RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2018

NOTE 8 — RELATED PARTY TRANSACTIONS

Dr. Carr Bettis, Executive Chairman and Chairman of Board of Directors

As of September 30, 2018 and December 31, 2017, the Company owed Dr. Bettis $5,992 in accrued salary. In addition, AudioEye sub-leases office space in Scottsdale, Arizona for certain Company employees, including Todd Bankofier, CEO, from Verus Analytics, Inc, a company in which Dr. Bettis has a controlling interest. As the Company has taken on more employees and space, the sub-lease amount increased from $500 per month to $3,502 per month in 2017 totaling $11,320 and $32,333 for the three and nine months ended September 30, 2018; and $3,252 and $8,004 for the three and nine months ended September 30, 2017, respectively. The amount of $0 was due as of September 30, 2018 and December 31, 2017. At September 30, 2018 and December 31, 2017, an estimated $8,475 and $14,000 was due and accrued to Dr. Bettis for unreimbursed travel related expenses, respectively.

Sean Bradley, President, Chief Technology Officer, and Secretary

As of September 30, 2018 and December 31, 2017, the Company owed Sean Bradley $0 and $3,543 in accrued salary, respectively.

Issuance of convertible notes payable

On September 26, 2018, the Company issued a convertible note payable to an entity that Alexandre Zyngier, a member of the Company’s board of directors is deemed a beneficial owner (Note 7).