AUDIOEYE INC — Director's Dealing 2018

Sep 4, 2018

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: AUDIOEYE INC (AEYE)
CIK: 0001362190
Period of Report: 2018-09-04

Reporting Person: Bettis Carr (Director, Exec Chrmn/Chrmn of the Board)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	50000	Direct
Common Stock	508988	Indirect
Common Stock	18600	Indirect
Common Stock	54856	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Options (right to buy)	$1.025	2018-10-26	Common Stock (20000)		Direct
Stock Options (right to buy)	$12.50	2018-08-20	Common Stock (8000)		Direct
Stock Options (right to buy)	$11.25	2019-03-24	Common Stock (12000)		Direct
Stock Options (right to buy)	$0.95	2019-01-14	Common Stock (20000)		Direct
Stock Options (right to buy)	$0.95	2021-12-31	Common Stock (80000)		Direct
Warrants (right to buy)	$4.00	2020-06-02	Common Stock (80000)		Direct
Warrants (right to buy)	$1.025	2018-10-26	Common Stock (10000)		Direct
Warrants (right to buy)	$0.95	2019-02-14	Common Stock (10000)		Direct
Warrants (right to buy)	$1.925	2019-02-28	Common Stock (20000)		Direct
Warrants (right to buy)	$4.475	2019-04-14	Common Stock (13920)		Direct
Warrants (right to buy)	$3.90	2019-07-15	Common Stock (15785)		Direct
Warrants (right to buy)	$6.25	2021-04-17	Common Stock (4000)		Indirect
Warrants (right to buy)	$6.25	2021-05-16	Common Stock (4480)		Indirect
Warrants (right to buy)	$6.25	2021-12-19	Common Stock (3200)		Indirect
Warrants (right to buy)	$15.00	2019-12-31	Common Stock (1875)		Indirect
Series A Convertible Preferred Stock	$		Common Stock (26801)		Indirect

Footnotes

F1: Dr. Bettis is deemed the sole manager of CSB IV US Holdings LLC. J. Carr & Stephanie V. Bettis Revocable Trust, Dated 1/1/03 (3) is deemed the beneficial owner of CSB IV US Holdings LLC.

F2: Dr. Bettis is deemed the beneficial owner of Carr Bettis IRA.

F3: Dr. Bettis is deemed the beneficial owner of J. Carr & Stephanie V. Bettis Revocable Trust, Dated 1/1/03.

F4: The stock option vests as follows: 50% on grant; 12.5% every 90 days thereafter.

F5: The stock option vests as follows: 1/2 on the one-year anniversary of the date of grant; 1/48th on the monthly anniversary of the date of grant on each of the 24 months following the one-year anniversary of the date of grant.

F6: The stock option vests as follows: subject to performance schedule and determined at the end of each calendar year.

F7: The shares of Series A Convertible Preferred Stock of the Issuer ("Series A Preferred Stock") were immediately convertible upon issuance and do not expire.

F8: Each share of Series A Preferred Stock shall be convertible, at any time and from time to time into that number of shares of the Issuer's common stock determined by dividing $10 (the "Stated Value") plus any accrued dividends with respect to such share by the Conversion Price of $4.385, subject to adjustment as described in the Certificate of Designations for the Series A Preferred Stock (the "Series A COD").

F9: Holders of shares of Series A Preferred Stock are entitled to receive, when, as and if declared by the Board of Directors of the Issuer, cumulative dividends at the annual rate of 5% of the Stated Value per share of Series A Preferred Stock. Such dividends shall accrue on each such share commencing on the date of issue, and shall accrue from day to day, whether or not earned or declared. Subject to the terms of the Series A COD, at any time the Issuer shall be entitled to redeem any or all of the outstanding shares of Series A Preferred Stock at a per share price equal to 125% of the Stated Value plus accumulated dividends, payable in cash.