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AEye Reports Fourth Quarter 2023 Results

26 March 2024
  • Signed LOI with global Tier 1 automotive supplier
  • Third consecutive quarter of cash burn reduction

DUBLIN, Calif. / Mar 26, 2024 / Business Wire / AEye, Inc. (Nasdaq: LIDR), a global leader in adaptive, high performance lidar solutions, today announced its results for the fourth quarter and year ended December 31, 2023.

Management Commentary

“AEye is pleased to announce that we have signed an LOI with a global Tier 1 automotive ADAS sensor supplier, which marks the beginning of a new relationship as part of our capital-light, automotive-first strategy. We are also excited to unveil Apollo, the first member of our 4Sight Flex product family that delivers ultra-long-range performance in an incredibly compact form factor,” said Matt Fisch, AEye CEO. “We are looking forward to a successful 2024 as we focus on delivering AEye’s innovative technology to the market with our Tier 1 partners.”

Key Q4 2023 Financial Highlights

“For the third consecutive quarter, we have reduced our cash burn rate while maintaining a disciplined approach to expense management. We entered 2024 with $36.5 million in cash and marketable securities on our balance sheet, and a cash runway that we expect extends into 2025,” said Conor Tierney, AEye CFO. “Due to the previously announced wind down of our industrial product line, we incurred non-cash impairment charges that negatively impacted our GAAP financial results, causing a GAAP EPS net loss of $4.44, but we are pleased to have beaten our non-GAAP EPS net loss guidance by 10 cents in part due to our continued cost reduction initiatives in the fourth quarter.”

In December 2023, the company effected a 1-for-30 reverse stock split and all the financial information disclosed has been adjusted to account for the revised share count numbers.

  • Revenue of $0.1 million in the fourth quarter of 2023.
  • GAAP net loss was $(27.8) million, or $(4.44) per share, based on 6.3 million weighted average common shares outstanding.
  • Non-GAAP net loss was $(6.9) million, or $(1.10) per share, based on 6.3 million weighted average common shares outstanding.
  • Cash, cash equivalents, and marketable securities were $36.5 million as of December 31, 2023.

Conference Call and Webcast Details

AEye management will hold a conference call today, March 26, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these results. AEye CEO Matt Fisch and CFO Conor Tierney will host the call, followed by a question-and-answer session.

The webcast and accompanying slides will be accessible via the company’s website at https://investors.aeye.ai/.

Access is also available via:

Conference call: https://bit.ly/3I9gyBa

Webcast: https://bit.ly/3IcfWLi

About AEye

AEye’s unique software-defined lidar solution enables advanced driver-assistance, vehicle autonomy, smart infrastructure, and logistics applications that save lives and propel the future of transportation and mobility. AEye’s 4Sight™ Intelligent Sensing Platform, with its adaptive sensor-based operating system, focuses on what matters most: delivering faster, more accurate, and reliable information. AEye’s 4Sight™ products, built on this platform, are ideal for dynamic applications which require precise measurement imaging to ensure safety and performance.

Non-GAAP Financial Measures

The non-GAAP measures provided in this press release should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP) in the United States. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. AEye considers these non-GAAP financial measures to be important because they provide additional insight into the Company’s on-going performance. The Company provides this information to investors for a more consistent basis of comparison and to help investors evaluate the results of the Company’s on-going operations, and to help enable more meaningful period-to-period comparisons. Non-GAAP financial measures are presented only as supplemental information to understand the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP.

This press release includes non-GAAP financial measures, including:

  

Non-GAAP net loss which is defined as GAAP net loss plus stock-based compensation, less expenses related to the registration statements on Forms S-1 and S-3, less change in fair value of convertible note and warrant liabilities, less gain from early termination of right-of-use assets, plus one-time termination benefits and other restructuring costs, plus non-routine write-downs of inventory, other current assets, and losses on purchase commitments, plus long-lived asset disposals and impairment charges, plus expenses related to the Common Stock Purchase Agreement, plus realized loss on instrument-specific credit risk, plus stock issuance costs, plus debt issuance costs; and

   
  Adjusted EBITDA, defined as non-GAAP net loss plus depreciation and amortization expense, less interest expense and other, less interest income and other, plus provision for income tax expense.

Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as “believe,” “continue,” “project,” “expect,” “anticipate,” ”estimate,” “intend,” “strategy,” “future,” “opportunity,” “predict,” “plan,” “may,” “should,” “will,” “would,” “potential,” “seem,” “seek,” “outlook,” and similar expressions that predict or indicate future events or trends, or that are not statements of historical matters. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward looking statements included in this press release include statements about a new Tier 1 relationship, AEye’s new lidar product, and the Company’s cash position and cost reduction initiatives, among others. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are very difficult or impossible to predict and will differ from the assumptions. Many actual events and circumstances are beyond the control of AEye. Many factors could cause actual future events to differ from the forward-looking statements in this press release, including but not limited to: (i) the risks that the signed LOI, or letter of intent, with a global Tier 1 automotive ADAS sensor supplier may not evolve into a relationship between the supplier and AEye as anticipated, or at all; (ii) the risks that Apollo may be unable to deliver ultra-long-range performance in an incredibly compact form factor as anticipated, or at all; (iii) the risks that 2024 will be not be as successful as anticipated; (iv) the risks that AEye may be unable to deliver its innovative technology to the market with Tier 1 partners as anticipated, or at all; (v) the risks that AEye will be unable to continue to reduce, or maintain a lower cash burn rate to the extent anticipated, or at all; (vi) the risks that the cash runway provided by the cash and marketable securities on AEye’s balance sheet as of December 31, 2023 may not extend AEye’s runway into 2025; (vii) the risks that AEye’s continued cost reduction initiatives may not continue to be effective to the extent anticipated, or at all, due to unforeseen circumstances, or such reductions may have other non-cash consequences negatively impacting AEye’s business operations; (viii) the risks that market conditions create delays in the demand for commercial lidar products beyond AEye’s expectations; (ix) the risks that lidar adoption occurs slower than anticipated or fails to occur at all; (x) the risks that AEye’s products may not meet the diverse range of performance and functional requirements of target markets and customers; (xi) the risks that AEye’s products may not function as anticipated by AEye, or by target markets and customers; (xii) the risks that AEye may not be in a position to adequately or timely address either the near or long-term opportunities that may or may not exist in the evolving autonomous transportation industry; (xiii) the risks that laws and regulations are adopted impacting the use of lidar that AEye is unable to comply with, in whole or in part; (xiv) the risks associated with changes in competitive and regulated industries in which AEye operates, variations in operating performance across competitors, and changes in laws and regulations affecting AEye’s business; (xv) the risks that AEye is unable to adequately implement its business plans, forecasts, and other expectations, and identify and realize additional opportunities; and (xvi) the risks of economic downturns and a changing regulatory landscape in the highly competitive and evolving industry in which AEye operates. These risks and uncertainties may be amplified by current or future global conflicts and the lingering effects of the COVID-19 pandemic, both of which continue to cause significant economic uncertainty. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the periodic report that AEye has most recently filed with the U.S. Securities and Exchange Commission, or the SEC, and other documents filed by us or that will be filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made.

Readers are cautioned not to put undue reliance on forward-looking statements; AEye assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. AEye gives no assurance that AEye will achieve any of its expectations.

