Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40071 | |
Entity Registrant Name | AUDDIA INC. | |
Entity Central Index Key | 0001554818 | |
Entity Tax Identification Number | 45-4257218 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2100 Central Ave. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Boulder | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80301 | |
City Area Code | (303) | |
Local Phone Number | 219-9771 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,947,223 | |
Common Stock, par value $0.001 per share | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | AUUD | |
Security Exchange Name | NASDAQ | |
Warrants, each exercisable for one share of Common Stock | ||
Title of 12(b) Security | Warrants, each exercisable for one share of Common Stock | |
Trading Symbol | AUUDW | |
Security Exchange Name | NASDAQ |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 2,199,678 | $ 1,661,434 |
Accounts receivable, net | 574 | 137 |
Prepaid insurance | 56,704 | 0 |
Total current assets | 2,256,956 | 1,661,571 |
Non-current assets: | ||
Property and equipment, net of accumulated depreciation | 22,084 | 41,080 |
Software development costs, net of accumulated amortization | 3,545,610 | 4,134,225 |
Deferred offering costs | 170,259 | 222,896 |
Prepaids and other non-current assets | 47,364 | 51,754 |
Total non-current assets | 3,785,317 | 4,449,955 |
Total assets | 6,042,273 | 6,111,526 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 587,641 | 324,138 |
Notes payable to related party, net of debt issuance costs | 2,993,639 | 1,775,956 |
Stock awards liability | 45,981 | 161,349 |
Total current liabilities | 3,627,261 | 2,261,443 |
Total liabilities | 3,627,261 | 2,261,443 |
Commitments and contingencies (Note 5) | ||
Shareholders' equity: | ||
Preferred stock - $0.001 par value, 10,000,000 authorized and 0 shares issued and outstanding | 0 | 0 |
Common stock - $0.001 par value, 100,000,000 authorized and 19,947,223 and 12,654,949 shares issued and outstanding September 30, 2023 and December 31, 2022 | 19,947 | 12,654 |
Additional paid-in capital | 80,725,555 | 75,573,263 |
Accumulated deficit | (78,330,490) | (71,735,834) |
Total shareholders' equity | 2,415,012 | 3,850,083 |
Total liabilities and shareholders' equity | $ 6,042,273 | $ 6,111,526 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,947,223 | 12,654,949 |
Common stock, shares outstanding | 19,947,223 | 12,654,949 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | ||||
Direct cost of services | 43,470 | 32,712 | 130,809 | 128,806 |
Sales and marketing | 316,297 | 298,924 | 765,176 | 1,396,010 |
Research and development | 227,133 | 181,596 | 617,622 | 481,611 |
General and administrative | 777,496 | 540,220 | 2,596,831 | 2,400,503 |
Depreciation and amortization | 465,166 | 274,839 | 1,350,820 | 721,971 |
Total operating expenses | 1,829,562 | 1,328,291 | 5,461,258 | 5,128,901 |
Loss from operations | (1,829,562) | (1,328,291) | (5,461,258) | (5,128,901) |
Other (expense) income: | ||||
Interest expense | (286,920) | (2,023) | (1,133,398) | (5,058) |
Total other expense | (286,920) | (2,023) | (1,133,398) | (5,058) |
Loss before income taxes | (2,116,482) | (1,330,314) | (6,594,656) | (5,133,959) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (2,116,482) | $ (1,330,314) | $ (6,594,656) | $ (5,133,959) |
Condensed Statements of Opera_2
Condensed Statements of Operations (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net loss per share attributable to common stockholders, basic | $ (0.11) | $ (0.11) | $ (0.41) | $ (0.41) |
Net loss per share attributable to common stockholders, diluted | $ (0.11) | $ (0.11) | $ (0.41) | $ (0.41) |
Weighted average common shares outstanding, basic | 19,947,223 | 12,514,763 | 16,043,086 | 12,498,206 |
Weighted average common shares outstanding, diluted | 19,947,223 | 12,514,763 | 16,043,086 | 12,498,206 |
Condensed Statements of Changes
Condensed Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 12,416 | $ 74,236,910 | $ (64,838,389) | $ 9,410,937 |
Beginning balance, shares at Dec. 31, 2021 | 12,416,408 | |||
Exercise of Restricted Stock Units | $ 98 | (98) | ||
Exercise of Restricted Stock Units, shares | 98,355 | |||
Share-based compensation | 385,908 | 385,908 | ||
Reclassification of share-based compensation liability | (128,534) | (128,534) | ||
Net loss | (1,753,258) | (1,753,258) | ||
Ending balance, value at Mar. 31, 2022 | $ 12,514 | 74,494,186 | (66,591,647) | 7,915,053 |
Ending balance, shares at Mar. 31, 2022 | 12,514,763 | |||
Beginning balance, value at Dec. 31, 2021 | $ 12,416 | 74,236,910 | (64,838,389) | 9,410,937 |
Beginning balance, shares at Dec. 31, 2021 | 12,416,408 | |||
Net loss | (5,133,959) | |||
Ending balance, value at Sep. 30, 2022 | $ 12,514 | 74,727,187 | (69,972,348) | 4,767,353 |
Ending balance, shares at Sep. 30, 2022 | 12,514,763 | |||
Beginning balance, value at Mar. 31, 2022 | $ 12,514 | 74,494,186 | (66,591,647) | 7,915,053 |
Beginning balance, shares at Mar. 31, 2022 | 12,514,763 | |||
Share-based compensation | 285,921 | 285,921 | ||
Reclassification of share-based compensation liability | (7,262) | (7,262) | ||
Net loss | (2,050,385) | (2,050,385) | ||
Ending balance, value at Jun. 30, 2022 | $ 12,514 | 74,772,845 | (68,642,032) | 6,143,327 |
Ending balance, shares at Jun. 30, 2022 | 12,514,763 | |||
Share-based compensation | 26,657 | 26,657 | ||
Revaluation of share-based compensation liability | (72,315) | (72,315) | ||
Net loss | (1,330,314) | (1,330,314) | ||
Ending balance, value at Sep. 30, 2022 | $ 12,514 | 74,727,187 | (69,972,348) | 4,767,353 |
Ending balance, shares at Sep. 30, 2022 | 12,514,763 | |||
Beginning balance, value at Dec. 31, 2022 | $ 12,654 | 75,573,262 | (71,735,834) | 3,850,083 |
Beginning balance, shares at Dec. 31, 2022 | 12,654,949 | |||
Exercise of Restricted Stock Units | $ 196 | 42,601 | 42,797 | |
Exercise of Restricted Stock Units, shares | 195,760 | |||
Share-based compensation | 357,680 | 357,680 | ||
Net loss | (2,155,312) | (2,155,312) | ||
Ending balance, value at Mar. 31, 2023 | $ 12,850 | 75,973,543 | (73,891,146) | 2,095,247 |
Ending balance, shares at Mar. 31, 2023 | 12,850,709 | |||
Beginning balance, value at Dec. 31, 2022 | $ 12,654 | 75,573,262 | (71,735,834) | 3,850,083 |
Beginning balance, shares at Dec. 31, 2022 | 12,654,949 | |||
Net loss | (6,594,656) | |||
Ending balance, value at Sep. 30, 2023 | $ 19,947 | 80,725,555 | (78,330,490) | 2,415,012 |
Ending balance, shares at Sep. 30, 2023 | 19,947,223 | |||
Beginning balance, value at Mar. 31, 2023 | $ 12,850 | 75,973,543 | (73,891,146) | 2,095,247 |
Beginning balance, shares at Mar. 31, 2023 | 12,850,709 | |||
Issuance of common shares, net of costs | $ 7,097 | 3,956,787 | 3,963,884 | |
Issuance of common shares, net of costs, shares | 7,096,514 | |||
Exercise of Restricted Stock Units | (42,797) | (42,797) | ||
Issuance of warrants | 383,004 | 383,004 | ||
Share-based compensation | 224,856 | 224,856 | ||
Revaluation of share-based compensation liability | 30,445 | 30,445 | ||
Net loss | (2,322,862) | (2,322,862) | ||
Ending balance, value at Jun. 30, 2023 | $ 19,947 | 80,525,838 | (76,214,008) | 4,331,777 |
Ending balance, shares at Jun. 30, 2023 | 19,947,223 | |||
Share-based compensation | 217,141 | 217,141 | ||
Revaluation of share-based compensation liability | (17,424) | (17,424) | ||
Net loss | (2,116,482) | (2,116,482) | ||
Ending balance, value at Sep. 30, 2023 | $ 19,947 | $ 80,725,555 | $ (78,330,490) | $ 2,415,012 |
Ending balance, shares at Sep. 30, 2023 | 19,947,223 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (6,594,656) | $ (5,133,959) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Finance charge associated with debt issuance cost | 850,688 | 0 |
Depreciation and amortization | 1,350,820 | 721,971 |
Share-based compensation expense | 799,677 | 698,486 |
Change in assets and liabilities: | ||
Accounts receivable | (437) | 52 |
Prepaid insurance | (56,705) | 0 |
Prepaids and other non-current assets | 4,390 | (1,065) |
Accounts payable and accrued liabilities | 241,269 | 92,403 |
Net cash used in operating activities | (3,404,954) | (3,622,112) |
Cash flows from investing activities: | ||
Software capitalization | (743,208) | (1,673,517) |
Purchase of property and equipment | 0 | (3,809) |
Net cash used in investing activities | (743,208) | (1,677,326) |
Cash flows from financing activities: | ||
Net settlement of share-based compensation liability | (80,115) | (88,723) |
Proceeds from related party debt | 750,000 | 0 |
Proceeds from issuance of common shares | 4,016,521 | 0 |
Net cash provided by (used in) financing activities | 4,686,406 | (88,723) |
Net increase in cash | 538,244 | (5,388,161) |
Cash, beginning of year | 1,661,434 | 6,345,291 |
Cash and restricted cash, end of period | 2,199,678 | 957,130 |
Supplemental disclosures of cash flow information: | ||
Cash paid for Interest | 6,000 | 5,058 |
Supplemental disclosures of non-cash activity: | ||
Reclassification of deferred offering cost | 52,637 | 0 |
Original issue discount and issuance of warrants on related party debt | $ 458,004 | $ 0 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
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., (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. The Company is incorporated in Delaware and headquartered in Colorado. Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Interim Financial Information The condensed financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this Quarterly Report, as is permitted by such rules and regulations. The condensed balance sheet as of December 31, 2022 has been derived from the financial statements included in the Company’s annual report on Form 10-K. Accordingly, these condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K. The results for any interim period are not necessarily indicative of results for any future period. The Company recorded all adjustments necessary for a fair statement of the results for the interim period and all such adjustments are of a normal recurring nature. 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 period. Actual results could differ from those estimates. The condensed 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. 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. 