Company: LIDRW
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001437749-25-004906
Chunk: 1129

Company: AEye, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1A
Chunk 1129
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 of losses, the Company has determined that it is more likely than not that the net deferred tax assets will not be realized, and accordingly, a full valuation allowance has been recorded. The valuation allowance as of  December 31, 2024 was $107,734 which increased from $98,840 at  December 31, 2023. The increase in the valuation allowance is primarily related to additional deferred tax assets recorded for net operating losses and research credits generated during the year ended  December 31, 2024.
    
   As of  December 31, 2024, the Company had $284,368 and $241,652 of federal and state net operating losses available to reduce future taxable income, respectively, of which $12,256 will begin to expire in 2033 for federal tax purposes and $241,652 will begin to expire in 2029 for state tax purposes. Approximately $272,112 of federal net operating loss included above can be carried forward indefinitely.
    
   As of  December 31, 2023, the Company had $247,802 and $202,887 of federal and state net operating losses available to reduce future taxable income, which will begin to expire in 2033 for federal and 2029 for state tax purposes.
    
   The Company also has federal and state research and development tax credit carryforwards of $8,203 and $6,255 as of  December 31, 2024 and $7,591 and $5,829 as of  December 31, 2023. The federal credits begin to expire in 2034 and the state credits have 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