0001818644-22-000012 | 10-Q | XBRL Viewer

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Recapitalization - Narrative (Details) $ / shares in Units, $ in Thousands				7 Months Ended	12 Months Ended
	Aug. 16, 2021 USD ($) $ / shares shares	Aug. 15, 2021 $ / shares shares	Aug. 12, 2021 USD ($) $ / shares shares	Aug. 15, 2021 $ / shares shares	Dec. 31, 2020 shares	Mar. 31, 2022 $ / shares shares	Dec. 31, 2021 $ / shares shares	Mar. 31, 2021 shares	Dec. 31, 2019 shares
Schedule Of Reverse Recapitalization [Line Items]
Common stock and preferred stock — shares authorized (in shares)	301,000,000
Common stock — shares authorized (in shares)	300,000,000					300,000,000	300,000,000
Common stock — par value (in dollars per share) \| $ / shares	$ 0.0001					$ 0.0001	$ 0.0001
Preferred stock — shares authorized (in shares)	1,000,000					1,000,000	1,000,000
Preferred stock — par value (in dollars per share) \| $ / shares	$ 0.0001					$ 0.0001	$ 0.0001
Exchange ratio	3.7208
Convertible preferred stock conversion ratio		1		1
Warrant exercise price (in dollars per share) \| $ / shares	$ 11.50					$ 11.50
Common stock conversion ratio		1		1
Redemption of shares (in shares)			19,355,365
Value of redemption of shares \| $			$ 195,498
Redemption price per share (in dollars per share) \| $ / shares			$ 10.10
Warrant period exercisable	30 days
Warrant expiration period	5 years
Transaction costs recorded to additional paid-in capital \| $	$ 52,661
Transaction costs expensed \| $	2,198
Gross proceeds from Business Combination \| $	$ 256,811
PIPE Subscription, All Investors
Schedule Of Reverse Recapitalization [Line Items]
Shares issued in transaction (in shares)	22,000,000
Purchase price (in dollars per share) \| $ / shares	$ 10.00
Aggregate purchase price \| $	$ 220,000
PIPE Subscription, Defaulted Investor
Schedule Of Reverse Recapitalization [Line Items]
Shares issued in transaction (in shares)	500,000
Purchase price (in dollars per share) \| $ / shares	$ 10.00
Aggregate purchase price \| $	$ 5,000
Common Stock Warrants
Schedule Of Reverse Recapitalization [Line Items]
Outstanding warrants exercised (in shares)		61,612		61,612
Net settlement of common stock and Series A preferred stock warrants (in shares)		57,770
Warrant exercise price (in dollars per share) \| $ / shares		$ 37.21		$ 37.21
Series A Preferred Warrants
Schedule Of Reverse Recapitalization [Line Items]
Outstanding warrants exercised (in shares)		7,353		7,353
Net settlement of common stock and Series A preferred stock warrants (in shares)		6,949
Warrant exercise price (in dollars per share) \| $ / shares		$ 37.21		$ 37.21
Common Stock
Schedule Of Reverse Recapitalization [Line Items]
Conversion of Convertible Notes and Accrued Interest (in shares)	20,778,097	5,584,308		20,778,097
Shares outstanding (in shares)					101,286,645	156,364,924	155,137,237	101,458,369	11,283,838
Net settlement of common stock and Series A preferred stock warrants (in shares)				240,806
Redemption of shares (in shares)					3,536,070
Common Stock \| Retroactive application of recapitalization (Note 2)
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)					90,448,635
Preferred Stock
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)					0	0	0	0	16,383,725
Preferred Stock \| Retroactive application of recapitalization (Note 2)
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)		16,383,725		16,383,725	(16,383,725)

Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATIONThe Company has three equity incentive plans, the 2014 US LADAR Inc. Equity Incentive Plan (the “2014 Plan”), the 2016 Stock Plan (the “2016 Plan”), and the 2021 Equity Incentive Plan (the “Incentive Plan”). On August 16, 2021, the Company’s 2014 Plan and 2016 Plan were terminated in connection with the closing of the Business Combination as defined in Note 1, but continue to govern the terms of outstanding equity awards that were granted prior to the termination of the plans.

2014 Plan and 2016 Plan

As of August 16, 2021, the Company no longer grants equity awards pursuant to the 2014 Plan or 2016 Plan. The Company had reserved 33,121,391 shares of common stock for issuance under the 2016 Plan and as of March 31, 2022, 1,741,689 RSUs were granted.

Under the 2016 Plan, options to purchase common stock generally vest over four years with 25% vesting at the end of the first year and the rest vesting ratably over the next three years. RSUs generally vest 25% at the end of the first year with the remaining RSUs vesting ratably over the next three years or they vest ratably over the four years. Under the 2014 Plan, the vesting period for options to purchase common stock range from immediate to four years. Under each plan, the options expire ten years from the date of grant.

In connection with the Business Combination on August 16, 2021, $1,500 was paid to an executive in consideration for repurchasing 542,615 of their vested options under the Company’s 2016 Plan.

2021 Equity Incentive Plan

The Incentive Plan became effective immediately upon the closing of the Business Combination on August 16, 2021 and reserved 15,440,430 shares of common stock for issuance under the plan. The Incentive Plan includes an evergreen provision that provides for an annual increase in the number of shares of common stock available for issuance thereunder beginning on January 1, 2022 and ending on January 1, 2032, equal to 5% of the shares of the Company’s common stock outstanding on December 31, 2021 for the first year and by 3% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year for each year thereafter, or a lesser number of shares as determined by the Board of Directors. On January 1, 2022, 7,743,413 shares of common stock were added to the Plan for issuance.

Under the Incentive Plan, RSUs vest depending on their vesting schedule. For newly hired employees, RSUs vest 25% during the month following the recipient’s one year anniversary of their start date. The remaining amounts vest ratably over the next three years. For existing employees, these RSUs vest quarterly over three years. The fair value of the RSU is equal to the fair value of the Company’s common stock on the date of grant.

As of March 31, 2022, 13,413,987 RSUs were granted to certain individuals under the Incentive Plan.

A summary of stock option activity related to the Plans as of March 31, 2022 is as follows:


	Outstanding Stock Options		Weighted Average Exercise Price	Weighted Average Contractual Life (Years)		Aggregate Intrinsic Value
Balance at December 31, 2021	29,238,432	$	0.48	7.4	$	127,345
Granted	—		—
Exercised	(656,303)		0.34
Forfeited	(193,018)		0.54
Expired	—		—
Repurchased	—		—
Balance at March 31, 2022	28,389,111	$	0.49	6.9	$	141,445
Vested and expected to vest as of March 31, 2022	28,389,111	$	0.49	6.9	$	141,445
Vested and exercisable as of March 31, 2022	19,321,613	$	0.42	6.3	$	97,483

The aggregate intrinsic value is the difference between the current fair value of the underlying common stock and the exercise price for in-the-money stock options.

The following table summarizes the RSU award activity under the Plans:


	Shares	Weighted Average Grant date Fair Value per Share
Unvested at December 31, 2021	7,434,743	5.80
Granted	7,241,916	4.45
Forfeited	(18,000)	4.47
Vested	(856,917)	5.59
Unvested at March 31, 2022	13,801,742	4.92

The total fair value of RSUs that vested during the three months ended March 31, 2022 was $3,472.

Stock-Based Compensation Expense —The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s consolidated statements of operations and comprehensive loss for the three months ended March 31, 2022 and 2021 (in thousands):


	Three months ended March 31,
	2022		2021
Research and development	$	1,223	$	621
Sales and marketing	906		358
General and administrative	3,211		631
Total stock-based compensation	$	5,340	$	1,610

The weighted-average grant date fair value of options granted during the three months ended March 31, 2022 and 2021 was $0 as no options were granted during these periods.

As of March 31, 2022, the Company had $8,360 of unrecognized compensation expense for related stock option grants. This cost is expected to be recognized over an estimated weighted average period of 1.94 years. The total unrecognized compensation expense for RSUs was $64,895 as of March 31, 2022 which is expected to be recognized over an estimated weighted average period of 3.18 years.

The Company estimates the fair value of its options on grant date using the Black-Scholes option-pricing model, which requires the input of subjective assumptions as discussed below, including the expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award, and expected dividends. The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. Each of these inputs are based on highly subjective assumptions and require significant judgment. For the three months ended March 31, 2022, the Company granted no new options.

Expected Term—The expected term of options granted to employees is based on the expected life of the stock options, giving consideration to the contractual terms and vesting schedules.

Expected Volatility—Expected volatility was estimated based on the average historical volatility of comparable companies’ stock, as the Company does not have a sufficient trading history to determine historical volatility.

Risk-Free Interest Rate—The risk-free interest rates are based on US Treasury yields in effect at the grant date for notes with comparable terms as the awards.

Dividend Yield—The expected dividend-yield assumption is based on the Company’s current expectations about its anticipated dividend policy.

Interest Expense and Other (Tables)

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Schedule of Interest Expense and Other

Interest expense and other for the three months ended March 31, 2022 and 2021 consisted of the following (in thousands):


	Three months ended March 31,
	2022		2021
Interest on term loan debt	$	—	$	137
Interest on PPP loan	—		6
Interest on convertible note	—		278

Amortization of debt discount	—		267
Amortization of premiums on marketable securities, net of accretion of discounts	336		—

Other	7		—
Interest expense and other	$	343	$	688

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Leases [Abstract]
Cash paid for operating leases included in operating cash flows	$ 586

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Operating Lease Expenses and Supplemental Cash Flow Information

The components of operating lease expenses for the three months ended March 31, 2022 are as follows (in thousands):


	March 31, 2022
	(Unaudited)
Operating lease cost	$	577
Variable lease cost	63
Total operating lease cost	$	640

Supplemental cash flow information for the three months ended March 31, 2022 were as follows (in thousands):


	March 31, 2022
	(Unaudited)
Cash paid for operating leases included in operating cash flows	$	586

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to operating leases was as follows (in thousands):


	As of March 31, 2022
	(Unaudited)

Operating lease right-of-use assets	$	15,968

Operating lease liabilities:
Operating lease liabilities, current	$	2,273
Operating lease liabilities, non-current	17,323
Total operating lease liabilities	$	19,596


	March 31, 2022
	(Unaudited)
Weighted average remaining lease term (in years)	9.65
Weighted average discount rate	5.31	%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows (in thousands):


Years ended:	Operating leases
2022 (remaining nine months)	$	1,745
2023	2,342
2024	2,412
2025	2,484
2026	2,559
Thereafter	13,752
Total lease payments	25,294
Less amount to discount to present value	(5,698)
Present value of lease liabilities	$	19,596

Schedule of Future Minimum Payments Under Noncancellable Operating Leases under ASC 840

Future minimum payments as of March 31, 2021 under the noncancellable operating leases are as follows (in thousands):


	Operating Leases
Years ended:
2021 (remaining nine months)	$	1,713
2022	2,331
2023	2,342
2024	2,412
2025 and after	4,824
Total minimum lease payments	$	13,622

Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

Total revenue based on the disaggregation criteria described above are as follows (in thousands):


	Three months ended March 31,
	2022	2021
Revenue by primary geographical market:
United States	1,021	233

Europe	40	—
Asia	21	96
Total	1,082	329

Revenue by timing of recognition:
Recognized at a point in time	555	313
Recognized over time	527	16
Total	1,082	329

Schedule of Contract Liabilities

Contract liabilities consisted of the following as of March 31, 2022 (in thousands):


	As of March 31, 2022
Contract liabilities, current	$	1,852
Contract liabilities, noncurrent	299
Total	$	2,151

The following table shows the significant changes in contract liabilities balance as of March 31, 2022 and 2021 (in thousands):


	Three months ended March 31,
	2022		2021
Beginning balance	$	2,918	$	660
Revenue recognized that was included in the contract liabilities beginning balance	(767)		(16)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	—		135
Ending balance	$	2,151	$	779

Other Noncurrent Assets

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Noncurrent Assets

OTHER NONCURRENT ASSETS

Other noncurrent assets as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)

