Company: LIDRW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033677
Chunk: 102

Company: AEye, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 and warrant liabilities are the result of the change in fair value at each reporting date. The 2025 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 2025 Note as changes in fair value. We expect the change in fair value of the convertible note to decrease in future periods, reflecting the lower outstanding balance as of September 30, 2025. In addition, we expect the change in fair value of warrant liabilities to decrease as the warrants associated with the 2022 Note were cancelled and the warrants associated with the 2025 Note were exercised in full.

       27

Interest Income, Interest Expense and Other 

Interest income and other consists primarily of interest and investment income earned on our cash, cash equivalents, and marketable securities. These amounts will vary based on our cash, cash equivalents, and marketable securities balances and market rates. Interest income and other also includes gains on sale of property and equipment. Interest expense and other consists primarily of financing costs, and amortization of premiums and accretion of discounts on marketable securities, net. We expect interest income will increase due to higher cash, cash equivalents, and marketable securities balances.

Results of Operations

Comparison of the three months ended September 30, 2025 and 2024

The results of operations presented below should be reviewed in conjunction with the condensed consolidated financial statements and notes included elsewhere in this report. The following table sets forth our consolidated results of operations data for the three months ended September 30, 2025 and 2024 (in thousands, except for percentages):

      Three months ended September 30, 

      Change 

      Change 

      2025 

      2024 

      $ 

      %  

      Revenue 
      
     $
     50

     $
     104

     $
     (54
     )

     (52
     )%

      Cost of revenue 

     103

     306

     (203
     )

     (66
     )%

      Gross loss 

     (53
     )

     (202
     )

     149

     (74
     )%

      Research and development 

     3,061

     3,767

     (706
     )

     (19
     )%

      Sales and marketing