Auddia Inc. (AUUD): Business Model Canvas [Dec-2025 Updated]

You're analyzing Auddia Inc. right now, and what you see is a company at a real inflection point, moving from a direct-to-consumer app to a B2B AI music discovery play under a new holding structure. It's a classic story: they are betting big on proprietary AI-like their Placement Engine-to generate future revenue, even as they reported $0.00 in revenue for Q3 2025 while holding about $2.73 million in cash as of September 30, 2025. This transition, supported by a potential $50 million equity line, fundamentally changes their value proposition for artists and labels; dig into the full Business Model Canvas below to see exactly how they plan to execute this complex pivot from user-facing app to enterprise platform.

Auddia Inc. (AUUD) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Auddia Inc. is building to execute its late-2025 strategy. These aren't just names on a slide; they represent capital commitments, ownership shifts, and market access points. Here's the breakdown of the key partnerships driving the current structure.

Proposed Business Combination with Thramann Holdings, LLC

The proposed reverse merger with Thramann Holdings, LLC, announced via a non-binding Letter of Intent on August 5, 2025, is the most significant structural partnership. This deal is designed to transform Auddia Inc. into a holding company focused on AI and web3 efficiencies, with the combined entity expected to trade under the ticker MCFN.

Here are the ownership terms contemplated in the August 2025 LOI:

This transaction has a critical financial contingency. Closing is conditioned on Auddia raising at least $10 million of additional capital to fund ongoing business operations for Auddia and the combined business. Thramann Holdings controls three AI-native companies: LT350, Influence Healthcare, and Voyex, which will become subsidiaries.

LT350 Strategic Partnership for Distributed AI Data Center

Auddia has secured a strategic partnership with a top ten convenience store gas station brand. This relationship is more than just a handshake; it includes an equity investment from the partner. The goal is ambitious: deploying the world's largest distributed AI data center by replacing existing gas station canopies with LT350 canopies. LT350 itself holds 9 issued patents on its proprietary solar parking lot canopy technology.

Discovr Radio MVP Pilot Program

The pivot to a B2B SaaS model for Discovr Radio relies on early adoption from music industry players. The MVP is targeted for release between Q4 2025 and Q1 2026, supported by a pilot program involving participating music labels and distributors. This platform is designed to tap into a serviceable addressable market estimated at over 100 million prospects.

Key operational metrics targeted by the AI Placement Engine include:

• Targeting up to 33% of stream content insertion.
• Monetization via monthly subscriptions from artists and labels.
• Providing artists with an Artist Portal for analytics on plays and engagement.

Engineering Support

The development of the Discovr Radio Portal is supported by an outsourced engineering team. This partnership was formalized alongside the August 25, 2025, announcement regarding the Restructuring of Engineering Team in Preparation for Business Combination. Specific contract values for this outsourced work aren't public, but the restructuring signals a clear alignment of technical resources toward the post-combination entity.

Finance: draft 13-week cash view by Friday.

Auddia Inc. (AUUD) - Canvas Business Model: Key Activities

You're looking to map out the core actions Auddia Inc. is taking right now, late in 2025, as it executes a major pivot. This isn't about future projections; it's about the concrete work happening across the company to support the new AI-native holding company structure.

The Key Activities are centered on technology development, corporate restructuring, and launching the new B2B monetization strategy, all while managing the transition of the existing consumer app.

• Developing and training the proprietary AI Placement Engine for music insertion.
• Executing the business combination and restructuring into the McCarthy Finney holding company.
• Building the B2B Discovr Radio Portal for artists and labels.
• Securing capital via an amended equity line of up to $50 million.
• Maintaining and operating the faidr consumer audio streaming app.

The engineering focus has split to support this dual effort. The internal AI team is now dedicated to training and productizing the core technology, the AI Placement Engine. Meanwhile, an outsourced engineering team is leading the build of the client-facing platform, the Discovr Radio Portal.

The AI Placement Engine's function is to optimize music discovery by placing the right new song in front of the right listener, on the right station, adjacent to the right artist. This technology is designed to insert new music and deep tracks into radio streams, targeting up to 33% of the stream content on average. The Minimum Viable Product (MVP) version of the Discovr Radio platform is slated for release between the end of Q4 2025 and Q1 2026, with the first B2B revenue from a pilot program anticipated in Q1 2026.

