Filed pursuant to Rule 424(b)(5)
Registration No. 333-235891
PROSPECTUS SUPPLEMENT
(to Prospectus dated April 18, 2021)
AUDDIA INC.
140,186 Shares of Common
Stock
Up to $10,000,000 of Shares of Common
Stock
This prospectus supplement relates to the issuance and sale of up
to ten million dollars ($10,000,000) in shares of the common stock,
$0.001 per share (“common stock”), of Auddia Inc., a Delaware
corporation (“AUUD” or the “Company”), to White Lion Capital LLC
(“White Lion”) pursuant to a purchase agreement (the “White Lion
Purchase Agreement”) entered into on November 14, 2022, and 140,186
shares of common stock (the “Commitment Shares”) to be issued to
White Lion in consideration for entering into the White Lion
Purchase Agreement. White Lion may be an “underwriter” of this
offering under the meaning of Section 2(a)(11) of the Securities
Act of 1933, as amended.
The shares being offered are shares of our Common Stock that we may
sell from time to time until December 31, 2023, at our sole
discretion, to White Lion under the White Lion Purchase Agreement.
See “The Offering” on page S-5
of this prospectus supplement and the “Purchase Agreement with White Lion “ on
page S-6 of this prospectus supplement.
On the commencement date of the White Lion Purchase Agreement,
which is the date of this prospectus supplement, we will issue to
White Lion the Commitment Shares.
This prospectus supplement and the accompanying prospectus also
cover the resale of these shares by White Lion to the public. See
“Purchase Agreement with White
Lion” for a description of the White Lion Purchase Agreement
and additional information regarding White Lion.
The purchase price for the shares of common stock offered hereby to
White Lion will be based upon formulas set forth in the White Lion
Purchase Agreement depending on the type of purchase notice we
submit to White Lion from time to time. We will pay the expenses
incurred in connection with the issuance of the shares of our
common stock, including legal and accounting fees. See “Plan of
Distribution”. Our common stock and our Series A Warrants are
currently quoted on the Nasdaq Capital Market (“Nasdaq”) under the
symbols “AUUD”and “AUUDW” respectively. On November 11, 2022, the
closing price as reported on Nasdaq was $1.42 per share for our
common stock and $0.3627 for our Series A Warrants.
INVESTING IN OUR COMMON STOCK INVOLVES CERTAIN RISKS. SEE
“RISK FACTORS” ON PAGE S-7 OF
THIS PROSPECTUS SUPPLEMENT AND ON PAGE 4 OF THE ACCOMPANYING
PROSPECTUS TO READ ABOUT FACTORS YOU SHOULD CONSIDER BEFORE
INVESTING IN OUR COMMON STOCK. YOU SHOULD ALSO REVIEW CAREFULLY THE
RISKS AND UNCERTAINTIES DESCRIBED IN OUR ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 2021 OUR QUARTERLY REPORT ON FORM
10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2022 AND IN OUR PERIODIC
AND CURRENT REPORTS THAT WE FILE WITH THE SECURITIES AND EXCHANGE
COMMISSION AFTER THE DATE OF THIS PROSPECTUS SUPPLEMENT, WHICH ARE
INCORPORATED BY REFERENCE INTO THIS PROSPECTUS SUPPLEMENT. YOU
SHOULD READ THE ENTIRE PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING
PROSPECTUS CAREFULLY BEFORE YOU MAKE YOUR INVESTMENT
DECISION.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES
OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this Prospectus Supplement is November 15, 2022
TABLE OF CONTENTS
PROSPECTUS SUPPLEMENT
PROSPECTUS
TABLE OF CONTENTS
ABOUT
THIS PROSPECTUS SUPPLEMENT
This document contains two parts. The first part is this prospectus
supplement, which describes the terms of this offering of common
stock and also adds to and updates information contained in the
accompanying prospectus and the documents incorporated or deemed
incorporated by reference in this prospectus supplement and the
accompanying prospectus. The second part is the accompanying
prospectus, which contains a description of our common stock and
gives more general information, some of which may not apply to this
offering. If there is any inconsistency between the information in
this prospectus supplement and the accompanying prospectus, you
should rely on this prospectus supplement. Before purchasing any
shares of our common stock, you should read carefully both this
prospectus supplement and the accompanying prospectus, together
with the documents incorporated or deemed incorporated by reference
in this prospectus supplement or accompanying prospectus (as
described below under the heading “Incorporation of Certain
Documents by Reference”), any related free writing prospectus and
the additional information described below under the heading “Where
You Can Find More Information.”
This prospectus supplement and the accompanying prospectus are part
of an effective registration statement that we filed with the
Securities and Exchange Commission (the “SEC”) using a “shelf”
registration process. This prospectus supplement and the
accompanying prospectus, which form a part of the registration
statement, do not contain all of the information set forth in the
registration statement. For further information with respect to us
and our common stock, reference is made to the registration
statement, including the exhibits to the registration statement and
the documents incorporated by reference into the registration
statement. Statements contained in this prospectus supplement and
the accompanying prospectus as to the contents of any contract or
other document referred to in this prospectus supplement and
accompanying prospectus are not necessarily complete and, where
that contract or other document is an exhibit to the registration
statement, we refer you to the full text of the contract or other
document filed as an exhibit to the registration statement. The
registration statement and the exhibits can be obtained from the
SEC as indicated under the heading “Where You Can Find More
Information.”
You should rely only on the information contained in or
incorporated by reference into this prospectus supplement and the
accompanying prospectus and the other information to which we refer
you. Neither we nor any underwriter, broker-dealer, agent or other
person have authorized anyone to provide you with any information
other than that contained in or incorporated by reference into this
prospectus supplement or the accompanying prospectus. If anyone
provides you with different or inconsistent information, you should
not rely on it.
This prospectus supplement and the accompanying prospectus do not
constitute an offer to sell or the solicitation of an offer to buy
securities in any jurisdiction to any person to whom it is unlawful
to make such an offer or solicitation in that jurisdiction. You
should assume that the information appearing in this prospectus
supplement and the accompanying prospectus is accurate as of the
date on its respective cover, and that any information incorporated
by reference in this prospectus supplement or the accompanying
prospectus is accurate only as of the date of the document
incorporated by reference, unless we indicate otherwise. Our
business, financial condition, results of operations and prospects
may have changed since those dates.
Unless the context indicates otherwise, as used in this prospectus,
unless the context otherwise requires, references to “we,” “us,”
“our,” “the Company” and “AUUD” refer to Auddia Inc.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus supplement and the accompanying prospectus and the
information incorporated by reference in this prospectus supplement
and the accompanying prospectus contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). These
statements are therefore entitled to the protection of the safe
harbor provisions of these laws. These statements may be identified
by the use of forward-looking terminology such as “anticipate,”
“believe,” “budget,” “contemplate,” “continue,” “could,”
“envision,” “estimate,” “expect,” “forecast,” “guidance,”
“indicate,” “intend,” “may,” “might,” “outlook,” “plan,”
“possibly,” “potential,” “predict,” “probably,” pro-forma,”
“project,” “seek,” “should,” “target,” “will,” “would,” “will be,”
“will continue” or the negative of or other variation on these
words or comparable terminology.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, these forward-looking statements are only
predictions and involve a number of risks and uncertainties, many
of which are beyond our control. These and other important factors
may cause our actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements.
Management cautions that the forward-looking statements contained
in this prospectus supplement and the information incorporated by
reference are not guarantees of future performance, and we cannot
assume that such statements will be realized or the forward-looking
events and circumstances will occur. The risks, uncertainties and
assumptions that could cause actual results to differ materially
from those anticipated or implied in our forward-looking statements
include, but are not limited to, those set forth in the section
entitled “Risk Factors” in the accompanying prospectus and in “Risk
Factors” section below.
Some of the factors that could cause actual results to differ from
our expectations are:
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the
early state of the Company’s development; |
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the
Company’s ability to continue as a going concern; |
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the
Company’s ability to compete in an unproven market; |
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resistance
by potential customers to new technologies; |
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performance
issues with the Company’s products; |
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uncertainties
related to estimates, assumptions and projections relating to
unpaid losses and loss adjustment expenses and other accounting
policies; |
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reliance
on key personnel; |
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introduction
of competing products by other companies; |
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inflation
and other changes in economic conditions, including changes in the
financial markets; |
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security
breaches and other system disruptions; |
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legislative
and regulatory developments, especially in the gathering and use of
information about private citizens; |
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weather
conditions and natural disasters (including, but not limited to,
the severity and frequency of storms, hurricanes, tornados and
hail); and |
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acts
of war and terrorist activities, among other man-made
disasters. |
Given these risks and uncertainties, you are cautioned not to place
undue reliance on any forward-looking statements. The
forward-looking statements included or incorporated by reference
into this prospectus supplement and in the information incorporated
by reference are made only as of the date of this prospectus
supplement. Except as required by applicable law, including the
securities laws of the United States and the rules and regulations
of the SEC, we do not undertake and specifically decline any
obligation to update or revise any forward-looking statements in
this prospectus supplement after we distribute this prospectus
supplement, or publicly announce the results of any revisions to
any such statements to reflect future events or developments,
whether as a result of any new information, future events or
otherwise.
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights selected information about us and this
offering appearing in this prospectus supplement, the accompanying
prospectus and the documents incorporated or deemed incorporated by
reference herein and therein. This summary may not contain all of
the information that you should consider before making an
investment decision. You should read carefully the more detailed
information included or referred to under the heading “Risk
Factors” of this prospectus supplement and the other information
included in this prospectus supplement, the accompanying
prospectus, the documents incorporated or deemed incorporated by
reference herein and therein, including our Annual Report on Form
10-K for the year ended December 31, 2021, before deciding to
invest in our common stock.
The Company
We are a technology company headquartered in Boulder, CO that is
reinventing how consumers engage with audio through the development
of a proprietary Artificial Intelligence (“AI”) platform for audio
and innovative technologies for podcasts. We are leveraging these
technologies to bring to market two industry first apps, Faidr
(previously known as the Auddia App) and Vodacast.
Faidr gives consumers the opportunity to listen to any AM/FM radio
station with no commercials while personalizing the listening
experience through skips, the insertion of on-demand content and
programming of audio routines to customize listening sessions such
as a daily commute. The Faidr App represents the first time
consumers can access the local content uniquely provided by radio
in the commercial free and personalized manner many consumers have
come to demand for media consumption.
The Company launched all major U.S. radio stations on its Faidr App
on February 15, 2022.
Vodacast is a podcasting platform that provides a unique suite of
tools that helps Podcasters create additional digital content for
their podcast episodes as well as plan their episodes, build their
brand around their Podcast and monetize their content with new
monetization channels. Vodcast also gives users the ability to go
deeper into the stories through supplemental, digital content,,
comment, and contribute their own content to episode feeds.
