It should see at least $.25. Even at that, it would still be trading at an almost $25M fully diluted market cap, 25X what they sold the company to CMGO for in 2010 or an incredibly pricey almost 62X's cash revenues based on their Q2! Don't forget that the fully diluted share count is almost 100M shares now.
There will certainly be no lack of effort by some, one posting today in fact, but it's hard to put that bloom back on the rose so to speak. Anyone reading the filings knows the truth. Despite the releases only talking about huge 1400% revenue growth and upping guidance, the devil is in the details, 97% of last Qs revs were non monetary. This guy was onto it even after Q1. Funny how he was watching and said he would be worried if 2/3rds of Q2 revs were also non monetary. Turns out it was almost 97%! Worse, normal cash revenues dropped over 50 % in Q2.
Deep Dive into AudioEye
Board: Saul's Investing Discussions
Author: mekong22
"So I spent some of my weekend reading AEYE’s latest 10-Q, 10-K and some other information I could find (because what beats spending a summer weekend reading SEC filings, right?). Anyone that has invested in the company, or is considering an investment in the company, I strongly encourage you to at least read the company’s latest quarterly 10-Q report.
It’s only 22 pages long. The 2nd quarter 10-Q should be released in another two weeks.
If you’re investing a couple percent of your portfolio, you should probably familiarize yourself with the additional info in the 2013 Annual 10-K report. It is a lot longer, but much of the information gets repeated a few times and you can scan over it after reading it the first time.
is essentially what I said to myself about 10 minutes in as I decided whether to sell two-thirds, or all, of my current position in AEYE after reading this in Footnote 1 of the 3/31/14 10-Q (note I later changed my mind about selling right now as you'll see below):
For the three months ended March 31, 2014, the Company sold one license for cash of $225,000 and exchanged the same license to three other customers for licenses to their intellectual property. The three licenses exhanged were determined to meet the aforementioned criteria and were each recognized as revenue and intangible assets for $225,000 each for a total of $675,000.
So what we’re saying here, is that of the $1.029 million record quarterly revenue they recognized in Q1, only about a third of that, or $350k, was sold for cash. The other $675k was essentially traded for licenses to the customer’s IP (of which I couldn’t easily figure out what those obtained licenses were, although I didn’t look too hard. It does look like they are a 3 year license based on the amortization period of the related intangible assets) and AEYE will never actually be paid for the $675k of Q1 sales. This is allowed under GAAP accounting rules, but there are a lot of hurdles you have to overcome to record revenue this way, which I’ll assume that AEYE had covered.
Theoretically (and hopefully for shareholders) the licenses they obtained will somehow lead to future revenue, but I don’t know the details. There were probably press releases when those sales occurred (as AEYE LOVES to issue PR’s, not sure I think that is necessarily a good thing or not) which may explain more but I haven’t dug in that far just yet.
My first thought was “ok, so if 2/3rds of their Q1 revenue represents sales that they’ll never be paid for, what if 2/3rds of the $3 million Q2 revenue they pre-announced is also non-cash sales?”. Well the first answer to that question, is, that would be a very bad sign. The second answer is, we need to wait until they announce Q2 (last year it was announced on August 9th, I assume the timing will be similar, maybe the 8th if they keep it on a Friday again) because the pre-announcement didn’t specify."
News 
Market Data 
Discover 
