Company: LIDRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001437749-25-015868
Chunk: 79

Company: AEye, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 income (expense) for each reporting period. Derivative Warrant Liability is included within other noncurrent liabilities on the condensed consolidated balance sheets.
    
   In  January 2025, in connection with the 2025 Note, the Company issued warrants, which are recorded on the accompanying condensed consolidated balance sheets at fair value. The fair value is based on unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. The fair value estimate of the warrants was based on a Black-Scholes model. Inherent in a Black-Scholes model are assumptions related to price, volatility, risk-free interest rate, term to expiration, and dividend yield. Changes in fair value are recognized in other income (expense) for each reporting period. Derivative Warrant Liability is included within other noncurrent liabilities on the condensed consolidated balance sheets.
    
   Private Placement Warrant Liability: The Private Placement Warrants are recorded on the condensed consolidated balance sheets at fair value. The fair value is based on observable Level 2 inputs, specifically, the observable input of the Company's public warrants, as terms of both warrants are substantially similar. Any changes in the fair value of the liability are reflected in other income (expense), net, on the condensed consolidated statements of operations and comprehensive loss. Private Placement Warrant liability is included within other noncurrent liabilities on the condensed consolidated balance sheets.
    
   For the three months ended  March 31, 2025, there were no net transfers between Level 1 and Level 2 inputs.
    
   The following table presents a summary of the changes in fair value of the Company’s Level 3 financial instruments for the three months ended  March 31, 2025 (in thousands):

       Derivative Warrant Liabilities    2025 Note    Total  
 Balance at December 31, 2024  $26  $—  $26 
 Additions   1,046   3,266   4,312 
 Change in fair value included in other income (expense), net   (647)  (33)  (680)
 Balance at March 31, 2025  $425  $3,233  $3,658 

   The key inputs into the Black-Scholes model for the derivative warrant liability from the 2025 Note valued at  March 31, 2025 are as follows: