Company: LIDRW
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025747
Chunk: 106

Company: AEye, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 106
---
 of our advanced lidar solutions. R&D expenses include:

      • 
      personnel-related expenses, including salaries, benefits, bonuses, one-time termination benefits, and stock-based compensation expense, net of allocations to other departments; 

      • 
      third-party engineering and contractor costs; 

      • 
      lab equipment; 

      • 
      engineering parts and test units; 

      • 
      new hardware and software expenses; and 

      • 
      allocated personnel and overhead expenses. 

R&D costs are expensed as they are incurred. We expect our R&D costs to increase from 2024 as we continue to invest in the development and commercialization of our products.

       26

Sales and Marketing

Our sales and marketing, or S&M, efforts are focused primarily on sales, business development, and marketing programs in pursuit of revenue contracts from potential and existing customers. S&M expenses include:

      • 
      personnel-related expenses, including salaries, benefits, bonuses, one-time termination benefits, and stock-based compensation expense; 

      • 
      demonstration equipment; 

      • 
      trade shows expenses, advertising, and promotions expenses for press releases and other public relations services; and 

      • 
      allocated personnel and overhead expenses. 

We expect our S&M expenses to increase from 2024 as we pursue Non-Automotive opportunities to accelerate profitability while continuing to leverage our Tier 1 partners to commercialize our products and manage relationships with the OEMs in the Automotive market. 

General and Administrative

Our general and administrative, or G&A, spending supports all business functions. G&A expenses include:

      • 
      personnel-related costs, including salaries, benefits, bonuses, one-time termination benefits, and stock-based compensation expense for executive, finance, legal, operations, human resources, technical support, and other administrative personnel, net of allocations to other departments; 

      • 
      consulting, accounting, audit, legal, and other professional fees; 

      • 
      insurance premiums, software and computer equipment costs, general office expenses; and 

      • 
      allocated overhead expenses. 

We expect our G&A expenses to decrease slightly from 2024 with reduced facility costs, while continuing to incur expenses to support other departments as we continue to develop and commercialize our products.

Change in Fair Value of Convertible Note and Warrant Liabilities

The changes in fair value of the 2025 Note and warrant liabilities are the result of the change in fair value at each reporting date. The