AEYE, INC.    
Consolidated Balance Sheets    

(In thousands)
(Unaudited)

    
  

December 31, 2023

 

December 31, 2022

ASSETS    
Current Assets:    
Cash and cash equivalents 

$

16,932

 

 

$

19,064

 

Marketable securities 

 

19,591

 

 

 

75,135

 

Accounts receivable, net 

 

131

 

 

 

617

 

Inventories, net 

 

583

 

 

 

4,553

 

Prepaid and other current assets 

 

2,517

 

 

 

6,181

 

Total current assets 

 

39,754

 

 

 

105,550

 

Right-of-use assets 

 

11,226

 

 

 

15,502

 

Property and equipment, net 

 

281

 

 

 

7,665

 

Restricted cash 

 

2,150

 

 

 

2,150

 

Other noncurrent assets 

 

906

 

 

 

2,473

 

Total assets 

$

54,317

 

 

$

133,340

 

     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current Liabilities:    
Accounts payable 

$

3,442

 

 

$

3,218

 

Accrued expenses and other current liabilities 

 

6,585

 

 

 

9,764

 

Contract liabilities 

 

 

 

 

987

 

Convertible notes 

 

 

 

 

8,594

 

Total current liabilities 

 

10,027

 

 

 

22,563

 

Operating lease liabilities, noncurrent 

 

14,858

 

 

 

16,681

 

Other noncurrent liabilities 

 

409

 

 

 

126

 

Total liabilities 

 

25,294

 

 

 

39,370

 

Stockholders' Equity:    
Preferred stock 

 

 

 

 

 

Common stock 

 

1

 

 

 

1

 

Additional paid-in capital 

 

366,647

 

 

 

345,757

 

Accumulated other comprehensive income (loss) 

 

10

 

 

 

(1,279

)

Accumulated deficit 

 

(337,635

)

 

 

(250,509

)

Total stockholders’ equity 

 

29,023

 

 

 

93,970

 

Total liabilities and stockholders’ equity 

$

54,317

 

 

$

133,340

 

AEYE, INC.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
   
  

Three months ended December 31,

 

Twelve months ended December 31,

  

2023

 

2022

 

2023

 

2022

Revenue:        
Prototype sales 

$

51

 

 

$

561

 

 

$

477

 

 

$

1,743

 

Development contracts 

 

18

 

 

 

531

 

 

 

987

 

 

 

1,904

 

Total revenue 

 

69

 

 

 

1,092

 

 

 

1,464

 

 

 

3,647

 

Cost of revenue 

 

6,668

 

 

 

3,115

 

 

 

15,319

 

 

 

8,732

 

Gross loss 

 

(6,599

)

 

 

(2,023

)

 

 

(13,855

)

 

 

(5,085

)

  

 

 

 

 

 

 

 

Operating Expenses: 

 

 

 

 

 

 

 

Research and development 

 

5,178

 

 

 

9,335

 

 

 

26,171

 

 

 

37,644

 

Sales and marketing 

 

1,746

 

 

 

4,912

 

 

 

12,528

 

 

 

19,317

 

General and administrative 

 

4,955

 

 

 

7,709

 

 

 

25,234

 

 

 

36,762

 

Impairment of long-lived assets 

 

9,941

 

 

 

 

 

 

9,988

 

 

 

 

Total operating expenses 

 

21,820

 

 

 

21,956

 

 

 

73,921

 

 

 

93,723

 

Loss from operations 

 

(28,419

)

 

 

(23,979

)

 

 

(87,776

)

 

 

(98,808

)

  

 

 

 

 

 

 

 

Other income (expense): 

 

 

 

 

 

 

 

Change in fair value of convertible note and warrant liabilities 

 

56

 

 

 

(139

)

 

 

(858

)

 

 

(14

)

Interest income and other 

 

385

 

 

 

436

 

 

 

1,317

 

 

 

1,545

 

Interest expense and other 

 

210

 

 

 

(41

)

 

 

248

 

 

 

(1,379

)

Total other income (expense), net 

 

651

 

 

 

256

 

 

 

707

 

 

 

152

 

Provision for income tax expense 

 

14

 

 

 

19

 

 

 

57

 

 

 

58

 

Net loss 

$

(27,782

)

 

$

(23,742

)

 

$

(87,126

)

