Auddia Implements Reverse Stock Split to Maintain Nasdaq Listing

Auddia Inc., a company specializing in AI technology for audio identification and classification, has announced a reverse stock split of its common stock at a 1-for-7.7 ratio, effective before market open on April 1, 2026. This corporate action follows stockholder approval on May 2, 2025, which authorized the company's Board of Directors to determine the specific split ratio. The Board subsequently resolved to implement the 1-for-7.7 consolidation, with the company filing the necessary amendment to its Certificate of Incorporation with Delaware's Secretary of State effective March 31, 2026.

The primary motivation behind this reverse stock split is to help Auddia meet Nasdaq's continued listing standards, particularly the Minimum Bid Price Rule requiring shares to maintain a price above $1.00. By consolidating shares, the company expects to increase the per-share trading price and bid price to comply with this requirement, thereby preserving its Nasdaq listing status. This strategic move comes as Auddia continues developing its proprietary AI platform that reinvents consumer engagement with AM/FM radio, podcasts, and other audio content through its flagship audio superapp called faidr.

Technically, the reverse stock split will combine every 7.7 issued shares of common stock into one share, with shares receiving a new CUSIP number (05072K 404) and beginning split-adjusted trading on April 1, 2026. The company anticipates its outstanding common shares decreasing from approximately 3.9 million pre-split shares to about 500,000 post-split shares. No fractional shares will be issued; instead, any fractional shares resulting from the consolidation will be rounded up to the nearest whole share at the participant level, with the company utilizing DTC for this rounding process rather than at the beneficial level.

The reverse stock split will proportionally affect all of Auddia's outstanding securities, including preferred stock, warrants, stock options, and restricted stock units. The number of shares into which these securities are convertible or exercisable will adjust accordingly, as will their conversion or exercise prices in accordance with the terms of those securities and the company's equity incentive plans. Stockholders holding shares through brokerage accounts will see automatic adjustments reflecting the 1-for-7.7 consolidation, while those holding physical certificates will receive instructions from Auddia's transfer agent, Vstock Transfer, regarding share exchange procedures.

This corporate action represents a critical step for Auddia as it seeks to maintain its public market presence while continuing to develop its audio technology platform. The company's forward-looking statements in its announcement emphasize expectations about the reverse stock split's effectiveness in meeting Nasdaq requirements, though these statements are subject to various uncertainties and risks detailed in the company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2025. Investors seeking additional information can visit the company's website at https://www.auddia.com or access the latest news and updates relating to AUUD through the company's newsroom at https://tinyurl.com/auudnewsroom.