AudioEye, Inc. entered into a Fourth Loan Modification Agreement with Western Alliance Bank on September 18, 2026. The agreement amends the terms of the Loan and Security Agreement originally dated March 31, 2025, which has been previously modified by consent and loan modification agreements in May 2025, August 2025, and January 2026.
The Fourth Amendment changes the definitions of "Adjusted EBIDA" and "Adjusted EBITDA" to allow the company to add back litigation expenses. These expenses must be determined by the company in good faith to be outside of ongoing operations and be reasonably acceptable to the Bank. The amendment permits these adjustments up to $5.0 million on a trailing twelve-month basis through December 31, 2026, and up to $3.0 million on a trailing twelve-month basis from January 1, 2027, through December 31, 2027.
The amendment also modifies the definition of "Permitted Stock Buyback Amount." It replaces the annual dollar limits for fiscal years 2025, 2026, and 2027, which previously totaled $7.0 million, with a single aggregate limit of $7.0 million for those three years. The definition maintains an annual limit of $2.0 million for fiscal year 2028 and each fiscal year thereafter.
