| Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | Note 1 - Description of Business, Basis of Presentation and Summary
of Significant Accounting Policies Description of Business Auddia Inc., formerly Clip Interactive, LLC, (the
“Company”, “Auddia”, “we”, “our”) is a technology company that is reinventing how consumers
engage with audio through the development of a proprietary AI platform for audio and innovative technologies for podcasts. Clip Interactive,
LLC was initially formed as a Colorado limited liability company on January 14, 2012 and on November 25, 2019 changed its trade name to
Auddia. On February 16, 2021, the Company completed an
initial public offering (the “IPO”) of 3,991,818 units, at $4.125 per unit, consisting of one share of common stock and one
warrant to purchase one share of common stock at an exercise price of $4.54 per share. In addition, the underwriters exercised their option
to purchase 598,772 Series A warrants to cover over-allotments and were issued 319,346 in representative warrants at an exercise price
of $5.15625 per share. After deducting underwriters commissions and expenses, the Company received net proceeds of approximately $15.1
million and its common stock commenced trading on Nasdaq under the ticker symbol “AUUD”. Concurrently with the IPO, holders
of the Company’s promissory notes, convertible notes, and related party notes, along with accrued interest, were converted into
6,814,570 shares of the Company’s common stock. Concurrently with the IPO the Company converted
from a Colorado limited liability company to a Delaware corporation. This accounting change has been given retrospective treatment in
the condensed financial statements. Basis of Presentation The accompanying financial statements have been
prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Use of Estimates The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those estimates. The financial statements include some amounts
that are based on management's best estimates and judgments. The most significant estimates relate to valuation of capital stock, warrants
and options to purchase shares of the Company's common stock, and the estimated recoverability and amortization period for capitalized
software development costs. These estimates may be adjusted as more current information becomes available, and any adjustment could be
significant. Reclassification of Presentation Certain prior year amounts have been reclassified
for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Risks and Uncertainties The Company is subject to various risks and uncertainties
frequently encountered by companies in the early stages of development. Such risks and uncertainties include, but are not limited to,
its limited operating history, competition from other companies, limited access to additional funds, dependence on key personnel, and
management of potential rapid growth. To address these risks, the Company must, among other things, develop its customer base; implement
and successfully execute its business and marketing strategy; develop follow-on products; provide superior customer service; and attract,
retain, and motivate qualified personnel. There can be no guarantee that the Company will be successful in addressing these or other such
risks. Cash The Company considers all highly liquid instruments
purchased with an original maturity of three months or less to be cash equivalents. The Company had no The Company maintains cash deposits at several
financial institutions, which are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s cash balance
may at times exceed these limits. At December 31, 2021 and December 31, 2020, the Company had approximately $ 5.9
0 Property and Equipment Property and equipment are stated at cost, net
of accumulated depreciation. Depreciation is provided utilizing the straight-line method over the estimated useful lives for owned assets,
ranging from two to five years. 2 to 5 years Software Development Costs The Company accounts for costs incurred in the
development of computer software as software research and development costs until the preliminary project stage is completed, management
has committed to funding the project, and completion and use of the software for its intended purpose is probable. The Company ceases capitalization of development
costs once the software has been substantially completed and is available for its intended use. Software development costs are amortized
over a useful life estimated by the Company’s management of five years. Costs associated with significant upgrades and enhancements
that result in additional functionality are capitalized. Capitalized costs are subject to an ongoing assessment of recoverability based
on anticipated future revenues and changes in software technologies. Unamortized capitalized software development costs
determined to be in excess of anticipated future net revenues are considered impaired and expensed during the period of such determination.
Software development costs of $ 1,515,741 867,578 146,737 368,332 Deferred Offering Costs The Company deferred direct and incremental
costs associated with its IPO that occurred in February 2021. The Company capitalized deferred offering costs of $ 142,049 141,908 Long-Lived Assets The Company reviews its tangible and limited lived
intangible long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset
may not be recovered. If a potential impairment is indicated, the Company compares the carrying amount of the asset to the undiscounted
future cash flows associated with the asset. In the event the future cash flows are less than their carrying value, a loss is recognized
based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The Company determined long-lived assets
were no Income Taxes The Company accounts for income taxes using an
asset and liability approach, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences
of events. A valuation allowance is established to reduce deferred tax assets to their estimated realizable value when, in the opinion
of management, it is more likely than not that some portion or all of the deferred income tax assets will not be realized in the future. The Company recognizes benefits of uncertain tax
positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits,
as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. The Company’s policy
is to recognize interest and penalties related to unrecognized tax benefits as a part of income tax expense. Prior to the Company’s conversion to a Delaware
corporation in February 2021, the Company was a limited liability company and had elected to be treated as a pass-through entity for income
tax purposes. Accordingly, taxable income and losses of the Company were reported on the income tax returns of its members, and no provision
for federal income taxes have been recorded in the accompanying financial statements. Had the Company been a taxable entity, no Revenue Recognition Revenue is measured according to Accounting Standards
Codification (“ASC”) 606, Revenue – Revenue from Contracts with Customers, and is recognized based on consideration
specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. We recognize
revenue when we satisfy a performance obligation by transferring control over a service or product to a customer. We report revenues net
of any tax assessed by a governmental authority that is both imposed on, and concurrent with, a specific revenue-producing transaction
between a seller and a customer in our consolidated statements of comprehensive income. Collected taxes are recorded within Other current
liabilities until remitted to the relevant taxing authority. Subscriber revenue consists primarily of subscription
fees and other ancillary subscription based revenues. Revenue is recognized on a straight-line basis when the performance obligations
to provide each service for the period are satisfied, which is over time as our subscription services are continuously available and can
be consumed by customers at any time. There is no revenue recognized for unpaid trial subscriptions. Customers may pay for the services in advance
of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as
revenue in our statement of operations as the services are provided. Advertising Costs The Company expenses advertising costs as incurred.
Advertising expense for the year ended December 31, 2021 was $ 130,565 Share-Based Compensation The Company accounts for share-based compensation
arrangements with employees, directors, and consultants and recognizes the compensation expense for share-based awards based on the estimated
fair value of the awards on the date of grant. Compensation expense for all share-based awards
is based on the estimated grant-date fair value and recognized in earnings over the requisite service period (generally the vesting period).
The Company records share-based compensation expense related to non-employees over the related service periods. Net Loss per Share Basic loss per share common share is calculated
based on the weighted-average number of common shares outstanding in accordance with FASB ASC Topic 260, Earnings per Share Geographic Locations & Segments For the year ended December 31, 2021 and 2020,
100% of revenue attributable to customers and 100% of our net assets are located within the United States. Emerging Growth Company Status The Company is an emerging growth company, as
defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies
can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards
apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting
standards that have different effective dates for public and private companies. |
