EX-99.4 11 auddia_ex9904.htm UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

Exhibit 99.4

 

SELECTED UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The following summary Unaudited Pro Forma Condensed Combined Balance Sheet as of September 30, 2025, and the summary Unaudited Pro Forma Condensed Combined Statements of Operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 present the combination of (a) the financial information of McCarthy Finney, a Delaware corporation (“Pubco,” or “McCarthy Finney”), Thramann Holdco Corp., a Delaware corporation (“Thramann Holdings”), Thramann Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Thramann Holdings (“Thramann Merger Sub”) and Auddia Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Auddia (“Auddia Merger Sub”) and (b) the assumed PIPE (“private investment in public equity”) and related adjustments described in the accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Information, and have been prepared in accordance with Article 11 of Regulation S-X.

 

The summary Unaudited Pro Forma Condensed Combined Balance Sheet as of September 30, 2025 combines the historical balance sheet of Auddia and Thramann Holdings on a pro forma basis as if the Business Combination and PIPE Financing, summarized below, had been consummated on September 30, 2025. The summary Unaudited Pro Forma Condensed Combined Statements of Operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 combine the historical statements of operations of Auddia and Thramann Holdings for such period on a pro forma basis as if the transaction, summarized below, had been consummated on January 1, 2024, the beginning of the earliest period presented:

 

·All issued and outstanding common stock of Auddia will be converted into the right to receive Pubco common stock;
·All issued and outstanding preferred stock of Auddia will be converted into the right to receive Pubco preferred stock;
·All equity interests of Thramann Holdings will be converted into the right to receive (x) Pubco special preferred stock and (y) $3.5 million principal amount of Pubco notes.

 

The summary unaudited pro forma condensed combined financial information is based on and should be read in conjunction with the historical financial statements of each of Auddia and Thramann Holdings and the notes thereto, which are included elsewhere in this proxy/registration statement, as well as the disclosures contained in the sections titled “Auddia Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Thramann Holdings Management’s Discussion and Analysis of Financial Condition and Results of Operations”.

 

 

 

 1 

 

 

Summary Unaudited Pro Forma Condensed Combined Balance Sheet as of September 30, 2025:

 

   Historical   Transaction Adjustment   Pro Forma 
   Auddia Inc. Historical   (A) Equity Financing   Auddia Inc. Subtotal including (A) Equity Financing   Thramann Holdings   Combined
including (A) Equity Financing		   Preferred Stock & Warrant Holder Redemptions (B)   Merger acquisition adjustments (C)   Pro Forma Combined 
                                 
Assets                                        
Current assets:                                        
Cash and cash equivalents  $2,727,166    10,530,000   $13,257,166   $16,605   $13,273,771    (1,272,566)   –   $12,001,205 
Accounts receivable, net   627    –    627    –    627    –    –    627 
Prepaid assets   105,270    –    105,270    –    105,270    –    –    105,270 
Other current assets   10,039    –    10,039    –    10,039    –    –    10,039 
Total current assets   2,843,102    10,530,000    13,373,102    16,605    13,389,707    (1,272,566)   –    12,117,141 
Noncurrent assets:   –                                    
Property and equipment, net of accumulated depreciation   7,674    –    7,674    –    7,674    –    –    7,674 
Intangible assets, net of accumulated amortization   25,048    –    25,048    1,061,631    1,086,679    –    –    1,086,679 
Software development costs, net of accumulated amortization   1,677,235    –    1,677,235    26,444    1,703,679    –    –    1,703,679 
Operating lease right of use asset   52,097    –    52,097    –    52,097    –    –    52,097 
Goodwill   –    –    –    –    –    –    –    – 
Deferred offering costs   258,253    –    258,253    –    258,253    –    –    258,253 
Total noncurrent assets   2,020,307    –    2,020,307    1,088,075    3,108,382    –    –    3,108,382 
                                         
Total Assets   4,863,409    10,530,000    15,393,409    1,104,680    16,498,089    (1,272,566)   –    15,225,523 
                                         
Liabilities and Shareholders' Equity                                        
Current liabilities:                                        
Accounts payable and accrued liabilities   593,361    –    593,361    78,031    671,392    –    500,000    1,171,392 
Consideration payable   –    –    –    187,500    187,500    –    –    187,500 
Note payable   –    –    –    –    –    –    3,500,000    3,500,000 
Current portion of operating lease liability   35,977    –    35,977    –    35,977    –    –    35,977 
Stock awards liability   14,852    –    14,852    –    14,852    –    –    14,852 
Total current liabilities   644,190    –    644,190    265,531    909,721    –    4,000,000    4,909,721 
                                         
