0001193125-19-027519.txt : 20190205 0001193125-19-027519.hdr.sgml : 20190205 20190205060630 ACCESSION NUMBER: 0001193125-19-027519 CONFORMED SUBMISSION TYPE: SC 13G PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20190205 DATE AS OF CHANGE: 20190205 GROUP MEMBERS: MORADI DAVID SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: AUDIOEYE INC CENTRAL INDEX KEY: 0001362190 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G SEC ACT: 1934 Act SEC FILE NUMBER: 005-87435 FILM NUMBER: 19566121 BUSINESS ADDRESS: STREET 1: 5210 E. WILLIAMS CIRCLE STREET 2: SUITE 750 CITY: TUCSON STATE: AZ ZIP: 85711 BUSINESS PHONE: 866-331-5324 MAIL ADDRESS: STREET 1: 5210 E. WILLIAMS CIRCLE STREET 2: SUITE 750 CITY: TUCSON STATE: AZ ZIP: 85711 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Sero Capital LLC CENTRAL INDEX KEY: 0001751296 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G BUSINESS ADDRESS: STREET 1: 1333 2ND STREET STREET 2: 3RD FLOOR CITY: SANTA MONICA STATE: CA ZIP: 90401 BUSINESS PHONE: (212) 404-6677 MAIL ADDRESS: STREET 1: 1333 2ND STREET STREET 2: 3RD FLOOR CITY: SANTA MONICA STATE: CA ZIP: 90401 SC 13G 1 d625322dsc13g.htm SC 13G SC 13G

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

SCHEDULE 13G

Under the Securities Exchange Act of 1934

(Amendment No. )*

 

 

AudioEye, Inc.

(Name of Issuer)

Common Stock, par value $0.00001 per share

(Title of Class of Securities)

050734201

(CUSIP Number)

December 31, 2018

(Date of Event Which Requires Filing of this Statement)

 

 

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

☐ Rule 13d-1(b)

☐ Rule 13d-1(c)

☒ Rule 13d-1(d)

 

*

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

CUSIP No 050734201

 

  1.       

  NAME OF REPORTING PERSONS

 

   Sero Capital LLC

  2.      

  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)  ☐        (b)  ☒

 

  3.      

  SEC USE ONLY

 

  4.      

  CITIZENSHIP OR PLACE OF ORGANIZATION

 

   Delaware

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

     5.     

  SOLE VOTING POWER

 

   0

  6.     

  SHARED VOTING POWER

 

   2,584,598

  7.     

  SOLE DISPOSITIVE POWER

 

   0

  8.     

  SHARED DISPOSITIVE POWER

 

   2,584,598

  9.      

  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

   2,584,598

10.      

  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

  ☐

11.      

  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

   30.5%

12.      

  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

   OO

CUSIP No. 050734201

 

  1.       

  NAME OF REPORTING PERSONS

 

   David Moradi

  2.      

  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)  ☐        (b)  ☒

 

  3.      

  SEC USE ONLY

 

  4.      

  CITIZENSHIP OR PLACE OF ORGANIZATION

 

   United States of America

NUMBER OF

SHARES

  BENEFICIALLY  

OWNED BY

EACH

REPORTING

PERSON

WITH

     5.     

  SOLE VOTING POWER

 

   2,991,354

  6.     

  SHARED VOTING POWER

 

   0

  7.     

  SOLE DISPOSITIVE POWER

 

   2,991,354

  8.     

  SHARED DISPOSITIVE POWER

 

   0

  9.      

  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

   2,991,354

10.      

  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

 

  ☐

11.      

  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

   34.3%

12.      

  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

   IN

CUSIP No 050734201

 

Item 1.     (a).

Name of Issuer:

AudioEye, Inc. (the “Issuer”)

 

  (b).

Address of Issuer’s Principal Executive Offices:

5210 East Williams Circle, Suite 750

Tucson, Arizona 85711

 

Item 2.     (a).

Name of Person Filing:

Sero Capital LLC

David Moradi

The filing persons named above are collectively referred to herein as the “Reporting Persons.”

 

  (b).

