美國

證券交易委員會

華盛頓特區20549

表格 10-Q

(標記一個)

☒	根據1934年證券交易所法案第13或15(d)條的季報告

截至季度結束2024年9月30日

或

☐	根據1934年證券交易所法第13條或第15(d)條的過渡報告

從[ ]到[ ]的過渡期間

委員會檔案號碼：001-38640

AudioEye，Inc。

（按其章程規定指定的準確名稱）

特拉華州		20-2939845
(公司成立或其他管轄法權組織)		（聯邦稅號）

5210東威廉姆斯圓環, 750套房, 圖桑, 亞利桑那州		85711
(總部辦公地址)		（郵政編碼）

註冊者的電話號碼，包括區域代碼：866-331-5324

根據法案第12(b)條註冊的證券：

每種類別的名稱	交易標的（s）	每個註冊交易所的名稱
普通股，每股面值0.00001美元	逐筆明細	輝瑞公司面臨數起分開的訴訟，這些訴訟仍在進行中，需等待第三項索賠條款的裁決。2023年9月，我們與輝瑞公司同意合併2022和2023年的訴訟，並將審判日期從2024年11月推遲至2025年上半年，具體時間將由法院確定。納斯達克資本市場

請在方框內打勾，以指示申報人：（1）是否已根據1934年證券交易法第13條或第15(d)條的規定，在過去12個月內提交了所有所需提交的報告（或申報人被要求提交此類報告的更短期間），以及（2）在過去的90天內是否已受到這些申報要求的約束。是 ☒ ☐

請以勾選框表示，登記者在過去12個月內（或者對於要求提交此類文件的更短時期），是否已按照S-t規則405條要求提交了每個互動數據文件。是 ☒ ☐

請以勾選表示，公司是否為大型快速申報者、加速申報者、非加速申報者、較小的報告公司或新興成長公司。請參閱《交易法》第2條2條對「大型快速申報者」、「加速申報者」、「較小的報告公司」和「新興成長公司」的定義。

大型加速歸檔人	☐	加速歸檔人	☐
非加速歸檔人	☒	小型報告公司	☒
新興成長型企業	☐

如果新興成長公司，在Check Mark中指示是否選擇不使用交易所法第13(a)款所提供的任何新的或修訂的財務會計準則的扩展過渡期符合要求。☐

請在核准印章處打勾，表明公司是否為外殼公司（根據《交易所法》第120億2條所定義）。是 ☐否☒

截至2024年10月31日，寄存註冊人之普通股標的已發行。 12,178,130 發行並流通中的登記人普通股。


		頁面
第I部分	財務信息	1

项目1。	基本報表	1

	2024年9月30日和2023年12月31日的合併資產負債表（未經審核）	2

	2024年和2023年9月30日三個月和九個月之綜合營運狀況（未經審核）	3

	2024年和2023年9月30日三個月和九個月之股東權益綜合報表（未經審核）	4

	截至2024年9月30日和2023年（未經查核）的綜合現金流量表	6

	附註合併基本報表（未經審核）	7

项目2。	管理層對財務狀況和業績的討論與分析	17

项目3。	市場風險的定量和定性披露。	24

項目 4。	內部控制及程序	24

第二部分	其他信息	26

项目1。	法律訴訟	26

项目1A。	風險因素	26

项目2。	發行人購買股權證券	26

第6項。	展品	27

簽名		28

第一部分-財務信息

項目1. 財務報表

以下所列之截至2024年9月30日及2023年12月31日合併基本報表及2024年9月30日及2023年9月30日結束之三個及九個月間之財務資訊，並非經查證。根據我們的管理層所指，此財務資訊包括所有調整，其中包括為了合理呈現該等數據所必須的正常循環分錄。截至2024年9月30日結束之三個及九個月間之營運結果未必能預示未來任何期間的結果。我們的財政年度結束於12月31日。本公司呈報其未查證的合併基本報表、附註及其他財務資訊已取至最接近之美元仟元，除每股數據外。


	September 30,		December 31,
(in thousands, except per share data)	2024		2023
ASSETS
Current assets:
Cash	$	5,478	$	9,236
Accounts receivable, net of allowance for doubtful accounts of $451 and $496, respectively		4,876		4,828
Prepaid expenses and other current assets		1,042		712
Total current assets		11,396		14,776

Property and equipment, net of accumulated depreciation of $283 and $251, respectively		228		218
Right of use assets		430		611
Intangible assets, net of accumulated amortization of $9,056 and $7,423, respectively		10,593		5,783
Goodwill		6,615		4,001
Other		128		106
Total assets	$	29,390	$	25,495

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	3,481	$	2,339
Note payable		2,348		—
Operating lease liabilities		194		312
Finance lease liabilities		—		7
Deferred revenue		7,587		6,472
Contingent consideration		—		2,399
Total current liabilities		13,610		11,529