Non-current liabilities:                                        
Deferred tax liability   –    –    –    –    –    –    –    – 
Non-current operating lease liability   25,063    –    25,063    –    25,063    –    –    25,063 
Total non-current liabilities   25,063    –    25,063    –    25,063    –    –    25,063 
                                         
Total liabilities   669,253    –    669,253    265,531    934,784    –    4,000,000    4,934,784 
                                         
Shareholders' Equity                                        
New Pubco Preferred Stock - $1,000 stated value   –    –    –    –    –    –    6,050,643    6,050,643 
New Pubco Common stock - $0.001 par value   –    –    –    –    –    –    2,212,661    2,212,661 
Series C Preferred stock - $0.001 par value, 750 shares issued and outstanding as of September 30, 2025   1    –    1    –    1    (1)   –    – 
Common stock - $0.001 par value, 100,000,000 authorized and 2,172,563 shares issued and outstanding as of September 30, 2025   2,173    10,530    12,703    –    12,703    –    (12,703)   – 
Additional paid-in capital   99,454,645    10,519,470    109,974,115    839,149    110,813,264    (1,272,565)   (107,513,264)   2,027,435 
Accumulated deficit   (95,262,663)   –    (95,262,663)   –    (95,262,663)   –    95,262,663    – 
Total equity   4,194,156    10,530,000    14,724,156    839,149    15,563,305    (1,272,566)   (4,000,000)   10,290,739 
Total equity and liabilities  $4,863,409    10,530,000   $15,393,409   $1,104,680   $16,498,089    (1,272,566)   –   $15,225,523 

 

Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet

 

The pro forma adjustments included in the unaudited pro forma condensed combined balance sheet are as follows:

 

(A) Reflects $10 million of equity financing to be raised by Auddia Inc. needed in order to consummate business combination.  Assuming 10 million shares issued at $1 per share.
(B) Includes Series C Preferred Stock and Warrant Holder Redemptions
(C) Represents recapitalization of Auddia's historical equity and accumulated deficit and the New Pubco preferred and common stock to be issued and transaction costs.

 

 2 

 

 

Summary Unaudited Pro Forma Condensed Combined Statement of Operations For the Nine Months Ended September 30, 2025:

 

    Nine Months Ended September 30, 2025     Pro Forma Adjustments     Nine Months Ended
September 30, 2025		  
    Auddia Inc.     Thramann Holdings LLC     Combined
(Historical)		     Transaction Costs (other)     Total Pro Forma Adjustments     Pro Forma Combined  
                      AA              
                                     
Revenue   $ –     $ –     $ –     $ –     $ –     $ –  
                                                 
Operating expenses                                                
Direct cost of services     169,388       –       169,388       –       –       169,388  
Sales and marketing     564,360       –       564,360       –       –       564,360  
Research and development     950,744       –       950,744       –       –       950,744  
General and administrative     2,059,273       120,499       2,179,772       –       –       2,179,772  
Restructuring     806,432       –       806,432       –       –       806,432  
Depreciation and amortization     1,147,981       106,838       1,254,819       –       –       1,254,819  
Transaction costs     –       50,443       50,443       500,000       500,000       550,443  
Total operating expenses     5,698,178       277,780       5,975,958       500,000       500,000       6,475,958  
Loss from operations     (5,698,178 )     (277,780 )     (5,975,958 )     (500,000 )     (500,000 )     (6,475,958 )
                                                 
Other expense:                                                
Interest expense     (4,191 )     –       (4,191 )     –       –       (4,191 )
Total other expense     (4,191 )     –       (4,191 )     –       –       (4,191 )
Net loss before income taxes     (5,702,369 )     (277,780 )     (5,980,149 )     –       (500,000 )     (6,480,149 )
Provision for income taxes     –       –       –       –       –       –  
Net loss   $ (5,702,369 )   $ (277,780 )   $ (5,980,149 )   $ –     $ (500,000 )   $ (6,480,149 )
                                                 
Net loss per share attributable to common shareholders                                                
Basic and diluted   $ (6.86 )   $ –                                  
                                                 
Weighted average common shares outstanding                                                
Basic and diluted     831,037       –                                  

 

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

 

(AA) Represents estimated transaction costs.

