Company: LIDRW
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001437749-25-004906
Chunk: 145

Company: AEye, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 145
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 no expiration date.
    
   Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company’s ability to utilize NOL or other tax attributes, such as research tax credits, in any taxable year,  may be limited if the Company has experienced an “ownership change.” Generally, a Section 382 ownership change occurs if there is a cumulative increase of more than 50 percentage points in the stock ownership of one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock within a specific testing period. Similar rules  may apply under state tax laws. Based on the Section 382 analysis performed through  December 31, 2021, the Company concluded all of its NOLs and credits would be available to use as of  December 31, 2021, however, future changes in ownership  may limit the ability to use tax attributes under Section 382.

       96

   The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):

       Year ended December 31,  
   2024    2023  
 Unrecognized tax benefits as of the beginning of the year  $3,480  $2,822 
 Decreases (increases) related to prior year tax provisions   (5)  161 
 Increase related to current year tax provisions   265   497 
 Unrecognized tax benefits as of the end of the year  $3,740  $3,480 

   The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. As of  December 31, 2024 and  December 31, 2023 there was no accrued interest nor penalties related to uncertain tax positions.
    
   The Company files income tax returns in the U.S., various state jurisdictions, and foreign jurisdictions. The U.S., state and foreign jurisdictions have statutes of limitations that generally range from three to five years. Due to the Company’s net losses, substantially all of its federal, state and local income tax returns are subject to examination for federal and state purposes since inception. The Company is not currently under examination for federal or state income tax purposes.
    
   Effective for tax years beginning on or after  January 1, 2022, pursuant to the Tax Cuts and Jobs Act of 2017, companies are required to capitalize Internal Revenue Code ("IRC") Section 174 research