated to the 2025 Note, and $1,046 allocated to the associated warrants (see Note 2 for further details). The Company recorded a non-cash issuance cost of $1,312, representing the difference between the fair value and proceeds received, within Interest expense and other on the condensed consolidated statement of operations. The fair value measurement includes the assumption of accrued interest and expense and thus a separate amount is not reflected on the condensed consolidated statement of operations.
    
   During  the nine months ended  September 30, 2025, the Company made cash payments of $989. Additionally, $2,485 in aggregate principal and interest were converted into 2,356,500 shares of common stock.  As of  September 30, 2025, the 2025 Note has an outstanding principal balance and accrued interest of $106 and is recorded as a current liability at fair value of $106.

       8.  
       INTEREST EXPENSE AND OTHER 

   Interest expense and other for the nine months ended  September 30, 2025 and 2024 consisted of the following (in thousands):

        Three months ended September 30, 

        Nine months ended September 30, 

        2025 

        2024 

        2025 

        2024 

        Common stock purchase agreements costs 
        
       $
       19

       $
       1,136

       $
       325

       $
       1,136

        Debt issuance costs 

       —

       —

       2,020

       $
       —

        Amortization of