Auddia(US:AUUD)2025-11-06 21:18Financial Performance - As of September 30, 2025, the company had an accumulated deficit of $95,262,663, indicating significant operating losses since inception[107]. - Total revenues for the three months ended September 30, 2025, were $0, consistent with the same period in 2024, as the company continues to develop the faidr App and the Discovr artist portal[132][141]. - The net loss for the three months ended September 30, 2025, was $2,381,151, a 22.1% increase from the net loss of $1,949,428 in the same period of 2024[131]. - For the nine months ended September 30, 2025, cash used in operating activities was $(4,335,812), compared to $(3,803,324) for the same period in 2024, reflecting a net loss of $(5,702,369) in 2025[159][160]. - The company reported an accumulated deficit of $95,262,663 as of September 30, 2025, up from $89,428,436 at the end of 2024[165]. Cash and Financing - The company had cash and cash equivalents of $2,727,165 as of September 30, 2025, and secured approximately $7.2 million in additional financing in 2025[110]. - Cash and cash equivalents stood at $2,727,166 as of September 30, 2025, slightly up from $2,706,319 at the end of 2024[165]. - The company secured $5.1 million in financing during the nine months ended September 30, 2025, and an additional $2.1 million after that date[149]. - Cash flows from financing activities for the nine months ended September 30, 2025, generated $4,890,671, primarily from the issuance of common shares and Series C preferred stock[163]. - The company raised $750,000 in gross proceeds from the Series C Preferred Stock and Warrants Financing, issuing 750 shares at $1,000 each, convertible at an initial price of $4.77 per share[155][156]. - The company has secured $5.1 million in financing during the nine months ended September 30, 2025, with an additional $2.1 million secured subsequently, which is projected to fund operations into Q3 2026[165]. Operating Expenses - Operating expenses are expected to increase as the company continues to develop and enhance its technology related to the faidr and podcasting apps[125]. - The company has experienced higher costs due to inflation, impacting employee compensation and outside services, with expectations of continued negative effects throughout 2025[123]. - Total operating expenses for the three months ended September 30, 2025, were $2,379,958, an increase of 22.2% compared to $1,947,850 in 2024[131]. - Research and development expenses increased by $84,541 or 36.3% to $317,626 for the three months ended September 30, 2025, primarily due to increased consulting fees and lower capitalized costs[135]. - General and administrative expenses decreased by $182,499 or 20.7% to $698,940 for the three months ended September 30, 2025, due to reductions in accounting, legal, and stock option expenses[136]. - Restructuring expenses increased by $806,432 or 100% for the three months ended September 30, 2025, reflecting changes in the IT department and related costs[137]. - Direct cost of services increased by $336 or 0.6% to $55,252 for the three months ended September 30, 2025, due to higher music licensing costs[133]. - Sales and marketing expenses decreased by $138,688 or 49.1% to $143,762 for the three months ended September 30, 2025, primarily due to reduced marketing promotion costs[134]. Business Strategy and Development - The company is transitioning from a B2C subscription model to a B2B subscription model, targeting artists and labels for SaaS subscription access to ad-free AM/FM streaming[101]. - The new Discovr Radio platform is expected to launch in early 2026, allowing artists to promote songs on radio streams and providing guaranteed plays[94][103]. - The MVP version of the Discovr Radio platform is expected to be released before the end of Q1 2026, supported by a pilot program of participating customers[106]. - The company is exploring merger and acquisition options to accelerate user adoption and enter new markets[115]. - The company anticipates needing additional funding to complete the development of its full product line and scale products with market fit[165]. Compliance and Regulatory - The company has received notices from Nasdaq for non-compliance with listing rules but regained compliance with the equity requirement in May 2024 and the bid price requirement in April 2025[116][119]. - The company has no off-balance sheet arrangements as defined by SEC rules[167].