Auddia provides corporate update after executing two non-binding LOIs

Auddia provided an expanded corporate update following the execution of two non-binding letters of intent, LOI, as part of its buy-side M&A strategy and recent closing on approximately $3.1M in new financing. Auddia CEO Michael Lawless added, “We have now entered into non-binding LOIs with our first two acquisition partners and are well into the due diligence phase. As previously announced, the initial targets, if successfully closed, would significantly change the trajectory of the Company going forward. Not only will the anticipated $3M plus in cash flow from the initial acquisitions reduce our current burn by over 60%, the acquired user base of approximately 1 million monthly active users in the U.S. offers a fertile base of retained AM/FM streaming listeners that can be offered the faidr upgrade. Because of our uniquely high margins in the audio streaming space, a conversion rate of 3% off the acquired U.S. based listeners, if achieved, would eliminate the rest of our current cash burn rate. For perspective, we announced early subscription conversion rates on our faidr 2.0 product earlier this year of 10%. It is important to note that we would reach this position of sustainability just from (i) the acquired revenue and cash flow and (ii) achieving a successful subsequent conversion of the U.S. based acquired users. The high margin revenue generated from our core strategy of putting marketing dollars behind faidr 3.0 is additive. You can see why we are so excited about the runway provided by the current financing and the opportunities we are creating for the second half of the year.”