Audioeye Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Audioeye Inc. has filed its 2023 10-K, detailing financial performance and asset information for the past three fiscal years.</b>

AI Summary

AUDIOEYE INC (AEYE) filed a Annual Report (10-K) with the SEC on March 7, 2024. Audioeye Inc. filed its annual report for the fiscal year ended December 31, 2023. The filing includes financial data for the years ending December 31, 2023, 2022, and 2021. Key financial statement items such as Retained Earnings, Additional Paid-In Capital, and Common Stock are detailed for these periods. Information regarding stock repurchase programs from 2023 and 2022 is included. The report references specific assets including Trade Names, Software and Software Development Costs, and Customer Relationships as of December 31, 2023 and 2022.

Why It Matters

For investors and stakeholders tracking AUDIOEYE INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Audioeye's financial health and operational status for the fiscal year 2023, allowing investors to assess performance trends and make informed decisions. The detailed breakdown of assets, equity, and stock repurchase programs offers insights into the company's capital structure and shareholder value initiatives.

Risk Assessment

Risk Level: medium — AUDIOEYE INC shows moderate risk based on this filing. The company's financial disclosures are extensive, but specific revenue and net income figures for the most recent fiscal year are not immediately available in this header data, requiring a deeper dive into the full filing.

Analyst Insight

Investors should review the full 10-K filing to analyze Audioeye's detailed financial statements, including revenue growth, profitability, and any new risk factors disclosed.

Key Numbers

• 2023-12-31 — Fiscal Year End (FISCAL YEAR END)
• 2024-03-07 — Filing Date (FILED AS OF DATE)
• 001-38640 — SEC File Number (SEC FILE NUMBER)
• 7372 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• AUDIOEYE INC (company) — FILER
• AEYE (company) — tk
• 2023-12-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-03-07 (date) — FILED AS OF DATE
• TUCSON (location) — CITY
• AZ (location) — STATE
• 85711 (postal_code) — ZIP
• Bureau Of Internet Accessibility Inc (company) — aeye:BureauOfInternetAccessibilityIncMember

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-07: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the primary source of detailed financial and operational information for Audioeye Inc. for the fiscal year 2023.)

Retained Earnings

The cumulative amount of net income of a corporation that has not been distributed to its shareholders as dividends. (Indicates the company's historical profitability and its ability to reinvest earnings back into the business.)

Additional Paid-In Capital

The amount of money an investor pays for a stock that is above its par value. (Reflects capital raised from stock issuance beyond the nominal par value, impacting the company's equity structure.)

Key Financial Figures

• $0.00001 — ich Registered Common Stock, par value $0.00001 per share AEYE The Nasdaq Capital M
• $5,872,000 — istent basis. We incurred net losses of $5,872,000 for the year ended December 31, 2023. A
• $89,476,000 — 2023, we had an accumulated deficit of $89,476,000. If we continue to experience losses, w
• $9.2 million — nues. As of December 31, 2023, we had $9.2 million in cash following a $7.0 million loan a
• $7.0 million — we had $9.2 million in cash following a $7.0 million loan acquired in November 2023, which w
• $2.0 million — es a minimum liquidity of not less than $2.0 million (plus, prior to our payment in full of
• $2.1 million — tion, an amount equal to the greater of $2.1 million and the expected amount of the earnout)

Filing Documents

• aeye-20231231x10k.htm (10-K) — 1736KB
• aeye-20231231xex4d1.htm (EX-4.1) — 21KB
• aeye-20231231xex10d29.htm (EX-10.29) — 396KB
• aeye-20231231xex23d1.htm (EX-23.1) — 2KB
• aeye-20231231xex31d1.htm (EX-31.1) — 12KB
• aeye-20231231xex31d2.htm (EX-31.2) — 12KB
• aeye-20231231xex32d1.htm (EX-32.1) — 7KB
• aeye-20231231xex32d2.htm (EX-32.2) — 7KB
• aeye-20231231xex97.htm (EX-97) — 28KB
• aeye-20231231x10k001.jpg (GRAPHIC) — 10KB
• 0001410578-24-000150.txt (&nbsp;) — 7911KB
• aeye-20231231.xsd (EX-101.SCH) — 56KB
• aeye-20231231_cal.xml (EX-101.CAL) — 76KB
• aeye-20231231_def.xml (EX-101.DEF) — 195KB
• aeye-20231231_lab.xml (EX-101.LAB) — 512KB
• aeye-20231231_pre.xml (EX-101.PRE) — 372KB
• aeye-20231231x10k_htm.xml (XML) — 1112KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 6 Item 1B. Unresolved Staff Comments 18 Item 1C. Cybersecurity 18 Item 2.