This B2B pivot is supported by a claimed serviceable addressable market of over 100 million prospects among artists and labels. Here's a quick look at the B2B platform's intended structure and goals:

The corporate restructuring is a major activity. Auddia approved a non-binding Letter of Intent in August 2025 to combine with Thramann Holdings, LLC, aiming to become an AI and web3-focused holding company. This transaction, if closed, results in a specific ownership split: Thramann Holdings' equity holders are expected to receive an 80% ownership interest in the combined entity, leaving Auddia equity holders with a 20% stake. The surviving public company is intended to trade under the NASDAQ ticker MCFN, named McCarthy Finney.

To fund operations and development through this transition, capital securing is an ongoing activity. On July 30, 2025, Auddia amended its Common Stock Purchase Agreement with White Lion Capital, LLC. This amendment increased the facility size to up to $50,000,000 in newly issued shares and extended the sale rights period until December 31, 2027. This is a significant increase from the initial agreement which allowed for the sale of up to $10,000,000.

The maintenance and operation of the faidr consumer app is now focused on supporting the B2B strategy. As of November 19, 2025, Auddia made the faidr mobile app fully free to consumers, dropping the prior subscription model. The free version now delivers ad-free AM/FM streaming, manual song skipping, and real-time listener feedback. This move is intended to grow the listener base that the B2B Discovr Radio platform will target. Prior to this shift, the app showed strong engagement metrics; in October 2024, the 30-day user retention rate reached 21%, which was double the internal goal of 10%, having grown from 5% over the preceding year.

Underpinning these activities are recent financial adjustments. The engineering team restructuring in August 2025 was executed to achieve an expected annual cost reduction of $750,000 in engineering expenses. For context on the financial state supporting these activities, the company reported a net income of negative $1,568,653 and negative EBITDA of -$7.52M. However, the balance sheet showed a current ratio of 2.2, indicating strong short-term liquidity, and a total debt to equity ratio of 0.02, reflecting low leverage.

Auddia Inc. (AUUD) - Canvas Business Model: Key Resources

You're looking at the core assets Auddia Inc. is counting on as it executes its strategic pivot. These aren't just line items; they are the foundation for the new B2B model centered on AI-driven music discovery.

The most significant resource is the proprietary AI platform for audio identification and classification. This technology underpins their flagship audio app, faidr, and is being repurposed for the new Discovr Radio platform. This platform features an AI Placement Engine designed to strategically insert artists' music into radio feeds, targeting up to 33% of stream content for B2B clients. The platform's core AI model for AM/FM content has already been validated through patent issuance.

Intellectual property provides a defensible moat, or at least a starting point for one. Auddia Inc. holds U.S. Patent 11,935,520, titled 'Identifying Shifts in Audio Content Via Machine Learning,' which directly supports the core AM/FM AI model used in faidr. Furthermore, the company advanced a provisional patent application related to leveraging AI prompts to interface with large language models (LLMs) to a non-provisional application in February 2024.

Here's a quick look at the quantifiable, hard assets supporting the operation as of late 2025:

The company's listing on the NASDAQ under the ticker AUUD is a key resource for liquidity and public visibility, though this is slated for change. Auddia Inc. has reserved the ticker MCFN for the proposed surviving public company, McCarthy Finney, which will operate as a holding company delivering AI and web3 capabilities. This restructuring is contingent on finalizing a definitive agreement for the proposed business combination.

Internal talent remains critical, especially for developing the B2B-focused Discovr Radio platform. While specific engineering names are less publicized than the executive team, the ongoing development of the AI Placement Engine requires specialized engineering expertise. The company's CTO, Peter Shoebridge, and CMO, Theo Romeo, are key figures driving the technology and market shift, respectively.

• Proprietary AI platform for audio identification and classification.
• AI Placement Engine targeting up to 33% stream insertion.
• Core AI Patent: U.S. Patent 11,935,520 issued.
• Pending Patent: LLM prompt optimization technology.
• Cash on hand as of September 30, 2025: $2.73 million.
• NASDAQ Listing: AUUD, with MCFN reserved for the holding company structure.

Finance: draft 13-week cash view by Friday.

Auddia Inc. (AUUD) - Canvas Business Model: Value Propositions

You're looking at the core value Auddia Inc. (AUUD) is promising to deliver across its different customer groups as it pivots its strategy toward a B2B focus in late 2025. The value proposition is now split between keeping the consumer app, faidr, free to generate data, and monetizing artists/labels via the new Discovr Radio platform.

For Artists/Labels: Guaranteed radio play and exposure to passive AM/FM streaming audiences.

The B2B offering centers on guaranteed exposure, replacing traditional ad slots with artist content. The company sees a large potential customer base for this service.