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 to comply with certain new or revised accounting standards that have different effective dates for public and private companies. Going Concern The Company had cash of $ 2,199,678 As a result of the Company’s recurring losses from operations, and the need for additional financing to fund its operating and capital requirements, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Management has plans to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, such as the White Lion equity line of credit (refer to Note 8) and additional future financing agreements. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s current level of cash is not sufficient to execute the business plan. For the foreseeable future, the Company will incur significant operating expenses, capital expenditures and working capital funding that will deplete cash on hand by February 2024. 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. As of September 30, 2023, the Company had approximately $ 1.9 million 1.4 million 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 three 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. We determined that no such impairments were required during the three months and nine months ended September 30, 2023. Software development costs of $ 213,705 394,893 743,208 1,673,517 458,973 262,703 1,331,823 693,441 Revenue Recognition Revenue will be measured according to Accounting Standards Codification (“ASC”) 606, Revenue – Revenue from Contracts with Customers, and will be recognized based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company will recognize revenue when a performance obligation is satisfied by transferring control over a service or product to a customer. The Company will 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 the condensed statements of operations. Collected taxes will be recorded within Other current liabilities until remitted to the relevant taxing authority. Subscriber revenue will consist primarily of subscription fees and other ancillary subscription-based revenues. Revenue will be 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 would be recorded as deferred revenue. The deferred revenue will be recognized as revenue in the statement of operations as the services are provided. 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 in accordance with ASC 718. 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. Certain share-based compensation awards include a net-share settlement feature that provides the grantee an option to withhold shares to satisfy tax withholding requirements and are classified as a share-based compensation liability. Cash paid to satisfy tax withholdings is classified as financing activities in the condensed statements of cash flows. Recently Adopted ASUs ASU 2016-13-Financial Instruments-Credit Losses- |
Property & Equipment and Softwa
Property & Equipment and Software Development Costs | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property & Equipment and Software Development Costs | Note 2 – Property & Equipment and Software Development Costs Property and equipment and software development costs consisted of the following as of: Schedule of property, equipment and software development costs September 30, 2023 December 31, 2022 Computers and equipment $ 99,939 $ 99,939 Furniture 7,263 7,262 Accumulated depreciation (85,118 ) (66,121 ) Total property and equipment, net $ 22,084 $ 41,080 Software development costs $ 7,369,257 $ 6,626,049 Accumulated amortization (3,823,647 ) (2,491,824 ) Total software development costs, net $ 3,545,610 $ 4,134,225 The Company recognized depreciation expense of $ 6,193 12,136 458,973 262,703 18,997 28,529 1,331,823 693,441 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 3 – Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: Schedule of accounts payable and accrued liabilities September 30, 2023 December 31, 2022 Accounts payable and accrued liabilities $ 269,159 $ 289,955 Credit cards payable 14,517 6,072 Accrued interest 303,965 28,111 Total accounts payable and accrued liabilities $ 587,641 $ 324,138 |
Notes Payable to Related Party,
Notes Payable to Related Party, net of debt issuance costs | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Notes Payable to Related Party, net of debt issuance costs | Note 4 – Notes Payable to Related Party, net of debt issuance costs In November 2022, the Company entered into a Secured Bridge Note (the “Prior Note”) financing with an existing shareholder of the Company. The principal amount of the Prior Note was $ 2,200,000 200,000 300,000 361,878 300,000 94,083 In connection with an additional financing with the same related party during April of 2023, the Company cancelled the original 300,000 600,000 35,981 300,000 300,000 During May of 2023, the Company extended the maturity date of the Prior Notes by six months to November 2023 at an increased annual interest rate of 20%. In connection with this extension, the 300,000 As of September 30, 2023, and December 31, 2022, the balance of the Prior Note, net of debt issuance costs, was $2,168,639 and $1,775,956, respectively. Interest expense related to the Prior Note for the three and nine months ended September 30, 2023, was $157,298 and $762,112. As noted above, the Company entered into an additional Secured Bridge Note (“New Note”) financing with the same accredited investor and significant existing shareholder during April of 2023. In addition, the Company also amended the terms of the Prior Note. The principal amount of the New Note is $ 825,000 75,000 325,000 325,000 252,940 As of September 30, 2023, the balance of the New Note issued in April 2023, net of debt issuance costs, was $ 825,000 401,441 On July 31, 2023, the Company extended the maturity date of the New Note to November 30, 2023. In connection with such extension, 325,000 outstanding unvested warrants became vested and exercisable. