MeritValue

AUDIOEYE INC

AEYEdata completeness 100%15 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'dividendsPaid'; no data for concept 'pretaxIncome'

The thesis, from the filings

AUDIOEYE INC earns about -75% on equity, below its ~9% cost of capital, but has diluted owners by 12% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $1.97 and $2.28 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$24.5M1$29.9M2$31.3M3$35.2M4$40.3M4
Net income−$14.2M5−$10.4M6−$5.87M7−$4.25M8−$3.08M8
Operating cash flow−$4.98M9−$5M10$318,00011$2.73M12$4.75M12
Capital expenditure$82,00013$72,00014$171,00015$128,00016$54,00016
Free cash flow (derived)−$5.06M9−$5.07M10$147,00011$2.6M12$4.7M12
Total debt$017$018$6.73M19$6.82M20$26.4M20
Cash & equivalents$19M21$6.9M22$9.24M23$5.65M24$5.29M24
Diluted shares11.0M11.5M11.8M11.9M12.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$3.87
your share of equity
Profit it earned you last year
−$2.48
Free cash flow it threw off
$3.78
Debt you’d be carrying
$21.25

10 shares is a claim on $3.87 of net worth that earned you −$2.48 and generated $3.78 of cash last year, against $21.25 of debt.

iii. Is this a good business?
Moat signal · return on equity
-75% avg · 5y
FY21 -81%FY22 -99%FY23 -88%FY24 -45%FY25 -64%

It earned about -75% on equity against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 5y

Share count is up 12% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 2 estimate methods that apply put fair value between $1.97 and $2.28 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$2.28
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$2.6M
DCF · Growth Exit 5Y
$1.97
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$2.6M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)9.02%
Terminal growth2.5%
At your growth, a share is worth $1.97
The three cases
Bear0.0%$1.26
Base5.0%$1.97
Bull10.0%$2.83

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001410578-23-000236 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001410578-24-000150 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001558370-25-002819 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-027159 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001410578-23-000236 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001410578-24-000150 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001558370-25-002819 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-027159 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001410578-23-000236 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001410578-24-000150 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001558370-25-002819 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-027159 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001410578-23-000236 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001410578-24-000150 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001558370-25-002819 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-027159 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001410578-23-000236 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-12-31 · accession 0001410578-24-000150 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2023-12-31 · accession 0001558370-25-002819 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-12-31 · accession 0001104659-26-027159 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2021-12-31 · accession 0001410578-23-000236 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2022-12-31 · accession 0001410578-24-000150 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2023-12-31 · accession 0001558370-25-002819 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2024-12-31 · accession 0001104659-26-027159 (CashAndCashEquivalentsAtCarryingValue)