Long term liabilities:
Term loan, net		6,796		6,727
Operating lease liabilities		269		417
Deferred revenue		8		10
Contingent consideration, long term		1,250		—
Other		105		105
Total liabilities		22,038		18,788

Stockholders’ equity:
Preferred stock, $0.00001 par value, 10,000 shares authorized
Common stock, $0.00001 par value, 50,000 shares authorized, 12,034 and 11,711 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		1		1
Additional paid-in capital		101,609		96,182
Accumulated deficit		(94,258)		(89,476)
Total stockholders’ equity		7,352		6,707

Total liabilities and stockholders’ equity	$	29,390	$	25,495


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2024		2023		2024		2023
Revenue	$	8,925	$	7,838	$	25,478	$	23,446

Cost of revenue		1,823		1,788		5,348		5,277

Gross profit		7,102		6,050		20,130		18,169

Operating expenses:
Selling and marketing		3,148		2,891		9,122		9,387
Research and development		1,151		1,955		3,694		5,734
General and administrative		3,794		2,594		9,433		8,520
Total operating expenses		8,093		7,440		22,249		23,641

Operating loss		(991)		(1,390)		(2,119)		(5,472)

Interest income (expense), net		(211)		35		(647)		133

Net loss	$	(1,202)	$	(1,355)	$	(2,766)	$	(5,339)

Net loss per common share-basic and diluted	$	(0.10)	$	(0.11)	$	(0.23)	$	(0.46)

Weighted average common shares outstanding-basic and diluted		11,960		11,822		11,791		11,733


				Additional
	Common stock			Paid-in		Accumulated
(in thousands)	Shares	Amount		Capital		Deficit		Total
Balance, December 31, 2023	11,711	$	1	$	96,182	$	(89,476)	$	6,707
Common stock issued upon settlement of restricted stock units	235		—		—		—		—
Issuance of common stock for services	7		—		—		—		—
Surrender of stock to cover tax liability on settlement of employee stock-based awards	(25)		—		(160)		—		(160)
Common stock repurchased for retirement	(266)		—		—		(1,686)		(1,686)
Stock-based compensation	—		—		883		—		883
Net loss	—		—		—		(829)		(829)
Balance, March 31, 2024	11,662	$	1	$	96,905	$	(91,991)	$	4,915
Issuance of common stock for cash, net of transaction expenses	40		—		563		—		563
Common stock issued upon exercise of options on a cashless basis	17		—		—		—		—
Common stock issued upon settlement of restricted stock units	141		—		—		—		—
Issuance of common stock for services	5		—		—		—		—
Common stock issued pursuant to employee stock purchase plan	4		—		53		—		53
Surrender of stock to cover tax liability on settlement of employee stock-based awards	(28)		—		(584)		—		(584)
Common stock repurchased for retirement	(33)		—		—		(330)		(330)
Stock-based compensation	—		—		975		—		975
Net loss	—		—		—		(735)		(735)
Balance, June 30, 2024	11,808	$	1	$	97,912	$	(93,056)	$	4,857
Issuance of common stock for cash, net of transaction expenses	123		—		2,910		—		2,910
Common stock issued upon exercise of options on a cashless basis	1		—		—		—		—
Common stock issued upon settlement of restricted stock units	117		—		—		—		—
Issuance of common stock for services	4		—		—		—		—
Surrender of stock to cover tax liability on settlement of employee stock-based awards	(19)		—		(403)		—		(403)
Stock-based compensation	—		—		1,190		—		1,190
Net loss	—		—		—		(1,202)		(1,202)
Balance, September 30, 2024	12,034	$	1	$	101,609	$	(94,258)	$	7,352


	Options	RSUs
Outstanding at December 31, 2023	112,279	1,707,258
Granted	—	291,402
Exercised/Settled	(29,092)	(493,280)
Forfeited/Expired	(6,740)	(103,867)
Outstanding at September 30, 2024	76,447	1,401,513
Vested at September 30, 2024	76,447	396,861
Unvested at September 30, 2024	—	1,004,652


(in thousands)	Balance at September 27, 2024
Assets purchased:
Cash	$	284
Accounts receivable		400
Other assets		15
Customer relationships (1)		5,100
Goodwill (2)		2,614
Total assets purchased		8,413

Liabilities assumed:
Accounts payable and accrued liabilities		331
Deferred revenue		1,077
Total liabilities assumed		1,408

Net assets acquired		7,005

Consideration:
Cash paid		3,407
Note payable (3)		2,348
Contingent consideration liability (4)		1,250
Total consideration	$	7,005


	Pro Forma Combined Financials (unaudited)
(in thousands)	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Revenue	$	9,471	$	8,408	$	27,127	$	24,981
Net loss attributed to common shareholders		(660)		(1,264)		(1,994)		(5,110)