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5 – Commitments and Contingencies Operating Lease In April 2021, the Company entered into a lease agreement for office space in Boulder, Colorado comprising 8,639 square feet. The lease commenced on May 15, 2021, and terminated after 12 months. The Company subsequently extended the lease through November 2022. In November 2022, the Company amended the lease, reducing the square footage rented to 2,160 with a base rent of $4,018 per month. The amended lease terminates after 13 months. Rent expense, as part of general and administrative expenses as included in the Condensed Statement of Operations, was $ 12,053 39,935 49,491 83,117 Litigation In the normal course of business, the Company is party to litigation from time to time. The Company maintains insurance to cover certain actions and believes that resolution of such litigation will not have a material adverse effect on the Company. There are no active litigations as of the date the financial statements were issued. However, a pre-IPO investor has contacted the Company claiming damages caused by alleged acts and omissions arising from a private financing by the Company. No complaint has been filed by the investor. The alleged damages asserted by the investor are less than approximately $300,000. The outcome of the complaint was neither probable or estimable as of the date the financial statements were issued. NASDAQ Deficiencies On May 23, 2023, we received a letter (the “Notice”) from the Listing Qualifications Staff of the Nasdaq Stock Market, LLC (“Nasdaq”) indicating that, based upon the Company’s reported stockholder’s equity of $ 2,095,247 On July 10, 2023, the Company received a letter from Nasdaq advising that the Company had been granted an extension to file a Form 10-Q for the quarter-ended June 30, 2023 evidencing compliance with Stockholder’s Equity Requirement. The stockholder’s equity balance as of June 30, 2023 was $ 4,331,777 August 25, 2023, Nasdaq confirmed that the Company had regained compliance with the Stockholders’ Equity Requirement and that this matter is now closed. Separately, on April 24, 2023 we received a letter from Nasdaq indicating that the Company is not in compliance with the $1.00 Minimum Bid Price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market (the “Bid Price Requirement”). The letter indicated that the Company will be provided 180 calendar days (or until October 23, 2023) in which to regain compliance. If at any time during this 180 calendar day period the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, Nasdaq will provide the Company with a written confirmation of compliance and the matter will be closed. On October 24, 2023, the Company received a written notice from the Nasdaq staff indicating that the Company had not regained compliance with the Bid Price Requirement and was not eligible for an additional 180 calendar day compliance period. As a result, the staff determined to delist the Company’s Common Stock from Nasdaq, unless the Company timely requests an appeal of the Staff’s determination to a Hearings Panel (the “Panel”), pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. The Company has requested a hearing before the Panel to appeal the October notice and to address compliance with the Bid Price Requirement. While the appeal process is pending, the suspension of trading of the Company’s common stock, will be stayed and the Common Stock will continue to trade on Nasdaq until the hearing process concludes and the Panel issues a written decision. The hearing is expected to occur in mid-January 2024. The Company intends to consider all options to regain and maintain compliance with all Nasdaq continued listing requirements. The Company’s receipt of these Nasdaq letters does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission. |
Share-based Issuances
