Company: LIDRW
Filing Date: 2025-03-04
Form Type: 424B3
Source: 0000947871-25-000265
Chunk: 14

Company: AEye, Inc.
Filing Date: 2025-03-04
Form: 424B3
Chunk 14
---
 and the Risk Factors
included in any prospectus supplement or amendment, our Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequently
filed Quarterly Reports on Form 10-Q and our other filings with the SEC that are incorporated by reference into this prospectus. The
risks described in this prospectus or in any document incorporated by reference are not the only ones we face. There may be other unknown
or unpredictable economic, business, competitive, regulatory or other factors that could have material adverse effects on our business,
prospects, financial condition and results of operations. In any such case, the trading price of shares of Common Stock could decline
materially and you could lose all or part of your investment. Past financial performance may not be a reliable indicator of future performance
and historical trends should not be used to anticipate results or trends in future periods.

| 12 |

<div align='center'>USE OF PROCEEDS</div>

All proceeds from the resale
of the shares of Common Stock offered by this prospectus will belong to the Selling Stockholders. We will not receive any proceeds from
the resale of the shares of Common Stock by the Selling Stockholders. We will receive any proceeds from the cash exercise of the Warrant
(if any), but not from the sale of the shares of Common Stock issuable upon such exercise. To the extent that the Warrant is exercised
on a “cashless basis,” we would not receive any proceeds from such exercise.

| 13 |

<div align='center'>PRIVATE PLACEMENTS</div>

The Convertible Note and Warrant Transaction

On January 2, 2025, we entered into a Securities Purchase Agreement
with an institutional investor pursuant to which we issued to such institutional investor a senior unsecured convertible promissory note
in the aggregate principal amount of $3.2 million for an aggregate purchase price of $3 million (the “Convertible Note”)
and a warrant to purchase up to 805,263 shares of Common Stock (the “Warrant” and the transaction, the “Convertible
Note and Warrant Transaction”).

The Convertible Note was issued with a seven
point four percent (7.4%) original issue discount and has an eighteen month term and an interest rate of seven percent (7.0%) per
annum, which shall automatically be increased to eighteen percent (18.0%) per annum in the event of default. The Convertible Note is
convertible into