• Targeting a serviceable addressable market of over 100 million prospects among artists and labels.
• The AI Placement Engine is designed to strategically insert artists' music into radio feeds.
• The AI engine targets up to 33% of stream content for artist placements.
• The Minimum Viable Product (MVP) version of the B2B platform is expected by the end of Q4 2025 or Q1 2026.
• First B2B revenue from select labels and artists is anticipated in Q1 2026.

For Artists/Labels: Analytics on listener engagement and demographic data via the Artist Portal.

Artists gain insight into performance, which is a key component of the monthly subscription model for the B2B service.

• Artists will access an Artist Portal providing analytics on plays.
• The portal includes data on listener engagement and demographic information.

For Consumers (faidr): Free, ad-free AM/FM radio streaming and content skipping via AI.

The consumer-facing faidr app is now fully free, shifting the monetization focus away from the user. The value here is convenience and control, powered by Auddia's AI platform.

• The flagship faidr mobile app delivers ad-free AM/FM streaming.
• Features include manual song skipping and one-touch skipping of entire podcast ad breaks.
• The company has seen compelling gains in 30-day retention, growing from 5% to over 20% over the past year (as of late 2024).
• Retention accelerated to 21% in October 2024, which was double the internal goal of 10%.
• Future additions to the faidr superapp include a music player, audiobooks, and a text-to-speech category.

For Holding Co.: Centralized AI and web3 efficiencies for portfolio companies.

Following the proposed business combination with Thramann Holdings, the new structure aims to create efficiencies across the portfolio. The existing Auddia shareholders would own 20% of the new holding company.

AI efficiencies are promised through:

• Discounted AI compute costs.
• Centralized AI model training and engineering.
• Utilization of AI tools to optimize operations.

Web3 efficiencies include leveraging treasury strategies and developing new blockchains and tokens.

Here's a quick look at the key metrics underpinning the B2B and B2C value propositions as of the latest reports:

To be fair, the financial reality shows steep challenges, with a median operating margin of -492.6% and a median net margin of -689.27%, despite the strategic pivot. Finance: draft 13-week cash view by Friday.

Auddia Inc. (AUUD) - Canvas Business Model: Customer Relationships

You're looking at Auddia Inc. (AUUD) right at a major inflection point in late 2025, shifting the core of its customer relationships from direct-to-consumer subscriptions to a business-to-business (B2B) Software as a Service (SaaS) approach centered on music discovery.

Automated, self-service B2B SaaS model for artists via the Discovr Radio Portal

The relationship here is an automated, self-service one, where artists and labels subscribe to the Discovr Radio platform. This platform uses the proprietary AI Artist Discovery Engine to strategically insert music into radio feeds. The service is designed to be accessible, targeting a serviceable addressable market (SAM) that Auddia's internal research estimates at over 100 million prospects among artists and labels. The AI Placement Engine is set to target up to 33% of stream content for new artist music insertion. Artists manage their promotional campaigns and view performance data through a dedicated Artist Portal.

Direct engagement with pilot program labels and distributors for platform refinement

Direct engagement is focused on onboarding initial B2B partners for the Discovr Radio platform. The Minimum Viable Product (MVP) version of Discovr Radio is expected to launch with a pilot program involving select labels and distributors. This engagement is crucial for refining the platform before a wider rollout. The company anticipates the first B2B revenue from these initial partners in Q1 2026, following the expected platform integration completion by the end of Q4 2025 to early Q1 2026. Auddia's CMO, Theo Romeo, has noted active discussions with podcast community stakeholders over the last couple of years, indicating an ongoing, direct relationship-building effort within the industry.

Mass-market, automated service for faidr's now-free consumer user base

The relationship with the mass market via the flagship faidr app has fundamentally changed. As of November 2025, Auddia Inc. has made the latest version of faidr completely free for all users. This means all premium AI features-like ad-free AM/FM streaming and manual song skipping-are now provided as an automated, self-service offering without a direct consumer fee. This move is designed to expand the user base significantly, which serves as the foundation for the B2B monetization strategy.

While specific late-2025 user counts aren't available, prior metrics show strong engagement on the free tier that the company is building upon:

• 30-day retention rate reached 21% in October 2024.
• Retention grew from 5% to over 20% over the year prior to late 2025.
• Retention in January (prior period) reached nearly 25%.
• February (prior period) was expected to surpass 25%.

The relationship is now purely about maximizing engagement and scale on the free tier to feed the B2B value proposition.

Here's a quick look at the relationship structure and key metrics defining the transition:

If onboarding for the B2B pilot takes longer than anticipated past Q1 2026, the expected revenue timeline shifts, which could impact near-term cash flow projections.