Share-based Issuances | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Share-based Issuances | Note 6 - Share-based Issuances Stock Options The following table presents the activity for stock options outstanding: Schedule of stock option activity Options Weighted Average Exercise Price Outstanding - December 31, 2022 1,663,173 $ 2.45 Granted 200,200 0.94 Forfeited/canceled (206,454 ) 1.51 Exercised – – Outstanding - September 30, 2023 1,656,919 $ 2.38 The following table presents the composition of options outstanding and exercisable: Schedule of options outstanding and exercisable Options Outstanding Options Exercisable Exercise Prices Number Price Life* Number Price* $2.70 22,264 $ 2.70 0.75 22,264 $ 2.70 $2.90 53,128 $ 2.90 4.11 53,128 $ 2.90 $4.26 171,197 $ 4.26 5.73 171,197 $ 4.26 $2.79 772,194 $ 2.79 7.23 553,122 $ 2.79 $1.79 198,750 $ 1.79 7.87 68,437 $ 1.79 $1.21 389,386 $ 1.21 8.95 292,039 $ 1.21 $0.40 50,000 $ 0.40 9.69 – $ 0.40 Total - September 30, 2023 1,656,919 $ 2.38 1,160,187 $ 2.59 * Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, respectively. During the nine months ended September 30, 2023, the Company granted 200,200 Restricted Stock Units The following table presents the activity for restricted stock units outstanding: Schedule of restricted stock units outstanding Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding - December 31, 2022 563,859 $ 2.14 Granted 37,500 1.24 Forfeited/canceled (118,350 ) 1.83 Vested/issued (195,759 ) 1.83 Outstanding - September 30, 2023 287,250 $ 2.37 During the nine months ended September 30, 2023, the Company granted 37,500 In 2023, certain restricted stock unit holders elected a net-share settlement for vested shares to satisfy income tax requirements. The Company applied modification accounting in accordance with ASC 718 and recorded the expected value of these share-based awards as a liability. The Company recognized a share-based compensation liability as of September 30, 2023, of $ 45,981 The Company recognized share-based compensation expense related to stock options and restricted stock units of $ 799,677 698,486 1,447,278 Warrants The following table presents the activity for warrants outstanding: Schedule of warrant outstanding Warrants Weighted Average Exercise Price Outstanding - December 31, 2022 4,472,099 $ 4.62 Granted 950,000 0.61 Forfeited/canceled – – Exercised – – Outstanding - September 30, 2023 5,422,099 $ 3.84 5,422,099 2.69 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Net loss per share attributable to common stockholders | |
Net Loss Per Share | Note 7 – Net Loss Per Share Basic net loss per share is computed by dividing net loss, which is allocated based upon the proportionate amount of weighted average shares outstanding, to each class of shareholder’s stock outstanding during the period. For the calculation of diluted net loss per share, net loss per share attributable to common shareholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. As of September 30, 2023, and 2022, 7,079,016 6,271,219 |
Equity Financings
Equity Financings | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity Financings | Note 8 – Equity Financings Equity Line Sales of Common Stock On November 14, 2022, the Company entered into a Common Stock Purchase Agreement (the “White Lion Purchase Agreement”) with White Lion Capital, LLC, a Nevada limited liability company (“White Lion”) for an equity line facility. In April and June 2023, the Company closed on three sales of Common Stock under the White Lion Purchase Agreement. As a result, the Company issued an aggregate of 2,361,514 1.3 million Any proceeds that the Company receives under the White Lion Purchase Agreement are expected to be used for working capital and general corporate purposes. The aggregate number of shares of common stock that the Company can sell to White Lion under the White Lion Purchase Agreement (including the Commitment Shares) may in no case exceed 2,501,700 The Company recognized all offering costs related to the equity line of credit as deferred offering costs in accordance with the guidance in ASC 835-30-S45. Sale of Common Shares (S-3 offering) In June 2023, the Company sold 4,735,000 2.7 million |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 – Subsequent Events Replacement Equity Line with White Lion On November 6, 2023, the Company entered into a new Common Stock Purchase Agreement and a related registration rights agreement with White Lion. Pursuant to the new Common Stock Purchase Agreement, the Company has the right, but not the obligation to require White Lion to purchase, from time to time until December 31, 2024, up to $10,000,000 in aggregate gross purchase price of newly issued shares of the Company’s common stock, subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement. In connection with the new Common Stock Purchase Agreement, the parties agreed to terminate the previous Common Stock Purchase Agreement with White Lion. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Auddia Inc., (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. The Company is incorporated in Delaware and headquartered in Colorado. |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). |
Interim Financial Information | Interim Financial Information The condensed financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this Quarterly Report, as is permitted by such rules and regulations. The condensed balance sheet as of December 31, 2022 has been derived from the financial statements included in the Company’s annual report on Form 10-K. Accordingly, these condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K. The results for any interim period are not necessarily indicative of results for any future period. The Company recorded all adjustments necessary for a fair statement of the results for the interim period and all such adjustments are of a normal recurring nature. |