Properties

Properties 19 Item 3.

Legal Proceedings

Legal Proceedings 19 Item 4. Mine Safety Disclosures 19 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 27 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 28 Item 9A.

Controls and Procedures

Controls and Procedures 28 Item 9B. Other Information 28 Item 9C. Disclosure Rega rding Foreign Jurisdictions that Prevent Inspections 29 Part III Item 10. Directors, Executive Officers and Corporate Governance 29 Item 11.

Executive Compensation

Executive Compensation 29 Item 12.

Security Ownership of Certain Beneficial Owners, Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners, Management and Related Stockholder Matters 29 Item 13. Certain Relationships and Related Transactions and Director Independence 29 Item 14. Principal Accounting Fees and Services 29 Part IV Item 15. Exhibits, Financial Statement Schedules 30 Item 16. Form 10-K Summary 33

Financial Statements

Financial Statements F-1 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In some cases, you may be able to identify forward-looking statements by terms such as "may," "should," "will," "forecasts," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "projects," "potential" or "continue," the negative of these terms and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements relate to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements, and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and speak only as of the date on which they are made. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including our plans, objectives, expectations and intentions and other factors discussed in "Part I, Item 1A. Risk Factors" contained in this Annual Report. Risk factors that could cause actual results to differ from those contained in the forward-looking statements include but are not limited to risks related to: the uncertain market acceptance of our existing and future products; our need for, and the availability of, additional capital in the future to fund our operations and the development of new products; the

Business

Item 1. Business Overview AudioEye is an industry-leading digital accessibility platform delivering website accessibility compliance at all price points to businesses of all sizes. Our solutions advance accessibility with patented technology that reduces barriers, expands access for individuals with disabilities, and enhances the user experience for a broader audience. We believe that, when implemented, our solution offers businesses and organizations the opportunity to reach more customers, improve brand image, build additional brand loyalty, and, most importantly, provide an accessible and usable web experience to the expansive and ever-growing global population of individuals with disabilities. AudioEye primarily generates revenue through the sale of subscriptions for our software-as-a-service ("SaaS") accessibility solutions. Our solutions are backed by machine-learning/AI-driven technology that finds and fixes common accessibility errors. Our core and supplemental solutions are designed to help websites and applications achieve and sustain substantial conformance with AudioEye's interpretation of the Web Content Accessibility Guidelines ("WCAG") which are web accessibility standards published by the Web Accessibility Initiative of the World Wide Web Consortium, the main international standards organization for the internet. Our solutions help mitigate a customer's risk of costly digital accessibility-related legal action. AudioEye customers may purchase solutions directly through the AudioEye Marketplace, through a platform partner or an agency, such as Duda, that integrates our solutions into their marketplace, through a vertical Content Management System ("CMS") partner, through an authorized reseller, or by working directly with the AudioEye sales team. AudioEye stands out among its competitors because it offers automated and human assisted technological remediations and continuous monitoring of accessibility issues without fundamental changes to the w

Risk Factors

Item 1A. Risk Factors Investing in our securities involves a variety of risks and uncertainties, known and unknown, including, among others, those discussed below. Each of the following risks should be carefully considered, together with all the other information included in this Form 10-K, including Management's Discussion and Analysis of Financial Condition and Results of Operations, our consolidated financial statements and the related notes and in our other filings with the SEC. Furthermore, additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business. Our business, financial condition, operating results, cash flow and prospects could be materially and adversely affected by any of these risks or uncertainties. Risks Relating to Our Business and Industry We have a history of generating significant losses and may not be able to achieve and sustain profitability. To date, we have not been profitable, and we may never achieve profitability on a full-year or consistent basis. We incurred net losses of $5,872,000 for the year ended December 31, 2023. As of December 31, 2023, we had an accumulated deficit of $89,476,000. If we continue to experience losses, we may not be able to continue our operations, and investors may lose their entire investment. We continue to pursue business through a variety of channels. These channels may result in the use of a significant amount of our management resources and costs, and we cannot guarantee we will fully realize the expected benefits. We continue to pursue business through a variety of channels. Although we may devote significant resources and costs to the development of these sales channel s , we may struggle to successfully identify the channel partners, or to successfully conclude transactions with the channel partners. Should we be unable to identify or conclude important channel partnerships, or if our partners are unable to mee

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View this 10-K filing on SEC EDGAR