Address of Principal Business Office, or if None, Residence:

Sero Capital LLC

119 Washington Avenue, Suite 406

Miami Beach, FL 33139

David Moradi

119 Washington Avenue, Suite 406

Miami Beach, FL 33139

 

  (c).

Citizenship:

Sero Capital LLC – Delaware

David Moradi – United States of America

 

  (d).

Title of Class of Securities:

Common Stock, par value $0.00001 per share (“Common Stock”)

 

  (e).

CUSIP Number:

050734201

 

Item 3.

Not Applicable.

 

Item 4.

Ownership.

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

 

  (a)

Amount beneficially owned:

Sero Capital LLC – 2,584,598

David Moradi – 2,991,354

  (b)

Percent of class:

Sero Capital LLC – 30.5%

David Moradi – 34.3%

Such percentages are based on 7,548,464 shares of the Issuer’s Common Stock outstanding as of November 14, 2018, as disclosed in the Issuer’s Form 10-Q filed with the Securities and Exchange Commission on November 14, 2018 and securities issuable due to each Reporting Person’s respective warrants and convertible securities.

 

  (c)

Number of shares as to which the person has:

Sero Capital LLC

 

(i) 

   

Sole power to vote or to direct the vote

      0,  
     

 

 

  

(ii)  

   

Shared power to vote or to direct the vote

      2,584,598,  
     

 

 

  

(iii)  

   

Sole power to dispose or to direct the disposition of

      0,  
     

 

 

  

(iv) 

   

Shared power to dispose or to direct the disposition of

      2,584,598.  
     

 

 

  

 

David Moradi

 

(i) 

   

Sole power to vote or to direct the vote

      2,991,354,  
     

 

 

  

(ii)  

   

Shared power to vote or to direct the vote

      0,  
     

 

 

  

(iii)  

   

Sole power to dispose or to direct the disposition of

      2,991,354,  
     

 

 

  

(iv) 

   

Shared power to dispose or to direct the disposition of

      0.  
     

 

 

  

All securities reported in this Schedule 13G were purchased by Mr. Moradi indirectly through Sero Capital LLC (“Sero Capital”) and by Mr. Moradi directly in his personal accounts. Mr. Moradi is the sole member of Sero Capital and has sole power to direct the vote and disposition of those shares of Common Stock of the Issuer held by Sero Capital and the shares of Common Stock that may be acquired through the exercise of warrants that Sero Capital holds that are exercisable within 60 days. Mr. Moradi, as beneficial owner of the shares of Common Stock held directly in his personal accounts, through warrants and convertible securities that permit him to acquire securities within 60 days and indirectly by Sero Capital, may direct the vote and disposition of 2,991,354 shares of Common Stock.

 

Item 5.

Ownership of Five Percent or Less of a Class.

Not Applicable.

Item 6.

Ownership of More Than Five Percent on Behalf of Another Person.

Not Applicable.

 

Item 7.

Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company.

Not Applicable.

 

Item 8.

Identification and Classification of Members of the Group.

Not Applicable.

 

Item 9.

Notice of Dissolution of Group.

Not Applicable.

 

Item 10.

Certification.

Not Applicable.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

February 5, 2019                                
(Date)                                         

 

SERO CAPITAL LLC

/s/ David Moradi

By: David Moradi
Title: Managing Member
DAVID MORADI

/s/ David Moradi

David Moradi

EXHIBIT INDEX

 

99.1    Joint Filing Agreement, dated as of February 5, 2019, by and among the Reporting Persons

 

 EX-99.1 2 d625322dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

AGREEMENT

In accordance with Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of Schedule 13G (including additional amendments thereto) with respect to the Common Stock, par value $0.00001 per share, of AudioEye, Inc. This Joint Filing Agreement shall be filed as an Exhibit to such Statement. The undersigned acknowledge that each shall be responsible for the timely filing of any amendments to such joint filing and for the completeness and accuracy of the information concerning him or it contained herein and therein, but shall not be responsible for the completeness and accuracy of the information concerning the others.

Dated: February 5, 2019

 

Sero Capital LLC

/s/ David Moradi

By: David Moradi
Title: Managing Member

/s/ David Moradi

David Moradi