Long-term prepaid expenses	950		1,376
Security deposits	159		133
Total other noncurrent assets	$	1,109	$	1,509

Convertible Notes	3 Months Ended
Convertible Notes	Mar. 31, 2022
Debt Disclosure [Abstract]
Convertible Notes	BORROWINGS Silicon Valley Bank Financing Facility On April 26, 2021, the Company entered into a loan and security agreement (the “Loan Agreement”) with an affiliate of Silicon Valley Bank (“SVB” or the “Lender”) in connection with the non-binding term sheet for a financing facility of up to $10,000 entered into on March 18, 2021. Under the Loan Agreement, the Lender was obligated to make a term loan advance to the Company of $4,000. Subject to the terms and conditions of the Loan Agreement, and upon the Company’s request, the Lender was obligated to make one term loan advance to the Company of $6,000. The interest rate on the term loan advance is calculated at 8% per annum and payable monthly, in arrears. Upon entering the Loan Agreement, $4,000 was drawn. On May 13, 2021, an additional $6,000 was drawn. The balance of $10,540 for the financing facility, including interest, was repaid on August 20, 2021. Silicon Valley Bank Credit Facility On August 16, 2019, the Company entered into a loan and security agreement with SVB. Borrowings under this facility are secured by substantially all the Company’s assets, excluding intellectual property. The term loan’s borrowings are subject to certain financial covenants and restrictions. The Company complied with all financial covenants and restrictions. The balance of $2,333 for the term loan was repaid on September 7, 2021. Paycheck Protection Program (PPP) Loan On June 19, 2021, the Company received notice of the Paycheck Protection Program (PPP) forgiveness payment made to SVB by the Small Business Administration in the amount of $2,270 in principal and $27 in interest. This amount represents the forgiveness of the total PPP loan the Company received in 2020 under the PPP Loan provisions of the CARES act. As of March 31, 2022 and December 31, 2021, there were no borrowings outstanding. CONVERTIBLE NOTES During 2020, the Company entered into various convertible note agreements (“2020 Notes”) under which the Company may issue convertible equity instruments having an aggregate principal amount of up to $40,000, a 3% accruing dividend (“accrued interest”) and a maturity date of October 31, 2021. In connection with the Business Combination on August 16, 2021, all outstanding principal of $38,045 and unpaid accrued interest of the 2020 Notes were converted into AEye Technologies’ preferred stock and subsequently were converted into 20,778,097 shares of the Company’s Class A common stock. Accordingly, at March 31, 2022 and December 31, 2021, the convertible notes balance was $0. Embedded Derivative Liability As outlined in the indenture governing the 2020 Notes, the 2020 Notes are automatically convertible, contingent upon the occurrence of certain events, most notably a financing (a “Next Financing”), defined as the issuance and sale of additional preferred stock (“Financing Stock”). The redemption price is defined as a price per share equal to 90% of the price per share paid by the other purchasers of the Financing Stock sold in the Next Financing. The 2020 Notes are redeemable into the number of shares of Next Financing Stock needed to settle all of the aggregate amount of principal and unpaid interest owed to the holder of such notes, which is based on the ultimate price per share associated with the Financing Stock. Consequently, the 2020 Notes are considered stock settled debt. This redemption feature embedded in the 2020 Notes is considered to be a derivative that is required to be separately accounted for at fair value and subsequently remeasured to fair value at each reporting date. Accordingly, upon issuance of the 2020 Notes, the Company recognized the fair value associated with the embedded derivative which resulted in an embedded derivative liability of approximately $1,520, with an equal and offsetting debt discount. Upon the closing of the Business Combination on August 16, 2021, the embedded derivative was settled. Accordingly, at March 31, 2022 and December 31, 2021, the fair value of the embedded derivative liability was $0.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Borrowings	3 Months Ended
Borrowings	Mar. 31, 2022
Debt Disclosure [Abstract]
Borrowings	BORROWINGS Silicon Valley Bank Financing Facility On April 26, 2021, the Company entered into a loan and security agreement (the “Loan Agreement”) with an affiliate of Silicon Valley Bank (“SVB” or the “Lender”) in connection with the non-binding term sheet for a financing facility of up to $10,000 entered into on March 18, 2021. Under the Loan Agreement, the Lender was obligated to make a term loan advance to the Company of $4,000. Subject to the terms and conditions of the Loan Agreement, and upon the Company’s request, the Lender was obligated to make one term loan advance to the Company of $6,000. The interest rate on the term loan advance is calculated at 8% per annum and payable monthly, in arrears. Upon entering the Loan Agreement, $4,000 was drawn. On May 13, 2021, an additional $6,000 was drawn. The balance of $10,540 for the financing facility, including interest, was repaid on August 20, 2021. Silicon Valley Bank Credit Facility On August 16, 2019, the Company entered into a loan and security agreement with SVB. Borrowings under this facility are secured by substantially all the Company’s assets, excluding intellectual property. The term loan’s borrowings are subject to certain financial covenants and restrictions. The Company complied with all financial covenants and restrictions. The balance of $2,333 for the term loan was repaid on September 7, 2021. Paycheck Protection Program (PPP) Loan On June 19, 2021, the Company received notice of the Paycheck Protection Program (PPP) forgiveness payment made to SVB by the Small Business Administration in the amount of $2,270 in principal and $27 in interest. This amount represents the forgiveness of the total PPP loan the Company received in 2020 under the PPP Loan provisions of the CARES act. As of March 31, 2022 and December 31, 2021, there were no borrowings outstanding. CONVERTIBLE NOTES During 2020, the Company entered into various convertible note agreements (“2020 Notes”) under which the Company may issue convertible equity instruments having an aggregate principal amount of up to $40,000, a 3% accruing dividend (“accrued interest”) and a maturity date of October 31, 2021. In connection with the Business Combination on August 16, 2021, all outstanding principal of $38,045 and unpaid accrued interest of the 2020 Notes were converted into AEye Technologies’ preferred stock and subsequently were converted into 20,778,097 shares of the Company’s Class A common stock. Accordingly, at March 31, 2022 and December 31, 2021, the convertible notes balance was $0. Embedded Derivative Liability As outlined in the indenture governing the 2020 Notes, the 2020 Notes are automatically convertible, contingent upon the occurrence of certain events, most notably a financing (a “Next Financing”), defined as the issuance and sale of additional preferred stock (“Financing Stock”). The redemption price is defined as a price per share equal to 90% of the price per share paid by the other purchasers of the Financing Stock sold in the Next Financing. The 2020 Notes are redeemable into the number of shares of Next Financing Stock needed to settle all of the aggregate amount of principal and unpaid interest owed to the holder of such notes, which is based on the ultimate price per share associated with the Financing Stock. Consequently, the 2020 Notes are considered stock settled debt. This redemption feature embedded in the 2020 Notes is considered to be a derivative that is required to be separately accounted for at fair value and subsequently remeasured to fair value at each reporting date. Accordingly, upon issuance of the 2020 Notes, the Company recognized the fair value associated with the embedded derivative which resulted in an embedded derivative liability of approximately $1,520, with an equal and offsetting debt discount. Upon the closing of the Business Combination on August 16, 2021, the embedded derivative was settled. Accordingly, at March 31, 2022 and December 31, 2021, the fair value of the embedded derivative liability was $0.

- Definition

+ References

+ Details

Net Loss per Share - Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net loss attributable to common stockholders	$ (24,881)	$ (11,509)
Denominator:
Weighted average common shares outstanding - Basic (in shares)	155,515,093	101,362,036
Dilutive effect of potential common shares (in shares)	0	0
Weighted average common shares outstanding - Diluted (in shares)	155,515,093	101,362,036
Net loss per share attributable to common stockholders - (basic) (in dollars per share)	$ (0.16)	$ (0.11)
Net loss per share attributable to common stockholders - (diluted) (in dollars per share)	$ (0.16)	$ (0.11)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

Revenue - Narrative (Details) $ in Thousands	3 Months Ended
Revenue - Narrative (Details) $ in Thousands	Mar. 31, 2022 USD ($) performance_obligation	Mar. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Revenue	$ 1,082	$ 329
Prototype sales
Disaggregation of Revenue [Line Items]
Revenue	$ 335	233
Number of performance obligations \| performance_obligation	1
Development contracts
Disaggregation of Revenue [Line Items]
Revenue	$ 747	96
Revenue recognized for performance obligation satisfied	$ 747	$ 96

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Prepaid and Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid and Other Current Assets

Prepaid and other current assets as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Prepaid expenses	$	3,203	$	3,980
Demonstration units	311		224
Other	1,027		847
Total prepaid and other current assets	$	4,541	$	5,051

Related Parties	3 Months Ended
Related Parties	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Parties	RELATED PARTIESSince November 2016, the Company has employed a sibling of Mr. Dussan, the Company’s Chief Technology Officer, who held the position of Director, Human Resources and Sr. Manager of Human Resources at March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022 and 2021, Mr. Dussan’s sibling received total cash compensation of $53 and $32, respectively. For the three months ended March 31, 2022, Mr. Dussan’s sibling was granted 22,500 RSUs. Mr. Dussan's sibling was not granted any equity awards for the three months ended March 31, 2021. In addition, he participates in all other benefits that the Company generally offers to all of its employees.

Leases - Supplemental Balance Sheet Information (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 15,968
Operating lease liabilities:
Operating lease liabilities, current	2,273
Operating lease liabilities, noncurrent	17,323
Total operating lease liabilities	$ 19,596
Weighted average remaining lease term (in years)	9 years 7 months 24 days
Weighted average discount rate	5.31%

Convertible Notes (Details) - USD ($)			7 Months Ended	12 Months Ended
Convertible Notes (Details) - USD ($)	Aug. 16, 2021	Aug. 15, 2021	Aug. 15, 2021	Dec. 31, 2020	Mar. 31, 2022	Dec. 31, 2021
Common Stock
Debt Instrument [Line Items]
Conversion of Convertible Notes and Accrued Interest (in shares)	20,778,097	5,584,308	20,778,097
2020 Notes \| Convertible Notes
Debt Instrument [Line Items]
Maximum amount of convertible equity instruments issuable				$ 40,000,000
Dividend rate				3.00%
Convertible notes balance	$ 38,045,000				$ 0	$ 0
Debt conversion multiplier percentage				90.00%
Embedded derivative liability				$ 1,520,000	$ 0	$ 0

Cash, Cash Equivalents, and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents

Cash, cash equivalents (which consists entirely of money market funds) and restricted cash as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Cash and cash equivalents	$	11,177	$	14,183
Restricted cash	2,150		2,150
Total cash, cash equivalents, and restricted cash	$	13,327	$	16,333

Schedule of Restricted Cash

Cash, cash equivalents (which consists entirely of money market funds) and restricted cash as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Cash and cash equivalents	$	11,177	$	14,183
Restricted cash	2,150		2,150
Total cash, cash equivalents, and restricted cash	$	13,327	$	16,333

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021	Aug. 16, 2021	Aug. 15, 2021
Statement of Financial Position [Abstract]
Preferred stock — par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock — shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred stock — shares issued (in shares)	0	0
Preferred stock — shares outstanding (in shares)	0	0		16,383,725
Common stock — par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Common stock — shares authorized (in shares)	300,000,000	300,000,000	300,000,000
Common stock — shares issued (in shares)	156,364,924	155,137,237
Common stock — shares outstanding (in shares)	156,364,924	155,137,237	154,404,302	23,000,000

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued payroll	$ 1,277	$ 957
Accrued bonuses	1,763	3,408
Accrued payroll taxes	498	1,547
Accrued purchases and other	2,840	1,947
Warranty reserve	336	275
Deferred rent - current		605
Income tax payable	8	0
Operating lease liabilities - current	2,273
Accrued expenses and other current liabilities	$ 8,995	$ 8,739