Use of Estimates | 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 period. Actual results could differ from those estimates. The condensed 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. |
Risks and Uncertainties | 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. |
Emerging Growth Company Status | 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 to comply with certain new or revised accounting standards that have different effective dates for public and private companies. |
Going Concern | Going Concern The Company had cash of $ 2,199,678 As a result of the Company’s recurring losses from operations, and the need for additional financing to fund its operating and capital requirements, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Management has plans to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, such as the White Lion equity line of credit (refer to Note 8) and additional future financing agreements. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s current level of cash is not sufficient to execute the business plan. For the foreseeable future, the Company will incur significant operating expenses, capital expenditures and working capital funding that will deplete cash on hand by February 2024. |
Cash | 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. As of September 30, 2023, the Company had approximately $ 1.9 million 1.4 million |
Software Development Costs | 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 three 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. We determined that no such impairments were required during the three months and nine months ended September 30, 2023. Software development costs of $ 213,705 394,893 743,208 1,673,517 458,973 262,703 1,331,823 693,441 |
Revenue Recognition | Revenue Recognition Revenue will be measured according to Accounting Standards Codification (“ASC”) 606, Revenue – Revenue from Contracts with Customers, and will be recognized based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company will recognize revenue when a performance obligation is satisfied by transferring control over a service or product to a customer. The Company will 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 the condensed statements of operations. Collected taxes will be recorded within Other current liabilities until remitted to the relevant taxing authority. Subscriber revenue will consist primarily of subscription fees and other ancillary subscription-based revenues. Revenue will be 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 would be recorded as deferred revenue. The deferred revenue will be recognized as revenue in the statement of operations as the services are provided. |
Share-Based Compensation | 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 in accordance with ASC 718. 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. Certain share-based compensation awards include a net-share settlement feature that provides the grantee an option to withhold shares to satisfy tax withholding requirements and are classified as a share-based compensation liability. Cash paid to satisfy tax withholdings is classified as financing activities in the condensed statements of cash flows. |
Recently Adopted ASUs | Recently Adopted ASUs ASU 2016-13-Financial Instruments-Credit Losses- |
Property & Equipment and Soft_2
Property & Equipment and Software Development Costs (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, equipment and software development costs | Schedule of property, equipment and software development costs September 30, 2023 December 31, 2022 Computers and equipment $ 99,939 $ 99,939 Furniture 7,263 7,262 Accumulated depreciation (85,118 ) (66,121 ) Total property and equipment, net $ 22,084 $ 41,080 Software development costs $ 7,369,257 $ 6,626,049 Accumulated amortization (3,823,647 ) (2,491,824 ) Total software development costs, net $ 3,545,610 $ 4,134,225 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued liabilities | Schedule of accounts payable and accrued liabilities September 30, 2023 December 31, 2022 Accounts payable and accrued liabilities $ 269,159 $ 289,955 Credit cards payable 14,517 6,072 Accrued interest 303,965 28,111 Total accounts payable and accrued liabilities $ 587,641 $ 324,138 |
Share-based Issuances (Tables)
Share-based Issuances (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of stock option activity | Schedule of stock option activity Options Weighted Average Exercise Price Outstanding - December 31, 2022 1,663,173 $ 2.45 Granted 200,200 0.94 Forfeited/canceled (206,454 ) 1.51 Exercised – – Outstanding - September 30, 2023 1,656,919 $ 2.38 |
Schedule of options outstanding and exercisable | Schedule of options outstanding and exercisable Options Outstanding Options Exercisable Exercise Prices Number Price Life* Number Price* $2.70 22,264 $ 2.70 0.75 22,264 $ 2.70 $2.90 53,128 $ 2.90 4.11 53,128 $ 2.90 $4.26 171,197 $ 4.26 5.73 171,197 $ 4.26 $2.79 772,194 $ 2.79 7.23 553,122 $ 2.79 $1.79 198,750 $ 1.79 7.87 68,437 $ 1.79 $1.21 389,386 $ 1.21 8.95 292,039 $ 1.21 $0.40 50,000 $ 0.40 9.69 – $ 0.40 Total - September 30, 2023 1,656,919 $ 2.38 1,160,187 $ 2.59 * Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, respectively. |
