<SEC-DOCUMENT>0001144204-17-000398.txt : 20170104
<SEC-HEADER>0001144204-17-000398.hdr.sgml : 20170104
<ACCEPTANCE-DATETIME>20170104060152
ACCESSION NUMBER:		0001144204-17-000398
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170104
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170104
DATE AS OF CHANGE:		20170104

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AUDIOEYE INC
		CENTRAL INDEX KEY:			0001362190
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-177463
		FILM NUMBER:		17503522

	BUSINESS ADDRESS:	
		STREET 1:		5210 E. WILLIAMS CIRCLE
		STREET 2:		SUITE 750
		CITY:			TUCSON
		STATE:			AZ
		ZIP:			85711
		BUSINESS PHONE:		866-331-5324

	MAIL ADDRESS:	
		STREET 1:		5210 E. WILLIAMS CIRCLE
		STREET 2:		SUITE 750
		CITY:			TUCSON
		STATE:			AZ
		ZIP:			85711
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v456185_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">WASHINGTON, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">FORM 8-K</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">PURSUANT TO SECTION 13 OR 15(d) OF THE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Date of Report (Date of earliest event reported):
January 4, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">AUDIOEYE, INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding: 0; text-align: center; text-indent: 0">DELAWARE</TD>
    <TD STYLE="width: 34%; padding: 0; text-align: center; text-indent: 0">333-177463</TD>
    <TD STYLE="width: 33%; padding: 0; text-align: center; text-indent: 0">20-2939845</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0">(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0">(Commission File Number)</TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0">(IRS Employer Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">5210 E. Williams Circle, Suite 750</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Tucson, Arizona 85711</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(866) 331-5324</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act of 1933 (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(e) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 2.02&#9;Results of Operations and Financial Condition</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">On&nbsp;January&nbsp;4, 2017, AudioEye, Inc. (&ldquo;AudioEye&rdquo;
or the &ldquo;Company&rdquo;) issued a press release reporting cash contract sales bookings of $1.93 million in 2016, up from $0.321
million in 2015. A copy of the press release is furnished herewith as Exhibit 99.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">AudioEye today announced that increased adoption of
accessibility technologies in key target markets such as government, education, banking, retail, and human resources contributed
to an approximate six-fold increase in its 2016 cash contract sales bookings compared to 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Non-GAAP Financial Measures</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">AudioEye has provided in this release information
related to bookings that has not been prepared in accordance with GAAP. AudioEye uses this non-GAAP financial measure internally
in analyzing its financial results and believes it is useful to investors, as a supplement to GAAP measures, in evaluating our
ongoing operational performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Non-GAAP financial measures should not be considered
in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Our use of non-GAAP financial
measures may not be consistent with the presentations by similar companies in our industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Bookings are comprised of the total value of new customer
contracts closed during a specified period, including license, maintenance, services, term license and subscription renewals, that
we believe to be firm commitments to provide our software solutions and related services. Bookings by their nature are significantly
based on estimates and judgments that we make regarding total contract values, and our bookings growth projections are not meant
as a substitute measure for revenue in accordance with GAAP. We believe our annual bookings growth projection is useful to investors
as an additional means to reflect our annual business performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">These non-GAAP estimates are not measurements of financial
performance prepared in accordance with GAAP, and we are unable to reconcile these forward-looking non-GAAP financial measures
to their directly comparable GAAP financial measures because the information described above which is needed to complete a reconciliation
is unavailable at this time without unreasonable effort.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">Item 7.01&#9;Regulation FD Disclosure</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On January 4, 2017, the Company
announced that Executive Chairman Dr. Carr Bettis recently acquired 714,286 shares of AudioEye common stock in private transactions
at an average price of $0.14 per share. The shares were acquired via CSB IV US Holdings, LLC, an entity managed by Dr. Bettis and
owned by his family.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 8.01&#9;Other Events</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">On January
4, 2017, the Company issued a press release reporting cash contract sales bookings of $1.93 million in 2016, up from $0.321 million
in 2015. A copy of the press release is furnished herewith as Exhibit 99.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 9.01&#9;Exhibits</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Exhibit 99.1&#9;Press Release dated January
4, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The information furnished in this Current Report under
Item 2.02, Item 8.01 and Exhibit 99.1 attached hereto shall not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), or incorporated by reference in any filing under
the Securities of Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in
such filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date: January 4, 2017</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">AUDIOEYE, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ TODD BANKOFIER</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Todd Bankofier, </FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Index to Exhibits</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exhibit No.</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 88%; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">99.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Press Release dated January 4, 2017.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v456185_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html><head><META content="text/html; charset=utf-8"></META></head><body style="font-size:10pt;font-family:Arial;color:black;"><DIV STYLE="width: 100%; margin-left: 10pt; text-align: right"><B>Exhibit
                                         99.1</B></DIV>

