0001683168-26-001587
SEC filingAuddia Inc. reported a net loss of $7.7 million for fiscal year 2025, consistent with the prior year's loss of $8.7 million, representing an 11.8% improvement. The company generated no revenue, as it continues to develop its faidr app and Discovr Radio platform. Total operating expenses were $7.7 million, down 2.8% year-over-year, with reductions in general and administrative costs offset by new restructuring expenses of $1.2 million. The company ended the year with $3.2 million in cash and cash equivalents, having raised $7.1 million in financing during 2025. Management notes substantial doubt about the company's ability to continue as a going concern, with existing cash expected to fund operations only into the second quarter of 2026.
Auddia Inc. reported a net loss of $7.7 million for fiscal year 2025, representing an 11.8% improvement from the $8.7 million loss in fiscal year 2024. The company generated no revenue in either period as it continues to develop its faidr audio streaming app and Discovr Radio platform. Total operating expenses decreased 2.8% to $7.7 million, driven by a 27.4% reduction in general and administrative expenses to $2.8 million, partially offset by new restructuring costs of $1.2 million related to workforce reductions and business combination expenses. The company ended the year with $3.2 million in cash and cash equivalents, having raised $7.1 million in financing during 2025 through equity offerings and preferred stock issuances.
The company reported $0 revenue for fiscal year 2025, consistent with the prior year. Auddia is transitioning from a direct-to-consumer subscription model to a business-to-business model focused on artists and labels through its Discovr Radio platform. The MVP version of Discovr Radio was released on January 20, 2026, and is expected to generate future subscription revenue from artists seeking promotional airplay on radio streams. The faidr app, which provides ad-free AM/FM radio streaming, is now offered free to consumers, with the company targeting artists and labels as paying customers. No segment revenue breakdown is provided as the company operates in a single segment.
With $0 revenue, the company reported a 100% operating loss margin. Gross profit is not applicable as the company has no revenue-generating operations. Operating expenses totaled $7.7 million, consisting of direct cost of services ($222K), sales and marketing ($829K), research and development ($1.1M), general and administrative ($2.8M), restructuring ($1.2M), and depreciation and amortization ($1.6M). The restructuring costs of $1.2 million included $334K for IT organization changes and $816K for proposed business combination expenses. The company's accumulated deficit increased to $97.3 million as of December 31, 2025.
Net cash used in operating activities was $5.6 million for fiscal year 2025, compared to $5.1 million in the prior year. Cash flows from financing activities provided $7.0 million, primarily from issuance of preferred and common shares. The company ended the year with $3.2 million in cash and cash equivalents, $3.3 million in total current assets, and $5.2 million in total assets. Total liabilities were $967K, with current liabilities of $952K. Shareholders' equity was $4.2 million. The company has an equity line facility with White Lion for up to $50 million and an ATM facility with Ascendiant Capital Markets for up to $10 million, with $0 remaining availability as of the filing date.
Management has expressed substantial doubt about the company's ability to continue as a going concern, with existing cash expected to fund operations only into the second quarter of 2026. The company announced a definitive merger agreement with Thramann Holdings on February 17, 2026, expected to close in the second quarter of 2026, subject to stockholder approval and other conditions. Upon closing, Auddia would become a wholly owned subsidiary of McCarthy Finney, with Auddia shareholders expected to own approximately 20% of the combined company. The merger is conditioned on Auddia having at least $12 million cash at closing. The company continues to pursue its B2B strategy with Discovr Radio, targeting artists and labels for subscription revenue while offering free ad-free radio streaming to consumers through the faidr app.