 

 3 

 

 

Summary Unaudited Pro Forma Condensed Combined Statement of Operations For the Year Ended December 31, 2024:

 

   For the Year Ended December 31, 2024   Pro Forma Adjustments   For the Year Ended December 31, 2024 
   Auddia Inc.   Thramann Holdings LLC   Combined
(Historical)		   Transaction Costs (other)   Total Pro Forma Adjustments   Pro Forma Combined 
               BB         
                         
Revenue  $–   $–   $–   $–   $–   $– 
                               
Operating expenses                              
Direct cost of services   202,950    –    202,950    –    –    202,950 
Sales and marketing   860,677    –    860,677    –    –    860,677 
Research and development   1,020,609    –    1,020,609    –    –    1,020,609 
General and administrative   3,845,302    223,101    4,068,403    –    –    4,068,403 
Depreciation and amortization   1,987,601    101,645    2,089,246    –    –    2,089,246 
Transaction costs   –    –    –    500,000    500,000    500,000 
Total operating expenses   7,917,139    324,746    8,241,885    500,000    500,000    8,741,885 
Loss from operations   (7,917,139)   (324,746)   (8,241,885)   (500,000)   (500,000)   (8,741,885)
                               
Other expense:                              
Interest expense   (172,512)   –    (172,512)   –    –    (172,512)
Change in fair value of warrants   (632,388)   –    (632,388)   –    –    (632,388)
Total other expense   (804,900)   –    (804,900)   –    –    (804,900)
Net loss before income taxes   (8,722,039)   (324,746)   (9,046,785)   –    (500,000)   (9,546,785)
Provision for income taxes   –    –    –    –    –    – 
Net loss  $(8,722,039)  $(324,746)  $(9,046,785)  $–   $(500,000)  $(9,546,785)
                               
Net loss per share attributable to common shareholders                              
Basic and diluted  $(57.69)  $–                     
                               
Weighted average common shares outstanding                              
Basic and diluted   151,194    –                     

 

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

 

(BB) Represents estimated transaction costs.

 

If the actual facts are different than these assumptions, then the amounts and shares outstanding in the unaudited pro forma condensed combined financial information will be different and those changes could be material.

 

 

 

 4 

 

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Basis of Presentation and Business Combination

 

The following unaudited pro forma combined condensed consolidated financial statements are based on the separate historical financial statements of Auddia and Thramann Holdings and give effect to the Business Combination, including pro forma assumptions and adjustments related to the Merger, as described in the accompanying notes to the unaudited pro forma combined condensed financial statements. The Unaudited Pro Forma Condensed Combined Balance Sheet as of September 30, 2025, is presented as if the Merger had occurred on September 30, 2025. The Unaudited Pro Forma Condensed Combined Statement of Operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 gives effect to the Merger, as if it had been completed on January 1, 2024. The historical financial information has been adjusted on a pro forma basis to reflect factually supportable items that are directly attributable to the Merger and, with respect to the Condensed Combined Statement of Operations only, expected to have a continuing impact on consolidated results of operations.

 

Merger

 

The Merger is expected to be accounted for as a reverse recapitalization in accordance with U.S. GAAP because Thramann Holdings has been determined to be the accounting acquirer under FASB’s ASC 805, Business Combinations. Under this method of accounting, Auddia will be treated as the “acquired” company for financial reporting purposes. Accordingly, the consolidated assets, liabilities and results of operations of Thramann Holdings will become the historical financial statements of the newly merged company, and Auddia assets, liabilities and results of operations will be consolidated with Thramann Holdings beginning on the acquisition date. For accounting purposes, the financial statements of McCarthy Finney will represent a continuation of the financial statements of Thramann Holdings with the Merger being treated as the equivalent of Thramann Holdings issuing stock for the net assets of Auddia, accompanied by a recapitalization. The net assets of Auddia will be stated at historical values. Operations prior to the Merger will be presented as those of Thramann Holdings in future reports of McCarthy Finney. This determination is primarily based on the evaluation of the following facts and circumstances taken into consideration:

 

·Pre-business combination shareholders of Thramann Holdings will own a relatively larger portion in McCarthy Finney compared to the ownership to be held by the pre-business combination stockholders of Auddia;
·Thramann Holdings has the right to appoint a majority of McCarthy Finney directors; and
·The operations of Thramann Holdings prior to the transaction will comprise the only ongoing operations of McCarthy Finney.

