Executive Summary

Auddia reported no revenue in Q2 2023 and a net loss of $2.32M, with diluted EPS of $(0.15); interest expense sharply increased due to bridge notes, and loss from operations narrowed versus Q1 2023 on lower sales and marketing spend .
The company regained Nasdaq stockholders’ equity compliance ($4.33M equity at 6/30/23) but remains at risk for delisting on minimum bid price; it also disclosed late 10‑Q filing and subsequent compliance with reporting rules .
Management emphasized continued product development (faidrRadio, podcast features added to Android in May 2023) and is pursuing acquisitions of AM/FM streaming aggregators to accelerate users/revenue; these transactions require additional funding .
Liquidity improved to $3.61M cash at quarter-end after equity and related-party financings, yet substantial doubt exists about going concern without new capital beyond November 2023 .
No formal financial guidance or earnings call transcript found for Q2; consensus estimates via S&P Global were unavailable, limiting beat/miss analysis .

What Went Well and What Went Wrong

What Went Well

Equity raised and cash balance strengthened: cash increased to $3.61M following equity line sales and common stock issuance; shareholders’ equity rose to $4.33M, regaining Nasdaq equity compliance .
Cost discipline in sales and marketing: Q2 sales and marketing expense fell 70% YoY to $223,760, reflecting right-sizing after the national faidr launch; operating loss narrowed vs Q1 .
Product progress: podcasts added to Android in May and faidrRadio launched in Feb 2023; management continues enhancing the AI platform and app features .

What Went Wrong

No revenue recognized and continued losses: Q2 revenue was $0; net loss widened YoY driven by higher interest expense on bridge notes .
Elevated financing costs and late filing: interest expense jumped to $538,572 in Q2; the company missed the extended 10‑Q deadline and filed on Aug 24, 2023, triggering a Nasdaq notice before regaining compliance .
Going concern risk persists: management warns cash will be depleted by November 2023 without additional funding, creating execution risk around product commercialization and any acquisitions .

Financial Results

Metric	Q2 2022	Q1 2023	Q2 2023
Revenue ($USD)	$0	$0	$0
Loss from Operations ($USD)	$(2,048,362)	$(1,847,406)	$(1,784,290)
Interest Expense ($USD)	$(2,023)	$(307,906)	$(538,572)
Net Loss ($USD)	$(2,050,385)	$(2,155,312)	$(2,322,862)
Diluted EPS ($USD)	$(0.16)	$(0.17)	$(0.15)
Total Operating Expenses ($USD)	$2,048,362	$1,847,406	$1,784,290

Balance sheet and liquidity

Metric	Q1 2023	Q2 2023
Cash and Equivalents ($USD)	$239,040	$3,605,144
Total Shareholders’ Equity ($USD)	$2,095,247	$4,331,778
Notes Payable to Related Party (net) ($USD)	$2,026,897	$2,838,898

Operating expense detail (selected)

Metric	Q2 2022	Q1 2023	Q2 2023
Sales & Marketing ($USD)	$740,019	$225,118	$223,760
R&D ($USD)	$151,251	$210,126	$180,363
G&A ($USD)	$842,555	$926,826	$892,510
Depreciation & Amortization ($USD)	$271,005	$443,035	$442,618

Estimates vs. Actuals

Wall Street consensus for Q2 2023 EPS and revenue via S&P Global was unavailable; therefore, no beat/miss analysis can be provided at this time. We attempted retrieval but hit a data limit [GetEstimates error].

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3/Q4 2023	Not provided	Not provided	Maintained (no formal guidance in filings)
Operating Expenses	FY 2023	Not provided	Not provided	Maintained (no formal guidance)
Liquidity Runway	Through Nov 2023	N/A	Cash expected to deplete by November 2023 absent new funding	— (risk disclosure)
Nasdaq Compliance	Equity	Below $2.5M at 3/31/23	$4.33M at 6/30/23; regained equity compliance	Raised (equity)
Nasdaq Minimum Bid Price	Listing Rule 5550(a)(2)	Non-compliant (Apr 24, 2023 letter)	180-day cure period through Oct 23, 2023; potential second period	Maintained deficiency risk

Earnings Call Themes & Trends

No Q2 2023 earnings call transcript found; themes derived from MD&A.