<DIV STYLE="width: 100%; margin-left: 10pt"><p style="text-align:center"><b>AudioEye Cash Contract Sales Bookings of $1.93M in 2016, up from $0.321M in 2015</b></p>
<br /><br />Executive Chairman acquires 714,286 shares in a private transaction</div><div style="width:100%;margin-left:10pt;"><div style="margin:0;margin-top:16pt;"><p>TUCSON, Ariz., Jan. 4, 2017 /PRNewswire/ -- AudioEye, Inc. (OTCQB: AEYE) (&#34;AudioEye&#34; or the &#34;Company&#34;) today announced that increased adoption of accessibility technologies in key target markets such as government, education, banking, retail, and human resources contributed to an approximate six-fold increase in its 2016 cash contract sales bookings compared to 2015.</p><div id="prni_dvprnejpg2f6aleft" style="TEXT-ALIGN: left; WIDTH: 100%"></div><p>&#34;Our education and marketing efforts have successfully increased awareness of the need for web accessibility tools, culminating into a
strong Q4 booking of $705K taking the 2016 cash contract sales bookings to $1.93M, up from $321K in 2015,&#34; stated Todd Bankofier, CEO of AudioEye. &#34;Our focus has been consistent and two-fold - addressing our customers&#39; compliance needs, while also supplying them with a complete accessibility solution that is unique in the marketplace - and provides our customers with a potential business ROI. This success is even more meaningful given that our clients create a level playing field for everyone that comes to their websites, including as many as 10% of the population that lives with a disability.&#34; </p><p>AudioEye helps to solve web accessibility issues for businesses, government and education in less than 100 days using a comprehensive, cost-effective, SaaS platform technology. The Company has focused on key markets characterized by ROI opportunities, as well as compliance
with WCAG 2.0, Section 508, and the Americans with Disabilities Act (ADA). Our clients include financial services, retail e-commerce, healthcare, government agencies, education and human resources providers. AudioEye&#39;s proven solutions are trusted by global brands across major industries, including Fortune 500 companies, major universities, and a number of U.S. federal government departments. </p><p>&#34;With a message of inclusion, the AudioEye technology is making client websites more accessible, easier to navigate, and providing a better user experience,&#34; stated Dr. Carr Bettis, Executive Chairman, adding, &#34;given our growing pipeline we are excited at the prospects for 2017.&#34;</p><p><b>Executive Chairman Dr. Bettis acquires more shares</b></p><p>Executive Chairman Dr. Carr Bettis recently acquired 714,286 shares of AudioEye common stock in private transactions at an
average price of $0.14 per share. The shares were acquired via CSB IV US Holdings, LLC, an entity managed by Dr. Bettis and owned by his family.</p><p>Non-GAAP Financial Measures</p><p>AudioEye has provided in this release information related to bookings that has not been prepared in accordance with GAAP. AudioEye uses this non-GAAP financial measure internally in analyzing its financial results and believes it is useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance.</p><p>Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Our use of non-GAAP financial measures may not be consistent with the presentations by similar companies in our industry.</p><p>Bookings are comprised of the total value of new customer contracts closed during a
specified period, including license, maintenance, services, term license and subscription renewals, that we believe to be firm commitments to provide our software solutions and related services. Bookings by their nature are significantly based on estimates and judgments that we make regarding total contract values, and our bookings growth projections are not meant as a substitute measure for revenue in accordance with GAAP. We believe our annual bookings growth projection is useful to investors as an additional means to reflect our annual business performance.</p><p>These non-GAAP estimates are not measurements of financial performance prepared in accordance with GAAP, and we are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information described above which is needed to complete a reconciliation is
unavailable at this time without unreasonable effort.</p><p><b>About AudioEye, Inc.
<br /></b>AudioEye&#39;s software enables every enterprise, from corporations to government agencies, to make their content more consumable through technology.  </p><p>More accessible.  More usable.  More people.</p><p>AudioEye&#39;s common stock trades on the OTCQB under the symbol &#34;AEYE&#34;.  The Company maintains offices in Tucson and Atlanta.</p><p><b>Forward-Looking Statements
<br /></b><i>Any statements in this press release about AudioEye&#39;s expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance are not historical facts and are &#34;forward-looking statements&#34; as that term is defined under the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as &#34;believe&#34;, &#34;anticipate&#34;, &#34;should&#34;, &#34;intend&#34;, &#34;plan&#34;, &#34;will&#34;, &#34;expects&#34;, &#34;estimates&#34;, &#34;projects&#34;, &#34;positioned&#34;, &#34;strategy&#34;, &#34;outlook&#34; and similar words. You should read the statements that contain these types of words carefully. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what is
expressed or implied in such forward-looking statements. There may be events in the future that AudioEye is not able to predict accurately or over which AudioEye has no control. Other risks are described more fully in AudioEye&#39;s filings with the Securities and Exchange Commission. Forward-looking statements reflect management&#39;s analysis as of the date of this press release and AudioEye urges you not to place undue reliance on these forward-looking statements. AudioEye does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or uncertainties after the date hereof or to reflect the occurrence of unanticipated events.</i></p><p>For further information, please contact:</p><p>Matt Kreps
<br />Darrow Associates
<br />(214) 597-8200
<br />mkreps@darrowir.com</p><p>or</p><p>David Kovacs <br />Strategic Advisor <br />AudioEye, Inc. <br />(520) 308-6143</p>
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