Recapitalization - Shares Issued Immediately Following the Consummation of the Business Combination (Details) - shares	Aug. 16, 2021	Aug. 12, 2021	Mar. 31, 2022	Dec. 31, 2021	Aug. 15, 2021
Schedule Of Reverse Recapitalization [Line Items]
Class A common stock, outstanding (in shares)	154,404,302		156,364,924	155,137,237	23,000,000
Less: redemption of CF III Class A common stock (in shares)		19,355,365
Business Combination and PIPE shares (in shares)	31,894,635
Legacy AEye shares (in shares)	122,509,667
Common Shareholders
Schedule Of Reverse Recapitalization [Line Items]
Business Combination and PIPE shares (in shares)	3,644,635
Founder shares
Schedule Of Reverse Recapitalization [Line Items]
Business Combination and PIPE shares (in shares)	5,750,000
Private Placement
Schedule Of Reverse Recapitalization [Line Items]
Business Combination and PIPE shares (in shares)	500,000
Shares issued in PIPE
Schedule Of Reverse Recapitalization [Line Items]
Business Combination and PIPE shares (in shares)	22,000,000

Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
Related Parties (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
RSUs
Related Party Transaction [Line Items]
Awards granted (in shares)	7,241,916
Sibling of President and CTO
Related Party Transaction [Line Items]
Cash compensation	$ 53	$ 32
Sibling of President and CTO \| RSUs
Related Party Transaction [Line Items]
Awards granted (in shares)	22,500

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (24,881)	$ (11,509)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	208	245
Noncash lease expense relating to operating lease right-of-use assets	317
Noncash interest expense related to bank loans	0	114
Inventory write-downs, net of scrapped inventory	267	0
Change in fair value of embedded derivative liability and warrant liabilities	32	(17)
Stock-based compensation	5,340	1,610
Amortization of debt issuance costs	0	283
Amortization of premiums on marketable securities, net of change in accrued interest	594	0
Changes in operating assets and liabilities:
Accounts receivable, net	3,930	(205)
Inventories, net	(436)	(235)
Prepaid and other current assets	510	332
Other noncurrent assets	400	(2,785)
Accounts payable	(567)	2,494
Accrued expenses and other current liabilities	(645)	873
Operating lease liabilities	(325)
Deferred rent		(133)
Contract liabilities	(767)	119
Net cash used in operating activities	(16,023)	(8,814)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(774)	(121)
Proceeds from redemption of marketable securities	15,500	0
Net cash provided by (used in) operating activities	14,726	(121)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	222	85
Proceeds from the issuance of convertible notes	0	8,045
Principal payments - bank loan	0	(333)
Taxes paid related to the net share settlement of equity awards	(1,931)	0
Net cash provided by (used in) financing activities	(1,709)	7,797
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(3,006)	(1,138)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	16,333	16,497
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Ending	13,327	15,359
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	0	44
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment included in accounts payable and accrued liabilities	260	35
Taxes related to net settlement of restricted stock units included in accrued liabilities	53	$ 0
Operating lease right-of-use assets obtained in exchange for lease obligations upon adoption of ASC 842	$ 16,284

Commitment and Contingencies	3 Months Ended
Commitment and Contingencies	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Legal matters The Company may be subject to legal proceedings and claims that arise in the ordinary course of business. Management is not currently aware of any matters that will have a material effect on the financial position, results of operations, or cash flows of the Company.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSOn May 10, 2022, the Company's stockholders approved the 2022 Employee Stock Purchase Plan (the "ESPP"), authorizing 2,000,000 shares of common stock to be reserved for issuance under the ESPP. The first offering to the Company's employees to purchase shares under the ESPP will begin on November 1, 2022. Each employee who is a participant in the ESPP may purchase shares by authorizing contributions at a minimum of 1% up to a maximum of 10% of his or her compensation for each pay period, which will then be used to purchase shares on the last business day of the purchase period at a price equal to 85% of the lowest fair market value of the shares during the offering period, as defined in the ESPP.

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

LEASES

The Company primarily leases office facilities in Northern California under noncancelable operating leases expiring at various dates through November 2026. Some of the Company's leases include options to renew, with renewal terms that, if exercised by the Company, extend the lease term from two to five years. The exercise of these renewal options is at the Company's discretion. The Company's lease agreements do not contain any material terms and conditions of residual value guarantees or material restrictive covenants. The Company's short-term lease expense was determined to not be material.

The components of operating lease expenses for the three months ended March 31, 2022 are as follows (in thousands):


	March 31, 2022
	(Unaudited)
Operating lease cost	$	577
Variable lease cost	63
Total operating lease cost	$	640

Supplemental cash flow information for the three months ended March 31, 2022 were as follows (in thousands):


	March 31, 2022
	(Unaudited)
Cash paid for operating leases included in operating cash flows	$	586

Supplemental balance sheet information related to operating leases was as follows (in thousands):


	As of March 31, 2022
	(Unaudited)

Operating lease right-of-use assets	$	15,968

Operating lease liabilities:
Operating lease liabilities, current	$	2,273
Operating lease liabilities, non-current	17,323
Total operating lease liabilities	$	19,596


	March 31, 2022
	(Unaudited)
Weighted average remaining lease term (in years)	9.65
Weighted average discount rate	5.31	%

Maturities of lease liabilities were as follows (in thousands):


Years ended:	Operating leases
2022 (remaining nine months)	$	1,745
2023	2,342
2024	2,412
2025	2,484
2026	2,559
Thereafter	13,752
Total lease payments	25,294
Less amount to discount to present value	(5,698)
Present value of lease liabilities	$	19,596

Disclosures under ASC 840, Leases

The Company recognizes rent expense on a straight-line basis over the lease period. Rent expense is principally for leased office space and was $473 within operating expenses in the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2021. Deferred rent liabilities, including unamortized leasehold improvement incentives was $3,637 as of December 31, 2021 within the consolidated balance sheet.

Future minimum payments as of March 31, 2021 under the noncancellable operating leases are as follows (in thousands):


	Operating Leases
Years ended:
2021 (remaining nine months)	$	1,713
2022	2,331
2023	2,342
2024	2,412
2025 and after	4,824
Total minimum lease payments	$	13,622

Organization and Summary of Significant Accounting Policies - Narrative (Details)	1 Months Ended	3 Months Ended
	Dec. 31, 2021 USD ($)	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Organization and Summary of Significant Accounting Policies [Line Items]
Cash and cash equivalents and marketable securities		$ 143,900,000
Number of reportable segments \| segment		1
Number of operating segments \| segment		1
Net property and equipment	$ 5,129,000	$ 5,685,000
Accounts receivable write-offs		0	$ 0
Allowance for doubtful accounts		$ 0	$ 0
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Accrued expenses and other current liabilities
ROU assets		$ 15,968,000
Lease liabilities		$ 19,596,000
Deferred rent reversal	(3,637,000)
Cumulative Effect, Period of Adoption, Adjustment
Organization and Summary of Significant Accounting Policies [Line Items]
ROU assets	16,284,000
Lease liabilities	19,921,000
Deferred rent reversal	$ 3,032,000
Accounts Receivable \| Customer Concentration Risk \| Customer One
Organization and Summary of Significant Accounting Policies [Line Items]
Concentration risk percentage (more than)	10.00%	10.00%
Accounts Receivable \| Customer Concentration Risk \| Customer Two
Organization and Summary of Significant Accounting Policies [Line Items]
Concentration risk percentage (more than)		10.00%
Accounts Receivable \| Customer Concentration Risk \| Customer Three
Organization and Summary of Significant Accounting Policies [Line Items]
Concentration risk percentage (more than)		10.00%
Accounts Receivable \| Customer Concentration Risk \| Customer Four
Organization and Summary of Significant Accounting Policies [Line Items]
Concentration risk percentage (more than)		10.00%
Accounts Payable \| Supplier Concentration Risk \| Vendor One
Organization and Summary of Significant Accounting Policies [Line Items]
Concentration risk percentage (more than)	10.00%	10.00%
Accounts Payable \| Supplier Concentration Risk \| Vendor Two
Organization and Summary of Significant Accounting Policies [Line Items]
Concentration risk percentage (more than)	10.00%
United States
Organization and Summary of Significant Accounting Policies [Line Items]
Net property and equipment		$ 5,657,000
Asia
Organization and Summary of Significant Accounting Policies [Line Items]
Net property and equipment		$ 28,000

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 11,177	$ 14,183
Marketable securities	132,674	149,824
Accounts receivable, net	292	4,222
Inventories, net	4,254	4,085
Prepaid and other current assets	4,541	5,051
Total current assets	152,938	177,365
Right-of-use assets	15,968
Property and equipment, net	5,685	5,129
Restricted cash	2,150	2,150
Other noncurrent assets	1,109	1,509
Total assets	177,850	186,153
CURRENT LIABILITIES:
Accounts payable	1,952	2,542
Accrued expenses and other current liabilities	8,995	8,739
Contract liabilities	1,852	2,287
Total current liabilities	12,799	13,568
Operating lease liabilities, noncurrent	17,323
Deferred rent, noncurrent		3,032
Other noncurrent liabilities	485	786
Total liabilities	30,607	17,386
COMMITMENTS AND CONTINGENCIES (Note 19)
STOCKHOLDERS’ EQUITY:
Preferred stock—$0.0001 par value: 1,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock—$0.0001 par value: 300,000,000 shares authorized; 156,364,924 and 155,137,237 shares issued and outstanding at March 31, 2022 and December 31, 2021	16	16
Additional paid-in capital	325,350	320,937
Accumulated other comprehensive loss	(1,447)	(391)
Accumulated deficit	(176,676)	(151,795)
Total stockholders’ equity	147,243	168,767
Total liabilities and stockholders’ equity	$ 177,850	$ 186,153

Other Noncurrent Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Long-term prepaid expenses	$ 950	$ 1,376
Security deposits	159	133
Total other noncurrent assets	$ 1,109	$ 1,509

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):


	Fair Value Measured as of March 31, 2022 Using:
	Adjusted Cost		Unrealized losses		Fair Value		Cash and Cash Equivalent		Marketable Securities
Assets
Level 1
Money market funds	$	141	$	—	$	141	$	141	$	—
Level 2
Asset-backed securities	$	26,384	$	(217)	$	26,167	$	—	$	26,167
Corporate bonds	35,636		(479)		35,157		—		35,157
Commercial paper	42,166		—		42,166		—		42,166
U.S. Government securities	29,935		(751)		29,184		—		29,184
Total financial assets	$	134,262	$	(1,447)	$	132,815	$	141	$	132,674
Liabilities
Level 2
Private placement warrant liability	$	—	$	—	$	187	$	—	$	—
Total financial liabilities	$	—	$	—	$	187	$	—	$	—


	Fair Value Measured as of December 31, 2021 Using:
	Adjusted Cost		Unrealized losses		Fair Value		Cash and Cash Equivalent		Marketable Securities
Assets
Level 1
Money market funds	$	4,863	$	—	$	4,863	$	4,863	$	—
Level 2
Asset-backed securities	$	26,491	$	(68)	$	26,423	$	—	$	26,423
Corporate bonds	48,643		(150)		48,493		—		48,493
Commercial paper	45,145		—		45,145		—		45,145
U.S. Government securities	29,936		(173)		29,763		—		29,763
Total financial assets	$	155,078	$	(391)	$	154,687	$	4,863	$	149,824
Liabilities
Level 2
Private placement warrant liability	$	—	$	—	$	155	$	—	$	—
Total financial liabilities	$	—	$	—	$	155	$	—	$	—

Inventories - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventory write down to reduce inventory to the lower of cost or to its net realizable value	$ 966	$ 1,122

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands			3 Months Ended		12 Months Ended	15 Months Ended	108 Months Ended
	Jan. 01, 2022 shares	Aug. 16, 2021 USD ($) shares	Mar. 31, 2022 USD ($) plan $ / shares shares	Mar. 31, 2021 $ / shares shares	Dec. 31, 2022	Mar. 31, 2022 USD ($) plan shares	Jan. 01, 2032
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| plan			3			3
Weighted-average grant date fair value of options granted (in dollars per share) \| $ / shares			$ 0	$ 0
Options granted (in shares)			0	0
Unrecognized compensation expense for stock option grants \| $			$ 8,360			$ 8,360
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares authorized (in shares)			33,121,391			33,121,391
Payment for options repurchased \| $		$ 1,500
Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)		15,440,430
Additional shares added to the plan (in shares)	7,743,413
Incentive Plan \| Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase, percentage of outstanding stock maximum					5.00%		3.00%
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition			1 year 11 months 8 days
Options \| 2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Expiration period			10 years
Options repurchased (in shares)		542,615
Options \| 2016 Plan \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
Options \| 2016 Plan \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Options \| 2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period			10 years
Options \| 2014 Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)			7,241,916
Fair value of awards that vested \| $			$ 3,472
Unrecognized compensation expense, period for recognition			3 years 2 months 4 days
Unrecognized compensation expense for RSU's \| $			$ 64,895			$ 64,895
RSUs \| 2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)						1,741,689
Vesting period			4 years
RSUs \| 2016 Plan \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
RSUs \| 2016 Plan \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
RSUs \| Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)						13,413,987
New Employees \| RSUs \| Incentive Plan \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			25.00%
New Employees \| RSUs \| Incentive Plan \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Existing Employees \| RSUs \| Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years

Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Class A Common Stock — The Company is authorized to issue 300,000,000 shares of common stock, par value $0.0001 per share. As of March 31, 2022, the Company had 156,364,924 issued and outstanding.

