Company: LIDRW
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001437749-25-004906
Chunk: 586

Company: AEye, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 4
Chunk 586
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 as we continue to invest in the development of our Apollo product.

Sales and Marketing

Historically, our sales and marketing, or S&M, efforts were 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 overhead expenses. 

We expect our S&M expenses to continue to be relatively low as we expect to leverage our Tier 1 partners to commercialize our products and manage relationships with the OEMs in the Automotive market. In the Non-Automotive market, we anticipate using the same supply chain to manufacture through global contract manufacturers, and we expect to sell our products primarily through system integrator channel partners that may integrate our lidar sensor and software as part of a larger solution for an end customer.

General and Administrative

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

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      personnel-related costs, including salaries, benefits, bonuses, one-time termination benefits, and stock-based compensation expense for executive, finance, legal, operations, human resources, technical support, and other administrative personnel; 

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      consulting, accounting, audit, legal, and other professional fees; 

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      insurance premiums, software and computer equipment costs, general office expenses; and 

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      allocated overhead expenses. 

We expect our G&A expenses to decrease slightly with reduced facility costs and professional fees, while continuing to incur expenses to support other departments as we continue to develop and commercialize our Apollo product. 

Change in Fair Value of Convertible Note and Warrant Liabilities 

The changes in fair value of the 2022 Note and warrant liabilities are the result of the change in fair value at each reporting date. The 2022 Note and warrant liabilities are recorded at fair value for each reporting period, and the changes in fair value are reported within other income (expense), net during the period. We also elected to record interest expense on the 2022 Note as changes in fair value.

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Interest Income, Interest Expense and Other 

Interest income and other consists primarily of interest earned on our cash, cash equivalents, and