 

Under the reverse recapitalization model, the business combination will be treated as Thramann Holdings issuing equity for the net assets of Auddia.

 

The Unaudited Pro Forma Condensed Combined Statement of Operations does not include the effects of the costs associated with any integration or restructuring activities resulting from the Business Combination. However, the Unaudited Pro Forma Condensed Consolidated Balance Sheet includes a pro forma adjustment to reduce cash and stockholders’ equity to reflect the payment of certain anticipated Business Combination costs.

 

The following unaudited pro forma condensed combined financial information presents the combination of the financial information of Auddia and Thramann Holdings, adjusted to give effect to the Merger and other events contemplated by the Business Combination Agreement. The following unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release 33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses.”

 

 

 

 5 

 

 

The Unaudited Pro Forma Condensed Combined Balance Sheet as of September 30, 2025 combines the adjusted balance sheet of Auddia with the historical Condensed Consolidated Balance Sheet of Thramann Holdings on a pro forma basis as if the Acquisition Merger and the other events contemplated by the Business Combination Agreement, summarized below, had been consummated on September 30, 2025.

 

The Unaudited Pro Forma Condensed Combined Statements of Operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 combines the historical unaudited statements of operations of Auddia for the nine months ended September 30, 2025 and for the year ended December 31, 2024 with the historical Unaudited Condensed Consolidated Statement of Operations of Thramann Holdings for the same respective periods, giving effect to the transaction as if the Merger and other events contemplated by the Business Combination Agreement had been consummated on January 1, 2024.

 

The unaudited pro forma condensed combined financial information was derived from and should be read in conjunction with the following historical financial statements and the accompanying notes, which are included elsewhere in this proxy statement/prospectus:

 

·The historical unaudited financial statements of Auddia as of and for the nine months ended September 30, 2025;
·The historical audited financial statements of Auddia for the year ended December 31, 2024;
·The historical unaudited financial statements of Thramann Holdings as of and for the nine months ended September 30, 2025;
·The historical audited financial statements of Thramann Holdings for the year ended December 31, 2024; and
·other information relating to Auddia and Thramann Holdings included in this proxy statement/prospectus, including the Business Combination Agreement and the description of certain terms thereof set forth thereof and the financial and operational condition of Auddia and Thramann Holdings (see “Auddia Management’s Discussion and Analysis of Financial Condition and Results of Operation” and “Thramann Holdings Management’s Discussion and Analysis of Financial Condition and Results of Operations”).

 

Management has made significant estimates and assumptions in its determination of the pro forma adjustments. As the unaudited pro forma condensed combined financial information has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented.

 

The pro forma adjustments reflecting the consummation of the Business Combination are based on certain currently available information and certain assumptions and methodologies that management believes is reasonable under the circumstances. The unaudited condensed combined pro forma adjustments, which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments, and it is possible the difference may be material. Management believes that its assumptions and methodologies provide a reasonable basis for presenting all the significant effects of the Business Combination based on information available to management at this time and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.

 

The unaudited pro forma condensed combined financial information is not necessarily indicative of what the actual results of operations and financial position would have been had the Business Combination taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of McCarthy Finney. The unaudited pro forma combined condensed financial information should be read in conjunction with the historical financial statements and notes thereto of Auddia and Thramann Holdings.

 

The unaudited pro forma condensed combined information contained herein assumes that Auddia’s stockholders approve the Business Combination.

 

The total number of shares outstanding as of September 30, 2025, giving effect to the Business Combination on a pro forma unaudited as adjusted basis for the Auddia common stockholders is 12,702,563.

