Company: LIDRW
Filing Date: 2025-02-25
Form Type: S-1/A
Source: 0000947871-25-000219
Chunk: 37

Company: AEye, Inc.
Filing Date: 2025-02-25
Form: S-1/A
Chunk 37
---
 afforded
by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder.

January 2025 Note and Warrant Transaction

On January 2, 2025, the Company entered into a Securities Purchase Agreement
with an institutional investor pursuant to which we issued to such institutional investor a senior unsecured convertible promissory note
in the aggregate principal amount of $3.24 million for an aggregate purchase price of $3 million and a warrant to purchase up to 805,263
shares of Common Stock. The convertible note has an eighteen month term and an interest rate of 7.0% per annum. The convertible note is
convertible into Common Stock at a per share conversion price equal to $2.22, subject to adjustments contained in the convertible note.
Commencing on the date that is 90 days from the date of the closing, and on the first trading day of each month thereafter and the maturity date (each, an “Installment Date”) until theconvertible note is fully redeemed, the Company is generally obligated to pay the holder of theconvertible note an amount equal to the sum of (A) (x), with respect to any Installment Date other than the maturity date, one-fifteenth of the initial principal amount under theconvertible note and (y), with respect to the Installment Date that is the maturity date, the principal amount then outstanding under theConvertible Note as of such Installment Date, (B) any amount deferred pursuant to the terms of theconvertible note; (C) any amount accelerated pursuant to the terms of theconvertible note and (D), in each of the foregoing, the sum of any accrued and unpaid interest, the make-whole amount and unpaid late fees and charges, if any, payable pursuant to the terms of theconvertible note as of such Installment Date (the “Installment Amount”). The Company, if certain equity conditions are satisfied, may elect to pay all or part of the Installment Amount in shares of Common Stock based on a conversion price equal to the lower of (i) the conversion price and (ii) the greater of (x) the floor price of $0.30 and (y) 90% of the VWAP (as defined in the convertible note) in the five (5) trading days immediately prior to the applicable Installment Date.The warrant has an initial exercise price of $2.22 and is exercisable after the six month and one