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Leading Provider of SaaS-based Digital

Accessibility Solutions

Nasdaq: AEYE

December 2018
Disclaimer
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should be made without the prior written consent of AudioEye®, Inc. (the “Company”), and no excerpts or summaries thereof may be distributed, reproduced or included in any documents without
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Company is not aware of any inaccuracy in the information set forth in this Presentation, it does not warrant the accuracy of such information. The information in this Presentation is subject to
updating, revision and further amendment. The information contained herein does not purport to be complete. In all cases, interested parties should conduct their own investigations and analyses of
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The matters discussed in this Presentation include forward-looking statements that involve numerous assumptions, risks and uncertainties. These include, but are not limited to, the risk that the
Company's revenue or cash contract bookings will not increase as currently expected or at all, the risk that the Company's cash position will not improve or will worsen, the risk that the Company's
current capitalization plan will not provide the Company with sufficient cash to address its current or future needs or will otherwise not be successful, the risk that the Company's products will not
perform as expected, the risk that the Company's products will not generate significant, or any, revenue or cash contract bookings for the Company, the effectiveness of the reverse stock split,
including FINRA's and NASDAQ's approval thereof, the Company's plans to list its common stock on NASDAQ and the impact the reverse stock split or any such listing may have on the Company's
business, prospects and/or stock price. Actual results may differ materially from those expressed in these forward-looking statements due to such risks and uncertainties, including those factors
detailed under the caption “Risk Factors” and elsewhere in the documents we file from time to time in our filings with the Securities and Exchange Commission, including our reports on Form 10-K
and Form 10-Q. The Company assumes no obligation to update or revise any forward-looking statements. The information, opinions, estimates and forecasts discussed today are as of the date
thereof and are subject to change without prior notification. All inquiries regarding the Company should be made through the Company. For further information, please call: 866.331.5324.

Nasdaq: AEYE 2
What is Digital Accessibility?

• Digital Accessibility provides the virtual “ramps and


rails” to the Digital World
• Without it, a large portion of the population is unable
to fully access online content
• Most online properties require extensive software code
enhancements to become widely accessible by people
with disabilities
• Traditionally, this process also requires significant time,
resources and upkeep

Nasdaq: AEYE 3
Visual:

Why Accessibility Matters • Blindness


• Low vision
• Color blindness

15%
Auditory:
• Deafness
• Hearing impairment

Motor:
• Difficulty in using hands
• Limited fine motor control
• Muscle slowness
• Tremor and spasms

Cognitive:
Global population with some • Learning disabilities
• Memory impairments
form of disability • Attention disorders
• Problem solving and logic

Nasdaq: AEYE 4
Accessibility by the Numbers

1B+ 41M+ 51% 5-10% 1 in 68


People with Disabilities Americans with Prevalence of Disabilities Estimated U.S. Children Have Autism
(PWD) Worldwide Disabilities in Adults 65+ Population with Dyslexia Spectrum Disorder

75% 2/3 22% $4T


People with Disabilities People with Disabilities Working-Age Adults U.S. PWD Disposable
Use Computers Use Accessibility Tools Who Benefit from Income Incl. Friends/Family
Accessibility

Nasdaq: AEYE 5
Mounting Legal Pressure to Comply is Driving
Increased Awareness
Digital Accessibility Lawsuits Notable Digital Accessibility
Surging in the US Legal Precedents
2,094

814

262
57

2015 2016 2017 2018P(1)


(1) Projected as of 07/17/18. Source: Seyfarth Shaw: https://www.adatitleiii.com/2018/07/website-access-and-other-ada-title-iii-lawsuits-hit-record-numbers/

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What We Do Our solutions enable organizations to create
experiences that are more accessible, and
more usable, for more people

AudioEye is a
purpose-driven We transform how the world experiences
digital content by providing enterprise
enterprise that has technology that makes content accessible
to a vital and underserved demographic
made digital
accessibility
scalable. Our managed service offering reduces risk
of legal demand letters and lawsuits from
plaintiffs claiming ADA-related violations

Nasdaq: AEYE 7
Enterprise-Grade Remediation Technology

The only accessibility solution Starting on the path to compliance takes just minutes
Once integrated, AudioEye Dynamic Remediation
removing billions Technology takes over

of access barriers Smarter, no-nonsense strategy

every single day. Subject matter experts and specialized engineers


manage the heavy lifting

Comprehensive, always-on solution


Thoroughly vetted, technology-first approach trusted by
leading global brands and government agencies

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Compliance
Immediately addresses issues of Legal Demand Letters,

Our technology
Lawsuits, and ADA-related requirements.

enables businesses Conformance


and government
Aligned with Section 508 requirements and WCAG 2.0 Level
AA Success Criteria.

agencies to achieve Certification


and sustain AudioEye Trusted Certification provides 3rd Party validation for
clients needing to maintain demonstrable evidence of compliance

digital accessibility
Usability
The Ally Toolbar provides a customizable user experience to
all site users.

