Company: LIDRW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001437749-25-015868
Chunk: 80

Company: AEye, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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   March 31, 2025  
 Expected term (years)   4.3 
 Expected volatility   190.0%
 Risk-free interest rate   3.9%
 Dividend yield   —%
 Exercise price  $2.22 

   The key inputs into the binomial-lattice model for the 2025 Note valued at  March 31, 2025 are as follows:

       March 31, 2025  
 Expected term (years)   1.2 
 Expected volatility   200.0%
 Risk-free interest rate   4.0%
 Dividend yield   —%
 Estimated credit spread   36.0%

   If factors or assumptions change, the estimated fair values could be materially different. The value of the Company’s convertible note and derivative warrant liabilities would increase if a higher risk-free interest rate was used and would decrease if a lower risk-free interest rate was used. Similarly, a higher volatility assumption would increase the value of the liabilities, and a lower volatility assumption would decrease the value of the liabilities.

       12

    3.   INVENTORIES 

   Inventory, net of write-downs, as of  March 31, 2025 and  December 31, 2024 were as follows (in thousands):

       March 31, 2025    December 31, 2024  
   (unaudited)      
 Raw materials  $83  $158 
 Work in-process   —   — 
 Finished goods   18   18 
 Total inventory, net  $101  $176 

   The Company also had $256 and $209 of noncurrent inventory (raw materials), net of write-downs, classified within other noncurrent assets on the condensed consolidated balance sheet as of  March 31, 2025 and  December 31, 2024, respectively.
    
   The Company’s current and noncurrent inventory as of  March 31, 2025 and  December 31, 2024 was written down by $4,668 and $4,659, respectively, in order to reduce inventory to the lower of cost or net realizable value.

    4.   PREPAID AND OTHER CURRENT ASSETS 

   Prepaid and other current assets as of  March 31, 2025 and  December 31, 2024 were as follows