LiveOne (Nasdaq: LVO) Reports $9.1M+ Current Cash Position after Stock Purchases

Rhea-AI Summary

LiveOne (NASDAQ: LVO), a music, entertainment, and technology platform, has reported a current cash position of over $9.1 million following stock purchases. The company has acquired 583,000 PODC shares at an average price of $2.08, including 224,000 shares since July 1st. Additionally, LiveOne has purchased over 153,000 LVO shares since July 1st.

The company still has $6.3 million remaining for repurchases. LiveOne plans to extinguish 4.3 million repurchased LVO shares by the end of the week, which will reduce outstanding shares from 99 million to 94.7 million. These actions demonstrate LiveOne's commitment to enhancing shareholder value through strategic stock repurchases and share count reduction.

Positive

• Current cash position of over $9.1 million
• Acquired 583,000 PODC shares at an average price of $2.08
• $6.3 million remaining for repurchases
• Reducing outstanding LVO shares from 99 million to 94.7 million

Negative

• None.

Insights

Financial Analyst

LiveOne's recent stock repurchases and cash position update reveal interesting financial maneuvers. The company's $9.1M+ cash position demonstrates liquidity, but it's important to consider this against their total liabilities and operational costs. The repurchase of 583K PODC shares at an average of $2.08 suggests confidence in PodcastOne's value, potentially signaling undervaluation.

The planned extinguishment of 4.3M LVO shares, reducing outstanding shares from 99M to 94.7M, is a significant move. This 4.3% reduction in share count could boost earnings per share and potentially stock price. However, investors should scrutinize the $6.3M earmarked for future repurchases against other potential uses of capital, such as debt reduction or growth investments.

Market Research Analyst

LiveOne's stock repurchase strategy aligns with current market trends where companies are leveraging buybacks to enhance shareholder value. The focus on both LVO and PODC shares indicates a dual approach to supporting the parent company and its subsidiary. This could be interpreted as management's belief in the undervaluation of both entities in the current market.

The timing of these repurchases, particularly the acceleration since July 1st, may suggest a response to market conditions or internal performance metrics not yet public. Investors should watch for upcoming earnings reports to gauge the full impact of these financial decisions on the company's operational performance and market position in the competitive digital entertainment space.

• 583K PODC total shares, $2.08 average price, including 224K since July 1st
  
  
• Additional 153K+ LVO shares since July 1st
  
  
• $6.3M remaining for repurchases
  
  
• Extinguishing 4.3M repurchased LVO shares by end of week, reducing outstanding shares from 99M to 94.7M
  
  

LOS ANGELES, Aug. 20, 2024 (GLOBE NEWSWIRE) -- LiveOne (NASDAQ: LVO) an award-winning, creator-first music, entertainment, and technology platform announces updates to the LVO and PodcastOne (NASDAQ: PODC) cash position and repurchasing program.

About LiveOne
Headquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. LiveOne's wholly-owned subsidiaries include Slacker, PodcastOne (Nasdaq: PODC), PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR's OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: LiveOne’s reliance on one key customer for a substantial percentage of its revenue; LiveOne’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its users and paid members; LiveOne identifying, acquiring, securing and developing content; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain financial and other covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; uncertain and unfavorable outcomes in legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 1, 2024, and in LiveOne’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and LiveOne disclaims any obligation to update these statements, except as may be required by law. LiveOne intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

For media inquiries, please contact:

LiveOne IR Contact :
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com

LiveOne Press Contact :
LiveOne
press@liveone.com

Follow LiveOne on social media: Facebook, Instagram, TikTok, YouTube, and Twitter at @liveone.

FAQ

What is LiveOne's current cash position as reported on August 20, 2024?

LiveOne (NASDAQ: LVO) reported a current cash position of over $9.1 million after recent stock purchases.

How many PODC shares has LiveOne acquired and at what average price?

LiveOne has acquired 583,000 PODC shares at an average price of $2.08, including 224,000 shares since July 1st.

How many LVO shares has LiveOne purchased since July 1st, 2024?

LiveOne has purchased over 153,000 LVO shares since July 1st, 2024.

What is the remaining amount for repurchases in LiveOne's program?

LiveOne has $6.3 million remaining for repurchases in its stock repurchase program.

How will LiveOne's outstanding share count change after extinguishing repurchased shares?

LiveOne plans to extinguish 4.3 million repurchased LVO shares, reducing outstanding shares from 99 million to 94.7 million.