Auddia announces CEO change and potential restructuring plans

BOULDER, Colo. - Auddia Inc. (NASDAQ:AUUD) announced Wednesday that Executive Chairman Jeff Thramann has succeeded Michael Lawless as CEO following Lawless’ retirement after 13 years of leading the company. The micro-cap company, currently valued at $2.99 million, maintains a strong liquidity position with more cash than debt on its balance sheet, according to InvestingPro data.

The audio technology company has also appointed three new independent board members with experience in AI infrastructure and entrepreneurial ventures: Nick Balletta, Emmanuel de Boucaud, and Josh Sroge. They replace outgoing independent directors Steve Deitsch, Tim Hanlon, and Tom Birch. The leadership changes come as the company faces significant challenges, with InvestingPro analysis showing a 44.4% decline in stock value year-to-date and a weak overall financial health score of 1.53 out of 5.

The newly formed board has established a special committee to evaluate a potential business restructuring that would transform Auddia into a subsidiary of an AI-focused holding company. Under the proposed plan, Thramann would serve as CEO of the holding company, with a new CEO expected to be named for Auddia. With a current ratio of 4.55, the company maintains strong short-term liquidity to support potential transformation efforts.

According to the company’s press release statement, the holding company would aim to provide enhanced AI capabilities to portfolio companies through a proprietary AI data center solution and a centralized AI development team. This approach is intended to lower costs for training AI models and provide portfolio companies with access to specialized talent.

The leadership changes and restructuring proposal follow a nine-month strategic review led by Thramann and the board with input from management and outside consultants.

Auddia, which operates the faidr audio app offering subscription-based, ad-free listening for AM/FM radio and podcasts, noted that there is no guarantee the special committee will recommend proceeding with the restructuring or that any transaction will be consummated as described.

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