Company: LIDRW
Filing Date: 2025-01-16
Form Type: S-1
Source: 0000947871-25-000056
Chunk: 10

Company: AEye, Inc.
Filing Date: 2025-01-16
Form: S-1
Chunk 10
---
 the goal of optimizing performance, power, and reducing cost. Our 4Sight Intelligent
Sensing Platform is software-definable and network-optimized, and leverages deterministic artificial intelligence at the edge. We have
made substantial investments in our R&D processes and deliver value to our customers through our manufacturing partners. We perform
the majority of our R&D activities in our corporate headquarters in Pleasanton, California. Our modular design facilitates product
hardware updates as technologies evolve, and its small size and modest heat dissipation enable very flexible placement options on the
interior or exterior of a vehicle. 4Sight also leverages a common architecture to create application-specific products across different
markets.

Our systems-based approach encourages partnerships from the well-established
automotive supply chain, including original equipment manufacturers, or OEMs, as well as Tier 1 and Tier 2 OEM suppliers. There is strong
alignment between us and our partners given what is required to produce high-performance automotive grade products at scale, including
quality, reliability, and affordability. Our Tier 1 partners will add value with OEM customers through industrialization, manufacturing,
integration, sales, marketing, product liability, and warranty. Our Tier 2 partners will provide automotive-grade sub-components, which
are used not only in automotive lidar for ADAS use cases, but could also be used for products we may sell into the Industrial market.
We expect the result will be a high-quality, high-performance product at the right price point, which we believe to be a key enabler in
accelerating adoption of lidar across various markets in Automotive and beyond.

| 9 |

In pursuing this strategy, we have partnered, and will continue seeking
partnerships, with leading Tier 1 automotive suppliers. It is anticipated that our Tier 1 partners will bid for long range lidar series
production awards with OEMs and that these awards will represent a substantial portion of our future revenues, however, there is no guarantee
that this Tier 1 partnership strategy will be successful. For example, in late 2023, Continental informed us that they intended to discontinue
our joint lidar development program due to corporatewide restructuring and expense reduction efforts. We have since engaged with LITEON
as our new Tier 1 automotive partner and are actively working with LITEON to bring our products to market. If we fail to establish or
maintain relationships with our Tier 1 automotive suppliers, it may have a material and adverse effect on our business, which is