Both of our offerings address large and rapidly growing audiences.
Faidr and Vodacast mobile apps are available today through the iOS
and Android app stores.
THE
OFFERING
The
Common Stock offered by us |
Up to ten million dollars ($10,000,000) of shares of common
stock.
140,186 shares of our common stock being issued to White Lion as
consideration for its commitment to purchase shares of our common
stock under the White Lion Purchase Agreement, or the Commitment
Shares. We will not receive any cash proceeds from the issuance of
these Commitment Shares.
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Common
stock outstanding before the offering |
12,514,763 shares (1) |
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Common
Stock to be outstanding after the Offering |
19,697,203
shares, which includes 140,186 Commitment Shares and assumes the
sale of 7,042,254 shares at a price of $1.42 per share, which was
the closing price of our common stock on the Nasdaq Capital Market
(“Nasdaq”) on November 11, 2022, for the $10,000,000 of additional
shares of our Common Stock we may sell to White Lion from time to
time. The actual number of shares issued will vary depending on the
sales prices under this offering, but will not be greater than
2,501,700 shares, representing 19.99% of the shares of our common
stock outstanding on the date of the White Lion Purchase Agreement,
unless, in accordance with applicable Nasdaq rules, we obtain
stockholder approval of the issuance of shares of our common stock
under the White Lion Purchase Agreement in excess of the Exchange
Cap (as defined therein), or the average price of all applicable
sales of our common stock to White Lion under the White Lion
Purchase Agreement is equal to or greater than the $1.23 Minimum
Price (as defined therein). |
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Common
Stock Purchase Series A Warrants Outstanding |
3,498,898
(2) |
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Risk
Factors |
Investing
in our common stock involves certain risks. See “Risk Factors” on page S-7 of this
prospectus supplement and on page 4 of the accompanying
prospectus. |
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Use
of Proceeds |
Proceeds
will be used as described in the “Use of Proceeds” section of this
prospectus supplement. |
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Nasdaq
Symbol Common Stock |
AUUD |
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Nasdaq
Symbol Warrants |
AUUDW |
(1) |
As of
November 10, 2022. |
(2) |
As of November 10, 2022, there are 3,498,898 Series A Warrants
outstanding. Each Series A Warrant entitles the holder to purchase
one share of common stock. The Warrants have an exercise price of
$4.54 per share and expire in February of 2026. No Series A
Warrants are being offered as part of this Offering.
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PURCHASE AGREEMENT WITH WHITE
LION
On November 14, 2022, we entered into the White Lion Purchase
Agreement with White Lion under which the Company may require White
Lion to purchase a maximum of $10,000,000 of common stock (“White
Lion Purchase Shares”) over a term that ends on the earliest of
December 31, 2023 or (ii) the date on which White Lion shall have
made payment for shares of our Company’s equal to the Commitment
Amount (the “Commitment Period”).
In consideration for the Investor’s execution and delivery of, and
performance under the White Lion Purchase Agreement, the Company
has issued to White Lion 140,186 shares of common stock (the
“Commitment Shares”) as a commitment fee.
The White Lion Purchase Agreement provides that, upon the terms and
subject to the conditions and limitations set forth in the
agreement, the Company has the right, but not the obligation, from
time to time, in its sole discretion, to deliver to White Lion a
purchase notice (a “White Lion Purchase Notice”) directing White
Lion to purchase (each, a “White Lion Purchase”) a specified dollar
amount of White Lion Purchase Shares (the “White Lion Purchase
Amount”) equal to the lesser of (i) up to thirty percent (30%) of
the average daily trading volume of the common stock during the
five (5) business days before the date of the Purchase Notice, or
(ii) the Investment Limit (described below) divided by the highest
closing price of the common stock over the most recent five (5)
business days including the purchase date. The Investment Limit is
$500,000, subject to increase at the sole discretion of White
Lion.
The White Lion Purchase Price will be set at ninety-seven percent
(97%) of the lowest daily dollar volume-weighted average price for
the common stock during the three (3) business days after the date
of the White Lion Purchase Notice (the “Valuation Period’). On the
last day of the Valuation Period, White Lion will wire the Company
an amount equal to the number of shares specified on the White Lion
Purchase Notice multiplied by the White Lion Purchase Price.
The White Lion Purchase Agreement prohibits the Company from
directing White Lion to purchase any shares of common stock if
those shares, when combined with all other shares of our common
stock then beneficially owned by White Lion and its affiliates,
would result in their combined beneficial ownership, at any single
point in time, of more than 4.99% of the then total outstanding
shares of common stock. Notwithstanding the foregoing, White Lion,
in its discretion, may waive this prohibition and purchase up to
19.99% of the then total outstanding shares of the common
stock.
There are no trading volume requirements or restrictions under the
White Lion Purchase Agreement. We will control the timing and
amount of any sales of our common stock to White Lion.
The Company is not permitted to deliver a White Lion Purchase
Notice at any time that an event of default under the White Lion
Purchase Agreement has occurred and is continuing.
The above description of the White Lion Purchase Agreement is
qualified in its entirety by reference to the White Lion Purchase
Agreement, which is incorporated by reference into this prospectus
supplement.
RISK
FACTORS
Investing in our securities involves a high degree of risk. You
should carefully review the risks and uncertainties discussed in
the “Risk Factors” section that
is found on page 4 of the accompanying prospectus and the risk
factors described below before deciding whether to purchase any
common stock being offered under this prospectus supplement/ Each
of the risk factors described in this prospectus supplement or in
the accompanying prospectus could adversely affect our business,
operating results and financial condition, as well as adversely
affect the value of an investment in the common stock. The
occurrence of any of these risks might cause you to lose all or
part of your investment. Moreover, the risks described below are
not the only risks we face. Additional risks and uncertainties not
currently known to us or that we currently deem to be immaterial
may also materially and adversely affect our business, financial
condition, and results of operations. If any of these risks
actually occurs, our business, financial condition and results of
operations could suffer. In that case, the trading price of our
common stock could decline, and you may lose all or part of your
investment.
Risks related to our financial position and need for additional
capital
Our auditors have previously expressed substantial doubt
about our ability to continue as a going concern, which may hinder
our ability to obtain further financing.
Our past working capital deficiency, stockholders’ deficit and
recurring losses from operations have raised substantial doubt
about our ability to continue as a going concern. As a result, our
independent registered public accounting firm included an
explanatory paragraph in its report on our financial statements for
the year ended December 31, 2020 with respect to this uncertainty.
The report of our independent registered public accounting firm on
our financial statements for the year ended December 31, 2021 did
not have such an explanatory paragraph, based upon the receipt of
the net proceeds from our February 2021initial public offering and,
the July 2021 exercise of our publicly traded Series A
Warrants.
As of September 30, 2022, our existing cash was only sufficient to
fund our current operating plans through December 31, 2022. We
recently closed on $2 million of debt financing. However, we will
still require additional capital to maintain our operations through
the end of 2023. We therefore expect and need to raise additional
funds. If we are unable to raise capital when needed or on
acceptable terms, we would be forced to delay, reduce or eliminate
our technology development and commercialization efforts.
We have incurred significant net losses since inception and
anticipate that we will continue to incur net losses for the
foreseeable future and may never achieve or maintain
profitability.
Since inception, we have incurred significant net losses. We expect
to continue to incur net losses in the near term. Our net losses
were $13,478,069 and $4,051,221 for the years ended December 31,
2021 and 2020, respectively. For the year ended December 31, 2021
our cash used in operations was $5,471,545. At September 30, 2022,
we had cash and equivalents on hand of $957,130. To date, we have
devoted our efforts towards securing financing, building, and
evolving our technology platform, marketing our mobile app product
for radio stations as well as initiating our marketing efforts for
our music player. We expect to continue to incur significant
expenses and operating losses for the foreseeable future. We
anticipate that our expenses will increase substantially if, and
as, we:
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incur
costs related to the national launch of our Faidr App and as we
continue obtaining market acceptance; |
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recruit
and retain podcasters to our Vodacast App and retaining listeners
on the platform; |
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continue
to develop and improve our technology; |
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effectively
addressing any competing technological and market
developments; |
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add
operational, business development & marketing personnel;
and |
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incur
legal expenses related to avoiding and defending against
intellectual property infringement, misappropriation and other
claims |
To become profitable, we must develop and eventually commercialize
one or more product candidates, including Faidr and Vodacast, with
significant market potential. This will require us to be successful
in a range of challenging activities, and our expenses will
increase substantially as we seek to bring these products to
market. We may never succeed in any or all of these activities and,
even if we do, we may never generate revenue that is significant or
large enough to achieve profitability. If we do achieve
profitability, we may not be able to sustain or increase
profitability on a quarterly or annual basis. Our failure to become
and remain profitable would decrease the value of our company and
could impair our ability to raise capital, develop new products,
expand our business or continue our operations. A decline in the
value of our Company also could cause stockholders to lose all or
part of their investment.
We need additional funding, which may not be available on
acceptable terms, or at all. Failure to obtain this capital when
needed may force us to delay, limit or terminate our product
development efforts or other operations.
We expect our expenses to increase in connection with our ongoing
activities, particularly as we continue to invest in sales,
marketing and engineering resources and bring our products to
market. Furthermore, we expect to incur additional costs associated
with operating as a public company. We need additional funding to
complete the development of our full product line and scale
products with a demonstrated market fit.
Building and scaling technology products is a time-consuming,
expensive and uncertain process that takes years to complete, and
we may never generate the necessary user experience required to
obtain market acceptance and achieve meaningful product sales. In
addition, our product candidates, once developed, may not achieve
commercial success. The majority of revenue will be derived from or
based on sales of products that may not be commercially available
for many years, if at all. Accordingly, we will need to continue to
rely on revenues from existing products and/or additional financing
to achieve our business objectives. Adequate additional financing
may not be available to us on acceptable terms, or at all.
Sales of our common stock to White Lion may cause substantial
dilution to our existing stockholders and the sale of common stock
acquired by White Lion could cause the price of our common stock to
decline.
This prospectus supplement relates to the offering of our common
stock with an aggregate amount of up to $10,000,000 that we may
issue and sell to White Lion from time to time pursuant to the
White Lion Purchase Agreement. It is anticipated that the common
stock offered to White Lion in this offering will be sold from time
to time during the Commitment Period. The number of shares
ultimately offered for sale to White Lion under this prospectus
supplement is dependent upon the number of shares we elect to sell
to White Lion under the White Lion Purchase Agreement. Depending
upon market liquidity at the time, sales into the public markets of
shares we issue to White Lion under the White Lion Purchase
Agreement may cause the trading price of our common stock to
decline.
