Good afternoon, and welcome to AudioEye's Fourth Quarter 2021 Earnings Conference Call. Joining us for today's call are AudioEye's CEO, Mr. David Moradi, and CFO, Ms. Kelly Georgevich. Following their remarks, we will open the call for questions from the company's publishing analysts. I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at www.audioeye.com. Before I turn the call over to AudioEye's CEO, the company would like to remind all participants that statements made by AudioEye management during the course of this conference call that are not historical facts are considered to be forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements. The words believe, expect, anticipate, estimate, confident, will and other similar statements of expectation identify forward-looking statements. These statements are predictions, projections or other statements about future events and are not based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in today's press release and the comments made during the conference call and in the Risk Factors section of the company's annual report on Form 10-K and its quarterly report filings with the Securities and Exchange Commission. Participants on this call are cautioned not to place undue reliance on these forward-looking statements, which reflect management's belief only as the date hereof. AudioEye does not undertake any duty to update or correct any forward-looking statements. Further, management's remarks today will include certain non-GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures to these non-GAAP financial measures is available in the company's earnings release posted in the Investor Relations section of our website at www.audioeye.com. Now, I'd like to turn the call over to AudioEye's Chief Executive Officer; Mr. David Moradi. Sir, please proceed.

Thank you, operator. Welcome, everyone, and thank you for joining us. After the market closed today, we issued two press releases: one, our results for the fourth quarter and full year ended December 31, 2021, and one press release on our recent acquisition of the Bureau of Internet Accessibility or BoIA. A copy of both press releases is available in the Investor Relations section of our website at audioeye.com. I, first, would like to discuss our exciting acquisition of BoIA. This acquisition is another positive step in our ongoing mission of eradicating all barriers to digital accessibility. We are thrilled that the BoIA team is joining forces to provide additional accessibility product options to the entire community of direct customers and ultimately our end users. We also believe this to be a value-enhancing acquisition for our shareholders. We are pulling away from the competition in both product offering and scale through accretive revenue expansion without diluting our shares. This is a great deal for all stakeholders. As we have said in previous earnings calls, AudioEye stands apart from the competition in the market with our unique and transparent accessibility solutions. We are combining our patented software, which delivers the highest levels of automation in the industry with our human-assisted technology, giving our customers full accessibility for a fraction of the cost of traditional approaches. The acquisition of BoIA adds a key dimension to our product suite, for those customers who prefer to fix accessibility issues at source, giving us an end-to-end solution for all customers in their accessibility journey. With two decades of experience and implementation across hundreds of enterprise clients, including Chipotle, Godiva, Deckers, Dillard's, Rydell and Harvard University, BoIA is a leader for customers who want an automated testing platform combined with a step-by-step guide to fix accessibility…

Thank you, David. Before I begin with a summary of Q4 and full-year 2021, I want to first congratulate David on behalf of AudioEye for officially moving from Interim Chief Executive Officer to CEO in January 2022. We are very happy to have you continue to lead the AudioEye team and vision for the future. I would also like to provide some additional financial information on the recent Bureau of Internet Accessibility transaction. On March 9, 2022, we entered into a stock purchase agreement to acquire all of the outstanding equity interest of Bureau of Internet Accessibility, Inc. The aggregate cash purchase price paid at closing was $5 million and is subject to net working capital and other customary adjustments. In addition, the purchase agreement provides for contingent earnout payments in cash based on BoIA's revenue for 2022 and 2023. This cash deal is highly accretive, in that if all revenue targets are achieved and milestones paid, the enterprise value to revenue multiple of the acquisition will be around 2.2 times. Due to the timing of the BoIA acquisition relative to the date of this report, we have not completed our provisional valuation of net tangible and intangible assets acquired and liabilities assumed. We will recognize and disclose our provisional allocation of a purchase consideration in the fiscal quarter ended March 31, 2022. Now, providing a summary of Q4 and 2021 full year results. As David mentioned, we are pleased with our quarter and fiscal year performance. Q4 marks the 24th straight quarter of record growth, ending the quarter at $6.5 million, which was over 16% growth year-over-year. Monthly recurring revenue, or MRR, at the end of the fourth quarter of 2021 was $2.2 million, also a 16% increase over MRR at the end of the fourth quarter 2020. On…

[Operator Instructions]. Now our first question will come from Zach Cummins of B. Riley Securities.

