AudioEye, Inc. (AEYE)

[236tydeaw9542h]

Yes they were but I would assume they were being compensated for their bullish sentiment. Remember, the company issued a staggering almost 1.6M shares to consultants in just the last two quarters. Same last two quarters where their revenues were 97% and 87% non monetary. Just last quarter alone, they burned about $4M in cash and at quarter end, had only about $2M in cash left. I have to assume they are currently again low on cash which could lead to more dilution and fully diluted is already close to 100m shares. Remember the share count when we first got the divi shares? Fraction of what it is now.

You do have to give them credit. Thanks to their unique non monetary license revenue recognition strategy enabled by just a single one time cash license sale to some unnamed customer, they've created an investor perception of large growth that some would argue differs significantly from reality and has lead to a valuation far in excess of what it most likely ever would have been absent it. Truth is that cash revenues for the 9 month period were barely up to just $777k ytd. Meanwhile the company has an almost $60M fully diluted valuation. I don't expect it to last much longer expecting the shares to inevitably challenge old lows probably making new ones. Just my humble opinion.