Amends Western Alliance credit facility, adds litigation expense add-back

What did AUDIOEYE INC announce?

AudioEye signed a fourth amendment to its Western Alliance Bank loan agreement, letting it add back up to $5.0 million of litigation expenses to Adjusted EBITDA through 2026.

Key details

• Fourth Loan Modification Agreement dated September 18, 2026 amends the March 31, 2025 Loan and Security Agreement with Western Alliance Bank
• Adjusted EBITDA/EBIDA definitions now permit add-back of litigation expenses deemed non-recurring, capped at $5.0M on a trailing twelve-month basis through December 31, 2026, $3.0M for 2027, and $0 thereafter
• Permitted Stock Buyback Amount replaced annual limits for FY2025-2027 (totaling $7.0M) with a $7.0M aggregate cap; $2.0M annual limit retained for FY2028 and after
• Borrower paid a $5,000 non-refundable amendment fee and reaffirmed the Intellectual Property Security Agreement

Why it matters

This 8-K reports a financing at AUDIOEYE INC. The likely share-price reaction reads as neutral.