SOURCE: AudioEye, Inc.

April 01, 2014 08:00 ET

AudioEye, Inc. 2013 Revenue Increases 452% to Over $1.5 Million; Annualized Revenue "Run Rate" in Fourth Quarter Approximates $3.0 Million

Company Projects 2014 Revenue of More Than $8 Million

TUCSON, AZ--(Marketwired - Apr 1, 2014) - AudioEye®, Inc. (OTCQB: AEYE) ("AudioEye" or the "Company"), creator of the Audio Internet® patented audio browsing and automated publishing technology platform, today announced that its revenue for the year ended December 31, 2013 totaled $1,558,160. This represented an increase in recognizable revenue of approximately 452% when compared with 2012 revenue of $282,063.

On a sequential basis, third quarter revenue increased 91% from second quarter levels, and fourth quarter revenue rose 97% from third quarter levels. In addition to quarter-over-quarter revenue growth, the Company increased its gross profit margin from 66% of sales in the third quarter to 76% of sales in the fourth quarter of the most recent year. For the full year 2013, gross profit margin approximated 74% of sales.

The annualized revenue "run rate" in the fourth quarter of 2013 approximated $3.0 million. Revenue in the final three months of 2013 totaled $752,092 and was 97% higher than third quarter revenue of $381,539.

Costs of services totaled $404,088 in the most recent year, compared with $265,330 the 2012. Gross profit of $1,154,072 in the most recent year compared with gross profit of $16,732 in the year ended December 31, 2012. Fourth quarter gross profits increased to $574,565 (76% of sales), compared with third quarter gross profit and gross margins of $250,768 and 66%, respectively, in 2012.

Selling and marketing costs for the years ended December 31, 2013 and 2012 totaled $301,280 and $0, respectively.

Research, technology and development costs for the years ended December 31, 2013 and 2012 approximated $56,515 and $0, respectively.

General and administrative ("G&A") expenses for the year ended December 31, 2013 increased to $3,243,382, versus $904,347 in the previous year. The year-over-year increase in G&A expenses consisted of $1.2 million in non-cash stock option compensation expense and $1.1 million in other expense increases primarily related to changes in staffing, legal and other expense categories necessary to support the Company's anticipated growth.

Depreciation and amortization costs for the years ended December 31, 2013 and 2012 totaled $359,414 and $149,179, respectively.

The Company recorded a net loss of ($2,882,626), or ($0.07) per share in 2013, compared with a net loss of ($1,166,289), or ($0.04) per share, in the year ended December 31, 2012.

As of December 31, 2013, the Company's cash and cash equivalents totaled approximately $1.8 million.

During 2013, the Company made significant investments to complete its industry-first Software as a Service Platform ("SaaS") called the Audio Internet™. The Company has commenced, in the first quarter of 2014, to license the technology to customers. As a result of its initial success in licensing the Audio Internet, AudioEye is projecting that 2014 revenues should reach or exceed $8 million, with sales, marketing, partnership, reseller and teaming agreements driving revenue generation in several leading market verticals.

"Efficacy in the implementation and performance of our industry-first software tools ranks among the greatest accomplishments of our team in 2013," stated Nathaniel Bradley, Chief Executive Officer of AudioEye, Inc. "We now have a revenue trajectory and growth model based on solid financial and performance data, and we are proud of our success in both defining and penetrating our expanding marketplace."

"The foundation established in 2013 has provided a highly scalable platform, and we expect to generate revenue of $8 million-plus in 2014," continued Bradley. "This is very exciting and will challenge the AudioEye team to accelerate contract signings while building upon the trusted relationships we have established with government, institutional, educational and commercial customers."

Business Outlook
In addition to its projection of $8 million or more in 2014 revenue, the Company forecasts reaching positive EBITDA and operating cash flow during the current year.

AudioEye has created technology which automatically converts website content into fully accessible formats for users with disabilities and others who need assistance navigating and interacting with traditional websites. "The Company's audio and media captioning capability provides an enhanced web access experience for many, including those who are sight and hearing impaired, dexterity challenged and others with special needs," added Bradley. "We are proud of the work we are doing and its potential impact upon society and the education of our children."

"Our Company remains focused on three areas that we believe will create shareholder value: growing and expanding our base of distribution and customers to generate revenue and profitability, innovating new technologies with our Audio Internet® platform in order to enhance the commercial value of our solutions, and continuing to expand our intellectual property portfolio," concluded Bradley.

Intellectual Property Portfolio
AudioEye's solutions are supported by its intellectual property portfolio. The Company currently owns six patents, has one Notice of Allowance for a Patent pending issuance and has additional patents pending with the United States Patent & Trademark Office ("USPTO"). The patents contain a broad range of claims covering the Company's proprietary technologies and products. AudioEye also owns two trademarks protecting the names of its products and its identity in the marketplace.