White Lion may ultimately purchase all, some or none of the shares
offered hereby. After White Lion has acquired common stock under
the White Lion Purchase Agreement, it may sell all, some or none of
those shares. Sales to White Lion by us pursuant to the White Lion
Purchase Agreement under this prospectus supplement may result in
substantial dilution to the interests of other holders of our
common stock. The sale of a substantial number of our shares to
White Lion in this offering, or anticipation of such sales, could
make it more difficult for us to sell equity or equity-related
securities in the future at a time and at a price that we might
otherwise wish to effect sales. However, we have the right to
control the timing and amount of any sales of our shares to White
Lion.
The extent to which we rely on White Lion as a source of funding
will depend on a number of factors, including the prevailing market
price of our common stock and the extent to which we are able to
secure working capital from other sources.
USE
OF PROCEEDS
We may receive up to $10,000,000 in aggregate gross proceeds under
the White Lion Purchase Agreement from sales of our common stock
with an aggregate offering amount of $10,000,000 that we may make
to White Lion after the date of this prospectus supplement. We
estimate that the net proceeds to us from the sale of our common
stock to White Lion pursuant to the Purchase Agreement will be up
to approximately, but not exceeding, US$10,000,000 over the
Commitment Period, assuming that we sell the full amount of the
shares that we have the right, but not the obligation, to sell to
White Lion under the White Lion Purchase Agreement, and after
estimated fees and expenses. We may sell fewer than all of the
shares offered by this prospectus supplement, in which case our net
offering proceeds will be less. Because we are not obligated to
sell any shares of common stock under the White Lion Purchase
Agreement, the actual total offering amount and proceeds to us, if
any, are not determinable at this time. There can be no assurance
that we will receive any proceeds under or fully utilize the White
Lion Purchase Agreement. See “Plan
of Distribution” elsewhere in this prospectus supplement for
more information.
We intend to use the net proceeds from this offering for working
capital and general corporate purposes.
The foregoing represents our current intentions based upon our
present plans and business conditions to use and allocate the net
proceeds of this offering. Our management, however, will have
significant flexibility and discretion to apply the net proceeds of
this offering. If an unforeseen event occurs or business conditions
change, we may use the proceeds of this offering differently than
as described in this prospectus supplement. Unforeseen events or
changed business conditions may result in application of the
proceeds of this offering in a manner other than as described in
this prospectus supplement.
To the extent that the net proceeds we receive from this offering
are not immediately applied for the above purposes, we plan to
invest the net proceeds in bank deposits.
DILUTION
If you invest in our common stock, your interest will be diluted
immediately to the extent of the difference between the public
offering price per share and the adjusted net tangible book value
per share of our common stock after this offering.
Our net tangible book value on September 30, 2022 was approximately
$625,000, or $0.05 per share. “Net tangible book value” is total
assets minus the sum of liabilities and intangible assets. “Net
tangible book value per share” is net tangible book value divided
by the total number of shares outstanding.
After giving effect to the issuance of the 140,186 Commitment
Shares, and the sale of up to $10.0 million of Purchase Notice
Shares (without giving effect to the Exchange Cap) at an assumed
offering price of $1.42 per share, the last reported sale price of
our common stock on The Nasdaq Capital Market on November 11, 2022,
and after deducting estimated offering expenses payable by us of
$75,000, and adjusted to our issuance of $2,200,000 of secured
bridge notes for net proceeds of $2,000,000 on November 14, 2022,
our net tangible book value as of September 30, 2022 would have
been $10,424,206, or $0.53 per share of common stock. This
represents an immediate increase in net tangible book value of
$0.48 per share to our existing stockholders and an immediate
decrease in net tangible book value of $0.89 per share to investors
participating in this offering. The following table illustrates
this dilution per share to investors participating in this
offering:
Assumed offering price per share |
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$ |
1.42 |
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Net tangible book value per share as of September 30, 2022 |
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$ |
0.05 |
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Increase in net
tangible book value per common stock to existing investors |
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$ |
0.48 |
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As adjusted net
tangible book value per share as of September 30, 2022, after
giving effect to this offering, adjusted for issuance of $2.2
million of secured bridge notes on November 14, 2022 |
|
$ |
0.53 |
|
Net dilution
per share to White Lion Capital |
|
$ |
0.89 |
|
The above discussion and table are based on 12,514,763 shares
outstanding as of November 10, 2022, and excludes, as of such date,
shares of common stock issuable upon exercise of the outstanding
options and warrants.
To the extent that any of our outstanding options or warrants are
exercised, we grant additional options or other awards under our
equity incentive plan or issue additional warrants, or we issue
additional common stock in the future, there may be further
dilution.
PLAN
OF DISTRIBUTION
Pursuant to this prospectus supplement, we are offering up to
$10,000,000 in shares of our common stock to White Lion
pursuant to the White Lion Purchase Agreement, as well as the
140,186 Commitment Shares previously issued to White Lion as
consideration for entry into the White Lion Purchase Agreement.
This prospectus supplement also covers the resale of these shares
by White Lion to the public.
We may, from time to time and at our sole discretion, direct White
Lion to purchase shares of our common stock, but the maximum amount
of shares that may be sold on any single business day pursuant to a
White Lion Purchase Notice generally shall not exceed the lesser of
(i) such number of shares as would cause White Lion to beneficially
own in excess of 4.99% of the number of our common stock
outstanding immediately after giving effect to such issuance and
sale, (ii) thirty percent (30%) of the average daily trading volume
of the common stock during the five (5) business days before the
date of the Purchase Notice, or (iii) the Investment Limit divided
by the highest closing price of the common stock over the most
recent five (5) business days including the purchase date. The
foregoing share amounts and related market prices will be adjusted
for any reorganization, recapitalization, non-cash dividend, stock
split, reverse stock split or other similar transaction occurring
after the date of this prospectus supplement. The purchase price
per share is based on the market price of our common stock at the
time of sale as computed under the White Lion Purchase Agreement.
White Lion may not assign or transfer its rights and obligations
under the White Lion Purchase Agreement. See “Purchase Agreement
With White Lion.”
The shares we may from time to time issue to White Lion under this
prospectus supplement, may be sold or distributed from time to time
by White Lion, as the selling stockholder, directly to one or more
purchasers or through brokers, dealers, or underwriters who may act
solely as agents at market prices prevailing at the time of sale,
at prices related to the prevailing market prices, at negotiated
prices, or at fixed prices, which may be changed. The sale of the
shares of our common stock offered by this prospectus supplement
could be effected in one or more of the following methods:
|
• |
ordinary brokers’ transactions; |
|
• |
transactions involving cross or block trades; |
|
• |
through brokers, dealers, or underwriters who may act
solely as agents; |
|
• |
“at the market” into an existing market for our common
stock; |
|
• |
in other ways not involving market makers or established
business markets, including direct sales to purchasers or sales
effected through agents; |
|
• |
in privately negotiated transactions; or |
|
• |
any combination of the foregoing. |
In order to comply withthe securities laws of certain states, if
applicable, the shares may be sold only through registered or
licensed brokers or dealers. In addition, in certain states, the
shares may not be sold unless they have been registered or
qualified for sale in the state or an exemption from the state’s
registration or qualification requirement is available and complied
with.
White Lion is an “underwriter” within the meaning of
Section 2(a)(11) of the Securities Act. White Lion is not a
licensed broker dealer or an affiliate of a licensed broker dealer,
and is not a member of the Financial Industry Regulatory
Authority.
White Lion has informed us that it intends to use one or more
registered broker-dealers to effectuate all sales, if any, of our
common stock that it may acquire from us pursuant to the White Lion
Purchase Agreement. Such sales will be made at prices and at
terms then prevailing or at prices related to the then current
market price. Each such registered broker-dealer will be an
underwriter within the meaning of Section 2(a)(11) of the
Securities Act. White Lion has informed us that each such
broker-dealer may receive commissions from White Lion and, if so,
such commissions will not exceed customary brokerage
commissions.
Brokers, dealers, underwriters or agents participating in the
distribution of the shares of our common stock offered by this
prospectus supplement may receive compensation in the form of
commissions, discounts, or concessions from the purchasers, for
whom the broker-dealers may act as agent, of the shares sold by the
selling stockholder through this prospectus supplement. The
compensation paid to any such particular broker-dealer by any such
purchasers of shares of our common stock sold by the White Lion may
be less than or in excess of customary commissions. Neither we nor
the White Lion can presently estimate the amount of compensation
that any agent will receive from any purchasers of shares of our
common stock sold by White Lion.
We know of no existing arrangements between the selling stockholder
or any other stockholder, broker, dealer, underwriter or agent
relating to the sale or distribution of the shares of our common
stock offered by this prospectus supplement.
We may from time to time file with the SEC one or more supplements
to this prospectus supplement or amendments to the registration
statement of which this prospectus supplement forms a part to
amend, supplement or update information contained in this
prospectus supplement, including, if and when required under the
Securities Act, to disclose certain information relating to a
particular sale of shares offered by this prospectus supplement by
White Lion, including the names of any brokers, dealers,
underwriters or agents participating in the distribution of such
shares by the selling stockholder, any compensation paid by White
Lion to any such brokers, dealers, underwriters or agents, and any
other required information.
We estimate that the total expenses for the offering will be
approximately $75,000.
We have agreed to indemnify White Lion and certain other persons
against certain liabilities in connection with the offering of
shares of our common stock offered hereby, including
liabilities arising under the Securities Act. White Lion has agreed
to indemnify us against liabilities under the Securities Act that
may arise from certain written information furnished to us by White
Lion specifically for use in this prospectus supplement or, if such
indemnity is unavailable, to contribute amounts required to be paid
in respect of such liabilities.
White Lion also agreed that neither it, nor any of its affiliates,
would execute any short sales during the period from November 14,
2022 to the end of the Commitment Period.
We have advised White Lion that it is required to comply with
Regulation M promulgated under the Exchange Act. With certain
exceptions, Regulation M precludes White Lion, any affiliated
purchasers, and any broker-dealer or other person who participates
in the distribution from bidding for or purchasing, or attempting
to induce any person to bid for or purchase any security which is
the subject of the distribution until the entire distribution is
complete. Regulation M also prohibits any bids or purchases made in
order to stabilize the price of a security in connection with the
distribution of that security. All of the foregoing may affect the
marketability of the securities offered by this prospectus
supplement.
This offering will terminate on the earlier of December 31, 2023 or
(ii) the date on which White Lion shall have made payment for
shares of our Company’s equal to the Commitment Amount.
Our common stock is listed on the Nasdaq and trades under the
symbol “AUUD.” The transfer agent of our common stock is VStock
Transfer, LLC.
INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE
We are incorporating by reference into this prospectus supplement
and the accompanying prospectus the documents listed below that we
have filed with the SEC, which means we can disclose important
information to you by referring you to those documents. The
information incorporated by reference is considered to be a part of
this prospectus supplement and the accompanying prospectus. We
incorporate by reference:
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· |
Our
Annual Report on Form 10-K for the year ended December 31, 2021, filed on
February 17, 2022; |
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|
|
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· |
Our
Quarterly Reports on Form 10-Q for the quarters ending: September
30, 2022, (filed on November 14, 2022); June 30, 2022 (filed on August
12, 2022); and March 31, 2022 (filed on May 12,
2022); |
|
|
|
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· |
Our
Current Reports on Form 8-K filed May 23, July 20, August 1, November 3 and November 14, 2022;
and |
|
|
|
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· |
Our
Registration Statement on Form 8-A, filed with the SEC on
February 16, 2021, including any amendments or reports filed for
the purpose of updating the description of our common stock
therein. |
In addition, we also incorporate by reference into this prospectus
supplement and the accompanying prospectus all documents (other
than current reports furnished under Item 2.02 or Item 7.01 of Form
8-K and exhibits filed on that form which are related to those
items) that are filed by us with the SEC pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act before the
termination of the offering of our common stock to which this
prospectus supplement and the accompanying prospectus relate,
except for any document or portion of such document deemed to be
“furnished” and not filed in accordance with SEC rules.
The information relating to us contained in this prospectus
supplement and the accompanying prospectus does not purport to be
comprehensive and should be read together with the information
contained in the documents incorporated or deemed to be
incorporated by reference into this prospectus supplement and the
accompanying prospectus.
We will provide to each person, including any beneficial owner, to
whom a prospectus supplement and accompanying prospectus is
delivered, without charge, upon written or oral request, a copy of
any or all of the documents that are incorporated by reference into
this prospectus supplement and the accompanying prospectus but not
delivered with the prospectus supplement and accompanying
prospectus, including exhibits that are specifically incorporated
by reference into such documents. You may request a copy of these
filings without charge by contacting Auddia Inc. Attention:
Investor Relations, 2100 Central Avenue, Suite 200, Boulder, CO
80301, Telephone # (303) 219-9771.
Information that we file later with the SEC and that is
incorporated by reference in this prospectus supplement will
automatically update and supersede information contained in this
prospectus supplement and the accompanying prospectus as if that
information were included in this prospectus supplement and the
accompanying prospectus. That information will become part of this
prospectus supplement and the accompanying prospectus from the date
the information is filed with the SEC.
WHERE YOU CAN FIND MORE
INFORMATION
We are subject to the informational requirements of the Exchange
Act and, accordingly, file periodic reports, proxy statements and
other information with the SEC. You can obtain these reports, proxy
statements and other information that we file electronically with
the SEC on the SEC’s website at www.sec.gov. Our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K and amendments to these reports that are filed or furnished
pursuant to Section 13 of the Exchange Act are available on our
website at www.aitx.ai, as soon as reasonably practicable after
they are electronically filed with the SEC. The information on our
website is not part of this prospectus, except to the extent filed
with the SEC and specifically incorporated into this prospectus by
reference.
This prospectus is part of a registration statement that we filed
with the SEC under the Securities Act. This prospectus does not
contain all of the information presented in the registration
statement and its exhibits in accordance with SEC rules. Our
descriptions in this prospectus of the provisions of documents
filed as exhibits to the registration statement or otherwise filed
with the SEC are only summaries of the terms of those documents and
are not intended to be comprehensive. For a complete description of
the content of the documents, you should obtain copies of the full
document.
LEGAL MATTERS
Certain legal matters in connection with the offering and the
validity of the securities offered by this prospectus supplement
and accompanying prospectus will be passed upon by Carroll Legal
LLC, Denver, Colorado.
EXPERTS
Our balance sheets at December 31, 2021 and 2020 and the related
statement of operations, changes in stockholders’ equity (deficit)
and cash flows for the years ended December 31, 2021 and 2020,
incorporated in this prospectus by reference, have been audited by
Daszkal Bolton LLP, independent registered public accounting firm,
with respect thereto, and has been so included in reliance upon the
report of such firm given on their authority as experts in
accounting and auditing.
PROSPECTUS
AUDDIA INC.
$50,000,000
COMMON STOCK
PREFERRED STOCK
WARRANTS
SUBSCRIPTION RIGHTS
DEBT SECURITIES
UNITS
We may offer and sell from time to time, in one or more series, any
one of the following securities of our company, for total gross
proceeds of up to $50,000,000:
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· |
common
stock; |
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· |
preferred
stock; |
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· |
warrants
to purchase common stock, preferred stock, debt securities, other
securities or any combination of those securities; |
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· |
subscription
rights to purchase common stock, preferred stock, debt securities,
other securities or any combination of those
securities; |
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· |
secured
or unsecured debt securities consisting of notes, debentures or
other evidences of indebtedness which may be senior debt
securities, senior subordinated debt securities or subordinated
debt securities, each of which may be convertible into equity
securities; or |
|
· |
units
comprised of, or other combinations of, the foregoing
securities. |
We may offer and sell these securities separately or together, in
one or more series or classes and in amounts, at prices and on
terms described in one or more offerings. We may offer securities
through underwriting syndicates managed or co-managed by one or
more underwriters or dealers, through agents or directly to
purchasers. The prospectus supplement for each offering of
securities will describe in detail the plan of distribution for
that offering. For general information about the distribution of
securities offered, please see “Plan
of Distribution” in this prospectus.
Each time our securities are offered, we will provide a prospectus
supplement containing more specific information about the
particular offering and attach it to this prospectus. The
prospectus supplements may also add, update or change information
contained in this prospectus.
This prospectus may not be used to offer or sell securities
without a prospectus supplement which includes a description of the
method and terms of this offering.
Our common stock is quoted on the Nasdaq Capital Market under the
symbol “AUUD.” The last reported sale price of our common stock on
the Nasdaq Capital Market on April 8, 2022 was $2.05 per share. The
aggregate market value of our outstanding common stock held by
non-affiliates is $18,380,130 based on 12,514,763 shares of
outstanding common stock, of which 8,965,917 shares are held by
non-affiliates, and a per share price of $2.05, which was the
closing sale price of our common stock as quoted on the Nasdaq
Capital Market on April 8, 2022.
Our Series A Warrants are quoted on the Nasdaq Capital Market under
the symbol “AUUDW.” The last reported sale price of our Series A
warrants on the Nasdaq Capital Market on April 8, 2022 was $0.60
per warrant.
Pursuant to General Instruction I.B.6 of Form S-3, in no event will
we sell securities pursuant to this prospectus with a value of more
than one-third of the aggregate market value of our common stock
held by non-affiliates in any twelve-month period, so long as the
aggregate market value of our common stock held by non-affiliates
is less than $75,000,000. In the event that subsequent to the date
of this prospectus, the aggregate market value of our outstanding
common stock held by non-affiliates equals or exceeds $75,000,000,
then the one-third limitation on sales shall not apply to
additional sales made pursuant to this prospectus. We have not
offered any securities pursuant to General Instruction I.B.6 of
Form S-3 during the twelve calendar months prior to and including
the date of this prospectus.
If we decide to seek a listing of any preferred stock, purchase
contracts, warrants, subscriptions rights, depositary shares, debt
securities or units offered by this prospectus, the related
prospectus supplement will disclose the exchange or market on which
the securities will be listed, if any, or where we have made an
application for listing, if any.
Investing in our securities is highly speculative and involves a
significant degree of risk. See “Risk Factors” beginning on page 5 and
the risk factors in our most recent Annual Report on Form 10-K,
which is incorporated by reference herein, as well as in any other
recently filed quarterly or current reports and, if any, in the
relevant prospectus supplement. We urge you to carefully read this
prospectus and the accompanying prospectus supplement, together
with the documents we incorporate by reference, describing the
terms of these securities before investing.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal
offense.
The date of this prospectus is April 18, 2022
TABLE OF CONTENTS
ABOUT
THIS PROSPECTUS
This prospectus is part of a registration statement on Form S-3
that we filed with the Securities and Exchange Commission, or SEC,
utilizing a “shelf” registration process. Under this shelf
registration process, we may offer and sell, either individually or
in combination, in one or more offerings, any of the securities
described in this prospectus, for total gross proceeds of up to
$50,000,000. This prospectus provides you with a general
description of the securities we may offer. Each time we offer
securities under this prospectus, we will provide a prospectus
supplement to this prospectus that will contain more specific
information about the terms of that offering. We may also authorize
one or more free writing prospectuses to be provided to you that
may contain material information relating to these offerings. The
prospectus supplement and any related free writing prospectus that
we may authorize to be provided to you may also add, update or
change any of the information contained in this prospectus or in
the documents that we have incorporated by reference into this
prospectus.
We urge you to read carefully this prospectus, any applicable
prospectus supplement and any free writing prospectuses we have
authorized for use in connection with a specific offering, together
with the information incorporated herein by reference as described
under the heading “Incorporation of Documents by Reference,” before
investing in any of the securities being offered. You should rely
only on the information contained in, or incorporated by reference
into, this prospectus and any applicable prospectus supplement,
along with the information contained in any free writing
prospectuses we have authorized for use in connection with a
specific offering. We have not authorized anyone to provide you
with different or additional information. This prospectus is an
offer to sell only the securities offered hereby, but only under
circumstances and in jurisdictions where it is lawful to do so.
The information appearing in this prospectus, any applicable
prospectus supplement or any related free writing prospectus is
accurate only as of the date on the front of the document and any
information we have incorporated by reference is accurate only as
of the date of the document incorporated by reference, regardless
of the time of delivery of this prospectus, any applicable
prospectus supplement or any related free writing prospectus, or
any sale of a security.
This prospectus contains summaries of certain provisions contained
in some of the documents described herein, but reference is made to
the actual documents for complete information. All of the summaries
are qualified in their entirety by the actual documents. Copies of
some of the documents referred to herein have been filed, will be
filed or will be incorporated by reference as exhibits to the
registration statement of which this prospectus is a part, and you
may obtain copies of those documents as described below under the
section entitled “Where You Can Find Additional Information.”
This prospectus contains, or incorporates by reference, trademarks,
tradenames, service marks and service names of Auddia Inc.
