AEye, Inc. 10-Q

Item 1. Legal Proceedings From time to time, we may become involved in actions, claims, suits, and other legal proceedings arising in the ordinary course of our business, including assertions by third parties relating to intellectual property infringement, breaches of contract or warranties, stockholder litigation, or employment-related matters. We are not currently a party to any actions, claims, suits, or other legal proceedings the outcome of which, if determined adversely to us, would individually or in the aggregate have a material effect on our business, financial condition, and results of operations. On August 28, 2024, AEye, Inc. was purported to be served with a complaint that was filed in the Superior Court of California for the County of Alameda on August 26, 2024 that (1) alleges that we were in breach of the lease at our former headquarters office in Dublin, California because of our failure to pay rent as required by the lease and (2) provides notice that the lease had been terminated by the landlord effective as of August 23, 2024. The landlord claimed that the amount we owed could be up to $8,500. Thereafter, in August 2024, the landlord fully drew down the standby letter of credit of $2,150, which was held as security for the payment of rent, due to the alleged default of the lease. On April 28, 2025, the former landlord and us entered into a settlement agreement to resolve all outstanding disputes related to the early termination of the lease. Under the terms of the agreement, we paid $1,400 in cash and agreed to issue a warrant to purchase up to 350,000 shares of our common stock at an initial exercise price of $2.22 per share.