Executive Summary

No revenue recognized; Q3 net loss improved sequentially to $(2.12)M from $(2.32)M in Q2 as interest expense declined Q/Q; operating expenses were roughly flat Q/Q .
EPS improved to $(0.11) vs $(0.15) in Q2; year-over-year net loss widened on higher amortization and interest expense, despite revenue remaining $0 .
Liquidity: $2.20M cash at quarter-end with runway only into February 2024; management reiterated substantial doubt about going concern pending new financing .
Capital/Listing: New $10M White Lion equity line executed Nov 6, 2023; regained Nasdaq equity compliance earlier, but received an Oct 24 notice to delist for bid-price noncompliance; appeal hearing expected mid-Jan 2024 .
Product/Strategy: Continued investment in faidr (AI-driven ad-free AM/FM + podcasts); initial monetization (“Flex Revenue”) expected to be commercially available before end of 2023; the company continues to evaluate AM/FM aggregator acquisitions to accelerate users/revenue .

What Went Well and What Went Wrong

What Went Well
- Sequential cost control: EPS improved to $(0.11) from $(0.15) and net loss narrowed to $(2.12)M from $(2.32)M .
- Capital access established: New $10M Common Stock Purchase Agreement with White Lion (Nov 6) bolsters optionality for near-term financing .
- Clear product narrative: faidr “brings two industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station and podcasts with interactive digital feeds” (company boilerplate) .
What Went Wrong
- No revenue recognized; total operating expenses increased Y/Y to $1.83M, driving a wider Y/Y net loss of $(2.12)M vs $(1.33)M in Q3 2022 .
- Elevated financing costs: Q3 interest expense rose sharply Y/Y to $(0.29)M (from $(0.00)M), reflecting bridge notes and higher rates .
- Listing and going concern risks: Nasdaq issued an Oct 24 delisting notice for bid-price deficiency; management cites substantial doubt about going concern without additional financing .

Financial Results

Quarterly snapshot (oldest → newest)

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue ($)	$0	$0	$0
Total Operating Expenses ($)	$1,847,406	$1,784,290	$1,829,562
Loss from Operations ($)	$(1,847,406)	$(1,784,290)	$(1,829,562)
Interest Expense ($)	$(307,906)	$(538,572)	$(286,920)
Net Loss ($)	$(2,155,312)	$(2,322,862)	$(2,116,482)
EPS (Basic & Diluted)	$(0.17)	$(0.15)	$(0.11)
Cash & Equivalents (end) ($)	$239,040	$3,605,144	$2,199,678
Notes Payable to Related Party, net ($)	$2,026,897	$2,838,898	$2,993,639

Year-over-year comparison (Q3 2023 vs Q3 2022)

Metric	Q3 2022	Q3 2023
Revenue ($)	$0	$0
Total Operating Expenses ($)	$1,328,291	$1,829,562
Interest Expense ($)	$(2,023)	$(286,920)
Net Loss ($)	$(1,330,314)	$(2,116,482)

Segment breakdown: Not applicable; the company does not report segments in filings reviewed .

KPIs: The company did not disclose user, subscriber, or ARPU metrics in the Q3 10-Q; no operating KPIs were provided .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash runway	As of Q1 2023	“Fund operations into the third quarter of fiscal 2023”	—	—
Cash runway	As of Q2 2023	“Deplete cash on hand by November 2023”	—	—
Cash runway	As of Q3 2023	—	“Cash and equivalents ~$2.2M; sufficient to fund plans into February 2024”	Raised runway (sequential)
Product monetization timeline	2023	—	“Flex Revenue… expected to be commercially available before the end of 2023”	New timeline disclosure

Dividend/OpEx/tax guidance: None disclosed in documents reviewed .

Earnings Call Themes & Trends

Note: No Q3 2023 earnings call transcript was found in company documents [SearchDocuments: none].

