Business Context and Reporting Period
This Form 8-K Current Report was filed by AudioEye, Inc. on March 11, 2021. The filing discloses a specific corporate event regarding executive compensation rather than a standard financial reporting period.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity figures. The only financial metric referenced is a performance target for Monthly Recurring Revenue (MRR) set at $6.0 million for two consecutive calendar months.
Material Changes
On March 11, 2021, the Company granted 100,000 Performance Stock Units (PSUs) to David Moradi, the Interim Chief Executive Officer and Chief Strategy Officer, under the 2020 Equity Incentive Plan.
Guidance, Outlook, and Management Commentary
The PSU grant establishes specific performance goals that serve as implicit management targets:
- Revenue Target: MRR of at least $6.0 million for two consecutive calendar months (triggers vesting of 50,000 PSUs).
- Stock Price Target: Volume Weighted Average Price (VWAP) exceeding $100 on the Nasdaq Stock Market LLC over 20 consecutive trading days (triggers vesting of 50,000 PSUs).
Terms and Risks:
- PSUs must vest by March 11, 2026, or they will be forfeited.
- Vesting requires Mr. Moradi to remain in his current roles on the date the performance conditions are met.
- Unvested PSUs become fully vested if Mr. Moradi is terminated without cause on or prior to March 11, 2026.
Investor Verification Checklist
- Verify the current status of AudioEye's Monthly Recurring Revenue against the $6.0 million threshold.
- Monitor the stock's VWAP to assess progress toward the $100 target.
- Confirm David Moradi's continued employment status as Interim CEO or Chief Strategy Officer.
- Review the full text of the Performance Stock Unit Agreement (Exhibit 10.1) for detailed vesting schedules and definitions.