Company: LIDRW
Filing Date: 2025-03-04
Form Type: 424B3
Source: 0000947871-25-000265
Chunk: 19

Company: AEye, Inc.
Filing Date: 2025-03-04
Form: 424B3
Chunk 19
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 time while the Dowslake Note is outstanding,
the Company has the right to prepay in whole or any portion of the Principal Balance or any accrued, unpaid, and uncapitalized interest.

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Subject to Dowslake’s sole discretion as to the allocation, any payment on the Dowslake Note may be made by (i) paying cash, (ii)
converting the applicable amount of Principal Balance into Common Stock, or (iii) any combination of the foregoing (each, a “Dowslake
Note Payment”).

The conversion price applicable to each Dowslake Note Payment is the per
share closing price of the Common Stock on the Nasdaq Stock Market or such other principal market or exchange on which the Common Stock
is then listed for trading as of the immediately preceding trading day. Any conversion of the Dowslake Note into the Common Stock is subject
to limitations that the number of shares of Common Stock issuable shall not exceed, in accordance with the applicable Nasdaq rules, (A)
19.99% of the number of shares of Common Stock outstanding on the Original Issue Date, including shares of Common Stock issued or issuable
in any transaction that is required to be aggregated with Dowslake Transaction under the rules and regulations of the Nasdaq Stock Market
or (B) 19.99% of the number of shares of Common Stock outstanding or the total voting power of the Company’s securities outstanding.

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<div align='center'>SELLING STOCKHOLDERS</div>

The shares of Common Stock being offered
by the Selling Stockholders are (i) the Dowslake Shares and (ii) those shares of Common Stock issuable to a Selling Stockholder upon
conversion of the Convertible Note or upon exercise of the Warrant (the Warrant, together with the Convertible Note, the “Securities”).
For additional information regarding the issuance of the Dowslake Shares or the Securities, see “Private Placements” above.
We are registering the shares of Common Stock to permit the Selling Stockholders to offer the shares of the Common Stock for resale from
time to time. The Company and an institutional investor or such institutional investor’s affiliates have previously entered into
certain securities purchase agreement, dated September 15, 2022 and common stock purchase agreement, dated December 8, 2021. Except for
the foregoing and the ownership of the Dowslake Shares, Dowslake Note and the Securities, the Selling Stockholders have not