AUDDIA INC. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by AUDDIA INC. on March 9, 2023, regarding events occurring on March 8, 2023. The Company is an emerging growth company incorporated in Delaware with 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 does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The report focuses exclusively on a change in the Company's independent registered public accounting firm.
Material Changes
The primary material change disclosed is the resignation of Daszkal Bolton, LLP ("Daszkal") as the Company's independent registered public accounting firm. This resignation follows Daszkal's completion of a business combination agreement with CohnReznick LLP ("CohnReznick"). Daszkal will resign after the Company files its annual report on Form 10-K for the year ended December 31, 2022. The Company expects to engage CohnReznick, which now includes the former Daszkal audit team, as its independent auditor for the fiscal year ending December 31, 2023, though no formal engagement has occurred at the time of this filing.
Management Commentary, Risks, and Contingencies
Daszkal's reports on the Company's financial statements for the past two years did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles. There were no disagreements between the Company and Daszkal on accounting principles, practices, or auditing procedures during the years ended December 31, 2021 and 2020, and subsequent interim periods through September 30, 2022. However, Daszkal previously advised the Company of material weaknesses in its internal control over financial reporting as of December 31, 2021 and 2020. Daszkal has agreed with the statements made in this report, as evidenced by a letter filed as Exhibit 16.1.
Key Facts for Investor Verification
- Daszkal Bolton, LLP is resigning as the independent auditor due to a merger with CohnReznick LLP.
- The Company anticipates engaging CohnReznick LLP for the 2023 fiscal year audit but has not yet formalized the engagement.
- Daszkal's prior audit reports were unqualified, though material weaknesses in internal controls were noted for 2020 and 2021.
- No disagreements regarding accounting principles or audit scope existed between the Company and Daszkal during the relevant periods.
- The filing does not provide updated financial results or guidance; investors should refer to the upcoming Form 10-K for the year ended December 31, 2022.