Finance: draft 13-week cash view by Friday.

Auddia Inc. (AUUD) - Canvas Business Model: Channels

You're looking at how Auddia Inc. gets its value proposition to its customer segments as of late 2025. The channel strategy has fundamentally shifted from consumer subscriptions to a B2B Software as a Service (SaaS) approach centered on the Discovr Radio platform, while the consumer-facing app, faidr, is now a mass-adoption tool.

Direct B2B sales and marketing to music labels and independent artists is the primary revenue channel focus now. This involves direct engagement with the music industry to sell subscriptions to the Discovr Radio platform. The company's internal research pegs the serviceable addressable market (SAM) for this B2B offering at over 100 million prospects among artists and labels.

The Discovr Radio platform, which guarantees radio plays via an AI Placement Engine, is expected to have music from new artists and deep tracks comprise up to 33% of stream content on average. The Minimum Viable Product (MVP) release is targeted for the end of 2025 or Q1 2026, with the first B2B revenue anticipated in Q1 2026.

faidr mobile application (iOS and Android) for consumer delivery of music content serves as the primary channel for user engagement and data generation, supporting the B2B sales effort. As of November 19, 2025, Auddia Inc. made the flagship faidr app completely free for all users. This move unlocked premium features like ad-free AM/FM streaming and manual song skipping for everyone, features previously reserved for paid subscribers. Prior to this shift, the app demonstrated strong engagement, with 30-day retention rates growing from 5% to over 20% over the past year, with expectations to surpass 25% in February 2024. As of September 30, 2024, the app offered access to over 13,000 total AM/FM stations, with over 9,000 being ad-free for the former subscribers.

The consumer channel metrics look like this:

• faidr App Status (Nov 2025)
• Completely free for all users.
• Offers ad-free AM/FM streaming.
• Includes manual song skipping capability.
• 30-Day Retention (Oct 2024) was 21%.
• Total Stations (Sept 2024) exceeded 13,000.

Discovr Radio platform expansion to other third-party radio streaming apps is a planned future channel for the B2B service. faidr is set to be the first app integrated with the Discovr Radio platform, with integration completion expected by the end of Q4 2025 to early Q1 2026. Auddia Inc. intends to open the service to other radio streaming applications down the line.

Corporate website and investor relations for the holding company structure is the final channel, primarily for stakeholder communication. Auddia Inc. announced an updated Corporate Overview on its website on October 16, 2025. The company is structured as an AI-first holding company.

Auddia Inc. (AUUD) - Canvas Business Model: Customer Segments

You're looking at Auddia Inc. (AUUD) customer base as of late 2025, and honestly, it's a company in the middle of a major pivot. The focus has clearly shifted from the consumer to the business side for monetization, which changes who we should be tracking closely.

Primary: Emerging and established music artists and record labels seeking radio exposure. This is the core revenue target now, following the strategic shift to the B2B model with the Discovr Radio platform. Auddia sees a serviceable addressable market of over 100 million prospects in this space. The AI Placement Engine is designed to strategically insert artists' music into radio feeds, targeting up to 33% of stream content on average. The expectation is that the Minimum Viable Product (MVP) version of Discovr Radio will be integrated into the faidr app by the end of Q4 2025 to early Q1 2026, with the first B2B revenue from select labels and artists anticipated in Q1 2026. Artists will receive an Artist Portal with analytics on plays and listener engagement.

Secondary: Third-party radio streaming apps for Discovr Radio platform integration. While the immediate focus is faidr, the plan includes opening the Discovr Radio platform to other radio streaming apps in the future. This segment represents future scaling potential beyond the flagship app. We don't have specific partnership numbers yet, but the technology is built to be platform-agnostic, which is key for broader adoption.

Tertiary: Mass-market consumers of AM/FM and podcast streaming (faidr users). This group is now the volume driver, but not the direct revenue source for the core music discovery service, as Auddia made the faidr mobile app fully free. The value proposition here is retaining a large audience base to sell exposure to the Primary segment. You should note the historical engagement: the 30-day retention rate for faidr exceeded 20% throughout Q4 2023, and reached nearly 25% in January 2024. As of October 2024, the rate hit 21%, which was double the internal goal of 10% at that time, showing strong product stickiness.

New Segment: Portfolio companies requiring AI and web3 capabilities under the new structure. Following the non-binding Letter of Intent for a business combination with Thramann Holdings, LLC, this segment is critical for the combined entity, McCarthy Finney (NASDAQ: MCFN). This group includes Thramann Holdings' existing AI-native companies: LT350, Influence Healthcare, and Voyex. Under the proposed terms, the equity holders of Thramann Holdings are expected to receive an 80% ownership interest in the combined company, while existing Auddia equity holders are slated for a 20% interest. This structure suggests the portfolio companies are the primary drivers of the new entity's valuation narrative.

