Audioeye Inc (OTCMKTS:AEYE) Seems Stuck
Yesterday Audioeye Inc (OTCMKTS:AEYE) dipped by 1.54% after increasing by 1.56% on Tuesday. One look at the charts shows that this seems to have become a pattern for AEYE since Oct 29 – every time it dropped or surged, the very next day it was back where it started, hovering around $0.64. During yesterday’s session 359.9 thousand shares changed hands, and the stock closed at $0.64.
AEYE has been pretty active on the PR front lately. The most recent press release the company issued was turned in yesterday, an hour before the opening bell. It disclosed that the company has created the “technology, sales and operations management teams” for their new Web A11y Management Platform(R). The platform’s main focus will be AEYE‘s Internet accessibility technology solution, which will also be referred to as “Ally”.
On Nov 7, the company filed its latest quarterly report. It covered the three months ended Sept 30 and showed the following:
- cash: $2.1 million
- current assets: $8.1 million
- current liabilities: $558.7 thousand
- revenue: $4.8 million
- net income: $1.3 million
When you compare AEYE‘s Q2 with Q3 there are considerable improvements. Cash has quadrupled, net income has increased, and the working capital has grown substantially, as the current liabilities have decreased. As for the revenues, even though they have also grown, the number is somewhat misleading. Out of the $4.8 million reported as revenue, $4.2 million are due to “nonmonetary transactions”, more precisely from license and service exchanges.
As for dilution, AEYE doesn’t seem to suffer from it. The outstanding shares’ amount has barely moved since Q2. However, potential investors should bear in mind that the company has sold 4 133 334 units in total consisting of shares and warrants to “accredited investors“, compared to Q2’s 2.7 million units. The warrants have an exercise price of $0.40 or $0.60 per share, which would still leave plenty of room for profit.
Investors would do well to thoroughly familiarize themselves with the details surrounding AEYE, before committing to its stock.