Preferred Stock — The Company is authorized to issue up to 1,000,000 shares of preferred stock, each with a par value of $0.0001 per share. As of March 31, 2022, no shares of preferred stock were issued and outstanding.

Upon the Closing on August 16, 2021, all of the outstanding shares of preferred stock were cancelled and exchanged for shares of the surviving Company’s Class A common stock at the Exchange Ratio of 3.7208, the exchange rate established in the Merger Agreement.


	August 16, 2021 (Closing)
	Preferred stock shares	Exchange ratio	Common stock shares
Series A Convertible preferred stock (pre-combination)	9,226,734	3.7208	34,330,838
Series B Convertible preferred stock (pre-combination)	7,156,991	3.7208	26,629,736
Total	16,383,725		60,960,574

Private and Public Warrants — As of March 31, 2022, the Company had 166,666 Private Placement warrants and 7,666,666 Public warrants outstanding. Each warrant entitles the registered holder to purchase one share of Class A common stock at a price of $11.50 per share.

Tumim Stone Common Stock Purchase Agreement — On December 8, 2021, the Company entered into a Common Stock Purchase Agreement (the “CSPA”) and a Registration Rights Agreement with Tumim Stone Capital LLC (“Tumim Stone”). Under the terms and subject to the conditions of the CSPA, the Company has the right, but not the obligation, to sell to Tumim Stone, and Tumim Stone is obligated to purchase up to the lesser of (i) $125,000 of the Company’s common stock, and (ii) the Exchange Cap equal 19.99% of the shares of the Company’s common stock outstanding immediately prior to the execution of the CSPA, unless the Company’s stockholders approve the issuance of shares in excess of the Exchange Cap, or the average price of all applicable sales of common stock to Tumim Stone under the CSPA equals or exceeds $4.9485. Upon the satisfaction of various commencement conditions, such as the filing of the registration statement which provides for the resale of such shares pursuant to the Registration Rights Agreement, the Company has sole discretion to initiate such sales of common stock over the period of 36 months commencing December 8, 2021. In all instances, the Company may not sell shares of its common stock to Tumim Stone under the CSPA if doing so would result in Tumim Stone beneficially owning more than 9.99% of its common stock.

The purchase price per share to be purchased by Tumim shall equal the volume-weighted average price for common stock on the applicable purchase date multiplied by 0.9615 (to be adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split, or similar transaction). The maximum number of shares the Company may sell to Tumim Stone on any single business day is the lesser of (i) $20,000 divided by the closing sale price of the common stock on the trading day immediately preceding the purchase date, and (ii) 0.15 multiplied by the average daily trading volume in common stock for the three trading days preceding the purchase date.

In connection with the CSPA, the Company issued Tumim Stone commitment shares in the amount of 302,634 restricted common shares in the Company. At issuance, the 302,634 shares of common stock had a fair value of $1,583 and were recorded to Interest expense and other in the Company’s consolidated statements of operations and comprehensive loss. The Company determined that the right to sell additional shares represents a freestanding put option under ASC 815 Derivatives and Hedging, and as such, the financial instrument was classified as a derivative asset with a fair value of zero at inception of the CSPA on December 8, 2021.

As of March 31, 2022 the Company had not sold any shares to Tumim Stone under the CSPA. On May 6, 2022, the Company filed a Form S-1 registration statement, which relates to the offer and resale of up to 30,865,419 shares of AEye's common stock by Tumim Stone, the selling stockholder.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Cash, Cash Equivalents, and Restricted Cash

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Restricted Cash

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

Cash, cash equivalents (which consists entirely of money market funds) and restricted cash as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Cash and cash equivalents	$	11,177	$	14,183
Restricted cash	2,150		2,150
Total cash, cash equivalents, and restricted cash	$	13,327	$	16,333

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of Reverse Recapitalization

The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows and the consolidated statements of changes in stockholders’ deficit for period ended December 31, 2021 (in thousands, except share data):


Cash - CF III's trust and cash (net of redemption)	$	36,811
Cash - Private offering	220,000
Less: transaction costs and advisory fees paid	(52,661)
Net Business combination and private offering	$	204,150

The number of shares of common stock issued immediately following the closing of the Business Combination were:


CF III Class A common stock, outstanding prior to Business Combination			23,000,000
Less: redemption of CF III Class A common stock			19,355,365
Class A common stock of CF III			3,644,635
CF III founder shares			5,750,000
CF III Private Placement shares			500,000
CF III Shares issued in PIPE			22,000,000
Business Combination and PIPE shares			31,894,635
Legacy AEye shares			122,509,667
August 16, 2021			154,404,302

The number of Legacy AEye shares was determined as follows:


	AEye shares	AEye shares, effected for Exchange Ratio
Balance at December 31, 2019	11,283,838	41,984,908
Recapitalization applied to Convertible preferred stock outstanding at December 31, 2019	16,383,725	60,960,574
Exercise of common stock options - 2020	504,524	1,877,233
Repurchase of common stock - 2020	(950,352)	(3,536,070)
Exercise of common stock options - 2021 (pre-Closing)	54,859	204,119
Conversion of Convertible Notes and Accrued Interest – 2021	5,584,308	20,778,097
Exercise of common stock and Series A preferred stock warrants - 2021	64,719	240,806
Total		122,509,667


	August 16, 2021 (Closing)
	Preferred stock shares	Exchange ratio	Common stock shares
Series A Convertible preferred stock (pre-combination)	9,226,734	3.7208	34,330,838
Series B Convertible preferred stock (pre-combination)	7,156,991	3.7208	26,629,736
Total	16,383,725		60,960,574

Prepaid and Other Current Assets

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid and Other Current Assets

PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Prepaid expenses	$	3,203	$	3,980
Demonstration units	311		224
Other	1,027		847
Total prepaid and other current assets	$	4,541	$	5,051

Leases - Future Minimum Payments Under Noncancellable Operating Leases under ASC 840 (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Leases [Abstract]
2021 (remaining nine months)	$ 1,713
2022	2,331
2023	2,342
2024	2,412
2025 and after	4,824
Total minimum lease payments	$ 13,622

Recapitalization - Reconciliation of Elements of the Business Combination to the Financial Statements (Details) $ in Thousands	Aug. 16, 2021 USD ($)
Reverse Recapitalization [Abstract]
Cash - CF III's trust and cash (net of redemption)	$ 36,811
Cash - Private offering	220,000
Less: transaction costs and advisory fees paid	(52,661)
Net Business combination and private offering	$ 204,150

Revenue

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Sale of Prototypes

The Company recorded revenue for prototype sales of $335 and $233 in the three months ended March 31, 2022 and 2021 respectively. These arrangements typically have one performance obligation which is satisfied at the point of delivery or shipment to the customer. The Company does not incur significant contract costs in fulfilling or obtaining their contracts with customers.

Development contracts

The Company has entered into research and development contracts with companies primarily in the auto, transportation, and electronic display industry. Revenue from these arrangements is recognized when the Company satisfies performance obligations in the contract, which can result in recognition at either a point in time or over time. The Company assessed the number of performance obligations associated with the promises under each agreement, primarily the delivery of customized 4SightTM perception-related goods and services, and recognized $747 and $96 in revenue for performance obligations satisfied during the three months ended March 31, 2022 and 2021 respectively, in the consolidated statements of operations and comprehensive loss.

Disaggregation of Revenue

The Company recognized the following revenues by geographic area based on the primary billing address of the customer and timing of transfer of goods or services to customers (point in time or over time), as it believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Total revenue based on the disaggregation criteria described above are as follows (in thousands):


	Three months ended March 31,
	2022	2021
Revenue by primary geographical market:
United States	1,021	233

Europe	40	—
Asia	21	96
Total	1,082	329

Revenue by timing of recognition:
Recognized at a point in time	555	313
Recognized over time	527	16
Total	1,082	329

Contract Liabilities

Contract liabilities consisted of the following as of March 31, 2022 (in thousands):


	As of March 31, 2022
Contract liabilities, current	$	1,852
Contract liabilities, noncurrent	299
Total	$	2,151

Contract liabilities, noncurrent are included in other noncurrent liabilities on the consolidated balance sheet.

The following table shows the significant changes in contract liabilities balance as of March 31, 2022 and 2021 (in thousands):


	Three months ended March 31,
	2022		2021
Beginning balance	$	2,918	$	660
Revenue recognized that was included in the contract liabilities beginning balance	(767)		(16)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	—		135
Ending balance	$	2,151	$	779

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied. It includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods and does not include contracts where the customer is not committed. The customer is not considered committed where they are able to terminate for convenience without payment of a substantive penalty under the contract. Additionally, as a practical expedient, the Company has not disclosed the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The contract liabilities balance represents the remaining performance obligations for contracts with an original duration of greater than one year.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 606
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

AEye, Inc. (the “Company” or “AEye”) is a provider of high-performance, active lidar systems for vehicle autonomy, advanced driver-assistance systems (ADAS), and robotic vision applications. AEye’s software-definable 4SightTM Intelligent Sensing Platform combines solid-state active lidar, an optionally fused low-light HD camera, and integrated deterministic artificial intelligence to capture more intelligent information with less data, enabling faster, more accurate, and more reliable perception.

On February 17, 2021, AEye Technologies, Inc., then known as AEye, Inc. (“AEye Technologies”), entered into the Agreement and Plan of Merger (the “Merger Agreement”) with CF Finance Acquisition Corp. III, a Delaware corporation (“CF III”), now known as AEye, Inc., and Meliora Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of CF III (“Merger Sub”). Based on CF III’s business activities, it was a “shell company” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). On August 16, 2021 (the “Closing Date”), CF III closed the business combination (the “Business Combination,” and together with the other transactions contemplated by the Merger Agreement, the “Transactions”) pursuant to the Merger Agreement, and Merger Sub was merged with and into AEye Technologies with AEye Technologies surviving the merger as a wholly owned subsidiary of CF III. On the Closing Date, and in connection with the closing of the Transactions (the “Closing”), CF III changed its name to AEye, Inc.

The Company’s common stock and public warrants are now listed on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbols “LIDR” and “LIDRW”, respectively. Unless otherwise specified, “we,” “us,” “our,” “AEye,” and the “Company” refers to AEye, Inc., the combined entity following the Business Combination. Refer to Note 2 for further discussion of the Business Combination.

Unaudited Condensed Consolidated Financial Statements

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include all adjustments necessary to the fair presentation of the Company’s condensed consolidated financial position, results of operations, and cash flows for the period presented under the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. The accompanying interim unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP along with instructions to Form 10-Q and Article 10 of SEC Regulation S-X.

Principle of Consolidation and Liquidity

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The Company has funded its operations primarily through the Business Combination and issuances of stock. As of March 31, 2022, the Company’s existing sources of liquidity included cash, cash equivalents and marketable securities of $143.9 million. The Company has incurred losses and negative cash flows from operations. If the Company incurs additional losses in the future, it may need to raise additional capital through issuances of equity and debt. However, management believes that the Company’s existing sources of liquidity are adequate to fund its operations for at least the next 12 months.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards. This may make it difficult or impossible to compare the Company’s financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include investments, embedded derivative and warrant liabilities, fair value of common stock, and stock-based compensation.

