Investment Thesis
Auddia is a pre-revenue or non-operational company with zero reported revenue and annual operating losses of $2.3M against a cash position of only $1.4M, implying less than a year of runway at current burn rates. While improving loss trends and zero debt burden provide minimal support, the complete absence of revenue operations represents an existential threat to the business.
Strengths
- Zero long-term debt and Debt/Equity ratio of 0.00x minimizes financial leverage risk
- Adequate liquidity position with 2.30x current ratio and $1.4M cash reserves
- Operating losses improved 11.8% YoY and EPS improved 90.3% YoY, suggesting cost control and potential path toward break-even
Risks
- Zero revenue indicates no operational business model or commercial activity
- Cash burn rate of $2.3M annually against $1.4M cash reserves provides less than 7 months of runway
- Severe negative returns: ROE of -80.4% and ROA of -65.2% indicate substantial value destruction
- No insider Form 4 filings in 90 days suggests lack of confidence from company management
- Operating losses match net losses exactly, indicating no other income streams to sustain operations
Key Metrics to Watch
- Revenue generation and customer acquisition - absolute prerequisite for survival
- Operating cash burn rate - monthly cash consumption trend critical to assess runway
- Cash balance and working capital - monitors time remaining before insolvency
- Path to profitability timeline - need clear evidence of revenue ramp or cost restructuring
Financial Metrics
Revenue
0.0
Net Income
-2.3M
EPS (Diluted)
$-5.09
Free Cash Flow
-2.3M
Total Assets
3.5M
Cash
1.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-80.4%
ROA
-65.2%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
2.30x
Quick Ratio
2.30x
Debt/Equity
0.00x
Debt/Assets
18.9%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-16T08:39:09.932237 |
Data as of: 2026-03-31 |
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