Core Insights - Auddia Inc. is restructuring its engineering team to reduce costs by $750,000 annually while preparing for an AI-native holding company structure following a proposed business combination [1][3] - The company is shifting its business model from a consumer subscription model to a B2B SaaS model, targeting artists and labels to leverage AM/FM radio streams [4] Engineering Restructuring - The current lead AI engineer will join the AI engineering team at the holding company level, enhancing the company's focus on AI [1][2] - The restructuring aims to utilize internal and outsourced engineering talent to accelerate product development [1][5] - Key AI talent will be retained while less specialized engineering tasks will be outsourced, allowing for parallel development of multiple projects [3] Leadership Changes - Peter Shoebridge, the CTO, will leave the company at the end of August as part of the restructuring [3][4] - The CEO expressed gratitude for Shoebridge's contributions and professionalism during the transition [4] Product Development Focus - The internal AI team will concentrate on training and productizing the AI Placement Engine, while the outsourced team will develop the Discovr Radio Portal [5] - This new structure is expected to be more capital efficient and expedite the product development process [5]

Auddia Announces New B2B Business Model with Strategic Shift to AI Driven Music Discovery Auddia shifts business model from B2C to B2B, targeting artists and labels for SaaS access to ad-free AM/FM streaming listeners faidr users will enjoy free access to AI driven ad-free AM/FM streams on all music stations Music from new artists and deep tracks from established artists are expected to occupy up to 33% of stream content on average BOULDER, CO, August 20, 2025 – PRISM MediaWire – Auddia Inc. (NASDAQ:AUUD) ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File No. 001-40071 AUDDIA INC. (Exact Name of Registrant as Specified in Its Charter) | Delaware | 45-4257218 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO ...

Core Viewpoint - Auddia Inc. is undergoing a leadership change and restructuring to enhance its focus on AI capabilities, with Jeff Thramann appointed as the new CEO following Michael Lawless's retirement [1][3][6] Leadership Changes - Jeff Thramann has succeeded Michael Lawless as CEO, who is retiring after 13 years of leadership [1][3] - Three new independent board members with expertise in AI infrastructure and entrepreneurial evaluation have been appointed: Nick Balletta, Emmanuel de Boucaud, and Josh Sroge [2] Restructuring Plans - A special committee has been formed to evaluate a transformative business combination that would restructure Auddia as a subsidiary of an AI native holding company [2][4] - The proposed holding company aims to deliver enhanced AI capabilities through a proprietary AI data center solution, which is expected to lower costs for training AI models [4][5] AI Strategy - The AI leadership team will promote an AI-first culture among portfolio companies, focusing on operational efficiencies and providing world-class data analytics and machine learning expertise [5] - Centralizing AI talent is expected to enhance innovation and improve AI model development across portfolio companies [5] Strategic Analysis - The leadership changes and restructuring proposal are the result of a comprehensive analysis of strategic alternatives conducted over the past nine months [6] - The restructuring is seen as a potential catalyst for the company's growth and strategic direction [6] Company Overview - Auddia is focused on reinventing consumer engagement with audio content through its proprietary AI platform, particularly with its flagship audio superapp, faidr [8]

Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 001-40071 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or AUDDIA INC. (Exact Name of Registrant as Specified in Its Charter) | Delaware | 45-4257218 ...

Core Insights - Auddia Inc. has introduced a new proprietary AI audio model that allows users to transform any FM music station into an ad-free and DJ talk-free experience, enhancing user control over their listening preferences [1][2][3] Group 1: New Features and Innovations - The new "binary AI model" enables subscribers to turn off ads and DJ talk, providing uninterrupted music listening [2] - This feature is available exclusively to subscribers of the faidr platform and can be adjusted at any time through new radio preference controls [2][3] - The new model is currently live on iOS and will be available on Android shortly, with positive feedback received during prototyping [3] Group 2: Company Vision and Market Position - Auddia aims to innovate within the radio space by transitioning radio listening from a passive to a more active experience for users [3] - The company seeks to balance preserving traditional radio elements while offering customization options to cater to diverse listener preferences [4] - Auddia's flagship audio superapp, faidr, is designed to reinvent consumer engagement with AM/FM radio and other audio content [5]

Core Insights - Auddia Inc. has updated its corporate overview to emphasize its superapp strategy, which leverages AI to enhance audio content engagement and retention metrics [1][4] - The company aims to consolidate various audio components into a single streaming platform, enhancing user experience through innovative AI features [2][4] Company Strategy - Auddia is executing a superapp strategy that integrates all major audio components into one platform, starting with AI-driven features like content skipping and ad-free listening [2][4] - Future enhancements to the faidr superapp will include a music player, audiobooks, and text-to-speech capabilities, allowing for a comprehensive audio experience [3] AI and Data Utilization - The company believes that the data generated from user interactions across its audio superapp will provide a competitive edge in developing advanced AI models [4] - Auddia's focus on leveraging user engagement data aims to improve content delivery and provide valuable insights to content creators [3][4] Performance Metrics - The updated corporate overview reflects significant improvements in user retention, with durable increases in 30-day retention metrics and the introduction of customer acquisition cost (CAC) targets for paid subscribers [4] - This marks the first time the company has set specific CAC targets, indicating a strategic shift towards more data-driven performance metrics [4]