Segment Reporting

The Company manages its business on the basis of one reportable and operating segment. Operating segments are defined as components of an enterprise with separate financial information, and are evaluated regularly by the chief operating decision maker, which is our Chief Executive Officer (“CEO”). The CEO decides how to allocate resources and assesses the Company’s performance based upon consolidated financial information. All of the Company's sales were made to customers (in USD) located in the United States, Europe, and Asia through AEye, Inc. Of the $5,685 of net property and equipment as of March 31, 2022, $5,657 is located in the United States and $28 is in Asia.

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 receivables are derived from customers located in the U.S., Europe, and Asia. The Company mitigates its credit risks by performing ongoing credit evaluations of its customers’ financial conditions. The Company generally does not require collateral.

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 March 31, 2022, AEye had four customers each accounting for 10% or more of AR and one vendor accounting for 10% or more of AP. As of December 31, 2021, AEye had one customer accounting for 10% or more of AR and two vendors accounting for 10% or more of AP. During the three months ended March 31, 2022 and 2021, the Company did not have any write-offs and at March 31, 2022 and 2021 did not record an allowance for doubtful accounts as all accounts receivable amounts are expected to be collected.

For the three months ended March 31, 2022 and 2021, revenue from the Company’s major customers representing 10% or more of total revenue was as follows:


	Three months ended March 31,
	2022		2021

Customer A	58	%	*
Customer B	*		58	%
Customer C	*		29	%
Customer D	32	%	*

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

Significant Accounting Policies

The Company's significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021. Other than the accounting policy discussed below related to the adoption of Accounting Standards Codification ("ASC") 842, Leases there have been no material change to the Company's significant accounting policies during the three months ended March 31, 2022.

Leases

The Company determines if an arrangement is or contains a lease at inception. The Company evaluates the classification of leases at commencement, and, as necessary, at modification. Operating leases, consisting of office leases, are included in Right-of-use ("ROU") assets, Accrued expenses and other current liabilities, and Operating lease liabilities, noncurrent, on the Company's consolidated balance sheets. The Company did not have any finance leases as of March 31, 2022 and December 31, 2021. ROU assets represent the Company's right to an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made prior to lease commencement and initial direct costs and excludes lease incentives. Variable lease payments not dependent on an index or a rate are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. As most of the Company's leases do not include an implicit rate, the Company uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date in determining the present value of future payments. The incremental borrowing rate is a hypothetical rate based on the Company's understanding of what its credit rating would be for a secured borrowing when the lease was executed. The Company's lease term includes the noncancelable period, any rent-free periods provided by the lessor, and options to extend or terminate the lease when it is reasonably certain that it will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses on the consolidated statements of operations and comprehensive loss. The Company elected to exclude from its balance sheets recognition of leases having a term of 12 months or less (short-term leases) and elected to not separate lease components and non-lease components for its long-term real estate leases.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which has subsequently been amended by ASU No. 2018-19, ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, and ASU No. 2019-11. The objective of the guidance in ASU 2016-13 is to allow entities to recognize estimated credit losses in the period that the change in valuation occurs. ASU 2016-13 requires an entity to present financial assets measured on an amortized cost basis on the balance sheet net of an allowance for credit losses. Available-for-sale and held to maturity debt securities are also required to be held net of an allowance for credit losses. For public business entities, this standard is effective for fiscal years beginning after December 15, 2019. For smaller reporting companies, the standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements and related disclosures and will adopt the guidance on January 1, 2023 as permitted for smaller reporting companies.

Recently Adopted Accounting Guidance

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02. FASB ASC Topic 842, Leases (“ASC 842”) supersedes the previous accounting guidance for leases included within ASC 840. The new guidance generally requires an entity to recognize operating and financing lease liabilities and corresponding right-of-use assets on its balance sheet, as well as recognize the associated lease expenses on its statements of operations in a manner similar to that required under current accounting rules. The guidance requires a modified retrospective transition approach with application in all comparative periods presented (the “Comparative Method”), or alternatively, as of the effective date as the date of initial application without restating comparative period financial statements (the “Effective Date Method”).

The Company adopted the new standard on January 1, 2022 using the Effective Date Method. Upon adoption, the Company recorded net ROU assets and lease liabilities of $16,284 and $19,921, respectively, and a reversal of deferred rent of $3,032 and there were no cumulative effect adjustments as of January 1, 2022. The standard did not have a material effect on the Company's consolidated statements of operations and comprehensive loss and the consolidated statement of cash flows. The Company elected the transition practical expedient package, which among other things, allows the carryforward of historical lease classifications. The Company will continue to apply ASC Topic 840, Leases, prior to January 1, 2022, including Topic 840 disclosure requirements, in the comparative periods presented. The Company did not elect to apply the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment of right-of-use assets.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by, among other things, eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2021. We have adopted ASU 2019-12 as of January 1, 2022, and our adoption did not have a material impact on the consolidated financial statements.

Property and Equipment, Net

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

PROPERTY AND EQUIPMENT, NET

Property and equipment, net as of March 31, 2022 and December 31, 2021 consists of the following (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Machinery and Equipment	$	1,648	$	1,444
Computers, software and related equipment	503		268
Office furniture and equipment	367		341
Vehicles	435		342
Leasehold improvements	4,725		4,725
Construction in progress	419		213
Total property and equipment	8,097		7,333
Less accumulated depreciation and amortization	(2,412)		(2,204)
Property and equipment, net	$	5,685	$	5,129

Depreciation and amortization expense related to property and equipment amounted to $208 and $245 for the three months ended March 31, 2022 and 2021. Disposals of property and equipment were not material for the three months ended March 31, 2022 and 2021.

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents, adjusted cost	$ 11,177	$ 14,183
Recurring
Assets
Total financial assets, adjusted cost	134,262	155,078
Marketable securities, unrealized losses	(1,447)	(391)
Total financial assets, fair value	132,815	154,687
Liabilities
Financial Liabilities Fair Value Disclosure, Total	187	155
Recurring \| Cash and Cash Equivalent
Assets
Total financial assets, fair value	141	4,863
Recurring \| Marketable Securities
Assets
Total financial assets, fair value	132,674	149,824
Recurring \| Level 1 \| Money market funds
Assets
Cash and cash equivalents, adjusted cost	141	4,863
Cash and cash equivalents, fair value	141	4,863
Recurring \| Level 1 \| Money market funds \| Cash and Cash Equivalent
Assets
Cash and cash equivalents, fair value	141	4,863
Recurring \| Level 2 \| Private Placement Warrants
Liabilities
Warrant liability	187	155
Recurring \| Level 2 \| Asset-backed securities
Assets
Marketable securities, adjusted cost	26,384	26,491
Marketable securities, unrealized losses	(217)	(68)
Marketable securities, fair value	26,167	26,423
Recurring \| Level 2 \| Asset-backed securities \| Marketable Securities
Assets
Marketable securities, fair value	26,167	26,423
Recurring \| Level 2 \| Corporate bonds
Assets
Marketable securities, adjusted cost	35,636	48,643
Marketable securities, unrealized losses	(479)	(150)
Marketable securities, fair value	35,157	48,493
Recurring \| Level 2 \| Corporate bonds \| Marketable Securities
Assets
Marketable securities, fair value	35,157	48,493
Recurring \| Level 2 \| Commercial paper
Assets
Marketable securities, adjusted cost	42,166	45,145
Marketable securities, unrealized losses	0	0
Marketable securities, fair value	42,166	45,145
Recurring \| Level 2 \| Commercial paper \| Marketable Securities
Assets
Marketable securities, fair value	42,166	45,145
Recurring \| Level 2 \| U.S. Government securities
Assets
Marketable securities, adjusted cost	29,935	29,936
Marketable securities, unrealized losses	(751)	(173)
Marketable securities, fair value	29,184	29,763
Recurring \| Level 2 \| U.S. Government securities \| Marketable Securities
Assets
Marketable securities, fair value	$ 29,184	$ 29,763

Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 3,203	$ 3,980
Demonstration units	311	224
Other	1,027	847
Prepaid and other current assets	$ 4,541	$ 5,051

Stockholders' Equity - Outstanding Preferred Shares Converted (Details)	Mar. 31, 2022 shares	Dec. 31, 2021 shares	Aug. 16, 2021 shares	Aug. 15, 2021 shares
Conversion of Stock [Line Items]
Preferred stock — shares outstanding (in shares)	0	0		16,383,725
Exchange ratio			3.7208
Common stock — shares outstanding (in shares)	156,364,924	155,137,237	154,404,302	23,000,000
Reverse Recapitalization, Converted Shares
Conversion of Stock [Line Items]
Common stock — shares outstanding (in shares)			60,960,574
Series A Convertible Preferred Stock
Conversion of Stock [Line Items]
Preferred stock — shares outstanding (in shares)				9,226,734
Series A Convertible Preferred Stock \| Reverse Recapitalization, Converted Shares
Conversion of Stock [Line Items]
Common stock — shares outstanding (in shares)			34,330,838
Series B Convertible Preferred Stock
Conversion of Stock [Line Items]
Preferred stock — shares outstanding (in shares)				7,156,991
Series B Convertible Preferred Stock \| Reverse Recapitalization, Converted Shares
Conversion of Stock [Line Items]
Common stock — shares outstanding (in shares)			26,629,736

Stock-Based Compensation - RSU Activity (Details) - RSUs	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Shares
Beginning balance (in shares) \| shares	7,434,743
Granted (in shares) \| shares	7,241,916
Forfeited (in shares) \| shares	(18,000)
Vested (in shares) \| shares	(856,917)
Ending balance (in shares) \| shares	13,801,742
Weighted Average Grant date Fair Value per Share
Beginning balance (in dollars per share) \| $ / shares	$ 5.80
Granted (in dollars per share) \| $ / shares	4.45
Forfeited (in dollars per share) \| $ / shares	4.47
Vested (in dollars per share) \| $ / shares	5.59
Ending balance (in dollars per share) \| $ / shares	$ 4.92

Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Accrued purchases and other	2,840		1,947
Operating lease liabilities - current	2,273		—
Accrued bonuses	1,763		3,408

Accrued payroll	$	1,277	$	957
Accrued payroll taxes	498		1,547
Warranty reserve	336		275
Income tax payable	8		—
Deferred rent - current	—		605
Accrued expenses and other current liabilities	$	8,995	$	8,739

Interest Expense and Other (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Amortization of debt discount	$ 0	$ 267
Amortization of premiums on marketable securities, net of accretion of discounts	336	0
Other	7	0
Interest expense and other	343	688
Convertible note \| Convertible Notes
Debt Instrument [Line Items]
Interest	0	278
Secured Debt \| Term loan debt
Debt Instrument [Line Items]
Interest	0	137
Loans Payable \| PPP loan
Debt Instrument [Line Items]
Interest	$ 0	$ 6

Inventories

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventory, net of write-downs, as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Raw materials	$	1,810	$	1,544
Work in-process	2,432		2,447
Finished goods	12		94
Total inventory, net	$	4,254	$	4,085

The Company's inventory as of March 31, 2022 and December 31, 2021 was written down by $966 and $1,122, respectively, in order to reduce inventory to the lower of cost or to its net realizable value.

