Item 5. Market for Registrant’s Common Equity
Item 5.
Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock has
been traded on the Nasdaq Stock Market under the symbol “AUUD” since our IPO on February 17, 2021. Our Series A Warrants
have been traded on the Nasdaq Stock Market under the symbol “AUUDW” since our IPO on February 17, 2021. As of February 17,
2022, there were approximately 134 holders of record of our common stock and 1 holder of record of our Series A warrants. These numbers
are based on the actual number of holders registered at such date and does not include holders whose shares are held in “street
name” by brokers and other nominees.
Dividends
We have never paid any
cash dividends on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation
of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future. Any future determination
to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results,
capital requirements, general business conditions and other factors that our board of directors may deem relevant.
Securities Authorized for Issuance under Equity Compensation Plans
The following table provides certain information
as of December 31, 2021, with respect to all of our equity compensation plans in effect on that date:
Plan Category
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
Equity Compensation Plans Approved by Stockholders (1)
1,929,291
$
2.92
48,618
Equity Compensation Plans Not Approved by Stockholders
–
–
–
Total
1,929,291
$
2.92
48,618
(1)
Consists of stock options granted under the Clip Interactive, LLC 2013 Equity Incentive Plan, as amended and Auddia Inc. 2021 Equity Incentive Plan, as amended. We ceased granting awards under the 2013 Plan upon the implementation of the 2021 Plan described below.
The Company’s 2021 Equity Incentive Plan,
which became effective upon the completion of the IPO in February 2021, serves as the successor equity incentive plan to the 2013 Plan.
29
The 2021 Equity Incentive Plan contains an “evergreen”
provision, pursuant to which the number of shares of common stock reserved for issuance pursuant to awards under such plan shall be increased
on the first day of each year beginning in 2022 and ending in 2030 equal to the lesser of (a) five percent (5%) of the shares of stock
outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (b) such smaller number of shares
of stock as determined by our board of directors. On January 1, 2022, the Company had an additional 620,820 shares added to the 2021 Equity
Incentive Plan pursuant to the evergreen provision.
Recent Sales of Unregistered Securities
During the year ended December 31, 2020, the Company
sold to investors $404,601 of our convertible notes. All of these convertible notes converted into shares of common stock in connection
with our February 2021 IPO.
Use of Proceeds
On February 16, 2021, the U.S. Securities and
Exchange Commission declared effective our registration statement on Form S-1 (File No. 333-235891), as amended, filed in connection with
our IPO. There has been no material change in the planned use of proceeds from our IPO from that described in the related prospectus dated
February 16, 2021, filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act. As described in such IPO prospectus, we have
used IPO proceeds to reduce our bank debt by $4.0 million, to fund a $2.0 million cash reserve to serve as collateral for our remaining
$2.0 million of bank debt that replaced collateral previously provided by a related party, to pay down a significant percentage of our
accounts payable as of December 31, 2020, and to pay deferred compensation owed to a related party.
In July 2021, certain holders of our publicly
traded Series A Warrants exercised approximately 1.1 million warrants for approximately 1.1 million shares of common stock at the cash
exercise price of $4.5375 per share and as a result, we received additional cash proceeds of approximately $5.0 million. In addition,
we paid the remaining $2.0 million, out of our restricted cash, to pay off and terminate our line of credit.
Issuer Purchases of Equity Securities
We did not repurchase any of our equity securities during the period
covered by this Annual Report.
Item 6.
Selected Financial Data
Our selected financial
data set forth below should be read together with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and our financial statements and the related notes thereto, which are included elsewhere in this Form
10-K.
Year Ended December 31,
2021
2020
Statements of income data:
Total revenues
$ –
$ 110,924
Operating loss
$ (5,569,435 )
$ (2,382,850 )
Net loss
$ (13,478,069 )
$ (4,051,221 )
Loss per share, basic
$ (1.30 )
$ (8.35 )
Loss per share, diluted
$ (1.30 )
$ (8.35 )
As of December 31,
2021
2020
Balance sheets data:
Cash and cash equivalents
$
6,345,291
$
117,914
Total assets
$
9,634,133
$
2,311,768
Total liabilities
$
223,196
$
15,415,018
Total stockholders’ equity (deficit)
$
9,410,937
$
(13,103,250
)
30
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.