BOULDER, CO - Auddia Inc. (NASDAQ:AUUD), a company specializing in computer processing and data preparation services, has been notified by the Nasdaq Stock Market of non-compliance with the exchange's minimum bid price requirement. The notice, received on Wednesday, could potentially lead to the delisting of the company's common stock if compliance is not regained.
According to the notification from Nasdaq, Auddia's common stock did not meet the $1.00 minimum bid price per share over the last 30 consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2). The period of non-compliance was identified as September 4 through October 15, 2024.
The company, however, will not face immediate delisting. Nasdaq has provided Auddia with a 180-day period, until April 14, 2025, to address the issue. If during this period the bid price of Auddia's common stock closes at $1.00 or higher for at least ten consecutive business days, Nasdaq will consider the company back in compliance.
If Auddia Inc. is unable to rectify the bid price deficiency within the initial 180 days, it may be granted a second 180-day period to achieve compliance. This is contingent upon Auddia meeting all other Nasdaq Capital Market listing requirements and providing a written notice of its intention to cure the deficiency, possibly through a reverse stock split.
In other recent news, Auddia Inc. has made significant strides in its financial growth and product development. The company has initiated an at-the-market equity offering that could raise up to $10 million, with Ascendiant Capital Markets acting as the sales agent. This move follows two successful common stock sales with White Lion Capital, LLC, which led to capital influxes of approximately $1.3 million and $2 million respectively.
Simultaneously, Auddia has launched version 3.1 of its audio superapp, faidr, introducing features like Forward+ and Seamless, aimed at improving user experience and boosting subscription revenue. The company has also expanded its reach by introducing Apple (NASDAQ:AAPL) CarPlay and Android Auto interfaces for the faidr mobile application, providing users with a safer, hands-free experience.
InvestingPro Insights
Recent InvestingPro data sheds light on Auddia Inc.'s (NASDAQ:AUUD) financial situation, providing context to the company's Nasdaq compliance challenges. With a market capitalization of just $3.83 million, Auddia is currently operating at a loss, as evidenced by its negative P/E ratio of -0.44 for the last twelve months as of Q2 2024. This aligns with the company's struggle to maintain the required $1.00 minimum bid price.
InvestingPro Tips reveal that Auddia is "quickly burning through cash" and "not profitable over the last twelve months," which may explain the stock's poor performance. The company's stock price has "fallen significantly over the last year," with a staggering -89.26% one-year price total return as of the latest data. This dramatic decline underscores the urgency for Auddia to address its Nasdaq compliance issues.
On a positive note, Auddia "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it navigates these challenges. Additionally, the stock has shown a "significant return over the last week," with a 22.96% price increase, potentially indicating some investor optimism about the company's prospects for regaining compliance.
For investors seeking a deeper understanding of Auddia's situation, InvestingPro offers 13 additional tips that could provide valuable insights into the company's financial health and market position.
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