Auddia Inc. (NASDAQ:AUUD), a Delaware-based company specializing in computer processing and data preparation, has entered into a sales agreement for an at-the-market equity offering that could raise up to $10 million. The agreement, dated today, involves the sale of common stock shares through Ascendiant Capital Markets, LLC, acting as the sales agent.
The company, headquartered in Boulder, Colorado, aims to sell shares of its common stock from time to time, depending on market conditions. The offering is pursuant to a "shelf" registration statement, which was filed and declared effective by the SEC in April 2022.
A prospectus supplement related to the ATM offering was also filed today, specifying an immediate offering amount of up to $2.6 million based on regulatory limitations.
Ascendiant Capital Markets, LLC, will be responsible for executing the sale of shares, adhering to Auddia's instructions and in compliance with legal and market requirements. The terms of the agreement allow for sales to be made directly on or through the Nasdaq Stock Market or other existing trading markets for the common stock.
The sales agent will receive a commission of up to 3% of the gross proceeds from each sale made under the agreement. Additionally, Auddia Inc. has agreed to indemnify Ascendiant Capital Markets against certain liabilities and to reimburse them for specific expenses arising from the offering.
The ATM offering provides Auddia with the flexibility to finance its operations by accessing capital markets on an as-needed basis, subject to market conditions and the company's capital needs. The company or the sales agent can suspend the offering at any time.
In other recent news, Auddia Inc. has achieved significant financial growth through a series of common stock sales with White Lion Capital, LLC. The transactions resulted in a capital influx of approximately $1.3 million and $2 million respectively, increasing the company's total outstanding shares. These strategic financial moves are part of Auddia's ongoing operations and potential expansion plans.
On the product front, Auddia has launched faidr 3.1, an updated version of its audio superapp. The update includes notable features like Forward+, which enables users to skip entire segments, and the Seamless feature, allowing subscribers to bypass ads on partner podcasts. These enhancements aim to improve user experience and increase subscription revenue.
Auddia has also introduced Apple (NASDAQ:AAPL) CarPlay and Android Auto interfaces for its faidr mobile application. This development allows users to project their smartphone audio options onto their vehicle’s infotainment systems, providing a safer, hands-free user experience.
InvestingPro Insights
In light of Auddia Inc.'s recent move to raise capital through an at-the-market equity offering, current and potential investors may find value in considering the latest data and insights from InvestingPro. As of the last twelve months leading up to Q2 2024, Auddia Inc. holds a market capitalization of just $3.51 million, reflecting its status as a micro-cap company in the tech sector. This size could potentially affect the liquidity and volatility of its shares.
InvestingPro Tips highlight that Auddia Inc. holds more cash than debt on its balance sheet, which is a positive sign for financial stability. However, the company is not profitable over the last twelve months, and the stock has experienced significant price declines over various timeframes, including a 90.73% drop over the last year. This performance is an essential factor for investors to consider, especially in the context of the company's current efforts to raise funds.
From a valuation standpoint, Auddia's price-to-book ratio stands at 0.73, suggesting that the stock is trading below its book value, which might be of interest to value investors. Nonetheless, with a negative gross profit of $0.19 million and an operating income adjusted to a loss of $7.55 million, the company's financial performance indicates challenges in profitability and cash flow generation.
For those looking to delve deeper into Auddia Inc.'s financial health and future prospects, InvestingPro offers an array of additional tips—14 in total—as well as a fair value estimate, which can be accessed at https://www.investing.com/pro/AUUD. These insights could be instrumental in making informed investment decisions regarding Auddia's stock, especially in the volatile micro-cap sector.
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