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OPTIONS
 12 Months Ended
Dec. 31, 2012
Options  
OPTIONS
NOTE 12: OPTIONS
 
As at December 31, 2012 the Company has 2,820,000 options issued and outstanding. The AudioEye, Inc. 2012 Incentive Compensation Plan has a total of 5,000,000 authorized shares and a balance of 2,180,000 shares remaining in the plan. These options were issued on December 19, 2012, vest 25% at each 6 month anniversary of the grant date, have an exercise price of $0.25 per share, and expire on December 19, 2017.
 
   
Outstanding and Exercisable Options
              
         
Remaining
    
Exercise Price
    
Weighted
        
   
Number of
    
Contractual Life
    
times Number
    
Average
    
Intrinsic
  
Exercise Price
  
Shares
    
(in years)
    
of Shares
    
Exercise Price
    
Value
  
$0.25
     2,820,000       5     $ 705,000     $ 0.25     $ 0  
      2,820,000             $ 705,050     $ 0.25       0  
 
The options were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 3.25 years, expected volatility of 250%, risk free interest rate of 0.39%, and expected dividend yield of 0%. The grant date fair value of the options were determined to be $688,005.
 
For the year ended December 31, 2012, stock compensation expense related to the options totaled $12,103.