About AudioEye, Inc.
Founded in 2003, AudioEye, Inc. has developed patented Internet content publication and distribution software that enables the conversion of any media into an audio-accessible format and allows for real-time distribution to end-users on any Internet-connected device. The focus of the Company is to provide solutions that create better and more comprehensive access to the Internet, print, broadcast and other media, irrespective of an individual's network connection, device, location, or impairment. AudioEye solutions also include comprehensive E-Learning and E-Commerce systems, along with a variety of Internet publishing products and services.

The Company is headquartered in Tucson, Arizona, and its common stock trades on the OTCQB under the symbol "AEYE".

AudioEye, Inc., Audio Internet® and AudioEye® are Registered Trademarks of AudioEye, Inc., All Rights Reserved. The systems and technologies described herein are protected all or in part by US7,966,184, US7,653,544, US8,046,229, US8,296,150, US8,260,616 and patents pending in the U.S. and internationally. These products enable AudioEye's customers to create and deliver highly scalable, accessible voice browsing applications. For more information, please visit www.audioeye.com or call 866.331.5324.

Forward-Looking Statements
This release includes forward-looking statements contained within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company's expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions, are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond the Company's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in the Company's Form 10-K and other report filings with the SEC. The Company assumes no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

(Financial Highlights Follow)

   
   
AUDIOEYE, INC.  
CONSOLIDATED BALANCE SHEETS  
   
    December 31, 2013     December 31, 2012  
ASSETS                
Current Assets                
  Cash   $ 1,847,004     $ 11,710  
  Accounts receivable, net     569,297       16,256  
  Related party receivables     82,250       16,125  
  Marketable securities     -       30,000  
    Total Current Assets     2,498,551       74,091  
Property and equipment, net     3,847       7,043  
Intangible assets, net     3,073,945       3,418,621  
Goodwill     700,528       700,528  
  Total Assets   $ 6,276,871     $ 4,200,283  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current Liabilities                
  Accounts payable and accrued expenses   $ 416,531     $ 498,366  
  Deferred Revenue     -       54,823  
  Notes and loans payable-current     172,845       1,466,700  
  Related party payable     243,424       829,418  
    Total Current Liabilities     832,800       2,849,307  
                 
Long term liabilities                
  Notes and loans payable-long term     79,800       97,800  
  Related party loans     35,000       10,000  
  Total Long term Liabilities     114,800       107,800  
  Total Liabilities     947,600       2,957,107  
                 
STOCKHOLDERS' DEFICIT                
  Preferred Stock, $0.00001 par value, 10,000,000 and 500,000 shares authorized, none issued and outstanding as of December 31, 2013 and 2012, respectively     -       -  
  Common stock, $0.00001 par value, 100,000,000 shares authorized, 53,239,369 and 35,192,045 issued and outstanding, as of December 31, 2013 and 2012, respectively     532       352  
  Treasury stock     (623,000 )     -  
  Additional paid in capital     13,231,212       5,639,671  
  Accumulated deficit     (7,279,473 )     (4,396,847 )
    Total Stockholders' Equity-AudioEye, Inc.     5,329,271       1,243,176  
    Total Stockholders' Equity     5,329,271       1,243,176  
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 6,276,871     $ 4,200,283  
                 
                 
   
   
AUDIOEYE, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
   
    For the year ended  
    December 31, 2013     December 31, 2012  
                 
Revenues   $ 1,449,660     $ 279,062  
Revenues from related party     108,500       3,000  
Total revenues     1,558,160       282,062  
                 
Cost of services     404,088       265,330  
                 
Gross Profit     1,154,072       16,732  
                 
Selling and marketing expenses     301,280       -  
Research and technology expenses     56,515       -  
General and administrative expenses     3,243,382       904,347  
Amortization and depreciation     359,414       149,179  
Total operating expenses     3,960,591       1,053,526  
                 
Operating income (loss)     (2,806,519 )     (1,036,794 )
                 
Other income (expense)                
  Realized gain (loss) on marketable securities     (19,500 )     12,000  
  Interest expense     (56,607 )     (141,495 )
  Total other income (expense)     (76,107 )     (129,495 )
                   
  Net (loss)   $ (2,882,626 )   $ (1,166,289 )
Net (loss) per common share - basic and diluted   $ (0.07 )   $ (0.04 )
Weighted average common shares outstanding - basic and diluted     42,514,610       30,161,501  
                 
                 

Contact Information

  • For further information, please contact:

    Nathaniel Bradley
    CEO
    AudioEye, Inc.
    (866) 331-5324

    Or

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (830) 693-4400
    Email Contact