UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.05 | Costs Associated with Exit or Disposal Activities. |
On October 31, 2023, AEye, Inc. (the “Company”) implemented the second phase of its automotive-first strategic plan previously announced in May of 2023. The Company expects to provide further details regarding this second phase of the automotive-first strategic plan during its third quarter earnings call scheduled for November 9, 2023. The second phase of the automotive-first strategic plan aligns the Company’s operations with evolving business needs by focusing on the transition of the Company from research and development to the commercialization of its automotive products, while reducing fixed operating costs.
The Company expects to record a one-time, pre-tax, non-cash inventory write-down and asset impairment in the range of $4.5 million to $6.5 million, principally consisting of inventory related to the industrial market as it focuses on scaling its automotive business, and a cash charge in the range of $2.0 to $2.5 million to be principally paid in the fourth quarter of 2023 related to a reduction-in-force. The reduction-in-force of approximately 29 full-time and part-time employees is expected to be completed in the fourth quarter of 2023, and the cash charge will primarily consist of personnel expenses, such as one-time separation payments and other benefits.
Important Notice Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “outlook,” “target,” “reflect,” “on track,” “foresees,” “future,” “may,” “deliver,” “will,” “shall,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms, other comparable terminology (although not all forward-looking statements contain these words), or by discussions of strategy, plans, or intentions. Forward looking statements included in this Current Report include statements about the Company’s implementation of the second phase of its revised automotive-first strategic plan, the inventory write-down and asset impairment incurred in connection with the second phase of the Company’s revised automotive-first strategic plan, and the size, impact, and timing of the reduction-in-force, among others. These statements involve risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this Current Report on Form 8-K, it cautions you that these statements are based on a combination of facts and factors currently known by the Company and its projections of the future, about which the Company cannot be certain.
With respect to the matters addressed in this Current Report, the estimated costs the Company expects to incur in connection with the inventory write-down and asset impairment and the reduction-in-force are subject to certain assumptions, and actual results may differ significantly from these estimates. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the reduction-in-force. The reduction-in-force may take longer than anticipated and it may have an adverse impact on the Company’s performance. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this Form 8-K, whether as a result of new information, future events, or otherwise.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AEye, Inc. | |||
| Dated: November 6, 2023 | |||
| By: | /s/ Andrew S. Hughes | ||
| Andrew S. Hughes | |||
| Senior Vice President, General Counsel & Corporate Secretary | |||