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 5,340	$ 1,610
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,223	621
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	906	358
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 3,211	$ 631

Recapitalization - Calculation of Legacy AEye Shares (Details) - shares				3 Months Ended		7 Months Ended	12 Months Ended
	Aug. 16, 2021	Aug. 15, 2021	Aug. 12, 2021	Mar. 31, 2022	Mar. 31, 2021	Aug. 15, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Schedule Of Reverse Recapitalization [Line Items]
Exercise of common stock options (in shares)				656,303
Repurchase of common stock (in shares)			(19,355,365)
Legacy AEye shares (in shares)	122,509,667
Common Stock
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)				156,364,924	101,458,369		101,286,645	155,137,237	11,283,838
Exercise of common stock options (in shares)				656,303	171,724	204,119	1,877,233
Repurchase of common stock (in shares)							(3,536,070)
Conversion of Convertible Notes and Accrued Interest (in shares)	20,778,097	5,584,308				20,778,097
Exercise of common stock and Series A preferred stock warrants (in shares)						240,806
Common Stock \| Reverse Recapitalization, Converted Shares
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)									41,984,908
Preferred Stock
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)				0	0		0	0	16,383,725
Preferred Stock \| Reverse Recapitalization, Converted Shares
Schedule Of Reverse Recapitalization [Line Items]
Shares outstanding (in shares)									60,960,574

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Outstanding Stock Options
Beginning balance (in shares)	29,238,432
Granted (in shares)	0	0
Exercised (in shares)	(656,303)
Forfeited (in shares)	(193,018)
Expired (in shares)	0
Repurchased (in shares)	0
Ending balance (in shares)	28,389,111
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 0.48
Granted (in dollars per share)	0
Exercised (in dollars per share)	0.34
Forfeited (in dollars per share)	0.54
Expired (in dollars per share)	0
Repurchased (in dollars per share)	0
Ending balance (in dollars per share)	$ 0.49
Stock options additional disclosures
Options outstanding, weighted average contractual life	6 years 10 months 24 days	7 years 4 months 24 days
Options outstanding, aggregate intrinsic value	$ 141,445		$ 127,345
Vested and expected to vest (in shares)	28,389,111
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 0.49
Vested and expected to vest, weighted average contractual life	6 years 10 months 24 days
Vested and expected to vest, aggregate intrinsic value	$ 141,445
Vested and exercisable (in shares)	19,321,613
Vested and exercisable, weighted average exercise price (in dollars per share)	$ 0.42
Vested and exercisable, weighted average contractual life	6 years 3 months 18 days
Vested and exercisable, aggregate intrinsic value	$ 97,483

Organization and Summary of Significant Accounting Policies - Schedule of Revenue from Major Customers Representing 10% or More of Total Revenue (Details) - Revenue - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk percentage	58.00%
Customer B
Concentration Risk [Line Items]
Concentration risk percentage		58.00%
Customer C
Concentration Risk [Line Items]
Concentration risk percentage		29.00%
Customer D
Concentration Risk [Line Items]
Concentration risk percentage	32.00%

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Prior to the Business Combination, AEye Technologies and CF III filed separate standalone federal, state, and local income tax returns. As a result of the Business Combination, the Company will file a consolidated income tax return. For legal purposes, CF III acquired AEye Technologies, and the transaction represents a reverse acquisition for federal income tax purposes. CF III will be the parent of the consolidated group with AEye Technologies as a subsidiary, but in the year of the closing of the Business Combination, AEye Technologies will file a full-year tax return with CF III joining in the return the day after the Closing. For the three months ended March 31, 2022 and 2021, the Company recorded $8 and $0 provision for income taxes, respectively. The change in income tax provision was primarily due to changes in pretax income (loss) in the United States and certain foreign entities and changes in tax rates. The income tax rates vary from the federal and state statutory rates due to the valuation allowances on the Company's net operating losses and foreign tax rate differences. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases - Operating Lease Expenses (Details) $ in Thousands	3 Months Ended
Leases - Operating Lease Expenses (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Leases [Abstract]
Operating lease cost	$ 577
Variable lease cost	63
Total operating lease cost	$ 640

Stockholders' Equity - Narrative (Details)		4 Months Ended
Stockholders' Equity - Narrative (Details)	Dec. 08, 2021 USD ($) $ / shares shares	Mar. 31, 2022 $ / shares shares	May 06, 2022 shares	Dec. 31, 2021 $ / shares shares	Aug. 16, 2021 $ / shares shares	Aug. 15, 2021 shares
Class of Warrant or Right [Line Items]
Common stock — shares authorized (in shares)		300,000,000		300,000,000	300,000,000
Common stock — par value (in dollars per share) \| $ / shares		$ 0.0001		$ 0.0001	$ 0.0001
Common stock — shares issued (in shares)		156,364,924		155,137,237
Common stock — shares outstanding (in shares)		156,364,924		155,137,237	154,404,302	23,000,000
Preferred stock — shares authorized (in shares)		1,000,000		1,000,000	1,000,000
Preferred stock — par value (in dollars per share) \| $ / shares		$ 0.0001		$ 0.0001	$ 0.0001
Preferred stock — shares issued (in shares)		0		0
Preferred stock — shares outstanding (in shares)		0		0		16,383,725
Exchange ratio					3.7208
Number of shares of common stock entitled to purchase for each warrant (in shares)		1
Warrant exercise price (in dollars per share) \| $ / shares		$ 11.50			$ 11.50
S-1 Registration \| Subsequent Event
Class of Warrant or Right [Line Items]
Number of shares authorized to be offered resold (in shares)			30,865,419
Tumim Stone
Class of Warrant or Right [Line Items]
Commitment shares for Common Stock Purchase Agreement (in shares)	302,634
Common stock purchase agreement costs \| $	$ 1,583,000
Derivative asset \| $	0
Tumim Stone \| Private Placement
Class of Warrant or Right [Line Items]
Maximum common stock value \| $	$ 125,000,000
Exchange cap, percentage of shares of common stock outstanding immediately prior to execution of the agreement	19.99%
Exchange cap exception, minimum price per share (in dollars per share) \| $ / shares	$ 4.9485
Term of agreement	36 months
Maximum percentage ownership after the transaction	9.99%
Price per share multiplier	0.9615
Maximum number of shares issued per day calculation, amount divided by closing sale price \| $	$ 20,000,000
Maximum number of shares issued per day calculation, average daily common stock trading volume multiplier	0.15
Maximum number of shares issued per day calculation, average daily common stock trading volume, trading days preceding sale date	3 days
Shares sold (in shares)		0
Private Warrants
Class of Warrant or Right [Line Items]
Outstanding warrants (in shares)		166,666
Public Warrants
Class of Warrant or Right [Line Items]
Outstanding warrants (in shares)		7,666,666

Interest Expense and Other

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Interest Expense and Other

INTEREST EXPENSE AND OTHER

Interest expense and other for the three months ended March 31, 2022 and 2021 consisted of the following (in thousands):


	Three months ended March 31,
	2022		2021
Interest on term loan debt	$	—	$	137
Interest on PPP loan	—		6
Interest on convertible note	—		278

Amortization of debt discount	—		267
Amortization of premiums on marketable securities, net of accretion of discounts	336		—

Other	7		—
Interest expense and other	$	343	$	688

Recapitalization (Tables)

3 Months Ended

Mar. 31, 2022

Reverse Recapitalization [Abstract]

Schedule of Reverse Recapitalization


Cash - CF III's trust and cash (net of redemption)	$	36,811
Cash - Private offering	220,000
Less: transaction costs and advisory fees paid	(52,661)
Net Business combination and private offering	$	204,150

The number of shares of common stock issued immediately following the closing of the Business Combination were:


CF III Class A common stock, outstanding prior to Business Combination			23,000,000
Less: redemption of CF III Class A common stock			19,355,365
Class A common stock of CF III			3,644,635
CF III founder shares			5,750,000
CF III Private Placement shares			500,000
CF III Shares issued in PIPE			22,000,000
Business Combination and PIPE shares			31,894,635
Legacy AEye shares			122,509,667
August 16, 2021			154,404,302

The number of Legacy AEye shares was determined as follows:


	AEye shares	AEye shares, effected for Exchange Ratio
Balance at December 31, 2019	11,283,838	41,984,908
Recapitalization applied to Convertible preferred stock outstanding at December 31, 2019	16,383,725	60,960,574
Exercise of common stock options - 2020	504,524	1,877,233
Repurchase of common stock - 2020	(950,352)	(3,536,070)
Exercise of common stock options - 2021 (pre-Closing)	54,859	204,119
Conversion of Convertible Notes and Accrued Interest – 2021	5,584,308	20,778,097
Exercise of common stock and Series A preferred stock warrants - 2021	64,719	240,806
Total		122,509,667


	August 16, 2021 (Closing)
	Preferred stock shares	Exchange ratio	Common stock shares
Series A Convertible preferred stock (pre-combination)	9,226,734	3.7208	34,330,838
Series B Convertible preferred stock (pre-combination)	7,156,991	3.7208	26,629,736
Total	16,383,725		60,960,574

Net Loss per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss per Share

The following table sets forth the basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except per share data):


	Three months ended March 31,
	2022		2021
Numerator:
Net loss attributable to common stockholders	$	(24,881)	$	(11,509)
Denominator:
Weighted average common shares outstanding- Basic	155,515,093		101,362,036
Dilutive effect of potential common shares	—		—
Weighted average common shares outstanding- Diluted	155,515,093		101,362,036

Net loss per share attributable to common stockholders - Basic and Diluted	$	(0.16)	$	(0.11)

Schedule of Antidilutive Common Share Equivalents

The following table sets forth the anti-dilutive common share equivalents for the periods listed:


	Three months ended March 31,
	2022	2021
Common stock options issued and outstanding	28,389,111	31,143,641
Unvested restricted stock units	13,801,742	—
Warrants	7,833,332	256,605
Conversion of convertible notes	—	20,774,995
Total	50,024,185	52,175,241

Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 11,177	$ 14,183
Restricted cash	2,150	2,150
Total cash, cash equivalents, and restricted cash	$ 13,327	$ 16,333	$ 15,359	$ 16,497

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 208	$ 245

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,082	$ 329
Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	555	313
Recognized over time
Disaggregation of Revenue [Line Items]
Total revenues	527	16
United States
Disaggregation of Revenue [Line Items]
Total revenues	1,021	233
Europe
Disaggregation of Revenue [Line Items]
Total revenues	40	0
Asia
Disaggregation of Revenue [Line Items]
Total revenues	$ 21	$ 96

- Definition

+ References

+ Details

Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract liabilities, current	$ 1,852		$ 2,287
Contract liabilities, noncurrent	299
Total	2,151	$ 779	$ 2,918
Contract with Customer, Liability [Roll Forward]
Beginning balance	2,918	660
Revenue recognized that was included in the contract liabilities beginning balance	(767)	(16)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	0	135
Ending balance	$ 2,151	$ 779

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Rent expense	$ 473
Deferred rent liabilities		$ 3,637
Minimum
Lessee, Lease, Description [Line Items]
Lease renewal term	2 years
Maximum
Lessee, Lease, Description [Line Items]
Lease renewal term	5 years

Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The fair value of the Company’s financial assets and liabilities is determined in accordance with the fair value hierarchy established in FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy of ASC 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:

Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs, other than Level 1 inputs, which are observable either directly or indirectly or can be corroborated by observable market data using quoted prices for similar assets or liabilities.

Level 3—Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company's financial instruments that are not re-measured at fair value include accounts receivable, prepaid and other current assets, accounts payable, accrued expenses and other current liabilities, convertible notes, and long-term debt. The carrying values of these financial instruments approximate their fair values.