 

$

(98,714

)

  

 

 

 

 

 

 

 

Per Share Data 

 

 

 

 

 

 

 

Net loss per common share (basic and diluted) 

$

(4.44

)

 

$

(4.42

)

 

$

(14.95

)

 

$

(18.82

)

  

 

 

 

 

 

 

 

Weighted average common shares outstanding (basic and diluted) 

 

6,257,973

 

 

 

5,373,525

 

 

 

5,827,721

 

 

 

5,245,624

 

AEYE, INC.  
Consolidated Statements of Cash Flows  
(In thousands)
(Unaudited)
  
  

Twelve months ended December 31,

  

2023

 

2022

Cash flows from operating activities:    
Net loss 

$

(87,126

)

 

$

(98,714

)

Adjustments to reconcile net loss to net cash used in operating activities: 

 

 

 

Depreciation and amortization 

 

1,547

 

 

 

1,422

 

Loss on sale of property and equipment, net 

 

59

 

 

 

 

Noncash lease expense relating to operating lease right-of-use assets 

 

1,406

 

 

 

1,338

 

Impairment of long-lived assets 

 

9,988

 

 

 

 

Gain from early termination of right-of-use assets 

 

(35

)

 

 

 

Inventory write-downs, net of scrapped inventory 

 

7,712

 

 

 

675

 

Loss on advances to suppliers 

 

1,385

 

 

 

 

Change in fair value of convertible note and warrant liabilities 

 

858

 

 

 

14

 

Realized loss on instrument-specific credit risk 

 

46

 

 

 

 

Stock-based compensation 

 

18,071

 

 

 

23,959

 

Convertible note issuance costs 

 

 

 

 

474

 

Realized loss on redemption of marketable securities 

 

 

 

 

77

 

Amortization of premiums and accretion of discounts on marketable securities, net of change in accrued interest 

 

(211

)

 

 

1,086

 

Expected credit losses 

 

35

 

 

 

 

Changes in operating assets and liabilities: 

 

 

 

Accounts receivable, net 

 

451

 

 

 

3,605

 

Inventories, current and noncurrent, net 

 

(2,459

)

 

 

(2,634

)

Prepaid and other current assets 

 

2,279

 

 

 

(1,130

)

Other noncurrent assets 

 

284

 

 

 

527

 

Accounts payable 

 

252

 

 

 

839

 

Accrued expenses and other current liabilities 

 

(3,135

)

 

 

85

 

Operating lease liabilities 

 

(1,528

)

 

 

(1,341

)

Contract liabilities 

 

(987

)

 

 

(1,931

)

Other noncurrent liabilities 

 

383

 

 

 

 

Net cash used in operating activities 

 

(50,725

)

 

 

(71,649

)

Cash flows from investing activities: 

 

 

 

Purchases of property and equipment 

 

(1,951

)

 

 

(4,200

)

Proceeds from sale of property and equipment 

 

283

 

 

 

 

Purchases of marketable securities 

 

(19,331

)

 

 

(23,929

)

Proceeds from redemptions and maturities of marketable securities 

 

76,350

 

 

 

96,592

 

Net cash provided by investing activities 

 

55,351

 

 

 

68,463

 

Cash flows from financing activities: 

 

 

 

Proceeds from exercise of stock options 

 

455

 

 

 

1,174

 

Proceeds from the issuance of convertible notes 

 

 

 

 

9,850

 

Payments for convertible note redemptions 

 

(6,235

)

 

 

(874

)

Payment of 2022 convertible note issuance costs 

 

 

 

 

(324

)

Taxes paid related to the net share settlement of equity awards 

 

(1,445

)

 

 

(4,621

)

Proceeds from issuance of common stock under the Common Stock Purchase Agreement 

 

136

 

 

 

2,891

 

Proceeds from issuance of common stock through the Employee Stock Purchase Plan 

 

334

 

 

 

 