Here's a quick look at the quantitative context for these segments as of late 2025:

To be fair, the consumer base metrics are from late 2024/early 2025, but they establish the scale Auddia is working with as they transition. Also, keep in mind the overall company size is small, with only 6 total employees reported, which means execution on the B2B rollout and the holding company integration is defintely a stretch goal.

Finance: draft 13-week cash view by Friday.

Auddia Inc. (AUUD) - Canvas Business Model: Cost Structure

The Cost Structure for Auddia Inc. (AUUD) reflects a significant investment in its proprietary AI platform, balanced by recent restructuring efforts aimed at efficiency. The company is clearly moving toward a cost base heavily weighted toward technology development and the overhead associated with maintaining a public entity structure.

The core of the cost structure involves substantial, ongoing investment in the foundational technology. While specific figures for total AI model training and core technology development are not explicitly itemized in the required data points, this category represents the high fixed costs inherent in developing and maintaining a proprietary AI platform for audio identification and classification. This aligns with industry benchmarks where advanced AI development can require investments ranging from $150,000 to over $1 million for enterprise-grade solutions, plus ongoing maintenance costs estimated at 17% to 30% of initial development costs annually.

The operational spending snapshot for the third quarter of 2025 provides a clear view of recent expenditures:

The engineering cost optimization is a direct action taken to manage the burn rate. The expected annual reduction of $750,000 in engineering costs is a key lever being pulled as Auddia Inc. transitions its focus. This move retains key AI talent, like the lead AI engineer moving to the holding company level, while outsourcing less specialized development work, which helps manage variable costs associated with product development for the B2B SaaS pivot.

General and administrative (G&A) costs are a necessary component of the structure due to the company's status. As a public company operating under a holding company structure, Auddia Inc. incurs recurring expenses related to compliance, reporting, and investor relations. These costs are structural overhead that scale with public company requirements, such as Sarbanes-Oxley Act compliance and SEC filing fees. For a median US public company, compliance costs can amount to approximately 4.3 percent of market capitalization annually, which is a significant, non-discretionary G&A factor for Auddia Inc. to absorb.

The cost structure is characterized by these key elements:

• High Fixed Technology Spend: Core AI model training and proprietary platform maintenance.
• Significant Quarterly Operating Expenses: Totaling $2.38 million in Q3 2025.
• Transaction-Related Outlays: Including $0.81 million in restructuring and transaction costs in Q3 2025.
• Targeted Personnel Savings: Realizing an expected $750,000 annual reduction in engineering overhead.
• Public Company Overhead: Ongoing G&A expenses tied to regulatory compliance and holding company administration.

Auddia Inc. (AUUD) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Auddia Inc. (AUUD) as they complete a major strategic pivot. Honestly, the current numbers reflect a company in transition, with the old model effectively paused while the new one ramps up.

The primary focus has shifted entirely to a B2B subscription model centered around Discovr Radio. This means artists and labels pay for access to get their music exposed to mainstream AM/FM radio streaming audiences via the proprietary AI Placement Engine. This is a fundamental change from monetizing consumers.

Here is a breakdown of the current and expected revenue components:

The current financial reality shows zero top-line revenue from operations for the most recent reported periods. For the quarter ending September 30, 2025, Auddia Inc. posted no revenue. This aligns with the reported trailing 12-month revenue of $0.00 as of that date.

The shift to a B2B model means the old consumer monetization path is gone. The flagship faidr app now offers premium AI features, like ad-free streaming and content skipping, for free to drive mass adoption. This is a necessary step to build the audience base that artists and labels will pay to reach.

You should note the capital structure changes that accompany this pivot. The number of shares outstanding has seen significant inflation, increasing by +428.20% year-over-year as of the last report.

Future revenue potential is tied to two main areas outside of the immediate B2B subscriptions:

• The integration of the Discovr Radio platform into the free faidr app is targeted for completion by the end of Q4 2025 to early Q1 2026.
• The company is pursuing a 'proposed business combination', suggesting future revenue from AI and web3 services delivered to portfolio companies.
• The proprietary AI Placement Engine, which guarantees plays for artists, is a potential asset for licensing to other streaming applications.

If onboarding for the B2B service takes longer than expected, say past Q1 2026, cash burn becomes a much bigger issue. Finance: draft 13-week cash view by Friday.