The Company’s financial assets and liabilities measured at fair value on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):


	Fair Value Measured as of March 31, 2022 Using:
	Adjusted Cost		Unrealized losses		Fair Value		Cash and Cash Equivalent		Marketable Securities
Assets
Level 1
Money market funds	$	141	$	—	$	141	$	141	$	—
Level 2
Asset-backed securities	$	26,384	$	(217)	$	26,167	$	—	$	26,167
Corporate bonds	35,636		(479)		35,157		—		35,157
Commercial paper	42,166		—		42,166		—		42,166
U.S. Government securities	29,935		(751)		29,184		—		29,184
Total financial assets	$	134,262	$	(1,447)	$	132,815	$	141	$	132,674
Liabilities
Level 2
Private placement warrant liability	$	—	$	—	$	187	$	—	$	—
Total financial liabilities	$	—	$	—	$	187	$	—	$	—


	Fair Value Measured as of December 31, 2021 Using:
	Adjusted Cost		Unrealized losses		Fair Value		Cash and Cash Equivalent		Marketable Securities
Assets
Level 1
Money market funds	$	4,863	$	—	$	4,863	$	4,863	$	—
Level 2
Asset-backed securities	$	26,491	$	(68)	$	26,423	$	—	$	26,423
Corporate bonds	48,643		(150)		48,493		—		48,493
Commercial paper	45,145		—		45,145		—		45,145
U.S. Government securities	29,936		(173)		29,763		—		29,763
Total financial assets	$	155,078	$	(391)	$	154,687	$	4,863	$	149,824
Liabilities
Level 2
Private placement warrant liability	$	—	$	—	$	155	$	—	$	—
Total financial liabilities	$	—	$	—	$	155	$	—	$	—

As of March 31, 2022 and December 31, 2021, the Company’s financial assets and liabilities subject to fair value procedures were comprised of the following:

Money Market Funds: The Company holds financial assets consisting of money market funds. These securities are valued using observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Marketable Securities: The Company holds financial assets consisting of fixed-income U.S. government agency securities, corporate bonds, commercial paper and asset-backed securities. The securities are valued using prices from independent pricing services based on quoted prices of identical instruments in less active or inactive markets. Additionally, quoted prices of similar instruments in active market or industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets are used to value marketable securities.

Private Placement Warrant Liability: As of March 31, 2022 Level 2 fair value measurements were used for Private Placement Warrant liabilities. Any changes in the fair value of the liability are reflected in Change in fair value of embedded derivative liability and warrant liabilities on the consolidated statements of operations and comprehensive loss. Private Placement Warrant liability is included within other noncurrent liabilities on the consolidated balance sheets.

For the three months ended March 31, 2022 and year ended December 31, 2021, there were no transfers between Level 1 and Level 2 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
REVENUE:
Total revenues	$ 1,082,000	$ 329,000
Cost of revenue	1,482,000	617,000
Gross loss	(400,000)	(288,000)
OPERATING EXPENSES:
Research and development	8,576,000	5,836,000
Sales and marketing	4,616,000	1,587,000
General and administrative	11,330,000	3,010,000
Total operating expenses	24,522,000	10,433,000
LOSS FROM OPERATIONS	(24,922,000)	(10,721,000)
OTHER INCOME (EXPENSE):
Change in fair value of embedded derivative liability and warrant liabilities	(32,000)	(103,000)
Interest income and other	424,000	3,000
Interest expense and other	(343,000)	(688,000)
Total other income (expense), net	49,000	(788,000)
Provision for income tax expense	8,000	0
Net loss	$ (24,881,000)	$ (11,509,000)
PER SHARE DATA
Net loss per common share (basic) (in dollars per share)	$ (0.16)	$ (0.11)
Net loss per common share (diluted) (in dollars per share)	$ (0.16)	$ (0.11)
Weighted average common shares outstanding (basic) (in shares)	155,515,093	101,362,036
Weighted average common shares outstanding (diluted) (in shares)	155,515,093	101,362,036
COMPREHENSIVE LOSS:
Net loss	$ (24,881,000)	$ (11,509,000)
Net unrealized loss on available-for-sale securities	(1,056,000)	0
Comprehensive loss	(25,937,000)	(11,509,000)
Prototype sales
REVENUE:
Total revenues	335,000	233,000
Development contracts
REVENUE:
Total revenues	$ 747,000	$ 96,000

Net Loss per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Loss per Share

NET LOSS PER SHARE

The following table sets forth the basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except per share data):


	Three months ended March 31,
	2022		2021
Numerator:
Net loss attributable to common stockholders	$	(24,881)	$	(11,509)
Denominator:
Weighted average common shares outstanding- Basic	155,515,093		101,362,036
Dilutive effect of potential common shares	—		—
Weighted average common shares outstanding- Diluted	155,515,093		101,362,036

Net loss per share attributable to common stockholders - Basic and Diluted	$	(0.16)	$	(0.11)

Due to net losses for the three months ended March 31, 2022 and 2021, basic and diluted net loss per share were the same, as the effect of all potentially dilutive securities would have been anti-dilutive. The following table sets forth the anti-dilutive common share equivalents for the periods listed:


	Three months ended March 31,
	2022	2021
Common stock options issued and outstanding	28,389,111	31,143,641
Unvested restricted stock units	13,801,742	—
Warrants	7,833,332	256,605
Conversion of convertible notes	—	20,774,995
Total	50,024,185	52,175,241

Inventories (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory, Net of Write-Downs

Inventory, net of write-downs, as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Raw materials	$	1,810	$	1,544
Work in-process	2,432		2,447
Finished goods	12		94
Total inventory, net	$	4,254	$	4,085

Other Noncurrent Assets (Tables)

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Noncurrent Assets

Other noncurrent assets as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)

Long-term prepaid expenses	950		1,376
Security deposits	159		133
Total other noncurrent assets	$	1,109	$	1,509

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 8,000	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activity

A summary of stock option activity related to the Plans as of March 31, 2022 is as follows:


	Outstanding Stock Options		Weighted Average Exercise Price	Weighted Average Contractual Life (Years)		Aggregate Intrinsic Value
Balance at December 31, 2021	29,238,432	$	0.48	7.4	$	127,345
Granted	—		—
Exercised	(656,303)		0.34
Forfeited	(193,018)		0.54
Expired	—		—
Repurchased	—		—
Balance at March 31, 2022	28,389,111	$	0.49	6.9	$	141,445
Vested and expected to vest as of March 31, 2022	28,389,111	$	0.49	6.9	$	141,445
Vested and exercisable as of March 31, 2022	19,321,613	$	0.42	6.3	$	97,483

Summary of RSU Activity

The following table summarizes the RSU award activity under the Plans:


	Shares	Weighted Average Grant date Fair Value per Share
Unvested at December 31, 2021	7,434,743	5.80
Granted	7,241,916	4.45
Forfeited	(18,000)	4.47
Vested	(856,917)	5.59
Unvested at March 31, 2022	13,801,742	4.92

Summary of Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s consolidated statements of operations and comprehensive loss for the three months ended March 31, 2022 and 2021 (in thousands):


	Three months ended March 31,
	2022		2021
Research and development	$	1,223	$	621
Sales and marketing	906		358
General and administrative	3,211		631
Total stock-based compensation	$	5,340	$	1,610

Net Loss per Share - Anti-Dilutive Common Share Equivalents (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common share equivalents (in shares)	50,024,185	52,175,241
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common share equivalents (in shares)	7,833,332	256,605
Common stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common share equivalents (in shares)	28,389,111	31,143,641
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common share equivalents (in shares)	13,801,742	0
Conversion of convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common share equivalents (in shares)	0	20,774,995

Inventories - Components of Inventory, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 1,810	$ 1,544
Work in-process	2,432	2,447
Finished goods	12	94
Inventories, net	$ 4,254	$ 4,085

Borrowings (Details) - USD ($)	Sep. 07, 2021	Aug. 20, 2021	Jun. 19, 2021	May 13, 2021	Mar. 18, 2021	Mar. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Borrowing amount outstanding						$ 0	$ 0
Silicon Valley Bank Credit Facility \| Secured Debt
Line of Credit Facility [Line Items]
Principal payments - bank loan	$ 2,333,000
Paycheck Protection Program (PPP) Loan \| Loans Payable \| Principal
Line of Credit Facility [Line Items]
Gain on PPP loan forgiveness			$ 2,270,000
Paycheck Protection Program (PPP) Loan \| Loans Payable \| Interest
Line of Credit Facility [Line Items]
Gain on PPP loan forgiveness			$ 27,000
Financing Facility \| Silicon Valley Bank Financing Facility
Line of Credit Facility [Line Items]
Maximum capacity					$ 10,000,000
Interest rate					8.00%
Repayments for financing facility, including interest		$ 10,540,000
Financing Facility \| Silicon Valley Bank Financing Facility, First Advance
Line of Credit Facility [Line Items]
Maximum capacity					$ 4,000,000
Amount drawn					4,000,000
Financing Facility \| Silicon Valley Bank Financing Facility, Second Advance
Line of Credit Facility [Line Items]
Maximum capacity					$ 6,000,000
Amount drawn				$ 6,000,000

Subsequent Events (Details) - Subsequent Event - Employee Stock	May 10, 2022 shares
Subsequent Event [Line Items]
Common stock reserved for future issuance (in shares)	2,000,000
Minimum contribution as a percentage of compensation	1.00%
Maximum contribution as a percentage of compensation	10.00%
Purchase price as a percentage of fair market value	85.00%

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Accrued purchases and other	2,840		1,947
Operating lease liabilities - current	2,273		—
Accrued bonuses	1,763		3,408

Accrued payroll	$	1,277	$	957
Accrued payroll taxes	498		1,547
Warranty reserve	336		275
Income tax payable	8		—
Deferred rent - current	—		605
Accrued expenses and other current liabilities	$	8,995	$	8,739

Recapitalization

3 Months Ended

Mar. 31, 2022

Reverse Recapitalization [Abstract]

Recapitalization

RECAPITALIZATION

As discussed in Note 1, on August 16, 2021, AEye Technologies and CF III closed the Business Combination, with AEye Technologies surviving the Business Combination as a wholly owned subsidiary of CF III. As part of the closing of the Business Combination, CF III changed its name to AEye, Inc. (the “Combined Entity”).

Immediately prior to the closing of the Business Combination, the Company’s certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of capital stock to 301,000,000 shares, of which 300,000,000 shares were designated common stock, $0.0001 par value per share, and of which 1,000,000 shares were designated preferred stock, $0.0001 par value per share.

The Business Combination is accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with US GAAP. Under this method of accounting, AEye Technologies was treated as the accounting acquirer and CF III was treated as the acquired company for financial reporting purposes under FASB ASC Topic 805, Business Combinations (“ASC 805”). This determination is primarily based on AEye Technologies’ stockholders comprising a relative majority of the voting power of the combined entity, and having the ability to nominate the majority of the governing body of the combined entity, AEye Technologies’ senior management comprising the senior management of the Combined Entity and AEye Technologies’ operations comprising the ongoing operations of the combined entity. Accordingly, for accounting purposes, the financial statements of the combined entity represented a continuation of the financial statements of AEye Technologies and the Business Combination was treated as the equivalent of AEye Technologies issuing stock for the net assets of CF III, accompanied by a recapitalization. The net assets of CF III are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be those of AEye Technologies in future reports of the combined entity. Loss per share and stockholders’ equity (deficit), prior to the Business Combination, have been retroactively converted into 3.7208 shares (the “Exchange Ratio”).

Immediately prior to the closing of the Business Combination, all outstanding principal and unpaid accrued interest of the 2020 Notes were ultimately converted into 5,584,308 shares of AEye Technologies’ common stock and subsequently converted to Class A common stock of the Company (see Note 11). Separately, each issued and outstanding share of AEye Technologies’ 16,383,725 redeemable convertible preferred stock was converted into

shares of AEye Technologies’ common stock based on a one-to-one ratio. The consolidated financial statements are accounted for with a retrospective application of the Business Combination that results in 16,383,725 shares of redeemable convertible preferred stock converting into common stock of the Company. Upon the closing of the Business Combination, each share of AEye Technologies common stock issued and outstanding was canceled and converted into the right to receive 3.7208 shares of CF III’s common stock (the “Per Share Merger Consideration”).

Immediately prior to the closing of the Business Combination, the Board approved the net exercise of common stock warrants and Series A preferred warrants which provides for the cashless exercise of 61,612 common stock warrants into 57,770 shares of AEye Technologies common stock and 7,353 Series A preferred warrants into 6,949 shares of AEye Technologies common stock at the Transaction Price of 37.21 per share. Upon the Closing, the combined 64,719 shares were cancelled and exchanged for 240,806 shares of the Company’s Class A common stock, after giving effect to the Exchange Ratio.

Immediately prior to the closing of the Business Combination, CF III’s amended and restated certificate of incorporation, dated November 12, 2020 (the “Charter”), was further amended and restated to eliminate the Class B common stock (after giving effect to the conversion of each outstanding share of Class B common stock immediately prior to the closing of the Business Combination into one share of Class A common stock).

