Company: LIDRW
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001437749-25-004906
Chunk: 1128

Company: AEye, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1A
Chunk 1128
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 the amount computed by applying the statutory federal and state income tax rates to net loss before income tax, primarily as the result of state income taxes, R&D credits and changes in the Company's valuation allowance.

       95

   Significant components of the Company’s deferred tax assets and liabilities as of  December 31, 2024 and 2023 are presented below (in thousands):

       As of December 31,  
   2024    2023  
 Deferred tax assets:         
 Net operating loss carryforwards  $80,580  $69,612 
 Research and development credit carryforward   10,719   9,941 
 Stock-based compensation   215   301 
 Property and equipment   1,090   2,364 
 Operating lease liabilities   1,208   4,967 
 Capitalized R&D expenses   12,401   14,194 
 Other accruals   1,715   689 
 Gross deferred tax assets   107,928   102,068 
 Valuation allowance   (107,734)  (98,840)
 Deferred tax assets net of valuation allowance   194   3,228 
 Deferred tax liabilities:         
 Right-of-use assets   (194)  (3,228)
 Gross deferred tax liabilities   (194)  (3,228)
 Total deferred tax assets (liabilities), net  $—  $— 

   The Company reports income taxes in accordance with ASC 740, which requires an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the enacted tax rates expected to be in effect when the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized.
    
   Realization of deferred tax assets is dependent on future taxable earnings, if any, the timing and amount of which are uncertain. The Company has a history of operating losses and has incurred cumulative book losses since its formation. Based upon the history