Schedule of restricted stock units outstanding | Schedule of restricted stock units outstanding Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding - December 31, 2022 563,859 $ 2.14 Granted 37,500 1.24 Forfeited/canceled (118,350 ) 1.83 Vested/issued (195,759 ) 1.83 Outstanding - September 30, 2023 287,250 $ 2.37 |
Schedule of warrant outstanding | Schedule of warrant outstanding Warrants Weighted Average Exercise Price Outstanding - December 31, 2022 4,472,099 $ 4.62 Granted 950,000 0.61 Forfeited/canceled – – Exercised – – Outstanding - September 30, 2023 5,422,099 $ 3.84 |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||||
Cash | $ 2,199,678 | $ 2,199,678 | $ 1,661,434 | ||
Cash equivalents, at carrying value | 0 | 0 | 0 | ||
Cash, uninsured amount | 1,900,000 | 1,900,000 | $ 1,400,000 | ||
Software development costs incurred | 213,705 | $ 394,893 | 743,208 | $ 1,673,517 | |
Amortization of software development costs | $ 458,973 | $ 262,703 | $ 1,331,823 | $ 693,441 |
Property & Equipment and Soft_3
Property & Equipment and Software Development Costs (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (85,118) | $ (66,121) |
Total property and equipment, net | 22,084 | 41,080 |
Accumulated amortization | (3,823,647) | (2,491,824) |
Total software development costs, net | 3,545,610 | 4,134,225 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Computers and equipment, gross | 99,939 | 99,939 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, gross | 7,263 | 7,262 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Software, gross | $ 7,369,257 | $ 6,626,049 |
Property & Equipment and Soft_4
Property & Equipment and Software Development Costs (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 6,193 | $ 12,136 | $ 18,997 | $ 28,529 |
Equipment and amortization expense | $ 458,973 | $ 262,703 | $ 1,331,823 | $ 693,441 |
Accounts payable and accrued _3
Accounts payable and accrued liabilities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued liabilities | $ 269,159 | $ 289,955 |
Credit cards payable | 14,517 | 6,072 |
Accrued interest | 303,965 | 28,111 |
Total accounts payable and accrued liabilities | $ 587,641 | $ 324,138 |
Notes Payable to Related Part_2
Notes Payable to Related Party, net of debt issuance costs (Details Narrative) - Prior Note [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2022 | May 31, 2023 | Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | |||||
Debt face amount | $ 2,200,000 | ||||
Original issue discount | $ 200,000 | ||||
Warrants issued, shares | 300,000 | ||||
Warrants issued, value | $ 361,878 | ||||
New Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 825,000 | ||||
Original issue discount | $ 75,000 | ||||
Warrants issued, shares | 325,000 | ||||
Debt face amount | $ 825,000 | $ 825,000 | |||
Interest expense, debt | $ 401,441 | $ 401,441 | |||
Additional Warrants [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrants issued, shares | 325,000 | ||||
Warrants issued, value | $ 252,940 | ||||
Additional Warrants [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrants issued, shares | 300,000 | ||||
Warrants issued, value | $ 94,083 | ||||
Original Issued Warrants [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrants cancelled, shares | 300,000 | ||||
New Common Stock Warrants [Member] | |||||
Debt Instrument [Line Items] | |||||
Warrants issued, shares | 600,000 | ||||
Warrants issued, value | $ 35,981 | ||||
Warrants vested | 300,000 | 300,000 | |||
Warrants unvested | 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Rent expense | $ 12,053 | $ 39,935 | $ 49,491 | $ 83,117 | ||||||
Equity, Attributable to Parent | $ 2,415,012 | $ 4,767,353 | $ 2,415,012 | $ 4,767,353 | $ 4,331,777 | $ 2,095,247 | $ 3,850,083 | $ 6,143,327 | $ 7,915,053 | $ 9,410,937 |
Share-based Issuances (Details
Share-based Issuances (Details - Option Activity) - Equity Option [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding, beginning | shares | 1,663,173 |
Weighted average exercise price, beginning | $ / shares | $ 2.45 |
Options granted | shares | 200,200 |
Weighted average exercise price, granted | $ / shares | $ 0.94 |
Options forfeited/cancelled | shares | (206,454) |
Weighted average exercise price, forfeited/canceled | $ / shares | $ 1.51 |
Options exercised | shares | 0 |
Weighted average exercise price, exercised | $ / shares | $ 0 |
Outstanding, ending | shares | 1,656,919 |
Weighted average exercise price, ending | $ / shares | $ 2.38 |
Share-based Issuances (Detail_2
Share-based Issuances (Details - Options by Exercise Price) - Equity Option [Member] - $ / shares | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 1,656,919 | 1,663,173 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.38 | $ 2.45 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 1,160,187 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 2.59 | |
Exercise Price 1 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 22,264 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.70 | ||