PIPE Subscription Agreement

Contemporaneously with the execution of the Merger Agreement, CF III entered into separate PIPE Subscription Agreements in a private placement with a number of PIPE investors, pursuant to which the PIPE Investors agreed to purchase, and CF III agreed to sell to the PIPE Investors, an aggregate of 22,000,000 shares of common stock, for a purchase price of $10.00 per share and an aggregate purchase price of $220,000. CF III also entered into a PIPE Subscription Agreement for 500,000 shares of common stock, for a purchase price of $10.00 per share and an aggregate purchase price of $5,000 with an investor who defaulted on the Closing under the PIPE Subscription Agreement. The Company plans to pursue its available remedies with respect to such investor.

Redemption

Certain CF III shareholders exercised their right to redeem certain of their outstanding shares for cash, resulting in the redemption of 19,355,365 shares of CF III Class A common stock for an aggregate payment of $195,498, at a redemption price of $10.10 per share based on the Trust Account balance as of August 11, 2021.

Public and Private Placement Warrants

CF III Warrants issued in connection with the IPO (“Public Warrants”) and in connection with the private placement units held by the Sponsor (“Private Placement Warrants”) to purchase shares of the Company’s common stock, at an exercise price of $11.50 per share, remained outstanding after the closing of the Business Combination. The warrants became exercisable 30 days after the completion of the Business Combination, subject to other conditions, including with respect to the effectiveness of a registration statement covering the shares of common stock underlying such warrants, and will expire 5 years after the completion of the Business Combination or earlier upon redemption or liquidation. The Public Warrants are classified as equity and valued based on the instrument’s publicly listed trading price. The Private Placement Warrants are classified as liabilities and measured at fair value, with changes in fair value each period reported in the consolidated statements of operations and comprehensive loss. The Company uses the Public Warrants listed trading price to value the Private Placement Warrants each reporting period.

Transaction Costs

In connection with the Business Combination, the Company incurred direct and incremental costs of approximately $52,661 related to the equity issuance, consisting primarily of investment banking, legal, accounting, and other professional fees, which were recorded to additional paid-in capital as a reduction of proceeds upon the closing of the Business Combination. Transaction costs that were not directly related to the Business Combination of approximately $2,198 were expensed.

Transaction Proceeds

Upon closing of the Business Combination, the Company received gross proceeds of $256,811 from the Business Combination and PIPE financing, offset by offerings costs of $52,661. The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows and the consolidated statements of changes in stockholders’ deficit for period ended December 31, 2021 (in thousands, except share data):


Cash - CF III's trust and cash (net of redemption)	$	36,811
Cash - Private offering	220,000
Less: transaction costs and advisory fees paid	(52,661)
Net Business combination and private offering	$	204,150

The number of shares of common stock issued immediately following the closing of the Business Combination were:


CF III Class A common stock, outstanding prior to Business Combination			23,000,000
Less: redemption of CF III Class A common stock			19,355,365
Class A common stock of CF III			3,644,635
CF III founder shares			5,750,000
CF III Private Placement shares			500,000
CF III Shares issued in PIPE			22,000,000
Business Combination and PIPE shares			31,894,635
Legacy AEye shares			122,509,667
August 16, 2021			154,404,302

The number of Legacy AEye shares was determined as follows:


	AEye shares	AEye shares, effected for Exchange Ratio
Balance at December 31, 2019	11,283,838	41,984,908
Recapitalization applied to Convertible preferred stock outstanding at December 31, 2019	16,383,725	60,960,574
Exercise of common stock options - 2020	504,524	1,877,233
Repurchase of common stock - 2020	(950,352)	(3,536,070)
Exercise of common stock options - 2021 (pre-Closing)	54,859	204,119
Conversion of Convertible Notes and Accrued Interest – 2021	5,584,308	20,778,097
Exercise of common stock and Series A preferred stock warrants - 2021	64,719	240,806
Total		122,509,667

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Leases [Abstract]
2022 (remaining nine months)	$ 1,745
2023	2,342
2024	2,412
2025	2,484
2026	2,559
Thereafter	13,752
Total lease payments	25,294
Less amount to discount to present value	(5,698)
Present value of lease liabilities	$ 19,596

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	As previously reported	Retroactive application of recapitalization (Note 2)	Preferred Stock	Preferred Stock As previously reported	Preferred Stock Retroactive application of recapitalization (Note 2)	Common Stock	Common Stock As previously reported	Common Stock Retroactive application of recapitalization (Note 2)	Additional Paid-in Capital	Additional Paid-in Capital As previously reported	Additional Paid-in Capital Retroactive application of recapitalization (Note 2)	Accumulated Other Comprehensive Loss	Accumulated Deficit	Accumulated Deficit As previously reported	Accumulated Deficit Retroactive application of recapitalization (Note 2)
Beginning balance (in shares) at Dec. 31, 2019				16,383,725			11,283,838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)							1,877,233
Ending balance (in shares) at Dec. 31, 2020				0	16,383,725	(16,383,725)	101,286,645	10,838,010	90,448,635
Ending balance at Dec. 31, 2020	$ (18,225)	$ (18,225)	$ 0	$ 0	$ 62,639	$ (62,639)	$ 10	$ 0	$ 10	$ 68,549	$ 5,920	$ 62,629		$ (86,784)	$ (86,784)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,610									1,610
Issuance of common stock upon exercise of stock options (in shares)							171,724
Issuance of common stock upon exercise of stock options	85									85
Unrealized loss on available-for-sale securities	0
Net loss	(11,509)													(11,509)
Ending balance (in shares) at Mar. 31, 2021				0			101,458,369
Ending balance at Mar. 31, 2021	(28,039)			$ 0			$ 10			70,244				(98,293)
Beginning balance (in shares) at Dec. 31, 2020				0	16,383,725	(16,383,725)	101,286,645	10,838,010	90,448,635
Beginning balance at Dec. 31, 2020	(18,225)	$ (18,225)	$ 0	$ 0	$ 62,639	$ (62,639)	$ 10	$ 0	$ 10	68,549	$ 5,920	$ 62,629		(86,784)	$ (86,784)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)							204,119
Ending balance (in shares) at Aug. 15, 2021						16,383,725
Beginning balance (in shares) at Dec. 31, 2021				0			155,137,237
Beginning balance at Dec. 31, 2021	168,767			$ 0			$ 16			320,937			$ (391)	(151,795)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 5,340									5,340
Issuance of common stock upon exercise of stock options (in shares)	656,303						656,303
Issuance of common stock upon exercise of stock options	$ 222									222
Issuance of common stock upon vesting of restricted stock units (in shares)							856,917
Taxes related to net share settlement of equity awards (in shares)							(285,533)
Taxes related to net share settlement of equity awards	(1,149)									(1,149)
Unrealized loss on available-for-sale securities	(1,056)												(1,056)
Net loss	(24,881)													(24,881)
Ending balance (in shares) at Mar. 31, 2022				0			156,364,924
Ending balance at Mar. 31, 2022	$ 147,243			$ 0			$ 16			$ 325,350			$ (1,447)	$ (176,676)

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net as of March 31, 2022 and December 31, 2021 consists of the following (in thousands):


	March 31, 2022		December 31, 2021
	(unaudited)
Machinery and Equipment	$	1,648	$	1,444
Computers, software and related equipment	503		268
Office furniture and equipment	367		341
Vehicles	435		342
Leasehold improvements	4,725		4,725
Construction in progress	419		213
Total property and equipment	8,097		7,333
Less accumulated depreciation and amortization	(2,412)		(2,204)
Property and equipment, net	$	5,685	$	5,129

Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 8,097	$ 7,333
Less accumulated depreciation and amortization	(2,412)	(2,204)
Property and equipment, net	5,685	5,129
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	1,648	1,444
Computers, software and related equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	503	268
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	367	341
Vehicles
Property, Plant and Equipment [Line Items]
Total property and equipment	435	342
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	4,725	4,725
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 419	$ 213

Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Revenue from Major Customers Representing 10% or More of Total Revenue

For the three months ended March 31, 2022 and 2021, revenue from the Company’s major customers representing 10% or more of total revenue was as follows:


	Three months ended March 31,
	2022		2021

Customer A	58	%	*
Customer B	*		58	%
Customer C	*		29	%
Customer D	32	%	*

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

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principle of Consolidation	The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include investments, embedded derivative and warrant liabilities, fair value of common stock, and stock-based compensation.
Segment Reporting	The Company manages its business on the basis of one reportable and operating segment. Operating segments are defined as components of an enterprise with separate financial information, and are evaluated regularly by the chief operating decision maker, which is our Chief Executive Officer (“CEO”). The CEO decides how to allocate resources and assesses the Company’s performance based upon consolidated financial information. All of the Company's sales were made to customers (in USD) located in the United States, Europe, and Asia through AEye, Inc.
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 receivables are derived from customers located in the U.S., Europe, and Asia. The Company mitigates its credit risks by performing ongoing credit evaluations of its customers’ financial conditions. The Company generally does not require collateral. 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”).
Leases	The Company determines if an arrangement is or contains a lease at inception. The Company evaluates the classification of leases at commencement, and, as necessary, at modification. Operating leases, consisting of office leases, are included in Right-of-use ("ROU") assets, Accrued expenses and other current liabilities, and Operating lease liabilities, noncurrent, on the Company's consolidated balance sheets. The Company did not have any finance leases as of March 31, 2022 and December 31, 2021. ROU assets represent the Company's right to an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made prior to lease commencement and initial direct costs and excludes lease incentives. Variable lease payments not dependent on an index or a rate are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. As most of the Company's leases do not include an implicit rate, the Company uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date in determining the present value of future payments. The incremental borrowing rate is a hypothetical rate based on the Company's understanding of what its credit rating would be for a secured borrowing when the lease was executed. The Company's lease term includes the noncancelable period, any rent-free periods provided by the lessor, and options to extend or terminate the lease when it is reasonably certain that it will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses on the consolidated statements of operations and comprehensive loss. The Company elected to exclude from its balance sheets recognition of leases having a term of 12 months or less (short-term leases) and elected to not separate lease components and non-lease components for its long-term real estate leases.
Recent Accounting Pronouncements and Recently Adopted Accounting Guidance	In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which has subsequently been amended by ASU No. 2018-19, ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, and ASU No. 2019-11. The objective of the guidance in ASU 2016-13 is to allow entities to recognize estimated credit losses in the period that the change in valuation occurs. ASU 2016-13 requires an entity to present financial assets measured on an amortized cost basis on the balance sheet net of an allowance for credit losses. Available-for-sale and held to maturity debt securities are also required to be held net of an allowance for credit losses. For public business entities, this standard is effective for fiscal years beginning after December 15, 2019. For smaller reporting companies, the standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements and related disclosures and will adopt the guidance on January 1, 2023 as permitted for smaller reporting companies. In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02. FASB ASC Topic 842, Leases (“ASC 842”) supersedes the previous accounting guidance for leases included within ASC 840. The new guidance generally requires an entity to recognize operating and financing lease liabilities and corresponding right-of-use assets on its balance sheet, as well as recognize the associated lease expenses on its statements of operations in a manner similar to that required under current accounting rules. The guidance requires a modified retrospective transition approach with application in all comparative periods presented (the “Comparative Method”), or alternatively, as of the effective date as the date of initial application without restating comparative period financial statements (the “Effective Date Method”). The Company adopted the new standard on January 1, 2022 using the Effective Date Method. Upon adoption, the Company recorded net ROU assets and lease liabilities of $16,284 and $19,921, respectively, and a reversal of deferred rent of $3,032 and there were no cumulative effect adjustments as of January 1, 2022. The standard did not have a material effect on the Company's consolidated statements of operations and comprehensive loss and the consolidated statement of cash flows. The Company elected the transition practical expedient package, which among other things, allows the carryforward of historical lease classifications. The Company will continue to apply ASC Topic 840, Leases, prior to January 1, 2022, including Topic 840 disclosure requirements, in the comparative periods presented. The Company did not elect to apply the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment of right-of-use assets. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by, among other things, eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2021. We have adopted ASU 2019-12 as of January 1, 2022, and our adoption did not have a material impact on the consolidated financial statements.