Company: LIDRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001437749-25-015868
Chunk: 91

Company: AEye, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 the Automotive and Non-Automotive markets. As part of its effort to reduce fixed operating costs, focus operations, simplify supply chains and streamline manufacturing to unify around a single product – Apollo, the company wound down support for its legacy Non-Automotive product. In  August 2024, the Company further reduced fixed operating costs and terminated its headquarters lease and in 2025, settled the amount of the lease termination liability.  See discussion in Note 5, Leases and Note 17, Commitment and Contingencies for the settlement of the lease termination liability. 

       19

   Restructuring charges are summarized as follows as of  March 31, 2025 (in thousands):

       Losses on purchase commitments    Lease Termination Liability    Other    Total  
 Balance as of December 31, 2024  $297  $3,313  $5  $3,615 
 Adjustments   —   (1,685)  —   (1,685)
 Cash payments   (30)  —   —   (30)
 Balance as of March 31, 2025  $267  $1,628  $5  $1,900 

    16.  INCOME TAXES 

   For the three months ended  March 31, 2025 and 2024, the Company recognized $2 and $2 provision for income taxes, respectively. The income tax rates vary from the federal and state statutory rates due to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter.

    17.  COMMITMENTS AND CONTINGENCIES 

   Legal matters
    
   The Company  may be subject to legal proceedings and claims that arise in the ordinary course of business. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company’s view of these matters  may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.