Financial Performance - The company incurred net losses of $8,722,039 and $8,807,496 for the years ended December 31, 2024 and 2023, respectively[91]. - The company expects to continue incurring significant operating losses and expenses in the near term as it invests in technology and marketing[91]. - The company has a limited operating history and may struggle to generate meaningful revenue from future software products[96]. Cash and Financing - As of December 31, 2024, the company had cash and cash equivalents of $2,706,319, which is only sufficient to fund current operating plans into the second quarter of 2025[90]. - The company secured approximately $10.9 million in additional financing in 2024 and $0.6 million year-to-date through March 5, 2025[90]. - The company may need to raise additional capital, which could lead to dilution of existing stockholders' interests[95]. Growth Strategy - The company anticipates significant expenses related to the development and commercialization of the faidr product, which has substantial market potential[92]. - The company plans to pursue acquisitions as part of its growth strategy, but faces challenges due to capital market volatility[106]. - The company anticipates significant growth in operations, requiring expansion of managerial, operational, and financial systems to support product rollout and user projections[110]. Regulatory and Compliance Risks - The company faces challenges in complying with evolving privacy and data protection regulations, which may increase operational costs and affect data handling practices[115]. - New laws such as the GDPR and CCPA impose burdensome obligations that could impact the company's ability to collect and use personal information, potentially leading to increased costs[117]. - The company may incur significant costs related to compliance with privacy regulations, which could affect customer relationships and overall demand for its platform[118]. - The company operates in a highly regulated industry, and changes in laws or judicial decisions could negatively impact its financial condition and operations[123]. - The company may face litigation and regulatory inquiries that could adversely affect its results of operations and reputation[124]. Operational Risks - Cybersecurity threats pose a risk to the company, with potential unauthorized access to sensitive information leading to regulatory actions and reputational damage[111]. - The company is highly dependent on key personnel, and the loss of any key employees could adversely affect its objectives[108]. - The company relies on third-party vendors and developers, and any violations of laws or regulations by these parties could adversely affect its business[119]. Stock and Market Risks - The company has 8,594,308 shares of common stock issued and outstanding as of March 4, 2025, with substantial shares eligible for sale into the public market, potentially impacting stock price[144]. - The price of the company's common stock may be volatile and fluctuate substantially, influenced by various market factors[149]. - If quarterly operating results fall below investor expectations, the stock price could decline substantially[150]. - The company may face substantial costs and management distraction from potential securities class-action litigation following periods of stock price volatility[151]. - Lack of research coverage by analysts could lead to a decrease in the trading price of the company's stock[152]. - The company may not satisfy the requirements for continued listing on the Nasdaq Capital Market, which could limit stock liquidity and increase volatility[153]. - The company regained compliance with Nasdaq's equity requirement of $2,500,000 as of May 24, 2024[155]. - The company received a notice on October 16, 2024, indicating non-compliance with the $1.00 minimum bid price requirement, with a 180-day period to regain compliance[156]. Internal Control and Governance - The company has identified material weaknesses in its internal control over financial reporting, which may not be remediated in time for compliance with Section 404 of the Sarbanes-Oxley Act[166]. - The company is classified as an "emerging growth company" and intends to rely on reduced disclosure requirements until certain revenue or debt thresholds are met[161]. - The company is subject to anti-takeover provisions under Delaware law, which may discourage beneficial acquisitions[169]. - The company has taken advantage of exemptions from certain disclosure requirements, which may affect the attractiveness of its common stock to investors[162]. Dividend Policy - The company does not anticipate paying cash dividends in the foreseeable future, with capital appreciation being the sole source of gain for shareholders[173].

Core Insights - Auddia Inc. will present at the SXSW Conference, focusing on the podcast industry's financial landscape and strategies for improvement [2][3] - The presentation is titled "Podcast Apps Need to Step It Up" and aims to foster dialogue between podcast creators and app stakeholders [3] Company Overview - Auddia is a technology company that has developed a proprietary AI platform for audio identification and classification, aiming to transform consumer engagement with audio content [2][4] - The company's flagship product, faidr, offers unique features such as ad-free listening, content skipping across AM/FM stations, and exclusive playlists [4][7] Industry Engagement - Auddia has been actively engaging with podcast community stakeholders to discuss improvements in the economics of the podcast industry [3] - The company emphasizes the need for podcast apps to enhance their offerings in response to creator demands [3]

Core Insights - Auddia Inc. has reported a significant increase in 30-day user retention metrics for its audio platform, faidr, with retention rates exceeding 20% in Q4 2024 and approaching 25% in January 2025, with expectations to surpass 25% in February 2025 [2][3][4] Group 1: User Retention Metrics - The 30-day retention rate for faidr accelerated to over 20% in October 2024, maintaining this level through Q4 2024, and reaching just below 25% in January 2025 [3][4] - February 2025 is anticipated to be the first month where retention rates exceed 25% [3] Group 2: Subscription Conversion Optimization - Auddia has integrated an advanced subscription conversion platform into faidr to enhance subscription conversion and revenue optimization strategies [3][4] - The company expects subscription conversion metrics to follow a positive trajectory similar to the retention metrics as product and marketing optimizations continue [4] Group 3: Future Guidance - Auddia plans to provide further guidance on subscription revenue growth at the end of Q1 2025, as ongoing product, marketing, and subscription conversion optimizations are expected to drive results [4]