Weighted average contractual term | [1] | 9 months | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 22,264 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 2.70 | |
Exercise Price 2 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 53,128 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.90 | ||
Weighted average contractual term | [1] | 4 years 1 month 9 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 53,128 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 2.90 | |
Exercise Price 3 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 171,197 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 4.26 | ||
Weighted average contractual term | [1] | 5 years 8 months 23 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 171,197 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 4.26 | |
Exercise Price 4 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 772,194 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.79 | ||
Weighted average contractual term | [1] | 7 years 2 months 23 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 553,122 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 2.79 | |
Exercise Price 5 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 198,750 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 1.79 | ||
Weighted average contractual term | [1] | 7 years 10 months 13 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 68,437 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 1.79 | |
Exercise Price 6 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 389,386 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 1.21 | ||
Weighted average contractual term | [1] | 8 years 11 months 12 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 292,039 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 1.21 | |
Exercise Price 7 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 50,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0.40 | ||
Weighted average contractual term | [1] | 9 years 8 months 8 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | [1] | $ 0.40 | |
[1] Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, respectively. |
Share-based Issuances (Detail_3
Share-based Issuances (Details - Restricted Stock Units Activity) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding, beginning | shares | 563,859 |
Weighted average exercise price, beginning | $ / shares | $ 2.14 |
Restricted stock units granted | shares | 37,500 |
Weighted average exercise price, granted | $ / shares | $ 1.24 |
Restricted stock units forfeited/cancelled | shares | (118,350) |
Weighted average exercise price, forfeited/cancelled | $ / shares | $ 1.83 |
Restricted Stock Units vested issued | shares | (195,759) |
Weighted average exercise price, vested issued | $ / shares | $ 1.83 |
Outstanding, ending | shares | 287,250 |
Weighted average exercise price, ending | $ / shares | $ 2.37 |
Share-based Issuances (Detail_4
Share-based Issuances (Details - Warrant Activity) - Warrant [Member] | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Warrants outstanding, beginning | shares | 4,472,099 |
Weighted average exercise price, beginning | $ / shares | $ 4.62 |
Warrants granted | shares | 950,000 |
Weighted average exercise price, granted | $ / shares | $ 0.61 |
Warrants Forfeited/cancelled | shares | 0 |
Weighted average exercise price, granted | $ / shares | $ 0 |
Warrants Exercised | shares | 0 |
Weighted average exercise price, granted | $ / shares | $ 0 |
Warrants outstanding, ending | shares | 5,422,099 |
Weighted average exercise price, ending | $ / shares | $ 3.84 |
Share-based Issuances (Detail_5
Share-based Issuances (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation | $ 799,677 | $ 698,486 | |
Share-based compensation expense | $ 1,447,278 | ||
Equity Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock units granted | 200,200 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock units granted | 37,500 | ||
Fair value of vested shares over the service | $ 45,981 | ||
Warrant [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Warrants outstanding | 5,422,099 | 4,472,099 | |
Warrants remaining contractual life | 2 years 8 months 8 days |
Net Loss Per Share (Details Nar
Net Loss Per Share (Details Narrative) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net loss per share attributable to common stockholders | ||
Dilutive weighted average shares | 7,079,016 | 6,271,219 |
Equity Financings (Details Narr
Equity Financings (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Proceeds from sale of stock | $ 4,016,521 | $ 0 | |||
S-3 Offering [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock issued new, shares | 4,735,000 | ||||
Proceeds from sale of stock | $ 2,700,000 | ||||
Common Stock [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock issued new, shares | 7,096,514 | ||||
White Lion Purchase Agreement [Member] | Common Stock [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of shares issued, shares | 2,361,514 | 2,361,514 | |||
Number of shares issued value | $ 1,300,000 | $ 1,300,000 | |||
Number of shares exceed | 2,501,700 |