Company: LIDRW
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025747
Chunk: 134

Company: AEye, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 134
---
 These factors include, without limitation:

      • 
      the extent to which we meet contractual terms and conditions; 

      • 
      the extent to which our technology is successfully integrated into our customers’ vehicles; 

      • 
      the timing of when our customers adopt our technology into their vehicles on a commercial basis which could be delayed for regulatory, safety, or reliability issues unrelated to our technology; 

       43

      • 
      undetected or unknown errors, defects, or reliability issues in our hardware or software which could reduce the market adoption of our existing or new products; 

      • 
      loss of business with respect to the failure or lack of commercial success of a vehicle model for which we are a significant supplier for reasons unrelated to our technology; 

      • 
      a decline, for any reason, in the production levels of our customers, particularly with respect to models which incorporate our technology; 

      • 
      customer cancellations of their contracts; 

      • 
      if our products are included as part of a vehicle option package, the extent to which end customers select it; and 

      • 
      other risk factors set forth in this Quarterly Report. 

The period of time from a design win to implementation is long and we are subject to the risks of cancellation or postponement of the contract or unsuccessful implementation.

Prospective customers, including those in the automotive industry, generally must make significant commitments of resources to test and validate products like ours and confirm that they can integrate these products with other technologies before including them in any particular system, product, or model. The development cycles for our products with new customers varies widely depending on the application, market, customer, and the complexity of the product. In the Automotive market, for example, this development cycle can be five to seven years (or more). The development cycle in Non-Automotive markets can be months to one or two years (or more). These development cycles result in us investing our resources prior to realizing any revenue from commercialization. Further, we are subject to the risk that customers cancel or postpone implementation of our technology or our customers are unable to integrate our technology successfully into a larger system. If our customers face financial difficulties, they may also cancel current or future product programs that could materially and adversely impact our financial results. Further, our revenue could be less than forecasted if the system, product, or vehicle model that includes our lidar products is unsuccessful, including for reasons unrelated to our technology. Long development cycles and product cancellations or postpon