Congrats on the solid results here to end of the year. Just starting off with the acquisition of BoIA. Just to confirm, I think you said the total compensation paid was $5 million. Is that all cash? Or is that a mix of stock being issued along with cash? So, just trying to clarify on that front.

The $5 million at closing is 100% cash, all cash. And as I mentioned, the purchase agreement also provides for contingent earnout payments in cash based on 2022 and 2023 revenues.

Just looking at the strategic rationale, is there any current customer overlap with BoIA. I'm just kind of curious in terms of the opportunity for you to immediately upsell to some of their customer base once you bring them on board?

No, there's no current overlap as far as I know. They're all separate customers. And they fix things at the source, which is different from the JavaScript approach that we do. So now, we have a full end-to-end solution for all customers, which is really compelling. I think we're the only ones out there doing anything like this.

David, can you speak to some of the major partnership opportunities? One that really caught my attention was WP Engine. Can you speak about kind of that partnership there, the potential opportunity for you guys going forward and kind of expectations as you start to ramp on that?

Yes, that's an exciting one. We're in the early phases of that partnership. We just launched the app on their store. And there's a lot of different ways to sell this to their customer base over time. It's a long-term opportunity, but very exciting for both companies.

Can you give us any update on any of the previous partnerships that you spoke to? I know there's quite a few through 2021 that have kind of gotten pushed to the right. So, any sort of update you can give on those prior partnerships and progress moving forward with those?

Speaking to all the same folks, we did upgrade some of the customers who are getting the visual toolkit, the basic service to automation from what agency, so we're getting a little bump on that now, but we also want to sell them services. So, it's a long-term proposition for us, but it's actually starting to happen.

Finally, I appreciate the color on kind of the expected spend rates and the cash burn here. Any sort of concerns around available cash to execute on your plans over the next couple of years? I know you still have some ATM capacity left and available to you. But kind of how are you guys thinking about balancing cash versus pursuing this growth opportunity in the business?

I can comment on that. While the transaction is a meaningful investment for AudioEye, we expect BoIA to generate cash, and we do not have plans for a capital raise at this time.

Our next question comes from Scott Buck of H.C. Wainwright.

First one. On BoIA, do you have an idea of how many customers or ongoing customers they have at any given time and what the kind of re-up is on those kind of longer-term ongoing work is?

BoIA was primarily enterprise-type customers. It won't have a material impact on the number of customers out there in terms of our customer count, but they do have a significant number of enterprise customers. I'm sorry, your second question was…

If 60% is upfront and 40% of the revenue opportunity is kind of an ongoing maintenance and oversight, how often do they extend that 40% out another 12 months or so?

The majority of the contracts on signing for the one-time service customers are also signing up for the reoccurring piece. And reoccurring piece typically continues and retention is good for that support reoccurring piece.

Second one, can you speak a little bit to gross margin? Just looking at the difference in 3Q 2021 versus 3Q 2020 and then 4Q 2021 versus 4Q 2020, you're down a little bit sequentially and then, year-over-year, you're up but not quite to the extent as you were in the third quarter. So just curious if that's mix or something else that we should be keeping an eye out on?

Overall, we're pleased with our steady gross margin percent of approximately 75% for the full year, especially given the significant investment in our platform in R&D and customer success costs. We expect to continue to invest in these areas and expect gross margin to stay relatively consistent. But we are happy with this margin. If you look at other comparables in the SaaS space, this is kind of comparable with the top performers.

Last one for me. Just on the OpEx, it sounds like there's going to be some more investment spend in 2022, but not quite to the extent that 2021 was. How should we think about that in terms of an annual growth rate?

If you're thinking cash burn, you can look at Q4 and expect somewhat similar numbers in the first half of the year and expect the cash burn to go down in the second half of 2022.

At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Moradi for his closing remarks.

Thank you for joining us today. As always, I want to thank our employees, partners and investors for their continued support. We look forward to updating you on our next call.

Before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the Investors section of the company's website. Thank you for joining us today for AudioEye's fourth quarter and full year 2021 earnings conference call. You may now disconnect.