Company: LIDRW
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001437749-25-004906
Chunk: 1215

Company: AEye, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 1215
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   Concentration of Credit Risk   Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, and marketable securities, and accounts receivable. The Company places its cash and cash equivalents with major financial institutions, which management assesses to be of high credit quality, to limit the exposure of each investment. The Company’s marketable securities have investment grade ratings when purchased which mitigates risk.   The Company’s accounts receivable are derived from customers located in the U.S. and Europe. The Company mitigates its credit risks by performing ongoing credit evaluations of its customers’ financial conditions. The Company generally does not require collateral.  

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       The Company’s concentration of risk related to accounts receivable and accounts payable was determined by evaluating the number of customers and vendors accounting for 10% or more of accounts receivable (“AR”) and accounts payable (“AP”). As of  December 31, 2024, the Company had three customers, each accounting for 10% or more of AR and one vendor accounting for 10% or more of AP. As of  December 31, 2023, the Company had four customers, each accounting for 10% or more of AR and one vendor accounting for 10% or more of AP.   For the years ended  December 31, 2024 and 2023, revenue from the Company’s major customers representing 10% or more of total revenue was as follows:  
    
        Year ended December 31,  
   2024    2023  
 Customer A   50%  * 
 Customer B   32%  * 
 Customer C   *   70%

        *Customer accounted for less than 10% of total revenue in the period.

   Fair Value of Financial Instruments   The Company defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. For additional discussion on fair value of financial instruments, see Note 2.

   Derivatives   The Company accounts for derivative instruments in accordance with Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) Topic 815, Derivatives and Hedging