Company: LIDRW
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025747
Chunk: 3

Company: AEye, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 4
Chunk 3
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, and evolving international trade policies. Changes in U.S. or foreign government trade regulations, including the imposition of new tariffs or other retaliatory measures, could increase our costs, disrupt our supply chain, or limit our ability to sell products in certain markets, adversely affecting our financial condition.

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      Although we believe that lidar is an essential technology for autonomous vehicles and other emerging applications, market adoption of lidar is uncertain. If market adoption of lidar does not continue to develop, or adoption is deferred, or otherwise develops more slowly than we expect, our business will be adversely affected. 

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      The complexity of our products could result in unforeseen delays or expenses from undetected defects, errors, or reliability issues in our hardware or software which could reduce the market adoption of our products, damage our reputation with current or prospective customers, and expose us to product liability and other claims, thereby adversely affecting our operating costs. 

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      Shareholder activism has caused us to incur significant additional expense, disrupted our business, and resulted in a proxy contest, all of which could negatively impact our stock price. 

Risk Factors Relating to Our Business and Industry

We are an early stage company with a history of losses and we expect to incur significant expenses and continuing losses for at least the next few years.

We have incurred net losses in each year since our inception. In the six months ended June 30, 2025 and 2024, we incurred net losses of approximately $17.3 million and $18.2 million, respectively. We expect that we will continue to incur significant losses through at least the next few years as we:

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      continue to utilize our third-party partners for design, testing, and commercialization; 

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      expand our operations and supply chain capabilities to produce our lidar components and systems, including costs associated with outsourcing the production which, in some instances, requires significant upfront payments by us; 

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      expand our design, development, and commercialization; 

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      build up inventories of parts and components for our lidar solutions; and 

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      maintain a level of general and administrative spending to meet the requirements of operating as a public company. 

As of June 30, 2025, we had an accumulated deficit of approximately $390.4 million. Even if we are able to increase sales or licensing of our products, there can be no assurance that we will be commercially successful. Since