Apollo shines in major in-vehicle driving test
with NVIDIA
Plan to establish Apollo manufacturing line
with LITEON in 2024
AEye, Inc. (Nasdaq: LIDR), a global leader in adaptive, high
performance lidar solutions, today announced its results for the
third quarter ended September 30, 2024.
Quarterly Business
Highlights
- Apollo met the NVIDIA DRIVE Hyperion specifications, paving way
for platform integration
- Apollo samples shipped to OEMs; sets new long-distance
performance standard of 1 kilometer
- Apollo manufacturing line planned with LITEON in 2024, quoting
multiple OEMs
- New financial instruments extend cash runway; pave way to
automotive mass production
Management Commentary
Matt Fisch, AEye CEO, said, “AEye’s made significant strides in
the third quarter in meeting product and partner milestones and
putting the financial tools in place that move us closer to our
production goals. On the product front, we announced that Apollo
set a new bar in terms of performance, with high-resolution object
detection at a distance of one kilometer. We believe this
accomplishment is the first among our peers. Apollo demonstrations
have led to a spike in customer interest across the board, and we
have now delivered samples of Apollo to our partners.
“During the quarter, we demonstrated that Apollo met the NVIDIA
Hyperion specifications, which demand a challenging combination of
high-resolution detection at very long distances. This major
in-vehicle driving test is a significant achievement that further
validates the strength of our technology and paves the way for
deeper integration with the NVIDIA platform.
“We made significant progress with our partners over the
quarter. ATI, our partner in China, is demonstrating Apollo to
potential customers. We are also engaged in multiple global OEM
quoting activities with our Tier 1 partner, LITEON, and plan to
begin development of an Apollo manufacturing line in the fourth
quarter of 2024.
“Our ability to attract new investors to AEye has enabled us to
build the financial tools and liquidity to support the multi-year
runway required by the automotive production pipeline. We believe
we have the most efficient business model in the industry and our
capital-light approach positions us well to navigate the evolving
lidar landscape.”
Third Quarter 2024 Financial
Highlights
- Quarterly revenue of $104 thousand, primarily from sales of
inventory to non-automotive customers, meeting consensus
estimates
- Cash burn of $5.6 million, beating guidance of $5.9
million
- GAAP net loss was $(8.7) million, or $(1.01) per share, based
on 8.6 million weighted average common shares outstanding
- Non-GAAP net loss was $(6.0) million, or $(0.70) per share,
based on 8.6 million weighted average common shares outstanding,
beating consensus estimates
- Cash, cash equivalents, and marketable securities were $22.4
million as of September 30, 2024
“We believe our unique capital-light model is a key
differentiator in the lidar market. Not only does it allow us to
maintain a balance sheet with very little debt compared to some of
our peers, it also gives us what we believe is the lowest cost
structure in the industry. We expect this will lead to greater
efficiencies as we can do more with less. We believe this is a
powerful selling point to OEMs, as it enables us to offer a
superior product at a competitive price point.
“We ended the quarter with $22.4 million of cash, cash
equivalents, and marketable securities. Our total potential
liquidity, which includes the ELOC and the ATM facility, we
believe, extends our cash runway, gives us the ability to execute
with our OEM partners, and ultimately prepares us for the
commercialization of Apollo,” said Conor Tierney, AEye CFO.
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.