 

 

 

 6 

 

 

Auddia & Thramann Holdings

Unaudited Pro Forma Condensed Combined Balance Sheet

(including Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet)

As of September 30, 2025

 

   Historical   Transaction Adjustment   Pro Forma 
   Auddia Inc.   (A) Equity Financing   Auddia Inc. Subtotal including (A) Equity Financing   Thramann Holdings   Combined
including (A) Equity Financing		   Preferred Stock & Warrant Holder Redemptions (B)   Merger acquisition adjustments (C)   Pro Forma Combined 
                                 
Assets                                        
Current assets:                                        
Cash and cash equivalents  $2,727,166    10,530,000   $13,257,166   $16,605   $13,273,771    (1,272,566)   –   $12,001,205 
Accounts receivable, net   627    –    627    –    627    –    –    627 
Prepaid assets   105,270    –    105,270    –    105,270    –    –    105,270 
Other current assets   10,039    –    10,039    –    10,039    –    –    10,039 
Total current assets   2,843,102    10,530,000    13,373,102    16,605    13,389,707    (1,272,566)   –    12,117,141 
Noncurrent assets:   –                                    
Property and equipment, net of accumulated depreciation   7,674    –    7,674    –    7,674    –    –    7,674 
Intangible assets, net of accumulated amortization   25,048    –    25,048    1,061,631    1,086,679    –    –    1,086,679 
Software development costs, net of accumulated amortization   1,677,235    –    1,677,235    26,444    1,703,679    –    –    1,703,679 
Operating lease right of use asset   52,097    –    52,097    –    52,097    –    –    52,097 
Goodwill   –    –    –    –    –    –    –    – 
Deferred offering costs   258,253    –    258,253    –    258,253    –    –    258,253 
Total noncurrent assets   2,020,307    –    2,020,307    1,088,075    3,108,382    –    –    3,108,382 
                                         
Total Assets   4,863,409    10,530,000    15,393,409    1,104,680    16,498,089    (1,272,566)   –    15,225,523 
                                         
Liabilities and Shareholders' Equity                                        
Current liabilities:                                        
Accounts payable and accrued liabilities   593,361    –    593,361    78,031    671,392    –    500,000    1,171,392 
Consideration payable   –    –    –    187,500    187,500    –    –    187,500 
Note payable   –    –    –    –    –    –    3,500,000    3,500,000 
Current portion of operating lease liability   35,977    –    35,977    –    35,977    –    –    35,977 
Stock awards liability   14,852    –    14,852    –    14,852    –    –    14,852 
Total current liabilities   644,190    –    644,190    265,531    909,721    –    4,000,000    4,909,721 
                                         
Non-current liabilities:                                        
Deferred tax liability   –    –    –    –    –    –    –    – 
Non-current operating lease liability   25,063    –    25,063    –    25,063    –    –    25,063 
Total non-current liabilities   25,063    –    25,063    –    25,063    –    –    25,063 
                                         
Total liabilities   669,253    –    669,253    265,531    934,784    –    4,000,000    4,934,784 
                                         
Shareholders' Equity                                        
New Pubco Preferred Stock - $1,000 stated value   –    –    –    –    –    –    6,050,643    6,050,643 
New Pubco Common stock - $0.001 par value   –    –    –    –    –    –    2,212,661    2,212,661 
Series C Preferred stock - $0.001 par value, 750 shares issued and outstanding as of September 30, 2025   1    –    1    –    1    (1)   –    – 
Common stock - $0.001 par value, 100,000,000 authorized and 2,172,563 shares issued and outstanding as of September 30, 2025   2,173    10,530    12,703    –    12,703    –    (12,703)   – 
Additional paid-in capital   99,454,645    10,519,470    109,974,115    839,149    110,813,264    (1,272,565)   (107,513,264)   2,027,435 
Accumulated deficit   (95,262,663)   –    (95,262,663)   –    (95,262,663)   –    95,262,663    – 
Total equity   4,194,156    10,530,000    14,724,156    839,149    15,563,305    (1,272,566)   (4,000,000)   10,290,739 
Total equity and liabilities   4,863,409    10,530,000    15,393,409    1,104,680    16,498,089    (1,272,566)   –    15,225,523 

 

Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet

 

The pro forma adjustments included in the unaudited pro forma condensed combined balance sheet are as follows:

 

(A) Reflects $10 million of equity financing to be raised by Auddia Inc. needed in order to consummate business combination.  Assuming 10 million shares issued at $1 per share.
(B) Includes Series C Preferred Stock and Warrant Holder Redemptions
(C) Represents recapitalization of Auddia's historical equity and accumulated deficit and the New Pubco preferred and common stock to be issued and transaction costs.

 

The accompanying notes are an integral part of this unaudited pro forma condensed combined financial information.

