Business Context and Reporting Period
This Form 8-K Current Report was filed by Auddia Inc. on July 14, 2023, regarding an event that occurred on July 10, 2023. The Company is an emerging growth company incorporated in Delaware, with its principal executive offices in Boulder, Colorado. Its common stock and warrants trade on the Nasdaq Stock Market under the symbols AUUD and AUUDW, respectively.
Key Financial Metrics
This filing is a current report regarding a change in the registrant's certifying accountant and does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The filing text does not provide a clear value for any financial metrics.
Material Changes
The primary material change reported is the resignation of CohnReznick LLP as the Company's independent registered public accounting firm. The resignation is effective upon the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. CohnReznick was originally engaged on May 8, 2023, following a business combination agreement involving Daszkal Bolton LLP, which had served as the auditor since 2020.
Management Commentary, Risks, and Contingencies
- Reason for Resignation: CohnReznick advised the Company of material weaknesses in its internal control over financial reporting as of March 31, 2023. This was the only "reportable event" cited; there were no disagreements regarding accounting principles, practices, or auditing scope.
- Transition Status: CohnReznick will remain engaged to complete its review of the interim financial statements for the quarter ended June 30, 2023. The Company is currently in the process of selecting a new independent registered public accounting firm.
- Consent: CohnReznick did not seek the Company's consent to resign, and the Board of Directors or Audit Committee did not participate in the decision.
Investor Verification Checklist
- Verify the specific nature and remediation plan for the material weaknesses in internal controls over financial reporting identified as of March 31, 2023.
- Monitor the selection and appointment of a new independent registered public accounting firm.
- Review the upcoming Form 10-Q for the quarter ended June 30, 2023, to assess the impact of the auditor change on the financial review process.
- Confirm that no other undisclosed disagreements or reportable events exist between the Company and CohnReznick.