Auddia Inc., a company specializing in AI technology for audio identification and classification, has implemented a 1-for-7.7 reverse stock split effective April 1, 2026. The company's stockholders approved the measure in May 2025, authorizing the Board of Directors to determine the exact ratio. The Board subsequently set the ratio at 1-for-7.7, with the company filing the necessary amendment to its Certificate of Incorporation in Delaware on March 31, 2026.
The primary motivation behind this corporate action is to help Auddia meet Nasdaq's continued listing standards. Specifically, the company expects the reverse stock split to increase the per-share trading price above the $1.00 threshold required by Nasdaq's Minimum Bid Price Rule. Maintaining Nasdaq listing provides continued access to public capital markets and enhances shareholder liquidity. The company's common stock will trade under a new CUSIP number (05072K 404) following the split adjustment.
This financial restructuring will reduce Auddia's outstanding common shares from approximately 3.9 million to about 500,000. The reverse stock split applies uniformly to all equity instruments, including preferred stock, warrants, stock options, and restricted stock units. Conversion and exercise prices for these securities will be proportionately adjusted according to their governing terms and the company's equity incentive plans. No fractional shares will be issued; instead, fractional shares will be rounded up to the nearest whole share at the participant level through the Depository Trust Company.
For investors, the practical implications are straightforward. Stockholders holding shares through brokerage accounts will see their holdings automatically adjusted to reflect the 1-for-7.7 consolidation. Those holding physical stock certificates will receive instructions from Auddia's transfer agent, Vstock Transfer, regarding the exchange process. The company maintains its commitment to developing innovative audio technologies through its flagship platform, faidr, which offers subscription-based, ad-free AM/FM radio listening and enhanced podcast experiences. More information about the company's technology and services is available at https://www.auddia.com.
The reverse stock split represents a strategic move to preserve Auddia's position in the competitive audio technology market. By maintaining its Nasdaq listing, the company can continue pursuing its mission of transforming how consumers interact with audio content while providing shareholders with the benefits of trading on a major exchange. This action follows standard corporate governance procedures and reflects management's focus on long-term viability in the evolving digital audio landscape.