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AudioEye is Uniquely Positioned in the
Industry
AudioEye Barriers to Entry
Consulting Dynamic
• 6 Patents & 2 applications pending
Depth of ADA Conformance

Level Access Remediation


Deque • Proven track record in reliably fixing
TPG problems at scale and without
Funka disruption to client websites

Plugins Automated AudioEye Differentiators


Testing Tools • No modifications to customer site
TextHelp Tenon
Make-Sense
source code
SiteImprove • Enables immediate ADA compliance
Equal Web Monsido
• Delivered as Cloud-Based SaaS

Speed to Compliance

Nasdaq: AEYE 10
AudioEye by the Numbers

Billions of Thousands of URLs 895+


remediations remediated and customers
published daily monitored

62 Team 30+ IAAP 6 Patents Issued &


Members Certifications 2 Pending

Nasdaq: AEYE 11
Indirect Marketing
Direct Accounts
Partners & Accounts

Nasdaq: AEYE
895+ Accounts Have Deployed AudioEye

12
Robust Trends Underpin Growth in Clients

Active AudioEye Ally Clients


Direct 793
737
Indirect

368

158 173
108 91
34

2016 2017 11/30 YTD FY 2018(P)


All values exclude DAP Clients and Non-cash Affiliates.

Past performance does not guarantee future results. Actual results may vary materially from projections.
Nasdaq: AEYE 13
11 Consecutive Quarters of Revenue Increases
Bookings $3.0 Revenue
$2.8
$1.5
$2.2 $1.2
$1.1
$1.7 $1.6
$1.5 $1.5 $0.9
$0.7 $0.7

$0.6 $0.4 $0.4


$0.6
$0.4 $0.2 $0.2
$0.2 $0.1

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Deferred Revenue Contracts in Excess of Deferred


$2.5 Revenue & Recognized Revenue $6.5
$5.4
$1.7
$1.4 $4.1
$1.2 $3.3
$1.1 $2.8
$0.9 $2.2
$1.8
$0.4 $0.4 $0.4 $0.5
$0.2 $0.5 $0.4 $0.3 $0.7

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

$ in millions
NASDAQ: AEYE Past performance does not guarantee future results. Actual results may vary materially from projections. 14
Future Sales Growth Driver:
Indirect Channel
• Partnering strategy provides single point of
access to large customer bases, reducing
closing time and sales costs
• Multi-tenant, CMS Platforms offer economies of
scale to make delivering the AudioEye solution
practical and affordable
• Focus on large, high volume markets with
compelling demand drivers - proven approach
in banking, ramped to 640+ customers in 18
months

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Summary Financial Performance and Guidance
• Rapidly ramping, predictable recurring revenue stream, new cash contract bookings
• Increasing gross margins, controlled opex, reducing cash burn quarter over quarter

YTD FY 2018
(in USD millions) FY 2015 FY 2016 FY 2017
9/30/2018(1) Guidance(2)
Bookings $0.3 $1.9 $6.3 $8.0M $11-12M
Def. Revenue $.01 $0.4 $1.2 -- --
Revenue $0.3 $1.0 $2.7 $3.88M $5M - $6M
Gross Margin % (261%) (23%) 49% -- --
GAAP OpEx $6.4 $4.2 $5.9 -- --
Cash Flow(3) $(5.5) $(2.3) ($1.6) -- --
1. Unaudited; subject to change
2. FY2018 estimate as announced on July 10th 2018.
3. Cash flow reflects “net cash used in operating activities” adjusted for non-cash charges as reported in the company’s SEC filings.

