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, or employment-related matters. In particular, we were named in a lawsuit filed on February 24, 2021, in the Third Judicial Circuit Court of Wayne, Michigan, by an entity called Orfin, LLC (“Orfin”). In the suit, Orfin alleges that it entered an enforceable agreement with us to invest $2.5M in a convertible note to be issued by us. We disputed the existence of any such agreement with Orfin. The suit was subsequently transferred to the United States District Court for the District of Delaware on April 21, 2021 and was voluntarily dismissed by Orfin on August 30, 2021. We are not currently a party to any actions, claims, suits or other 53 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.