LiveOne Significantly Improves Its Balance Sheet As It Extends $21 Million Of Debt Including $15 Million of Senior Debt to June 2024

Rhea-AI Summary

LiveOne (NASDAQ: LVO) has made significant strides to enhance its balance sheet, reducing the minimum cash holding requirement from $10 million to $7 million to facilitate potential acquisitions. The company converted $1.5 million in music royalty liabilities into shares priced at $2.10 each and extinguished approximately $6.5 million in liabilities since April 2022. By July 15, 2022, LiveOne expects to hold about $13 million in cash and cash equivalents. Additional cost-cutting initiatives aim to save over $23 million in the fiscal year ending March 2023.

Positive

• Reduced minimum cash requirement from $10 million to $7 million, enhancing acquisition flexibility.
• Converted $1.5 million in liabilities into shares, strengthening equity.
• Extinguished $6.5 million in liabilities since April 2022.
• Projected $13 million in cash and cash equivalents by July 15, 2022.
• Anticipated cost savings exceeding $23 million for the fiscal year ending March 2023.

Negative

• None.

Lowers Minimum Cash Holding Required from $10 Million to $7 Million Providing Flexibility for a Potential Future Acquisition

Converts $1.5 Million of Music Royalty Liabilities into Shares of Its Restricted Common Stock at $2.10 Per Share

Has Extinguished Approximately $6.5 Million in Liabilities Since April 1, 2022 and Currently Holds Approximately $30 Million in Short-Term Assets

Company will Have Approximately $13.0 Million In Cash and Cash Equivalents as of July 15, 2022

LOS ANGELES, July 12, 2022 /PRNewswire/ -- LiveOne (Nasdaq: LVO), 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, announced today continued progress in its on-going initiative to improve and strengthen its balance sheet.

Effective as of July 8, 2022, LiveOne entered into amendments with its senior secured subordinated lenders, Harvest funds, as well as the holder of its unsecured promissory notes, Trinad Capital Master Fund, Ltd., to extend maturities on approximately $21 million of debt until June 2024. In conjunction with this extension, the minimum cash holding requirement under the senior secured subordinated documents have been reduced from $10 million to $7 million until December 31, 2022, to be adjusted thereafter as provided in such amendments, which provides LiveOne flexibility for a potential future acquisition.

In addition, LiveOne has extinguished approximately $6.5 million in liabilities since April 1, 2022. Included in this amount is $1.5 million of liabilities converted into shares of LiveOne's restricted common stock at a price of $2.10 per share.

As part of LiveOne's focus on generating cash from operations on a consolidated basis, LiveOne is implementing additional cost and expense reductions from both operations and corporate overhead, which is anticipated to increase the previously implemented annual cost savings to a total of over $23 million in its fiscal year ending March 31, 2023.

As previously announced, LiveOne's board of directors authorized the repurchase of up to two million shares of LiveOne's outstanding common stock from time to time, subject to compliance with applicable laws and regulations. As of today's date, LiveOne has completed the repurchase of approximately 1.5 million shares of its common stock for approximately $1.3 million under its stock repurchase program. The timing, price and actual number of any other shares repurchased under LiveOne's stock repurchase program will be at the discretion of LiveOne's management and will depend on a variety of factors, including stock price, general business and market conditions, and alternative investment opportunities.

About LiveOne, Inc.
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ: LVO) (the "Company") 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. The Company was awarded Best Live Moment by Digiday for its "Social Gloves" PPV Event, and has been a finalist for 8 more awards, including Best Live Event, Best Virtual Event, Best Overall Social Media Excellence, and Best Original Programming from Cynopsis and Digiday. As of June 26, 2022, the Company has accrued a paid and free membership base of over 2.35 million**, streamed over 2,900 artists, has a library of 30 million songs, 600 curated radio stations, nearly 270 podcasts/vodcasts, hundreds of pay-per-views, personalized merchandise, released music-related NFTs, and created a valuable connection between fans, brands, and bands. The Company's wholly-owned subsidiaries include Slacker Radio, React Presents, Gramophone Media, Palm Beach Records, Custom Personalization Solutions, PPVOne and PodcastOne, which generates more than 2.48 billion downloads per year and 300+ episodes distributed per week across its stable of top-rated podcasts. LiveOne is available on iOS, Android, Roku, Apple TV, Amazon Fire, and through OTT, STIRR, and XUMO. For more information, visit www.liveone.com and follow us on Facebook, Instagram, TikTok, and Twitter at @liveone.

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: the Company's reliance on one key customer for a substantial percentage of its revenue; the Company's ability to consummate any proposed financing, acquisition, spin-out, distribution or transaction, the timing of the closing of such proposed event, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all, or that the closing of any proposed financing, acquisition, spin-out, distribution or transaction will not occur or whether any such event will enhance shareholder value; the Company's ability to continue as a going concern; the Company's ability to attract, maintain and increase the number of its users and paid members; the Company identifying, acquiring, securing and developing content; the Company's intent to repurchase shares of its common stock from time to time under its announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; the Company's ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management's relationships with industry stakeholders; the effects of the global Covid-19 pandemic; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company's subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") on June 29, 2022, and in the Company's other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and the Company disclaims any obligations to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

** Included in the total number of members for the reported periods are certain members which are the subject of a contractual dispute. LiveOne is currently not recognizing revenue related to these members. 

LiveOne IR Contact: 
310.601.2505
ir@liveone.com

Press Contact:
LiveOne
aileen@liveone.com 
917.842.9653
aavidon@liveone.com 
516.522.1349

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SOURCE LiveOne, Inc.

FAQ

What recent financial improvements has LiveOne (LVO) announced?

LiveOne has reduced its minimum cash holding requirement and extinguished $6.5 million in liabilities since April 2022.

How much debt has LiveOne extended and until when?

LiveOne has extended approximately $21 million of debt until June 2024.

What is LiveOne's cash position expected to be by July 15, 2022?

LiveOne expects to have approximately $13 million in cash and cash equivalents by July 15, 2022.

What is the significance of LiveOne converting $1.5 million in liabilities into shares?

This conversion strengthens LiveOne's equity by reducing liabilities and enhancing its balance sheet.

What cost savings does LiveOne anticipate for its fiscal year ending March 2023?

LiveOne anticipates total cost savings exceeding $23 million for the fiscal year ending March 2023.