CAUTIONARY NOTE REGARDING FORWARD LOOKING
STATEMENTS
This prospectus and any accompanying prospectus or prospectus
supplement and the documents incorporated by reference herein and
therein may contain forward looking statements that involve
significant risks and uncertainties. All statements other than
statements of historical fact contained in this prospectus and any
accompanying prospectus supplement and the documents incorporated
by reference herein, including statements regarding future events,
our future financial performance, business strategy, and plans and
objectives of management for future operations, are forward-looking
statements. We have attempted to identify forward-looking
statements by terminology including “anticipates,” “believes,”
“can,” “continue,” “could,” “estimates,” “expects,” “intends,”
“may,” “plans,” “potential,” “predicts,” “should,” or “will” or the
negative of these terms or other comparable terminology. Although
we do not make forward looking statements unless we believe we have
a reasonable basis for doing so, we cannot guarantee their
accuracy. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the
risks outlined under “Risk Factors” or elsewhere in this prospectus
and the documents incorporated by reference herein, which may cause
our or our industry’s actual results, levels of activity,
performance or achievements expressed or implied by these
forward-looking statements. Moreover, we operate in a highly
regulated, very competitive, and rapidly changing environment. New
risks emerge from time to time and it is not possible for us to
predict all risk factors, nor can we address the impact of all
factors on our business or the extent to which any factor, or
combination of factors, may cause our actual results to differ
materially from those contained in any forward-looking
statements.
We have based these forward-looking statements largely on our
current expectations and assumptions about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy, short term and
long term business operations, and financial needs. These
forward-looking statements are subject to certain risks and
uncertainties that could cause our actual results to differ
materially from those reflected in the forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, those discussed in this prospectus, and in
particular, the risks discussed below and under the heading “Risk
Factors” and those discussed in other documents we file with the
SEC which are incorporated by reference herein. This prospectus,
and any accompanying prospectus or prospectus supplement, should be
read in conjunction with the consolidated financial statements for
the fiscal years ended December 31, 2021 and 2020 and related
notes, which are incorporated by reference herein.
We undertake no obligation to revise or publicly release the
results of any revision to these forward-looking statements, except
as required by law. In light of the significant risks,
uncertainties and assumptions that accompany forward-looking
statements, the forward-looking events and circumstances discussed
in this prospectus and any accompanying prospectus or prospectus
supplement may not occur and actual results could differ materially
and adversely from those anticipated or implied in the
forward-looking statement.
You should not place undue reliance on any forward-looking
statement, each of which applies only as of the date of this
prospectus, or any accompanying prospectus or any prospectus
supplement. Except as required by law, we undertake no obligation
to update or revise publicly any of the forward-looking statements
after the date of this prospectus to conform our statements to
actual results or changed expectations.
Any forward-looking statement you read in this prospectus, any
accompanying prospectus, or any prospectus supplement or any
document incorporated by reference reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, operating
results, growth strategy and liquidity. You should not place undue
reliance on these forward-looking statements because such
statements speak only as to the date when made. We assume no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future, except as otherwise required by applicable
law. You are advised, however, to consult any further disclosures
we make on related subjects in our reports on Forms 10-Q, 8-K and
10-K filed with the SEC. You should understand that it is not
possible to predict or identify all risk factors. Consequently, you
should not consider any such list to be a complete set of all
potential risks or uncertainties.
PROSPECTUS SUMMARY
This summary highlights selected information contained elsewhere
in this prospectus. This summary does not contain all the
information that you should consider before investing in our
Company. You should carefully read the entire prospectus, including
all documents incorporated by reference herein. In particular,
attention should be directed to our “Risk Factors,” “Information
With Respect to the Company,” “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and the financial
statements and related notes thereto contained herein or otherwise
incorporated by reference hereto, before making an investment
decision.
As used herein, and any amendment or supplement hereto, unless
otherwise indicated, “we,” “us,” “our,” the “Company,” or “Auddia”
means Auddia Inc.
Overview
We are a technology company headquartered in Boulder, CO that is
reinventing how consumers engage with audio through the development
of a proprietary Artificial Intelligence (“AI”) platform for audio
and innovative technologies for podcasts. We are leveraging these
technologies to bring to market two industry first apps, Faidr
(previously known as the Auddia App) and Vodacast.
Faidr gives consumers the opportunity to listen to any AM/FM radio
station with no commercials while personalizing the listening
experience through skips, the insertion of on-demand content and
programming of audio routines to customize listening sessions such
as a daily commute. The Faidr App represents the first time
consumers can access the local content uniquely provided by radio
in the commercial free and personalized manner many consumers have
come to demand for media consumption.
The Company launched all major U.S. radio stations on its Faidr App
on February 15, 2022.
Vodacast is a podcasting platform that provides a unique suite of
tools that helps Podcasters create additional digital content for
their podcast episodes as well as plan their episodes, build their
brand around their Podcast and monetize their content with new
monetization channels. Vodcast also gives users the ability to go
deeper into the stories through supplemental, digital content,,
comment, and contribute their own content to episode feeds.
Both of our offerings address large and rapidly growing audiences.
Faidr and Vodacast mobile apps are available today through the iOS
and Android app stores.
Emerging Growth Company under the JOBS Act
As a company with less than $1.07 billion in revenue during our
last fiscal year, we qualify as an “emerging growth company” under
the Jumpstart Our Business Startups Act of 2012, or the JOBS Act.
As an emerging growth company, we have elected to take advantage of
reduced reporting requirements and are relieved of certain other
significant requirements that are otherwise generally applicable to
public companies. As an emerging growth company:
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· |
We
may present only two years of audited financial statements and only
two years of related Management’s Discussion and Analysis of
Financial Condition and Results of Operations; |
|
|
|
|
· |
We
are exempt from the requirement to obtain an attestation and report
from our auditors on whether we maintained effective internal
control over financial reporting under the Sarbanes-Oxley
Act; |
|
· |
We
are permitted to provide less extensive disclosure about our
executive compensation arrangements; and |
|
|
|
|
· |
We
are not required to give our stockholders non-binding advisory
votes on executive compensation or golden parachute
arrangements. |
We may take advantage of these provisions until December 31, 2026
(the last day of the fiscal year following the fifth anniversary of
our initial public offering) if we continue to be an emerging
growth company. We would cease to be an emerging growth company if
we have more than $1.07 billion in annual revenue, have more than
$700 million in market value of our shares held by non-affiliates
or issue more than $1.0 billion of non-convertible debt over a
three-year period. We may choose to take advantage of some but not
all of these reduced burdens. We have elected to provide two years
of audited financial statements. Additionally, we have elected to
take advantage of the extended transition period provided in
Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or
the Securities Act, for complying with new or revised accounting
standards that have different effective dates for public and
private companies until the earlier of the date we (i) are no
longer an emerging growth company or (ii) affirmatively and
irrevocably opt out of the extended transition period provided in
Section 7(a)(2)(B) of the Securities Act.
Corporate Information
Our principal executive offices are located at 2100 Central Avenue,
Suite 200, Boulder, Colorado 80301, and our telephone number is
(303) 219-9771, and our Internet website address is
https://www.auddiainc.com. The information on our website is not a
part of, or incorporated in, this prospectus.
RISK
FACTORS
Investing in our securities is highly speculative and
involves a high degree of risk. Before deciding whether to
invest in our securities, you should carefully consider the risk
factors we describe in any accompanying prospectus or any future
prospectus supplement, as well as in any related free writing
prospectus for a specific offering of securities, and the risk
factors incorporated by reference into this prospectus, any
accompanying prospectus or such prospectus supplement. You should
also carefully consider other information contained and
incorporated by reference in this prospectus and any applicable
prospectus supplement, including our financial statements and the
related notes thereto incorporated by reference in this prospectus.
The risks and uncertainties described in the applicable prospectus
supplement and our other filings with the SEC incorporated by
reference herein are not the only ones we face. Additional risks
and uncertainties not presently known to us or that we currently
consider immaterial may also adversely affect us. If any of the
described risks occur, our business, financial condition or results
of operations could be materially harmed. In such case, the value
of our securities could decline and you may lose all or part of
your investment.
USE
OF PROCEEDS
Unless otherwise indicated in a prospectus supplement, we intend to
use the net proceeds from these sales for general corporate
purposes, which includes, without limitation, continuing to build
out the Faidr and Vodacast platforms, expanding our sales and
marketing efforts, research and development expenses, sales and
support staff, and software development. The amounts and timing of
these expenditures will depend on numerous factors, including the
development of our current business initiatives.
DIVIDEND POLICY
We have never paid or declared any cash dividends on our common
stock, and we do not anticipate paying any cash dividends on our
common stock in the foreseeable future. We intend to retain all
available funds and any future earnings to fund the development and
expansion of our business. Any future determination to pay
dividends will be at the discretion of our board of directors and
will depend upon a number of factors, including our results of
operations, financial condition, future prospects, contractual
restrictions, restrictions imposed by applicable law and other
factors our board of directors deems relevant. Our future ability
to pay cash dividends on our stock may also be limited by the terms
of any future debt or preferred securities or future credit
facility.
PLAN
OF DISTRIBUTION
We may sell the securities from time to time to or through
underwriters or dealers, through agents, or directly to one or more
purchasers. A distribution of the securities offered by this
prospectus may also be effected through the issuance of derivative
securities, including without limitation, warrants, rights to
purchase and subscriptions. In addition, the manner in which we may
sell some or all of the securities covered by this prospectus
includes, without limitation, through:
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· |
a block trade in which a broker-dealer will attempt to sell as
agent, but may position or resell a portion of the block, as
principal, in order to facilitate the transaction;
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· |
purchases
by a broker-dealer, as principal, and resale by the broker-dealer
for its account; or |
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ordinary
brokerage transactions and transactions in which a broker solicits
purchasers. |
A prospectus supplement or supplements with respect to each series
of securities will describe the terms of the offering, including,
to the extent applicable:
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· |
the
terms of the offering; |
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· |
the name or names of the underwriters or agents and the amounts of
securities underwritten or purchased by each of them, if any;
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the public offering price or purchase price of the securities or
other consideration therefor, and the proceeds to be received by us
from the sale;
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any
delayed delivery requirements; |
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· |
any
over-allotment options under which underwriters may purchase
additional securities from us; |
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· |
any
underwriting discounts or agency fees and other items constituting
underwriters’ or agents’ compensation; |
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· |
any
discounts or concessions allowed or re-allowed or paid to dealers;
and |
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any
securities exchange or market on which the securities may be
listed. |
The offer and sale of the securities described in this prospectus
by us, the underwriters or the third parties described above may be
effected from time to time in one or more transactions, including
privately negotiated transactions, either:
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· |
at a
fixed price or prices, which may be changed; |
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· |
in an
“at the market” offering within the meaning of Rule 415(a)(4) of
the Securities Act of 1933, as amended, or the Securities
Act; |
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at
prices related to such prevailing market prices; or |
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at
negotiated prices. |
Only underwriters named in the prospectus supplement will be
underwriters of the securities offered by the prospectus
supplement.
Underwriters and Agents; Direct Sales
If underwriters are used in a sale, they will acquire the offered
securities for their own account and may resell the offered
securities from time to time in one or more transactions, including
negotiated transactions, at a fixed public offering price or at
varying prices determined at the time of sale. We may offer the
securities to the public through underwriting syndicates
represented by managing underwriters or by underwriters without a
syndicate.