(1) Past performance does not guarantee future results. Actual results may vary materially from projections.
Nasdaq: AEYE (2) Management Projections. Actual results may vary materially from projections. 16
AudioEye’s Margins Improve Over the Life of a
Contract
• Initial implementation/provisioning is ~ 100 days, where most of our costs occur; margins
generally expand thereafter
• Ongoing maintenance costs are lower
• Average gross margin across customer base is 81%+

Gross Margin % Expansion at Selected Accounts


2016 2017 2018

83% 87% 90% 76% 90% 95% 98% 84%* 95% 96%
59% 54%

ADP GameStop Jimmy Johns Z Gallerie


* When Customer migrates to new platform, re-implementation may be warranted

Nasdaq: AEYE 17
Retention Rates and Average Contract Lengths
Stickiness of customer base driven by high switching costs once
compliance is achieved

Ally Client Retention Rate Average Contract Length (Months)


Direct Indirect

95%
30.0
26.4 26.4
19.2 18.0
9.6
Ally Clients only; excludes month-to-month contracts; blended
channels; as of YTD 11/30

2016 2017 11/18 YTD


Ally Clients only; all values exclude monthly billing Clients

Nasdaq: AEYE 18
AudioEye Investment Highlights
Large Total Addressable Market with
Demonstrated Need/Demand

A Highly Scalable The Industry’s Only End-to-


Business Model End SaaS Offering

Strong Growth &


Subscription Metrics

Nasdaq: AEYE 19
Appendix

Nasdaq: AEYE 20
Company Introductions

Dr. Carr Bettis Todd Bankofier


Executive Chairman CEO
• Founder and chief architect of numerous market- • His fair-minded, steady and competent leadership has
leading financial tech innovations and subscription benefited numerous entities over the last 23 years
model businesses that were acquired by Merrill Lynch,
Thomson Financial (now Thomson Reuters), • Served as the President and CEO of the Arizona
Primark/Disclosure (now Thomson Reuters), Institutional Technology Council from 2002 – 2006
Shareholder Services (ISS), Advanced • Served for four years as Vice President of National
Equities/GreenBook Financial (now First Allied Capital Sales for XO Communications, a national telecom
Management) and Sabrient Systems company where he managed a national sales team to
• Education: Ph.D., Indiana University four years of record sales growth

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Indirect Channel Partner Matrix
Addressable Market
Target Vertical Existing Partners in Vertical Partner Penetration
(# of sites)

Banking 5,400+ Credit Unions & 700 CU Solutions Group <20%


5,300+ Commercial Banks 615 Kasasa ~50%
130 Banksite ~80%

Hospitality & Tourism 100k+ Hospitality & Destination 300 Hyperdisk (New) (New)
marketing 600 Simpleview (New) (New)

Technology N/A IT Solutions 500 Anexinet (New) (New)


Automotive 17K+ New Car Dealers 3,500 Dealer Inspire ~2%
137K+ Used Car Dealers 8,000 CDK Global (New) (New)
16,000 Dealer.com/Cox Automotive (New) (New)

Government / 430 Federal 3,000 CivicPlus ~1%


Nonprofit 89K+ Local 250 Vanguard Technology (New) (New)

Education 100K+ Public Schools 3,500 Finalsite ~4%


33K+ Private Schools
7K+ Post-Secondary

Multi-vertical N/A Multi 40,000 Oracle Netsuite (New)


eCommerce eCommerce 1,000 Redstage (New)

Existing partner opportunity estimates based on AudioEye’s analysis of partners’ active subscriber bases and historical ARPU with
Nasdaq: AEYE related partners. Actual results may vary. 22
New Partner Highlights: Oracle Netsuite
Oracle Netsuite
§ World’s #1 Cloud ERP Vendor
§ 2,000+ Sales Representatives selling to
40,000 Potential Customers
§ Multiple key targeted verticals including:
§ Campus Stores
§ Software / Internet Companies
§ Wholesale Distribution
§ Advertising and Digital Marketing Agencies
§ Media and Publishing
§ Financial Services
§ Healthcare
§ Nonprofit
§ Retail
§ Manufacturing
§ IT Services
§ Professional Services
§ Consulting
§ Energy
http://suiteapp.com/Ally-Managed-Service § Education

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New Partner Highlights: Cox Automotive
Cox Automotive / Dealer.com
§ Preeminent leader of dealership
websites
§ ~16,000 Potential Websites

https://www.dealer.com/products/websites/
https://www.dealer.com/products/websites/

Nasdaq: AEYE 24
New Partner Highlights: Simpleview
Simpleview
§ 600+ Potential Customers
§ Destination Marketing Industry Leaders
§ Tucson-based

https://www.visitoakland.com/
https://www.simpleviewinc.com/your-solutions/digital-accessibility/

Nasdaq: AEYE 25