 

 

 7 

 

 

Auddia & Thramann Holdings

Unaudited Pro Forma Condensed Combined Statement of Operations

(including Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations)

For the Nine Months Ended September 30, 2025

 

    Nine Months Ended September 30, 2025     Pro Forma Adjustments     Nine Months Ended
September 30, 2025		  
    Auddia Inc.     Thramann Holdings LLC     Combined
(Historical)		     Transaction Costs (other)     Total Pro Forma Adjustments     Pro Forma Combined  
                      AA              
                                     
Revenue   $ –     $ –     $ –     $ –     $ –     $ –  
                                                 
Operating expenses                                                
Direct cost of services     169,388       –       169,388       –       –       169,388  
Sales and marketing     564,360       –       564,360       –       –       564,360  
Research and development     950,744       –       950,744       –       –       950,744  
General and administrative     2,059,273       120,499       2,179,772       –       –       2,179,772  
Restructuring     806,432       –       806,432       –       –       806,432  
Depreciation and amortization     1,147,981       106,838       1,254,819       –       –       1,254,819  
Transaction costs     –       50,443       50,443       500,000       500,000       550,443  
Total operating expenses     5,698,178       277,780       5,975,958       500,000       500,000       6,475,958  
Loss from operations     (5,698,178 )     (277,780 )     (5,975,958 )     (500,000 )     (500,000 )     (6,475,958 )
                                                 
Other expense:                                                
Interest expense     (4,191 )     –       (4,191 )     –       –       (4,191 )
Total other expense     (4,191 )     –       (4,191 )     –       –       (4,191 )
Net loss before income taxes     (5,702,369 )     (277,780 )     (5,980,149 )     –       (500,000 )     (6,480,149 )
Provision for income taxes     –       –       –       –       –       –  
Net loss   $ (5,702,369 )   $ (277,780 )   $ (5,980,149 )   $ –     $ (500,000 )   $ (6,480,149 )
                                                 
Net loss per share attributable to common shareholders                                                
Basic and diluted   $ (6.86 )   $ –                                  
                                                 
Weighted average common shares outstanding                                                
Basic and diluted     831,037       –                                  

 

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

 

(AA) Represents estimated transaction costs.

 

The accompanying notes are an integral part of this unaudited pro forma condensed combined financial information.

 

 

 

 8 

 

 

Auddia & Thramann Holdings

Unaudited Pro Forma Condensed Combined Statement of Operations

(including Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations)

For the Year Ended December 31, 2024

 

   For the Year Ended December 31, 2024   Pro Forma Adjustments   For the Year Ended December 31, 2024 
   Auddia Inc.   Thramann Holdings LLC   Combined
(Historical)		   Transaction Costs (other)   Total Pro Forma Adjustments   Pro Forma Combined 
               BB         
                         
Revenue  $–   $–   $–   $–   $–   $– 
                               
Operating expenses                              
Direct cost of services   202,950    –    202,950    –    –    202,950 
Sales and marketing   860,677    –    860,677    –    –    860,677 
Research and development   1,020,609    –    1,020,609    –    –    1,020,609 
General and administrative   3,845,302    223,101    4,068,403    –    –    4,068,403 
Depreciation and amortization   1,987,601    101,645    2,089,246    –    –    2,089,246 
Transaction costs   –    –    –    500,000    500,000    500,000 
Total operating expenses   7,917,139    324,746    8,241,885    500,000    500,000    8,741,885 
Loss from operations   (7,917,139)   (324,746)   (8,241,885)   (500,000)   (500,000)   (8,741,885)
                               
Other expense:                              
Interest expense   (172,512)   –    (172,512)   –    –    (172,512)
Change in fair value of warrants   (632,388)   –    (632,388)   –    –    (632,388)
Total other expense   (804,900)   –    (804,900)   –    –    (804,900)
Net loss before income taxes   (8,722,039)   (324,746)   (9,046,785)   –    (500,000)   (9,546,785)
Provision for income taxes   –    –    –    –    –    – 
Net loss  $(8,722,039)  $(324,746)  $(9,046,785)  $–   $(500,000)  $(9,546,785)
                               
Net loss per share attributable to common shareholders                              
Basic and diluted  $(57.69)  $–                     
                               
Weighted average common shares outstanding                              
Basic and diluted   151,194    –                     

 

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

 

(BB) Represents estimated transaction costs.