Conference Call and Webcast
Details
AEye management will hold a conference call today, November 12,
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://aeye.pub/48pgxWe
Webcast: https://aeye.pub/4e8yny0
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 help investors evaluate the
results of the Company’s on-going operations and to enable more
meaningful and consistent 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, plus expenses related to registration
statements and common stock purchase agreements, less change in
fair value of convertible note and warrant liabilities, plus
realized loss on instrument-specific credit risk, plus one-time
termination benefits and other restructuring costs, plus
non-routine write-down of inventory, plus impairment of
right-of-use assets, less gain on termination of operating lease,
net; and
- Adjusted EBITDA, defined as non-GAAP net loss plus depreciation
and amortization expense, less interest income and other, less
interest expense 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
deeper integration of Apollo with the NVIDIA DRIVE Hyperion
platform, the success of global OEM quoting activities, LITEON’s
anticipated establishment of a manufacturing line in 2024, the
potential liquidity available to AEye from new financial
instruments, expected efficiencies deriving from our capital-light
model, and the competitiveness of our pricing as compared to our
competitors, 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
Apollo, despite meeting the NVIDIA DRIVE Hyperion specifications,
may not be integrated into the NVIDIA DRIVE platform in the time
frame anticipated, or at all; (ii) the risks that LITEON may not
establish a manufacturing line for Apollo in 2024, or at all; (iii)
the risks that AEye may be unable to meet the requirements to draw
on one or more of the new financial instruments such that the
extension of the cash runway will not extend as far as anticipated,
nor allow AEye to execute with its OEM partners or adequately
prepare AEye for the commercialization of Apollo to the extent
anticipated, or at all; (iv) the risks that the high-resolution
object detection at a distance of up to one kilometer has been or
may be met or exceeded by AEye’s competitors; (v) the risks that
AEye’s capital-light business model may not position AEye to
navigate the evolving lidar landscape to the extent anticipated;
(vi) the risks that AEye’s capital-light business model may not be
a key differentiator in the lidar market to the extent anticipated,
or at all; (vii) the risks that AEye may not be in a position to
maintain a balance sheet with very little debt compared to some of
its peers to the extent anticipated, or at all; (viii) the risks
that AEye may be unable to maintain the lowest cost structure in
the industry; (ix) the risks that AEye may not realize the greater
efficiencies expected to the extent anticipated, or at all; (x) the
risks that AEye may not be able to offer OEMs a superior product at
a competitive price point to the extent anticipated, or at all;
(xi) the risks that market conditions may create delays in the
demand for commercial lidar products beyond AEye’s expectations;
(xii) the risks that lidar adoption occurs slower than anticipated
or fails to occur at all; (xiii) the risks that AEye’s products may
not meet the diverse range of performance and functional
requirements of target markets and customers; (xiv) the risks that
AEye’s products may not function as anticipated by AEye, or by
target markets and customers; (xv) 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;(xvi) 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; (xvii) 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; (xviii) the risks that AEye is unable to adequately
implement its business plans, forecasts, and other expectations,
and identify and realize additional opportunities; and (xix) 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 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)
September 30, 2024
December 31, 2023
ASSETS Current Assets: Cash and cash equivalents
$
5,851
$
16,932
Marketable securities
16,584
19,591
Accounts receivable, net
76
131
Inventories, net
258
583
Prepaid and other current assets
1,482
2,517
Total current assets
24,251
39,754
Right-of-use assets
703
11,226
Property and equipment, net
630
281
Restricted cash
—
2,150
Other noncurrent assets
784
906
Total assets
$
26,368
$
54,317
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
Liabilities: Accounts payable
$
3,717
$
3,442
Accrued expenses and other current liabilities
6,960
6,585
Contract liabilities
35
—
Total current liabilities
10,712
10,027
Operating lease liabilities, noncurrent
537
14,858
Convertible note
146
—
Other noncurrent liabilities
67
409
Total liabilities
11,462
25,294
Stockholders’ Equity: Preferred stock
—
—
Common stock
1
1
Additional paid-in capital
379,425
366,647
Accumulated other comprehensive income
27
10
Accumulated deficit
(364,547
)
(337,635
)
Total stockholders’ equity
14,906
29,023
Total liabilities and stockholders’ equity
$
26,368
$
54,317
AEYE, INC.Consolidated Statements of Operations(In
thousands, except share amounts and per share data)(Unaudited)
Three months ended September 30, Nine months ended
September 30,
2024
2023
2024
2023
Revenue: Prototype sales
$
65
$
56
$
91
$
426
Development contracts
39
132
65
969
Total revenue
104
188
156
1,395
Cost of revenue
306
4,479
729
8,651
Gross loss
(202
)
