Company: LIDRW
Filing Date: 2025-03-04
Form Type: 424B3
Source: 0000947871-25-000265
Chunk: 18

Company: AEye, Inc.
Filing Date: 2025-03-04
Form: 424B3
Chunk 18
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of the Common Stock issuable under the Convertible Note or the Warrant by or before February 3, 2025, and to cause such resale registration
statement to be declared effective by the SEC as promptly as possible after the filing thereof, but, no later than 60 days after the day
of initial filing of the registration statement or 120 days following the filing if the SEC notifies the Company that the SEC will perform
“full review” such registration statement.

The Dowslake Transaction

On May 10, 2024, the Company entered into a securities purchase
agreement (the “Dowslake Purchase Agreement”) with Dowslake Microsystems Corporation (“Dowslake”), pursuant to
which Dowslake agreed to purchase 330,823 shares (the “Dowslake Shares”) of Common Stock for the purchase price of $854
thousand, which represents a per share purchase price of $2.58, the Nasdaq Official Closing Price (as defined under the rules and regulations
of the Nasdaq Stock Market) of the Common Stock immediately preceding the execution of the Dowslake Purchase Agreement, and
a note with the principal amount of $146 thousand (the “Dowslake Note”), for an aggregate purchase price of $1 million for
both the Dowslake Shares and the Dowslake Note ( the “Dowslake Transaction,” and together with the Convertible Note and Warrant
Transaction, the “Transactions”).

The Dowslake Note has a five (5) year maturity from the original
issue date, with an interest rate per annum equal to the sum of: (i) the daily simple Secured Overnight Financing Rate published by the
Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator), on its website as of the most
recent historical Quarterly Interest Calculation Date (as defined in the Dowslake Note) plus (ii) one percent (1%). Any interest accrued
on the Dowslake Note is payable on a quarterly basis or, at the option of the Company, added to the principal amount (as adjusted, the
“Principal Balance”) under the Dowslake Note. The Dowslake Note maturity may be accelerated upon continuing occurrence of
an Event of Default (as defined in the Dowslake Note).

Upon maturity of the Dowslake Note, the Company is obligated to
pay the Principal Balance and all accrued, unpaid and uncapitalized interest. Additionally, at any