Stock issuance costs related to the Common Stock Purchase Agreement 

 

(3

)

 

 

(29

)

Net cash (used in) provided by financing activities 

 

(6,758

)

 

 

8,067

 

Net (decrease) increase in cash, cash equivalents and restricted cash 

 

(2,132

)

 

 

4,881

 

Cash, cash equivalents and restricted cash at beginning of period 

 

21,214

 

 

 

16,333

 

Cash, cash equivalents and restricted cash at end of period 

$

19,082

 

 

$

21,214

 

AEYE, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except share and per share data)
(Unaudited)
    
  

Three months ended December 31,

 

Twelve months ended December 31,

  

2023

 

2022

 

2023

 

2022

GAAP net loss 

$

(27,782

)

 

$

(23,742

)

 

$

(87,126

)

 

$

(98,714

)

Non-GAAP adjustments: 

 

 

 

 

 

 

 

Stock-based compensation 

 

3,364

 

 

 

5,956

 

 

 

18,071

 

 

 

23,959

 

Expenses related to registration statements on Forms S-1 and Forms S-3 

 

(50

)

 

 

68

 

 

 

142

 

 

 

372

 

Expenses related to the Common Stock Purchase Agreement 

 

 

 

 

 

 

 

41

 

 

 

 

Change in fair value of convertible note and warrant liabilities 

 

(56

)

 

 

139

 

 

 

858

 

 

 

14

 

Realized loss on instrument-specific credit risk 

 

 

 

 

 

 

 

46

 

 

 

 

Stock issuance costs 

 

 

 

 

 

 

 

 

 

 

29

 

Debt issuance costs 

 

 

 

 

93

 

 

 

 

 

 

530

 

Gain from early termination of right-of-use assets 

 

(35

)

 

 

 

 

 

(35

)

 

 

 

One-time termination benefits and other restructuring costs 

 

1,877

 

 

 

 

 

 

3,347

 

 

 

 

Non-routine write-downs of inventory, other current assets, and losses on purchase commitments 

 

5,621

 

 

 

 

 

 

8,628

 

 

 

 

Long-lived asset disposals and impairment charges 

 

10,185

 

 

 

 

 

 

10,232

 

 

 

 

Non-GAAP net loss 

$

(6,876

)

 

$

(17,486

)

 

$

(45,796

)

 

$

(73,810

)

Depreciation and amortization expense 

 

304

 

 

 

628

 

 

 

1,302

 

 

 

1,422

 

Interest income and other 

 

(350

)

 

 

(436

)

 

 

(1,282

)

 

 

(1,545

)

Interest expense and other 

 

(210

)

 

 

(52

)

 

 

(294

)

 

 

876

 

Provision for income tax expense 

 

14

 

 

 

19

 

 

 

57

 

 

 

58

 

Adjusted EBITDA 

$

(7,118

)

 

$

(17,327

)

 

$

(46,013

)

 

$

(72,999

)

  

 

 

 

 

 

 

 

GAAP net loss per share attributable to common stockholders: 

 

 

 

 

 

 

 

Basic and diluted 

$

(4.44

)

 

$

(4.42

)

 

$

(14.95

)

 

$

(18.82

)

Non-GAAP net loss per share attributable to common stockholders: 

 

 

 

 

 

 

 

Basic and diluted 

$

(1.10

)

 

$

(3.25

)

 

$

(7.86

)

 

$

(14.07

)

Shares used in computing GAAP net loss per share attributable to common stockholders: 

 

 

 

 

 

 

 

Basic and diluted 

 

6,257,973

 

 

 

5,373,525

 

 

 

5,827,721

 

 

 

5,245,624

 

Shares used in computing Non-GAAP net loss per share attributable to common stockholders: 

 

 

 

 

 

 

 

Basic and diluted 

 

6,257,973

 

 

 

5,373,525

 

 

 

5,827,721

 

 

 

5,245,624

 

 

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