(4,291
)
(573
)
(7,256
)
Operating expenses: Research and development
3,767
5,654
12,137
20,993
Sales and marketing
74
1,910
482
10,782
General and administrative
3,803
5,380
13,641
20,279
Total operating expenses
7,644
12,944
26,260
52,054
Loss from operations
(7,846
)
(17,235
)
(26,833
)
(59,310
)
Other income (expense): Change in fair value of convertible note
and warrant liabilities
9
12
(4
)
(914
)
Interest income and other
233
354
656
932
Interest expense and other
(1,102
)
(174
)
(729
)
(9
)
Total other income (expense), net
(860
)
192
(77
)
9
Loss before income tax expense
(8,706
)
(17,043
)
(26,910
)
(59,301
)
Provision for income tax expense
—
5
2
43
Net loss
$
(8,706
)
$
(17,048
)
$
(26,912
)
$
(59,344
)
Per Share Data Net loss per common share (basic and diluted)
$
(1.01
)
$
(2.78
)
$
(3.90
)
$
(10.34
)
Weighted average common shares outstanding (basic and
diluted)
8,629,683
6,137,251
6,892,910
5,739,425
AEYE, INC.Consolidated Statements of Cash Flows(In
thousands)(Unaudited) Nine months endedSeptember 30,
2024
2023
Cash flows from operating activities: Net loss
$
(26,912
)
$
(59,344
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
80
998
Loss (gain) on sale of property and equipment, net
(12
)
53
Noncash lease expense relating to operating lease right-of-use
assets
905
1,058
Gain on termination of operating lease, net
(680
)
—
Common stock purchase agreement costs
1,136
—
Impairment of right-of-use assets
—
47
Inventory write-downs, net of scrapped inventory
167
3,666
Change in fair value of convertible note and warrant liabilities
4
914
Realized loss on instrument-specific credit risk
—
46
Stock-based compensation
7,002
14,707
Amortization of premiums and accretion of discounts on marketable
securities, net of change in accrued interest
(491
)
33
Expected credit losses, net of write-offs
35
—
Changes in operating assets and liabilities: Accounts receivable,
net
20
379
Inventories, current and noncurrent, net
157
(2,681
)
Prepaid and other current assets
1,035
1,672
Other noncurrent assets
123
133
Accounts payable
275
1,494
Accrued expenses and other current liabilities
(3,411
)
(2,571
)
Operating lease liabilities
(936
)
(1,143
)
Contract liabilities
35
(969
)
Other noncurrent liabilities
(346
)
—
Net cash used in operating activities
(21,814
)
(41,508
)
Cash flows from investing activities: Purchases of property
and equipment
(420
)
(1,421
)
Proceeds from sale of property and equipment
45
243
Purchases of marketable securities
(24,241
)
(8,736
)
Proceeds from redemptions and maturities of marketable securities
27,756
76,350
Net cash provided by investing activities
3,140
66,436
Cash flows from financing activities: Proceeds from exercise
of stock options
134
450
Proceeds from the issuance of convertible note
146
—
Payments for convertible note redemptions
—
(6,235
)
Taxes paid related to the net share settlement of equity awards
(113
)
(1,312
)
Proceeds from issuance of common stock under the Common Stock
Purchase Agreements
5,863
136
Stock issuance costs related to Common Stock Purchase Agreements
(613
)
—
Proceeds from issuance of common stock through the Employee Stock
Purchase Plan
26
118
Net cash provided by (used in) financing activities
5,443
(6,843
)
Net (decrease) increase in cash, cash equivalents and restricted
cash
(13,231
)
18,085
Cash, cash equivalents and restricted cash at beginning of period
19,082
21,214
Cash, cash equivalents and restricted cash at end of period
$
5,851
$
39,299
AEYE, INC.Reconciliation of GAAP to Non-GAAP Financial
Measures(In thousands, except share amounts and per share
data)(Unaudited) Three months ended September 30,
Nine months ended September 30
2024
2023
2024
2023
GAAP net loss
$
(8,706
)
$
(17,048
)
$
(26,912
)
$
(59,344
)
Non-GAAP adjustments: Stock-based compensation
2,248
4,084
7,002
14,707
Expenses related to registration statements and common stock
purchase agreements
1,136
233
1,136
233
Change in fair value of convertible note and warrant liabilities
(9
)
(12
)
4
914
Realized loss on instrument-specific credit risk
—
46
—
46
One-time termination benefits and other restructuring costs
—
172
—
1,470
Non-routine write-down of inventory
—
3,007
—
3,007
Impairment of right-of-use assets
—
—
—
47
Gain on termination of operating lease, net
(680
)
—
(680
)
—
Non-GAAP net loss
$
(6,011
)
$
(9,518
)
$
(19,450
)
$
(38,920
)
Depreciation and amortization expense
24
332
80
998
Interest income and other
(233
)
(354
)
(656
)
(932
)
Interest expense and other
(34
)
128
(407
)
(84
)
Provision for income tax expense
—
5
2
43
Adjusted EBITDA
$
(6,254
)
$
(9,407
)
$
(20,431
)
$
(38,895
)
GAAP net loss per share attributable to common
stockholders: Basic and diluted
$
(1.01
)
$
(2.78
)
$
(3.90
)
$
(10.34
)
Non-GAAP net loss per share attributable to common
stockholders: Basic and diluted
$
(0.70
)
$
(1.55
)
$
(2.82
)
$
(6.78
)
Shares used in computing GAAP net loss per share attributable to
common stockholders: Basic and diluted
8,629,683
6,137,251
6,892,910
5,739,425
Shares used in computing Non-GAAP net loss per share
attributable to common stockholders: Basic and diluted
8,629,683
6,137,251
6,892,910
5,739,425
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112782801/en/
Investor Relations
Contacts:
Agency Contact Evan Niu, CFA Financial Profiles, Inc.
eniu@finprofiles.com 310-622-8243
Company Contact AEye, Inc. Investor Relations
info@aeye.ai 925-400-4366
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