Unless the prospectus supplement states otherwise, the obligations
of the underwriters to purchase the securities will be subject to
the conditions set forth in the applicable underwriting agreement.
Subject to certain conditions, the underwriters will be obligated
to purchase all of the securities offered by the prospectus
supplement, other than securities covered by any over-allotment
option. Any public offering price and any discounts or concessions
allowed or re-allowed or paid to dealers may change from time to
time. We may use underwriters with whom we have a material
relationship. We will describe in the prospectus supplement, naming
the underwriter, the nature of any such relationship.
We may sell securities directly or through agents we designate from
time to time. We will name any agent involved in the offering and
sale of securities, and we will describe any commissions we will
pay the agent in the prospectus supplement. Unless the prospectus
supplement states otherwise, our agent will act on a best-efforts
basis for the period of its appointment.
We may authorize agents or underwriters to solicit offers by
certain types of institutional investors to purchase securities
from us at the public offering price set forth in the prospectus
supplement pursuant to delayed delivery contracts providing for
payment and delivery on a specified date in the future. We will
describe the conditions to these contracts and the commissions we
must pay for solicitation of these contracts in the prospectus
supplement.
Dealers
We may sell the offered securities to dealers as principals. The
dealer may then resell such securities to the public either at
varying prices to be determined by the dealer or at a fixed
offering price agreed to with us at the time of resale.
Institutional Purchasers
We may authorize agents, dealers or underwriters to solicit certain
institutional investors to purchase offered securities on a delayed
delivery basis pursuant to delayed delivery contracts providing for
payment and delivery on a specified future date. The applicable
prospectus supplement or other offering materials, as the case may
be, will provide the details of any such arrangement, including the
offering price and commissions payable on the solicitations.
We will enter into such delayed contracts only with institutional
purchasers that we approve. These institutions may include
commercial and savings banks, insurance companies, pension funds,
investment companies and educational and charitable
institutions.
Indemnification; Other Relationships
We may provide agents, underwriters, dealers and remarketing firms
with indemnification against certain civil liabilities, including
liabilities under the Securities Act, or contribution with respect
to payments that the agents or underwriters may make with respect
to these liabilities. Agents, underwriters, dealers and remarketing
firms, and their affiliates, may engage in transactions with, or
perform services for, us in the ordinary course of business. This
includes commercial banking and investment banking
transactions.
Market-Making; Stabilization and Other Transactions
There is currently no market for any of the offered securities,
other than our common stock, which is quoted on the Nasdaq Capital
Market. If the offered securities are traded after their initial
issuance, they may trade at a discount from their initial offering
price, depending upon prevailing interest rates, the market for
similar securities and other factors. While it is possible that an
underwriter could inform us that it intends to make a market in the
offered securities, such underwriter would not be obligated to do
so, and any such market-making could be discontinued at any time
without notice. Therefore, no assurance can be given as to whether
an active trading market will develop for the offered securities.
We have no current plans for listing of the debt securities,
preferred stock, warrants or subscription rights on any securities
exchange or quotation system; any such listing with respect to any
particular debt securities, preferred stock, warrants or
subscription rights will be described in the applicable prospectus
supplement or other offering materials, as the case may
be.
Any underwriter may engage in over-allotment, stabilizing
transactions, short-covering transactions and penalty bids in
accordance with Regulation M under the Securities Exchange Act of
1934, as amended, or the Exchange Act. Over-allotment involves
sales in excess of the offering size, which create a short
position. Stabilizing transactions permit bids to purchase the
underlying security so long as the stabilizing bids do not exceed a
specified maximum price. Syndicate-covering or other short-covering
transactions involve purchases of the securities, either through
exercise of the over-allotment option or in the open market after
the distribution is completed, to cover short positions. Penalty
bids permit the underwriters to reclaim a selling concession from a
dealer when the securities originally sold by the dealer are
purchased in a stabilizing or covering transaction to cover short
positions. Those activities may cause the price of the securities
to be higher than it would otherwise be. If commenced, the
underwriters may discontinue any of the activities at any time.
Any underwriters or agents that are qualified market makers on the
Nasdaq Capital Market may engage in passive market making
transactions in our common stock on the Nasdaq Capital Market in
accordance with Regulation M under the Exchange Act, during the
business day prior to the pricing of the offering, before the
commencement of offers or sales of our common stock. Passive market
makers must comply with applicable volume and price limitations and
must be identified as passive market makers. In general, a passive
market maker must display its bid at a price not in excess of the
highest independent bid for such security; if all independent bids
are lowered below the passive market maker’s bid, however, the
passive market maker’s bid must then be lowered when certain
purchase limits are exceeded. Passive market making may stabilize
the market price of the securities at a level above that which
might otherwise prevail in the open market and, if commenced, may
be discontinued at any time.
Fees and Commissions
If 5% or more of the net proceeds of any offering of securities
made under this prospectus will be received by a FINRA member
participating in the offering or affiliates or associated persons
of such FINRA member, the offering will be conducted in accordance
with FINRA Rule 5121.
DESCRIPTION OF SECURITIES WE MAY
OFFER
General
This prospectus describes the general terms of our capital stock.
The following description is not complete and may not contain all
the information you should consider before investing in our capital
stock. For a more detailed description of these securities, you
should read the applicable provisions of Delaware law and our
certificate of incorporation, as amended, referred to herein as our
certificate of incorporation, and our amended and restated bylaws,
referred to herein as our bylaws. When we offer to sell a
particular series of these securities, we will describe the
specific terms of the series in a supplement to this prospectus.
Accordingly, for a description of the terms of any series of
securities, you must refer to both the prospectus supplement
relating to that series and the description of the securities
described in this prospectus. To the extent the information
contained in the prospectus supplement differs from this summary
description, you should rely on the information in the prospectus
supplement.
The total number of shares of capital stock we are authorized to
issue is 110,000,000 shares, of which (1) 100,000,000 shares are
common stock, par value $0.001 per share (or common stock) and (2)
10,000,000 shares are preferred stock, par value $0.001 per share
(or preferred stock), which may, at the sole discretion of our
board of directors be issued in one or more series.
We, directly or through agents, dealers or underwriters designated
from time to time, may offer, issue and sell, together or
separately, up to $50,000,000 in the aggregate of:
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common
stock; |
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preferred
stock; |
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warrants to purchase common stock, preferred stock, debt
securities, other securities or any combination of those
securities;
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subscription rights to purchase common stock, preferred stock, debt
securities, other securities or any combination of those
securities;
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secured or unsecured debt securities consisting of notes,
debentures or other evidences of indebtedness which may be senior
debt securities, senior subordinated debt securities or
subordinated debt securities, each of which may be convertible into
equity securities; or
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units
comprised of, or other combinations of, the foregoing
securities. |
We may issue the debt securities as exchangeable for or convertible
into shares of common stock, preferred stock or other securities
that may be sold by us pursuant to this prospectus or any
combination of the foregoing. The preferred stock may also be
exchangeable for and/or convertible into shares of common stock,
another series of preferred stock or other securities that may be
sold by us pursuant to this prospectus or any combination of the
foregoing. When a particular series of securities is offered, a
supplement to this prospectus will be delivered with this
prospectus, which will set forth the terms of the offering and sale
of the offered securities.
Common Stock
As of April 8, 2022, there were 12,514,763 shares of common stock
issued and outstanding, held of record by approximately 134
stockholders. Subject to preferential rights with respect to any
outstanding preferred stock, all outstanding shares of common stock
are of the same class and have equal rights and attributes.
Dividend Rights
Holders of the common stock may receive dividends when, as and if
declared by our board of directors out of the assets legally
available for that purpose and subject to the preferential dividend
rights of any other classes or series of stock of our Company. We
have never paid, and have no plans to pay, any dividends on our
shares of common stock.
Voting Rights
Holders of the common stock are entitled to one vote per share in
all matters as to which holders of common stock are entitled to
vote. Holders of not less than a majority of the outstanding shares
of common stock entitled to vote at any meeting of stockholders
constitute a quorum unless otherwise required by law.
Election of Directors
Directors hold office until the next annual meeting of stockholders
and are eligible for re-election at such meeting. Directors are
elected by a plurality of the shares present in person or
represented by proxy at the meeting and entitled to vote on the
election of directors. There is no cumulative voting for
directors.
Liquidation
In the event of any liquidation, dissolution or winding up of the
Company, holders of the common stock have the right to receive
ratably and equally all of the assets remaining after payment of
liabilities and liquidation preferences of any preferred stock then
outstanding.
Redemption
The common stock is not redeemable or convertible and does not have
any sinking fund provisions.
Preemptive Rights
Holders of the common stock do not have preemptive rights.
Other Rights
Our common stock is not liable to further calls or to assessment by
the registrant and for liabilities of the registrant imposed on its
stockholders under state statutes.
Right to Amend Bylaws
The board of directors has the power to adopt, amend or repeal the
bylaws. Bylaws adopted by the board of directors may be repealed or
changed, and new bylaws made, with the requisite vote of our
stockholders, and our stockholders may prescribe that any bylaw
made by them shall not be altered, amended or repealed by the board
of directors.
Change in Control
Provisions of Delaware law and our certificate of incorporation and
bylaws could make the acquisition of our company by means of a
tender offer, proxy contest or otherwise, and the removal of
incumbent officers and directors, more difficult. These provisions
include:
Section 203 of the DGCL, which prohibits a merger with a
15%-or-greater stockholder, such as a party that has completed a
successful tender offer, until three years after that party became
a 15%-or-greater stockholder;
The authorization in our certificate of incorporation of
undesignated preferred stock, which could be issued without
stockholder approval in a manner designed to prevent or discourage
a takeover; and
Our certificate of incorporation and bylaws provide that, except as
otherwise required by law, special meetings of the stockholders can
only be called by our board of directors. Stockholders at a special
meeting may only consider matters set forth in the notice of the
meeting. These provisions could have the effect of delaying until
the next stockholder meeting stockholder actions that may be
favored by the holders of a majority of our outstanding voting
securities.
Together, these provisions may make the removal of management more
difficult and may discourage transactions that could otherwise
involve payment of a premium over prevailing market prices for our
common stock.
Market, Symbol and Transfer Agent
Our common stock is listed for trading on the Nasdaq Capital Market
under the symbol “AUUD”. The transfer agent and registrar for our
common stock is VStock Transfer, LLC.
Preferred Stock
Our certificate of incorporation empowers our board of directors,
without action by our shareholders, to issue up to 10,000,000
shares of preferred stock from time to time in one or more series,
which preferred stock may be offered by this prospectus and
supplements thereto. As of the date of this prospectus, there were
no shares of preferred stock outstanding.