Topic	Q1 2023 (prior)	Q2 2023 (prior)	Q3 2023 (current)	Trend
AI/technology initiatives	Emphasis on proprietary AI platform powering faidr	Continued investment in AI and platform	Ongoing platform focus in faidr and podcasts	Steady execution narrative
Product roadmap	iOS podcasts added in Q1	Android podcasts added in May 2023	“Flex Revenue” monetization expected before end-2023	Progressing toward monetization
Liquidity & runway	Cash funds ops into Q3’23; substantial doubt	Cash depletion by Nov’23; substantial doubt	~$2.2M cash; runway into Feb’24; substantial doubt	Slightly extended runway; still tight
Regulatory/listing	Listing risk noted in Forward-Looking statements	Nasdaq equity deficiency cured; bid-price window to Oct 23, 2023	Oct 24 delisting notice; appeal mid-Jan 2024	Listing risk escalated
M&A strategy	Advanced talks with three properties	Advanced talks with two properties	Advanced active discussions with two properties	Continues; contingent on financing

Management Commentary

“Auddia… is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings two industry firsts… subscription-based, ad-free listening on any AM/FM radio station and podcasts with interactive digital feeds…” (company description) .
“As of September 30, 2023, we had cash of $2,199,678… there is substantial doubt as to the Company’s ability to continue as a going concern… Our existing cash… will only be sufficient to fund our current operating plans into February 2024.” .
“Flex Revenue… will be added to podcasting in the faidr app, and the first elements of this new monetization capability is expected to be commercially available before the end of 2023.” .
“On October 24, 2023, the Company received a written notice from the Nasdaq staff… to delist the Company’s Common Stock… The Company has requested a hearing… expected to occur in mid-January 2024.” .
“Common Stock Purchase Agreement, dated as of November 6, 2023… up to $10,000,000… in aggregate gross purchase price” (new equity line) .

Q&A Highlights

No Q3 2023 earnings call transcript or Q&A session was filed; no analyst Q&A highlights available from company documents [SearchDocuments: none].

Estimates Context

We attempted to pull Wall Street consensus (S&P Global) for Q3 2023 revenue and EPS; data could not be retrieved due to the S&P Global daily request limit. As a result, consensus comparisons are unavailable from our tools at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

Liquidity remains the key risk: $2.20M cash and runway into February 2024 necessitate timely access to external capital; the new $10M equity line provides a potential bridge but is market-dependent .
Listing risk is a near-term overhang: bid-price noncompliance and pending mid-Jan 2024 hearing increase the odds of corporate actions (e.g., reverse split; enabling Series A preferred created solely to facilitate a reverse split vote) .
Operating trend is stabilizing sequentially: net loss and EPS improved Q/Q as interest expense declined and OPEX edged lower vs Q2, but losses widened Y/Y on higher amortization/interest without revenue .
Execution catalyst: commercialization of “Flex Revenue” before YE 2023 would mark the first meaningful monetization vector; monitor for initial revenue traction and cohort retention metrics once disclosed .
Financing/partner catalysts: progress on AM/FM aggregator acquisitions could accelerate audience scale but requires funding; expect financing structures (equity line draws/other) ahead of transactions .
Risk management: bridge notes and higher rates have materially increased interest expense; deleveraging/refinancing to lower-cost capital would be positive for burn and runway .
For trading: headlines around the Nasdaq panel decision, reverse split authorization, and any first monetization prints are likely to be the primary stock movers near term .

Sources:
- Q3 2023 8-K (Item 2.02): preliminary cash/runway (Nov 9, 2023) **[1554818_0001683168-23-007806_auddia_8k.htm:1]**
- Q3 2023 10-Q: financials, liquidity, Nasdaq updates, and strategy **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:3]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:5]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:7]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:15]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:17]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:19]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:20]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:21]** **[1554818_0001683168-23-008138_auddia_i10q-093023.htm:25]**
- Q2 2023 10-Q: prior-quarter financials and updates **[1554818_0001683168-23-006041_auddia_i10q-063023.htm:3]** **[1554818_0001683168-23-006041_auddia_i10q-063023.htm:5]** **[1554818_0001683168-23-006041_auddia_i10q-063023.htm:13]** **[1554818_0001683168-23-006041_auddia_i10q-063023.htm:19]** **[1554818_0001683168-23-006041_auddia_i10q-063023.htm:24]**
- Q1 2023 10-Q: prior-quarter financials and liquidity **[1554818_0001683168-23-003564_auddia_i10q-033123.htm:3]** **[1554818_0001683168-23-003564_auddia_i10q-033123.htm:4]** **[1554818_0001683168-23-003564_auddia_i10q-033123.htm:6]** **[1554818_0001683168-23-003564_auddia_i10q-033123.htm:7]** **[1554818_0001683168-23-003564_auddia_i10q-033123.htm:15]** **[1554818_0001683168-23-003564_auddia_i10q-033123.htm:18]**
- Aug 25, 2023 press release (filing timeliness; company description) **[1554818_0001683168-23-006077_auddia_ex9901.htm:0]**

AUDDIA INC. (AUUD)·Q3 2023 Earnings Summary