<SEC-DOCUMENT>0001179110-21-003337.txt : 20210312
<SEC-HEADER>0001179110-21-003337.hdr.sgml : 20210312
<ACCEPTANCE-DATETIME>20210312161355
ACCESSION NUMBER:		0001179110-21-003337
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20210311
FILED AS OF DATE:		20210312
DATE AS OF CHANGE:		20210312

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Moradi David
		CENTRAL INDEX KEY:			0001658843

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-38640
		FILM NUMBER:		21737561

	MAIL ADDRESS:	
		STREET 1:		379 WEST BROADWAY
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10021

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sero Capital LLC
		CENTRAL INDEX KEY:			0001751296
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-38640
		FILM NUMBER:		21737560

	BUSINESS ADDRESS:	
		STREET 1:		1333 2ND STREET
		STREET 2:		3RD FLOOR
		CITY:			SANTA MONICA
		STATE:			CA
		ZIP:			90401
		BUSINESS PHONE:		(212) 404-6677

	MAIL ADDRESS:	
		STREET 1:		1333 2ND STREET
		STREET 2:		3RD FLOOR
		CITY:			SANTA MONICA
		STATE:			CA
		ZIP:			90401

ISSUER:		

	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

	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>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0306</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2021-03-11</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001362190</issuerCik>
        <issuerName>AUDIOEYE INC</issuerName>
        <issuerTradingSymbol>AEYE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001658843</rptOwnerCik>
            <rptOwnerName>Moradi David</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>119 WASHINGTON AVE.</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 403</rptOwnerStreet2>
            <rptOwnerCity>MIAMI BEACH</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33139</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>See Remarks</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001751296</rptOwnerCik>
            <rptOwnerName>Sero Capital LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>119 WASHINGTON AVE.</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 403</rptOwnerStreet2>
            <rptOwnerCity>MIAMI BEACH</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33139</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>See Remarks</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2021-03-11</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>388335</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2731265</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Through Sero Capital LLC</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Represents the grant of performance-based restricted stock units (&quot;PSUs&quot;) under the AudioEye, Inc. 2020 Equity Incentive Plan (the &quot;Plan&quot;), which PSUs will be earned and vest upon the earlier of (i) the Volume Weight Average Price (&quot;VWAP&quot;) of AudioEye, Inc.'s (the &quot;Issuer&quot;) common stock being in excess of $100 on The Nasdaq Stock Market LLC over 20 consecutive trading days prior to March 11, 2026 while David Moradi is serving as Interim Chief Executive Officer or Chief Strategic Officer of the Issuer or (ii) the termination of David Moradi's employment with the Issuer by the Issuer without cause prior to March 11, 2026, and will be settled promptly after the vesting date.</footnote>
        <footnote id="F2">Securities of the Issuer held directly by David Moradi, including PSUs and other derivative securities that can be settled solely in stock.</footnote>
        <footnote id="F3">Securities of the Issuer held directly by Sero Capital LLC (&quot;Sero Capital&quot;). David Moradi is the Managing Partner of Sero Capital and may be deemed to direct all voting and investment decisions made by Sero Capital.</footnote>
    </footnotes>

    <remarks>David Moradi serves as Interim Chief Executive Officer and Chief Strategy Officer of the Issuer. In addition to the PSUs reported above, on March 11, 2021, David Moradi was granted an additional 50,000 PSUs, which are not included on this Form 4, that will vest upon the Issuer meeting certain revenue targets.</remarks>

    <ownerSignature>
        <signatureName>/s/ Amra Hoso, Attorney-in-Fact</signatureName>
        <signatureDate>2021-03-12</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Amra Hoso, Attorney-in-Fact</signatureName>
        <signatureDate>2021-03-12</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