We will fix the rights, preferences, privileges and restrictions of
the preferred stock of each series in the certificate of
designation relating to that series. We will file as an exhibit to
the registration statement of which this prospectus is a part, or
will incorporate by reference from a current report on Form 8-K
that we file with the SEC, the form of any certificate of
designation that describes the terms of the series of preferred
stock we are offering before the issuance of the related series of
preferred stock. This description will include any or all of the
following, as required:
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the
title and stated value; |
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the
number of shares we are offering; |
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the
liquidation preference per share; |
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the
purchase price; |
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the
dividend rate, period and payment date and method of calculation
for dividends; |
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whether dividends will be cumulative or non-cumulative and, if
cumulative, the date from which dividends will accumulate;
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any
contractual limitations on our ability to declare, set aside or pay
any dividends; |
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the
procedures for any auction and remarketing, if any; |
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the
provisions for a sinking fund, if any; |
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the provisions for redemption or repurchase, if applicable, and any
restrictions on our ability to exercise those redemption and
repurchase rights;
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any
listing of the preferred stock on any securities exchange or
market; |
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whether the preferred stock will be convertible into our common
stock, and, if applicable, the conversion price, or how it will be
calculated, and the conversion period;
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whether the preferred stock will be exchangeable into debt
securities, and, if applicable, the exchange price, or how it will
be calculated, and the exchange period;
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voting
rights, if any, of the preferred stock; |
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preemptive
rights, if any; |
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restrictions
on transfer, sale or other assignment, if any; |
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whether
interests in the preferred stock will be represented by depositary
shares; |
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a discussion of any material or special United States federal
income tax considerations applicable to the preferred stock;
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the relative ranking and preferences of the preferred stock as to
dividend rights and rights if we liquidate, dissolve or wind up our
affairs;
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any limitations on issuance of any class or series of preferred
stock ranking senior to or on a parity with the series of preferred
stock as to dividend rights and rights if we liquidate, dissolve or
wind up our affairs; and
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any
other specific terms, preferences, rights or limitations of, or
restrictions on, the preferred stock. |
If we issue shares of preferred stock under this prospectus, after
receipt of payment therefor, the shares will be fully paid and
non-assessable.
The Delaware General Corporation Law provides that the holders of
preferred stock will have the right to vote separately as a class
on any proposal involving fundamental changes in the rights of
holders of that preferred stock. This right is in addition to any
voting rights provided for in the applicable certificate of
designation.
Our board of directors may authorize the issuance of preferred
stock with voting or conversion rights that could adversely affect
the voting power or other rights of the holders of our common
stock. Preferred stock could be issued quickly with terms designed
to delay or prevent a change in control of our Company or make
removal of management more difficult. Additionally, the issuance of
preferred stock could have the effect of decreasing the market
price of our common stock.
Warrants
We may issue warrants to purchase our securities or other rights,
including rights to receive payment in cash or securities based on
the value, rate or price of one or more specified commodities,
currencies, securities or indices, or any combination of the
foregoing. Warrants may be issued independently or together with
any other securities that may be sold by us pursuant to this
prospectus or any combination of the foregoing and may be attached
to, or separate from, such securities. To the extent warrants that
we issue are to be publicly-traded, each series of such warrants
will be issued under a separate warrant agreement to be entered
into between us and a warrant agent.
We will file as exhibits to the registration statement of which
this prospectus is a part, or will incorporate by reference from a
current report on Form 8-K that we file with the SEC, forms of the
warrant and warrant agreement, if any. The prospectus supplement
relating to any warrants that we may offer will contain the
specific terms of the warrants and a description of the material
provisions of the applicable warrant agreement, if any. These terms
may include the following:
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the
title of the warrants; |
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the
price or prices at which the warrants will be issued; |
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the
designation, amount and terms of the securities or other rights for
which the warrants are exercisable; |
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the designation and terms of the other securities, if any, with
which the warrants are to be issued and the number of warrants
issued with each other security;
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the
aggregate number of warrants; |
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any provisions for adjustment of the number or amount of securities
receivable upon exercise of the warrants
or the exercise price of the warrants;
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the
price or prices at which the securities or other rights purchasable
upon exercise of the warrants may be purchased; |
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if applicable, the date on and after which the warrants and the
securities or other rights purchasable upon exercise of the
warrants will be separately transferable;
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a
discussion of any material U.S. federal income tax considerations
applicable to the exercise of the warrants; |
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the
date on which the right to exercise the warrants will commence, and
the date on which the right will expire; |
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the
maximum or minimum number of warrants that may be exercised at any
time; |
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information
with respect to book-entry procedures, if any; and |
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any other terms of the warrants, including terms, procedures and
limitations relating to the exchange and exercise of the
warrants.
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Exercise of Warrants. Each warrant will entitle the
holder of warrants to purchase the amount of securities or other
rights, at the exercise price stated or determinable in the
prospectus supplement for the warrants. Warrants may be exercised
at any time up to the close of business on the expiration date
shown in the applicable prospectus supplement, unless otherwise
specified in such prospectus supplement. After the close of
business on the expiration date, if applicable, unexercised
warrants will become void. Warrants may be exercised in the manner
described in the applicable prospectus supplement. When the warrant
holder makes the payment and properly completes and signs the
warrant certificate at the corporate trust office of the warrant
agent, if any, or any other office indicated in the prospectus
supplement, we will, as soon as possible, forward the securities or
other rights that the warrant holder has purchased. If the warrant
holder exercises less than all of the warrants represented by the
warrant certificate, we will issue a new warrant certificate for
the remaining warrants.
Subscription Rights
We may issue rights to purchase our securities. The rights may or
may not be transferable by the persons purchasing or receiving the
rights. In connection with any rights offering, we may enter into a
standby underwriting or other arrangement with one or more
underwriters or other persons pursuant to which such underwriters
or other persons would purchase any offered securities remaining
unsubscribed for after such rights offering. In connection with a
rights offering to holders of our capital stock a prospectus
supplement will be distributed to such holders on the record date
for receiving rights in the rights offering set by us.
We will file as exhibits to the registration statement of which
this prospectus is a part, or will incorporate by reference from a
current report on Form 8-K that we file with the SEC, forms of the
subscription rights, standby underwriting agreement or other
agreements, if any. The prospectus supplement relating to any
rights that we offer will include specific terms relating to the
offering, including, among other matters:
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the
date of determining the security holders entitled to the rights
distribution; |
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the
aggregate number of rights issued and the aggregate amount of
securities purchasable upon exercise of the rights; |
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the
exercise price; |
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the
conditions to completion of the rights offering; |
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the
date on which the right to exercise the rights will commence and
the date on which the rights will expire; and |
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any
applicable federal income tax considerations. |
Each right would entitle the holder of the rights to purchase the
principal amount of securities at the exercise price set forth in
the applicable prospectus supplement. Rights may be exercised at
any time up to the close of business on the expiration date for the
rights provided in the applicable prospectus supplement. After the
close of business on the expiration date, all unexercised rights
will become void.
Holders may exercise rights as described in the applicable
prospectus supplement. Upon receipt of payment and the rights
certificate properly completed and duly executed at the corporate
trust office of the rights agent, if any, or any other office
indicated in the prospectus supplement, we will, as soon as
practicable, forward the securities purchasable upon exercise of
the rights. If less than all of the rights issued in any rights
offering are exercised, we may offer any unsubscribed securities
directly to persons other than stockholders, to or through agents,
underwriters or dealers or through a combination of such methods,
including pursuant to standby underwriting arrangements, as
described in the applicable prospectus supplement.
Debt Securities
As used in this prospectus, the term “debt securities” means the
debentures, notes, bonds and other evidences of indebtedness that
we may issue from time to time. The debt securities will either be
senior debt securities, senior subordinated debt or subordinated
debt securities. We may also issue convertible debt securities.
Debt securities may be issued under an indenture (which we refer to
herein as an Indenture), which are contracts entered into between
us and a trustee to be named therein. The Indenture has been filed
as an exhibit to the registration statement of which this
prospectus forms a part. We may issue debt securities and incur
additional indebtedness other than through the offering of debt
securities pursuant to this prospectus. It is likely that
convertible debt securities will not be issued under an
Indenture.
The debt securities may be fully and unconditionally guaranteed on
a secured or unsecured senior or subordinated basis by one or more
guarantors, if any. The obligations of any guarantor under its
guarantee will be limited as necessary to prevent that guarantee
from constituting a fraudulent conveyance under applicable law. In
the event that any series of debt securities will be subordinated
to other indebtedness that we have outstanding or may incur, the
terms of the subordination will be set forth in the prospectus
supplement relating to the subordinated debt securities.
We may issue debt securities from time to time in one or more
series, in each case with the same or various maturities, at par or
at a discount. Unless indicated in a prospectus supplement, we may
issue additional debt securities of a particular series without the
consent of the holders of the debt securities of such series
outstanding at the time of the issuance. Any such additional debt
securities, together with all other outstanding debt securities of
that series, will constitute a single series of debt securities
under the applicable Indenture and will be equal in
ranking.
Should an Indenture relate to unsecured indebtedness, in the event
of a bankruptcy or other liquidation event involving a distribution
of assets to satisfy our outstanding indebtedness or an event of
default under a loan agreement relating to secured indebtedness of
our company or its subsidiaries, the holders of such secured
indebtedness, if any, would be entitled to receive payment of
principal and interest prior to payments on the unsecured
indebtedness issued under an Indenture.