 

The accompanying notes are an integral part of this unaudited pro forma condensed combined financial information.

 

 

 

 9 

 

 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

Note 1. Basis of Presentation and Accounting Policies

 

The Acquisition Merger is expected to be accounted for as a reverse recapitalization in accordance with GAAP because Thramann Holdings has been determined to be the accounting acquirer under ASC 805. Under this method of accounting, Auddia will be treated as the “acquired” company for financial reporting purposes. Accordingly, the consolidated assets, liabilities and results of operations of Thramann Holdings will become the historical financial statements of the newly merged company and Auddia’s assets, liabilities and results of operations will be consolidated with Thramann Holdings beginning on the acquisition date. For accounting purposes, the financial statements of McCarthy Finney will represent a continuation of the financial statements of Thramann Holdings with the Merger being treated as the equivalent of Thramann Holdings issuing stock for the net assets of Auddia, accompanied by a recapitalization. The net assets of Auddia will be stated at historical values. Operations prior to the Merger will be presented as those of Thramann Holdings in future reports of McCarthy Finney. Earnings per share information has not been presented in the pro forma financial information because Thramann Holdings, the accounting acquirer, historically does not present earnings per share, and the pro forma financial statements follow the form and content of its historical financial statements in accordance with Article 11 of Regulation S-X. Auddia has also considered the provisions of ASC 805 and section 12100 of the SEC’s Financial Reporting Manual (the “FRM”) in making the statements that the transaction is intended to be accounted for as a reverse recapitalization and that Auddia believes Thramann Holdings is the accounting acquirer.

 

Upon consummation of the Merger, McCarthy Finney will perform a comprehensive review of the two entities’ accounting policies. As a result of the review, management may identify differences between the accounting policies of the two entities which, when conformed, could have a material impact on the financial statements of McCarthy Finney.

 

Note 2. Adjustments to Unaudited Pro Forma Condensed Combined Financial Information

 

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X. The adjustments in the unaudited pro forma condensed combined financial information have been identified and presented to provide relevant information necessary for an illustrative understanding of McCarthy Finney upon consummation of the Merger in accordance with GAAP. Assumptions and estimates underlying the unaudited pro forma adjustments set forth in the unaudited pro forma condensed combined financial information are described in the accompanying notes.

 

The unaudited pro forma condensed combined financial information has been presented for illustrative purposes only and is not necessarily indicative of the operating results and financial position that would have been achieved had the Merger occurred on the dates indicated, and does not reflect adjustments for any anticipated synergies, operating efficiencies, tax savings or cost savings. Any cash proceeds remaining after the consummation of the Merger and the other related events contemplated by the Business Combination Agreement are expected to be used for general corporate purposes. The unaudited pro forma condensed combined financial information does not purport to project the future operating results or financial position of McCarthy Finney following the completion of the Merger. The unaudited pro forma adjustments represent management’s estimates based on information available as of the date of this unaudited pro forma condensed combined financial information and are subject to change as additional information becomes available and analyses are performed.

 

The unaudited pro forma condensed combined financial information contained herein assumes that the Auddia stockholders approve the Business Combination.

 

 

 

 10 

 

 

The following summarizes the pro forma shares of McCarthy Finney issued and outstanding immediately after the Merger:

 

   Number
of
Shares		   %
Ownership		 
Auddia stockholders - common   12,702,563   100%
Total   12,702,563   100%
Total Pro Forma Equity Value  $10,290,739      
Pro Forma Book Value Per Share  $0.81      

 

If the actual facts are different than these assumptions, then the amounts and shares outstanding in the unaudited pro forma condensed combined financial information will be different and those changes could be material.

 

Assumptions and estimates underlying the unaudited pro forma adjustments set forth in the unaudited pro forma condensed combined financial statements are described in the accompanying notes. The unaudited pro forma condensed combined financial statements have been presented for illustrative purposes only and are not necessarily indicative of the operating results and financial position that would have been achieved had the Merger occurred on the dates indicated. Further, the unaudited pro forma condensed combined financial statements do not purport to project the future operating results or financial position of McCarthy Finney following the completion of the Merger. The unaudited pro forma adjustments represent Thramann Holdings management’s estimates based on information available as of the dates of these unaudited pro forma condensed combined financial statements and are subject to change as additional information becomes available and analyses are performed.

 

 

 

 

 

 

 

 11