All three acquisition targets in total would represent nearly 10 million monthly active users (MAUs), over $5M in annual revenue, and over $3M in operating cash flow  

The purchase agreement for Radio FM representing 4.6 million MAUs, $2.3M in revenue, and $1.4M in operating cash flow has been signed and announced  

The purchase agreement for target #2 is expected to be signed before the end of Q1 2024

Target #3 remains under non-binding LOI with a binding exclusivity clause giving Auddia the exclusive right to close through the end of Q3 2024

BOULDER, CO - (NewMediaWire) - March 04, 2024 - Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), a proprietary AI platform for audio identification and classification and related technologies, that is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content, provides today an update on its overall M&A strategy on the heels of announcing the signing of a definitive purchase agreement to acquire Radio FM (RFM), a leading AM/FM streaming app. Closing of the RFM acquisition remains subject to securing adequate financing. 

Jeff Thramann, Executive Chairman of Auddia, said, “The previously announced RFM acquisition represents the first M&A target of the three AM/FM streaming providers we have under LOI. If we are able to arrange financing for RFM and our other targets, the acquisitions would completely change the financial trajectory of Auddia. The Company would go from minimal revenue and users to over $5M in annual revenue and almost 10 million monthly active users. Whereas the synergies of many acquisitions are vague or speculative, the synergies from acquiring almost 10 million users already listening to AM/FM radio via the stream could not be more obvious or more powerful. Our goal will be to convert as many of these users as possible to paid subscribers. Historically, we have been converting about 10% of our free tier users on faidr to subscribers. If even a fraction of that conversion rate holds up against our acquired users, we anticipate that Auddia would rapidly become cash flow positive.” 

Auddia continues to advance discussions with the other two acquisition targets under LOI. Diligence related to target #2 is complete and the purchase agreement is in its final stages of negotiation. Auddia expects to sign the definitive purchase agreement for target #2 before the end of Q1 2024. 

To provide more flexibility on timeline, the Company entered into discussions with target #3 to secure an option to extend the exclusive right to acquire the target through Q3 of 2024 if needed. Auddia believes a definitive purchase agreement for target #3 will be executed by Q3 2024. 

All three acquisitions being targeted by Auddia remain subject to financing the acquisition costs. More details about target #2 and target #3 will be provided upon signing definitive purchase agreements.

About Auddia Inc.

Auddia, through its proprietary AI platform for audio identification and classification and related technologies, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings two industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station and ad-free podcast listening with the addition of interactive digital feeds that support deeper stories and open untapped revenue streams to podcasters. faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. Both differentiated offerings address large and rapidly growing audiences with strong purchase intent. For more information, visit: www.auddia.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Investor Relations:

Kirin Smith, President

PCG Advisory, Inc.

ksmith@pcgadvisory.com

www.pcgadvisory.com