Topic	Previous Mentions (Q1 2023)	Current Period (Q2 2023)	Trend
AI/technology initiatives	Continued development of faidr; podcasts added to iOS; focus on AI content identification	Podcasts added to Android in May; faidrRadio live; continued AI enhancements	Progressing features across platforms
Acquisition strategy	Announced pursuing AM/FM aggregator acquisitions; advanced talks with three properties	Advanced discussions with two properties; aiming near-term agreements, requires funding	Narrowed target set; funding dependency
Nasdaq/Listing	In process of addressing controls; smaller reporting co. disclosures; no specific listing notices in Q1 doc	Regained equity compliance; bid price deficiency cure period active	Compliance improved; bid-price risk persists
Macro/Inflation	Not specifically emphasized in Q1 MD&A	Inflation impacting costs; negative impact expected through 2023	Cost pressure continues
Liquidity/Going concern	Cash $239k; additional April funding to extend runway into Q3 2023; substantial doubt	Cash $3.61M; runway to November 2023; substantial doubt remains	Runway extended; still constrained
R&D execution	Ongoing enhancements; capitalized software costs	Increased amortization; continued capitalization where applicable	Continuing investment and amortization

Management Commentary

“Podcasts were added to the app for the iOS version before the end of Q1 2023 as planned, and added to the Android app in May of 2023.”
“To accelerate user acquisition, revenue, and cash flow, the Company… is in advanced active discussions with two properties and is targeting to execute one or more agreements in the near term. These business development transactions would require additional funding.”
“As a result of… recurring losses… and the need for additional financing… there is… substantial doubt as to the Company’s ability to continue as a going concern… current level of cash are not sufficient… will deplete… by November 2023.”
“The Company filed the Form 10-Q on August 24, 2023.” and explained the delay due to new auditor review .
“As disclosed… stockholder’s equity as of June 30, 2023 is $4,331,778, which is $1,831,778 over the $2.5 million Nasdaq continued listing requirement.”

Q&A Highlights

No Q2 2023 earnings call transcript found; Q&A highlights not available in filings or press releases [ListDocuments returned none; 2023-07-01 to 2023-09-30].

Estimates Context

S&P Global consensus estimates for Q2 2023 EPS and revenue were unavailable at time of analysis due to retrieval limits. We therefore cannot assess beats/misses versus Street. If desired, we can re-query S&P Global later to incorporate estimates comparisons.

Key Takeaways for Investors

Liquidity improved post financings, but cash runway is limited to November 2023 without new capital; funding remains the gating item for execution and any M&A .
Operational discipline reduced sales and marketing costs sharply YoY; operating loss narrowed sequentially despite higher interest expense, showing expense control while features roll out .
Compliance risk persists on Nasdaq minimum bid price despite regaining equity threshold compliance; watch for reverse split or market moves to cure deficiency .
Strategic M&A could accelerate user acquisition and monetization but raises financing, integration, and execution risks in a volatile capital markets backdrop .
Product roadmap advancing (faidrRadio, Android podcasts); sustained user growth and conversion to paid will be critical given zero revenue to date .
Without formal guidance or available Street estimates, catalyst path centers on funding events, acquisition announcements, and demonstrable traction (MAUs/subscriptions) not yet disclosed in filings .
Continued high non-cash amortization and rising interest costs from bridge notes weigh on reported losses; refinancing or equity funding could reduce interest burden but adds dilution risk .

All citations: .

AUDDIA INC. (AUUD)·Q2 2023 Earnings Summary