Financial Information

The tables below present financial results for the three months ended June 30, 2023 and 2022.

LiveOne , Inc.     
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share amounts)

  Three Months Ended
June 30,		 
  2023   2022 
Revenue: $27,767   $23,222 
         
Operating expenses:        
Cost of sales  19,563    15,382 
Sales and marketing  1,904    2,366 
Product development  1,246    1,617 
General and administrative  5,063    2,209 
Amortization of intangible assets  246    1,411 
Total operating expenses  28,022    22,985 
Income (loss) from operations  (255)   237 
         
Other income (expense):        
Interest expense, net  (1,418 )  (997)
Other income  1,237    2,105 
Total other income (expense), net  (181 )   1,108 
         
Income (loss) before income taxes  (436 )   1,345 
         
Provision for (benefit from) income taxes  79    (3) 
Net income (loss) $(515 )  $1,348 
         
Net income (loss) per share - basic $(0.01 )  $0.02 
Net income (loss) per share – diluted $(0.01 )  $0.02 
Weighted average common shares – basic  86,895,208    82,072,822 
Weighted average common shares – diluted  86,895,208    82,126,622 

  

LiveOne , Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands)

  June 30,  March 31, 
  2023  2023  
Assets    (Audited) 
Current Assets      
Cash and cash equivalents $4,990  $8,409  
Restricted cash  240   240  
Accounts receivable, net  15,997   13,658  
Inventories  2,446   2,596  
Prepaid expense and other current assets  3,154   2,823  
Total Current Assets  26,827   27,726  
Property and equipment, net  3,144   3,325  
Goodwill  23,379   23,379  
Intangible assets, net  10,788   11,035  
Other assets  253   423  
Total Assets $64,391  $65,888  
         
Liabilities, Mezzanine Equity and Stockholders’ Deficit        
Current Liabilities        
Accounts payable and accrued liabilities $25,947  $22,772  
Accrued royalties  12,381   12,826  
Notes payable, current portion  14   15  
Deferred revenue  969   992  
Senior secured line of credit  7,000   -  
Bridge loan  2,711   4,726  
Derivative liabilities  1,839   3,148  
Total Current Liabilities  50,861   44,479  
Senior secured line of credit, noncurrent  -   7,000  
Notes payable, net  148   148  
Lease liabilities, noncurrent  80   161  
Derivative liabilities, noncurrent  859   376  
Other long-term liabilities  9,574   9,578  
Deferred income taxes  332   332  
Total Liabilities  61,854   62,074  
         
Commitments and Contingencies        
         
Mezzanine Equity        
Redeemable convertible preferred stock, $0.001 par value; 10,000,000 shares authorized; 5,000 shares issued and outstanding as of June 30, 2023 and March 31, 2023, respectively  4,827   4,827  
Stockholders’ Equity (Deficit)        
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 16,177 shares issued and outstanding as of June 30, 2023 and March 31, 2023, respectively  16,177   16,177  
Common stock, $0.001 par value; 500,000,000 shares authorized; 90,063,149 and 89,632,161 shares issued and outstanding, respectively  90   90  
Additional paid in capital  210,028   209,151  
Treasury stock  (3,175)  (2,162) 
Accumulated deficit  (225,410)  (224,269 )
Total stockholders’ deficit  (2,290)  (1,013 )
Total Liabilities, Mezzanine Equity and Stockholders’ Deficit $64,391  $65,888  


LiveOne , Inc.
Reconciliation of Non-GAAP Measure to GAAP Measure
Adjusted EBITDA* Reconciliation (Unaudited)
(In thousands)
   

  Net Income
(Loss)		  Depreciation and
Amortization		  Stock-Based
Compensation		  Non-
Recurring
Acquisition and
Realignment
Costs (1)		  Other
(Income)
Expense (2)		  (Benefit)
Provision
for Taxes		  Adjusted
EBITDA*		 
Three Months Ended June 30, 2023                     
Operations – Audio Group $3,174  $800  $300  $453  $150  $-   $4,877 
Operations – Other  (848)  250   34   26   (643)  -    (1,181)
Corporate  (2,841)  5   543   54   674   79    (1,486)
Total $(515)  $1,055  $877  $533  $181  $79   $2,210 
                             
Three Months Ended June 30, 2022                            
Operations – Audio Group $2,763  $2,047  $284  $165  $(1,917) $-   $3,342 
Operations – Other  (524)  262   91   27   2   -    (142)
Corporate  (891)  6   413   (1,563)   807   (3)   (1,231)
Total $1,348  $2,315  $788  $(1,371)  $(1,108) $(3)  $1,969 


 (1) Other Non-Operating and Non-Recurring Costs include outside legal, accounting and other professional fees directly attributable to acquisition activity in the period, in addition to certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at certain acquired companies prior to their purchase date and non-recurring employee severance payments and to a lesser extent, a one-time minimum guarantee to effectively terminate a live-event distribution agreement post COVID-19. 


 (2) Other (income) expense above primarily includes interest expense, net, forgiveness of PPP loans, and loss on extinguishment of debt. These are included in the statement of operations in other income (expense) and are an add back to net loss above in the reconciliation of Adjusted EBITDA* to loss.


 *See the definition of Adjusted EBITDA under “About Non-GAAP Financial Measures” within this release.

  

LiveOne , Inc.
Reconciliation of Non-GAAP Measure to GAAP Measure
Contribution Margin* Reconciliation (Unaudited)
(In thousands)
  

  Three Months Ended
June 30,		 
  2023  2022 
       
Revenue: $27,767  $23,222 
Less:        
Cost of sales  (19,563)  (15,382)
Amortization of developed technology  (747)  (777)
Gross Profit  7,457   7,063 
Add back amortization of developed technology:  747   777 
Contribution Margin* $8,204  $7,840 


 *See the definition of Contribution Margin under “About Non-GAAP Financial Measures” within this release.