Auddia Inc. (AUUD) 2025 Annual Report (10-K) Summary
Business Context and Reporting Period
Company: Auddia Inc.
Reporting Period: Fiscal year ended December 31, 2025.
Business Model: Auddia is an AI technology company developing the "faidr" app, which allows users to listen to AM/FM radio without commercials by replacing ad breaks with music. In August 2025, the company announced a strategic pivot from a B2C subscription model to a B2B SaaS model. The new "Discovr Radio" platform (MVP launched January 2026) targets artists and labels, selling guaranteed ad-free radio plays to promote new music. The faidr app is now free for consumers.
Corporate Status: Emerging Growth Company (EGC) and Smaller Reporting Company. Listed on Nasdaq Capital Market under symbol "AUUD".
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(7,693,197) | $(8,722,039) |
| Operating Expenses | $7,697,607 | $7,917,139 |
| Cash and Cash Equivalents (Dec 31, 2025) | $3,186,985 | $2,706,319 |
| Accumulated Deficit | $(97,283,343) | $(89,428,436) |
| Working Capital | ~$2.4 million | N/A |
| Shares Outstanding (Mar 4, 2026) | 3,856,348 | N/A |
Note: The company reported zero revenue for both 2025 and 2024 as it focused on product development and business model transition.
Material Changes vs. Prior Period
- Net Loss Reduction: Net loss decreased by approximately $1.03 million (11.8%) compared to 2024, primarily due to a reduction in General and Administrative expenses ($1.05 million decrease) and the elimination of a $632,388 loss from the change in fair value of warrants recorded in 2024.
- Restructuring Costs: The company incurred $1.15 million in restructuring expenses in 2025, compared to none in 2024. This included IT organization changes and costs related to the proposed business combination.
- Capitalization: The company raised approximately $7.1 million in 2025 through equity lines, ATM offerings, and preferred stock issuances. Subsequent to year-end, an additional $0.9 million was raised.
- Reverse Stock Splits: The company executed a 1-for-25 reverse split in Feb 2024 and a 1-for-17 reverse split in March 2025 to maintain Nasdaq listing compliance.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern Warning: Auditors have expressed substantial doubt about the company's ability to continue as a going concern. Management estimates current cash resources will fund operations only into the second quarter of 2026. Additional financing is required to continue operations and complete the proposed merger.
- Proposed Business Combination: On February 17, 2026, Auddia entered a definitive merger agreement with Thramann Holdings, LLC. Upon closing (expected Q2 2026), the company will be renamed "McCarthy Finney" (ticker: MCFN). Auddia shareholders are expected to own 20% of the combined entity, while Jeff Thramann (Founder/CEO) will own 80%. The merger is conditioned on Auddia having at least $12 million in cash at closing.
- Strategic Pivot: The shift to a B2B model (Discovr Radio) aims to monetize the faidr user base by selling promotional plays to artists, removing the need for consumer subscriptions.
- Risks: Key risks include failure to secure additional capital, failure of the merger to close, potential delisting from Nasdaq if cash conditions are not met, and the uncertainty of generating revenue from the new B2B platform.
Investor Verification Checklist
- Cash Runway: Verify if the company can raise the additional capital required to reach the $12 million cash threshold for the merger closing.
- Merger Approval: Monitor the status of the stockholder vote required to approve the merger with Thramann Holdings.
- Revenue Generation: Assess early traction of the Discovr Radio platform (launched Jan 2026) to determine if the B2B model can generate revenue before cash depletion.
- Nasdaq Compliance: Confirm continued compliance with Nasdaq listing rules, specifically regarding stock price and equity requirements, given the history of deficiency notices.
- Dilution Impact: Review the terms of the merger to understand the dilution impact on existing shareholders (projected 20% ownership in the new entity).