Each prospectus supplement will describe the terms relating to the
specific series of debt securities. These terms will include some
or all of the following:
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the
title of debt securities and whether the debt securities are senior
or subordinated; |
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any
limit on the aggregate principal amount of debt securities of such
series; |
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the
percentage of the principal amount at which the debt securities of
any series will be issued; |
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the
ability to issue additional debt securities of the same
series; |
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the
purchase price for the debt securities and the denominations of the
debt securities; |
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the
specific designation of the series of debt securities being
offered; |
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the maturity date or dates of the debt securities and the date or
dates upon which the debt securities are payable and the rate or
rates at which the debt securities of the series shall bear
interest, if any, which may be fixed or variable, or the method by
which such rate shall be determined;
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the
basis for calculating interest; |
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the
date or dates from which any interest will accrue or the method by
which such date or dates will be determined; |
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the
duration of any deferral period, including the period during which
interest payment periods may be extended; |
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whether the amount of payments of principal of (and premium, if
any) or interest on the debt securities may be determined with
reference to any index, formula or other method, such as one or
more currencies, commodities, equity indices or other indices, and
the manner of determining the amount of such payments;
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the dates on which we will pay interest on the debt securities and
the regular record date for determining who is entitled to the
interest payable on any interest payment date;
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the place or places where the principal of (and premium, if any)
and interest on the debt securities will be payable, where any
securities may be surrendered for registration of transfer,
exchange or conversion, as applicable, and notices and demands may
be delivered to or upon us pursuant to the applicable
Indenture;
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the
rate or rates of amortization of the debt securities; |
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any
terms for the attachment to the debt securities of warrants,
options or other rights to purchase or sell our
securities; |
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if the debt securities will be secured by any collateral and, if
so, a general description of the collateral and the terms and
provisions of such collateral security, pledge or other
agreements;
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if we possess the option to do so, the periods within which and the
prices at which we may redeem the debt securities, in whole or in
part, pursuant to optional redemption provisions, and the other
terms and conditions of any such provisions;
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our obligation or discretion, if any, to redeem, repay or purchase
debt securities by making periodic payments to a sinking fund or
through an analogous provision or at the option of holders of the
debt securities, and the period or periods within which and the
price or prices at which we will redeem, repay or purchase the debt
securities, in whole or in part, pursuant to such obligation, and
the other terms and conditions of such obligation;
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the
terms and conditions, if any, regarding the option or mandatory
conversion or exchange of debt securities; |
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the period or periods within which, the price or prices at which
and the terms and conditions upon which any debt securities of the
series may be redeemed, in whole or in part at our option and, if
other than by a board resolution, the manner in which any election
by us to redeem the debt securities shall be evidenced;
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any
restriction or condition on the transferability of the debt
securities of a particular series; |
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the portion, or methods of determining the portion, of the
principal amount of the debt securities which
we must pay upon the acceleration of the maturity of the debt
securities in connection with any event of default;
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the currency or currencies in which the debt securities will be
denominated and in which principal, any premium and any interest
will or may be payable or a description of any units based on or
relating to a currency or currencies in which the debt securities
will be denominated;
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provisions,
if any, granting special rights to holders of the debt securities
upon the occurrence of specified events; |
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any deletions from, modifications of or additions to the events of
default or our covenants with respect to the applicable series of
debt securities, and whether or not such events of default or
covenants are consistent with those contained in the applicable
Indenture;
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any
limitation on our ability to incur debt, redeem stock, sell our
assets or other restrictions; |
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the application, if any, of the terms of the applicable Indenture
relating to defeasance and covenant defeasance (which terms are
described below) to the debt securities;
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what
subordination provisions will apply to the debt
securities; |
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the
terms, if any, upon which the holders may convert or exchange the
debt securities into or for our securities or property; |
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whether
we are issuing the debt securities in whole or in part in global
form; |
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any change in the right of the trustee or the requisite holders of
debt securities to declare the principal amount thereof due and
payable because of an event of default;
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the
depositary for global or certificated debt securities, if
any; |
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any material federal income tax consequences applicable to the debt
securities, including any debt securities denominated and made
payable, as described in the prospectus supplements, in foreign
currencies, or units based on or related to foreign currencies;
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any right we may have to satisfy, discharge and defease our
obligations under the debt securities, or terminate or eliminate
restrictive covenants or events of default in the Indentures, by
depositing money or U.S. government obligations with the trustee of
the Indentures;
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the names of any trustees, depositories, authenticating or paying
agents, transfer agents or registrars or other agents with respect
to the debt securities;
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to whom any interest on any debt security shall be payable, if
other than the person in whose name the security is registered, on
the record date for such interest, the extent to which, or the
manner in which, any interest payable on a temporary global debt
security will be paid;
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if the principal of or any premium or interest on any debt
securities is to be payable in one or more currencies or currency
units other than as stated, the currency, currencies or currency
units in which it shall be paid and the periods within and terms
and conditions upon which such election is to be made and the
amounts payable (or the manner in which such amount shall be
determined);
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the portion of the principal amount of any debt securities which
shall be payable upon declaration of acceleration of the maturity
of the debt securities pursuant to the applicable Indenture;
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if the principal amount payable at the stated maturity of any debt
security of the series will not be determinable as of any one or
more dates prior to the stated maturity, the amount which shall be
deemed to be the principal amount of such debt securities as of any
such date for any purpose, including the principal amount thereof
which shall be due and payable upon any maturity other than the
stated maturity or which shall be deemed to be outstanding as of
any date prior to the stated maturity (or, in any
such case, the manner in which such amount deemed to be the
principal amount shall be determined); and
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any
other specific terms of the debt securities, including any
modifications to the events of default under the debt securities
and any other terms which may be required by or advisable under
applicable laws or regulations. |
Unless otherwise specified in the applicable prospectus supplement,
we do not anticipate the debt securities will be listed on any
securities exchange. Holders of the debt securities may present
registered debt securities for exchange or transfer in the manner
described in the applicable prospectus supplement. Except as
limited by the applicable Indenture, we will provide these services
without charge, other than any tax or other governmental charge
payable in connection with the exchange or transfer.
Debt securities may bear interest at a fixed rate or a variable
rate as specified in the prospectus supplement. In addition, if
specified in the prospectus supplement, we may sell debt securities
bearing no interest or interest at a rate that at the time of
issuance is below the prevailing market rate, or at a discount
below their stated principal amount. We will describe in the
applicable prospectus supplement any special federal income tax
considerations applicable to these discounted debt securities.
We may issue debt securities with the principal amount payable on
any principal payment date, or the amount of interest payable on
any interest payment date, to be determined by referring to one or
more currency exchange rates, commodity prices, equity indices or
other factors. Holders of such debt securities may receive a
principal amount on any principal payment date, or interest
payments on any interest payment date, that are greater or less
than the amount of principal or interest otherwise payable on such
dates, depending upon the value on such dates of applicable
currency, commodity, equity index or other factors. The applicable
prospectus supplement will contain information as to how we will
determine the amount of principal or interest payable on any date,
as well as the currencies, commodities, equity indices or other
factors to which the amount payable on that date relates and
certain additional tax considerations.
Units
We may issue units consisting of any combination of the other types
of securities offered under this prospectus in one or more series.
We may evidence each series of units by unit certificates that we
may issue under a separate agreement. We may enter into unit
agreements with a unit agent. Each unit agent, if any, may be a
bank or trust company that we select. We will indicate the name and
address of the unit agent, if any, in the applicable prospectus
supplement relating to a particular series of units. Specific unit
agreements, if any, will contain additional important terms and
provisions. We will file as an exhibit to the registration
statement of which this prospectus is a part, or will incorporate
by reference from a current report that we file with the SEC, the
form of unit and the form of each unit agreement, if any, relating
to units offered under this prospectus.
If we offer any units, certain terms of that series of units will
be described in the applicable prospectus supplement, including,
without limitation, the following, as applicable:
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the
title of the series of units; |
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identification
and description of the separate constituent securities comprising
the units; |
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the
price or prices at which the units will be issued; |
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the
date, if any, on and after which the constituent securities
comprising the units will be separately transferable; |
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a
discussion of certain United States federal income tax
considerations applicable to the units; and |
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any
other material terms of the units and their constituent
securities. |
LEGAL MATTERS
Unless otherwise indicated in the applicable prospectus supplement,
the validity of the securities offered by this prospectus will be
passed upon for us by Carroll Legal LLC, Denver, Colorado. If legal
matters in connection with offerings made by this prospectus are
passed on by counsel for the underwriters, dealers or agents, if
any, that counsel will be named in the applicable prospectus
supplement.
EXPERTS
Our balance sheets at December 31, 2021 and 2020 and the related
statement of operations, changes in stockholders’ equity (deficit)
and cash flows for the years ended December 31, 2021 and 2020,
incorporated in this prospectus by reference, have been audited by
Daszkal Bolton LLP, independent registered public accounting firm,
with respect thereto, and has been so included in reliance upon the
report of such firm given on their authority as experts in
accounting and auditing.
WHERE YOU CAN FIND ADDITIONAL
INFORMATION
We file annual, quarterly and other periodic reports, proxy
statements and other information with the Securities and Exchange
Commission using the Commission’s EDGAR system. The Commission
maintains a web site that contains reports, proxy and information
statements and other information regarding registrants that file
electronically with the Commission. The address of such site is
http//www.sec.gov.
INCORPORATION OF DOCUMENTS BY
REFERENCE
We are “incorporating by reference” in this prospectus certain
documents we file with the SEC, which means that we can disclose
important information to you by referring you to those documents.
The information in the documents incorporated by reference is
considered to be part of this prospectus. Statements contained in
documents that we file with the SEC and that are incorporated by
reference in this prospectus will automatically update and
supersede information contained in this prospectus, including
information in previously filed documents or reports that have been
incorporated by reference in this prospectus, to the extent the new
information differs from or is inconsistent with the old
information. We have filed or may file the following documents with
the SEC and they are incorporated herein by reference as of their
respective dates of filing:
1. Our Annual Report on Form 10-K for the year ended
December 31, 2021, as filed with the SEC on February 17, 2022;
and
2. The description of our Common Stock, which is contained in the
Registration Statement on Form 8-A, as filed with the SEC
on February 16, 2021, as updated by the description of our Common
Stock contained in Exhibit 4.3 to our Annual Report
on Form 10-K for the fiscal year ended December 31, 2020, filed
with the SEC on March 31, 2021.
All documents that we file with the SEC pursuant to Sections 13(a),
13(c), 14, and 15(d) of the Exchange Act subsequent to the date of
this registration statement and prior to the filing of a
post-effective amendment to this registration statement that
indicates that all securities offered under this prospectus have
been sold, or that deregisters all securities then remaining
unsold, will be deemed to be incorporated in this registration
statement by reference and to be a part hereof from the date of
filing of such documents.
Any statement contained in a document incorporated or deemed to be
incorporated by reference in this prospectus shall be deemed
modified, superseded or replaced for purposes of this prospectus to
the extent that a statement contained in this prospectus, or in any
subsequently filed document that also is deemed to be incorporated
by reference in this prospectus, modifies, supersedes or replaces
such statement. Any statement so modified, superseded or replaced
shall not be deemed, except as so modified, superseded or replaced,
to constitute a part of this prospectus. None of the information
that we disclose under Items 2.02 or 7.01 of any Current Report on
Form 8-K or any corresponding information, either furnished under
Item 9.01 or included as an exhibit therein, that we may from time
to time furnish to the SEC will be incorporated by reference into,
or otherwise included in, this prospectus, except as otherwise
expressly set forth in the relevant document. Subject to the
foregoing, all information appearing in this prospectus is
qualified in its entirety by the information appearing in the
documents incorporated by reference.
You may request, orally or in writing, a copy of these documents,
which will be provided to you at no cost (other than exhibits,
unless such exhibits are specifically incorporated by reference),
by contacting Brian Hoff, c/o Auddia Inc., at 2100 Central Avenue,
Suite 200, Boulder, Colorado 80301. Our telephone number is (303)
219-9771. Information about us is also available at our website
at https://www.auddiainc.com. However, the information
in our website is not a part of this prospectus and is not
incorporated by reference.
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