Year ending December 31,	Operating Leases
2024 (3 months remaining)	$	53
2025		219
2026		225
Total minimum lease payments		497
Less: present value discount		(34)
Total lease liabilities		463
Current portion of lease liabilities		194
Long term portion of lease liabilities	$	269


	Three months ended September 30,				Change
(in thousands)	2024		2023		$		%
Revenue	$	8,925	$	7,838	$	1,087	14	%
Cost of revenue		(1,823)		(1,788)		(35)	2	%
Gross profit		7,102		6,050		1,052	17	%
Operating expenses:
Selling and marketing		3,148		2,891		257	9	%
Research and development		1,151		1,955		(804)	(41)	%
General and administrative		3,794		2,594		1,200	46	%
Total operating expenses		8,093		7,440		653	9	%
Operating loss		(991)		(1,390)		399	(29)	%
Interest income (expense), net		(211)		35		(246)	(703)	%
Net loss	$	(1,202)	$	(1,355)	$	153	(11)	%


(in thousands)	September 30, 2024		December 31, 2023
Current assets	$	11,396	$	14,776
Current liabilities		(13,610)		(11,529)
Working capital	$	(2,214)	$	3,247


					Maximum Number
					of Shares (or
				Total Number of	Approximate Dollar
				Shares Purchased	Value) that May
				as Part of Publicly	Yet Be Purchased
	Total Number of	Average Price		Announced Plans or	under the Plans or
	Shares Purchased	Paid per Share		Programs	Programs (2)
July 1 - July 31:
Employee transactions (1)	2,006	$	20.68	—	$	—
August 1 - August 31:
Employee transactions (1)	5,990		22.50	—		—
September 1 - September 30:
Employee transactions (1)	10,704		21.71	—		—
Total:
Employee transactions (1)	18,700	$	21.85	—	$	—
Share repurchase program (2)	—	$	—	—	$	1,860,000


	Nine months ended September 30,
(in thousands)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,766)	$	(5,339)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		1,764		1,670
Loss on disposal or impairment of long-lived assets		5		220
Stock-based compensation expense		3,048		3,035
Amortization of deferred commissions		27		49
Amortization of debt discount and issuance costs		70		—
Amortization of right-of-use assets		181		278
Change in fair value of contingent consideration		(12)		200
Provision for accounts receivable		150		49
Changes in operating assets and liabilities:
Accounts receivable		202		960
Prepaid expenses and other assets		(365)		(25)
Accounts payable and accruals		92		(408)
Operating lease liability		(266)		(376)
Deferred revenue		36		(828)
Net cash provided by (used in) operating activities		2,166		(515)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		(88)		(142)
Software development costs		(1,379)		(1,481)
Patent costs		(13)		(31)
Payment for acquisition		(3,123)		—
Net cash used in investing activities		(4,603)		(1,654)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock offering, net of transaction costs		3,473		—
Proceeds from employee stock purchase plan		53		36
Payments related to settlement of employee shared-based awards		(1,147)		(558)
Settlement of contingent consideration		(1,677)		(908)
Repurchase of common stock		(2,016)		—
Repayments of finance leases		(7)		(31)
Net cash used in financing activities		(1,321)		(1,461)

Net decrease in cash		(3,758)		(3,630)
Cash-beginning of period		9,236		6,904

		Incorporation by Reference
Exhibit No.	Description		Form	Date of Filing	Exhibit No.	Filed Herewith
3.1	Restated Certificate of Incorporation of AudioEye, Inc., dated as of May 24, 2024		8-K	May 24, 2024	3.3

3.2	By-Laws of AudioEye, Inc. (as amended as of May 22, 2024)		10-Q	July 29, 2024	3.3

10.1	Membership Interest Purchase Agreement, by and among AudioEye, Inc., ADA Site Compliance, LLC, the Sellers listed on the signature pages thereto, and Scott Trachtenberg, in his capacity as Sellers’ Representative, dated as of September 27, 2024, for the acquisition of ADA Site Compliance, LLC		8-K	September 30, 2024	10.1

10.2	First Amendment, Consent and Joinder to Loan and Security Agreement, by and between AudioEye, Inc., ADA Site Compliance, LLC, and SG Credit Partners, Inc., dated as of September 27, 2024		8-K	September 30, 2024	10.2

31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					X

31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					X

32.1	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X

101.INS	Inline XBRL Instance Document

101.SCH	Inline XBRL Taxonomy Extension Schema Document					X

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document					X

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document					X

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document					X

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document					X

104	Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

		AUDIOEYE, INC.

Date:	November 7, 2024	By:	/s/ David Moradi
			David Moradi
			Principal Executive Officer

Date:	November 7, 2024	By:	/s/ Kelly Georgevich
			Kelly Georgevich
			Principal Financial Officer