secwatch.observer — SEC 8-K summary
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Issuer:     AUDIOEYE INC (AEYE)
CIK:        0001362190
Form:       8-K
Filed at:   2024-09-30T23:59:59+00:00
Accession:  0001104659-24-103953
Event type: m_and_a
Sentiment:  positive
Materiality: 0.85
Item codes: 1.01, 2.02, 2.03, 7.01, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

AudioEye acquires ADA Site Compliance for $6.4M; raises FY2024 revenue guidance
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- Purchased all ADA equity for $4.0M cash plus $2.4M promissory notes; earn-out up to $1.6M based on 2025 ARR.
- Q3 2024 guidance raised: revenue $8.9M-$8.95M, adj. EBITDA $1.925M-$1.95M, adj. EPS $0.15-$0.16.
- Full-year 2024 revenue guidance increased to $35.15M-$35.25M; adj. EBITDA $6.3M-$6.45M; adj. EPS $0.51-$0.53.
- ADA acquisition expected to be accretive in Q4 2024; management expects 'Rule of 40' in Q3.
- Deal funded from cash and a loan amendment with SG Credit Partners allowing earnout and note payments.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1362190/000110465924103953/0001104659-24-103953-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1362190/000110465924103953/tm2423575d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-24-103953

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