The out-of-memory error is a red herring. The problem is this line:
NSURL *outputURL = [NSURL URLWithString:[[NSString stringWithFormat:@"%@Path/%@", NSTemporaryDirectory(), @"output.m4a"] stringByAddingPercentEscapesUsingEncoding:NSUTF8StringEncoding]];
Try replacing it with this:
NSURL *outputURL = [NSURL fileURLWithPath:[NSString stringWithFormat:@"%@/%@", NSTemporaryDirectory(), @"output.m4a"] isDirectory:NO];
I've just tested with the above and it now works fine.