Q1 2026 LiveOne Inc Earnings Call

Ryan, are you leading?

Speaker 4: No. Waiting on them.

No waiting on them.

Jim: Good day, ladies and gentlemen. Thank you for standing by. My name is Jim, and I will be your conference operator today. At this time, I would like to welcome everyone to the LiveOne Inc. Q1 fiscal year 2026 financial results and business update. As a reminder, all phone participants are in a listen-only mode, but later you will have the opportunity to ask questions. Today's session is also being recorded. It is now my pleasure to turn the floor over to Mr. Ryan Carhart. Please go ahead, sir.

Good day, ladies and gentlemen. Thank you for standing by.

My name is Jim and I'll be your conference operator. Today at this time, I would like to welcome everyone to the live 1 Inc, q1 fiscal year, 2026, Financial results, and business update as a reminder, all phone participants are in a listen-only mode, but later you will have the opportunity to ask questions.

Today's session is also being recorded. It is now my pleasure to turn the floor over to Mr. Ryan carheart. Please go ahead sir.

Ryan Carhart: Thank you. Good morning and welcome to LiveOne's business update and financial results conference call for the company's fiscal first quarter ended June 30, 2025. Presenting on today's call with me is Rob Ellin, CEO and Chairman of LiveOne. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons.

Thank you. Good morning and welcome to LiveOne's business update and financial results conference call for the company's fiscal first quarter ended June 30, 2025.

Results and expected future growth in the business.

Ryan Carhart: Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2025, and subsequent SEC filings. You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on the Investor Relations website. The company encourages you to periodically visit its Investor Relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, August 13, 2025.

Ryan Carhart: Except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I would like to highlight to investors that this call is being recorded. The company is making it available to investors and media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call. Additionally, it is the property of the company, and any redistribution, transmission, or rebroadcast of this call or the webcast in any form without the company's express written consent is strictly prohibited. Now, I would like to turn the call over to LiveOne's CEO, Rob Ellin. Take it away, Rob.

Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors that could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2025, and subsequent SEC filings. You'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on the Investor Relations website. The company encourages you to periodically visit its Investor Relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, August 13, 2025, and except that request.

Required by law. The company does not undertake any obligation to update or revise, this information after the date of this call.

Rob Ellin: Thank you, Ryan. To start with, I want to thank Ryan for the brilliant job he has done as our new CFO, coming off the dramatic changes in the Tesla agreement and the loss of those revenues. Ryan has just done an absolutely spectacular job of fixing our balance sheet. We replaced East West Bank, who had called in their loan over $7 million. We replaced them with JGB with over $16.5 million. Subsequently, we just closed a $10 million equity financing. Confidently, I can tell you we have the strongest balance sheet that we have had in many years with over $20 million in cash. With that, we have also eliminated $14 million of short-term liabilities, including $2.5 million alone this quarter. We have just taken the initiative to reduce staff by 31%, cutting our staff down from 138 employees to 95 employees.

I'd like to highlight 2 investors that this call is being recorded. The company is making it available to investors and media via webcast and a replay will be available on its website in the investor relations section. Shortly following the conclusion of the call. Additionally, it is a property of the company and any redistribution transmission or rebroadcast of this call, or the webcast, and any form without the company's Express. Written consent is strictly prohibited. Now, I would look like to turn the call over to live 1's. CEO Rob, Ellen, take it away, Rob.

Thank you, Ryan and to start with, I want to thank you. Thank Ryan for the brilliant job. He's done is our new CFO coming off. The dramatic changes in the Chesler agreement and the loss of those revenues Ryan is just done. An absolutely spectacular job of fixing our balance sheet, we replaced East West Bank who had called in the the loan of over 7 million dollars. We replaced them with jgb with over 16 and a half million dollars. Um, and then subsequently we just closed a 10 million Equity financing so confidently. I can tell you, we have the strongest balance sheet that we've had in many years with over 20 million dollars in cash. And with that, we have also eliminated, 14 million dollars of short-term liabilities including 2 and a half million alone. This quarter

We've just taken the initiative to reduce staff by 31%, cutting our staff down from 138 employees to 95 employees.

Rob Ellin: Now we move to the positive side. As we have cleaned up the balance sheet, fortified ourselves with a big cash position, long-term partners, we now move to the really exciting side of the B2B partnerships that have been worked on for numerous years. Starting with the biggest launch in the history of the company with a Fortune 500 company, we have the opportunity of driving to 30-plus million paying subscribers with that partner. We have done the first soft launch as of August 5th. We see this as a potential opportunity to not only replace Tesla, but could be much bigger than Tesla over the next five years. Secondly, our Amazon deal that we announced a few months ago has gotten off the ground to a spectacular start.

And now we move to the positive side. As we cleaned up the balance sheet.

We are ourselves with a big cash position, long-term partners. We now move to the real exciting side of the B2B partnerships that have been worked on for numerous years.

Starting with.

The biggest launch in the history of the company with a Fortune 500 company. We have the opportunity of driving to 30 plus million paying subscribers with that partner. We've done the first soft launched as of April 5th. I'm sorry as of August 5th and we see this as a potential opportunity to not only replace Tesla, but could be much bigger than Tesla over the next 5 years.

Rob Ellin: A $16.5 million three-year deal, and we fully expect to not only hit our numbers, but to beat those numbers and start looking at larger MGs based on the traffic and audience that we deliver. Also, with our Fortune 250 streaming network, we can now say is well over $26 million and increasing, and could finish the year even higher than that. We have 75 additional B2B deals in the works. We are doing soft testing. Our technology team is doing a brilliant job of continuing to work with some of the biggest carriers, car companies, retailers, streaming networks, cable networks around the world, and many others that could be those next big B2B partners. We also just reported record revenues at PodcastOne doing $15 million for the quarter.

Secondly, our Amazon deal that we announced a few months ago has gotten off the ground to spectacular. Start a 16 and a half million dollar 3 year deal and we fully expect to not only fit our numbers, but to beat those numbers and start looking at larger MGS based on on the traffic and audience that we deliver

We also, with our Fortune 250 streaming network, can now say it is well over 26 million and increasing, and could finish the year even higher than that.

We have 75 additional B2B deals in the works. We are doing soft testing, uh, techn our technology. Team is doing a brilliant job of continuing to work with some of the biggest carriers car companies retailers.

Streaming Networks.

A cable networks around the world and many others. That could be those next big B2B partners.

Rob Ellin: As you may remember, we started this when we acquired that company doing $17 million a year, and we are now on a run rate to do $60 million plus this year. We have just launched for the first time inside of Tesla cars. We have converted a staggering 1.3 million people out of 2 million total cars, probably as big a number as who is actually using our service previously. For the first time, we adjust with a large partnership with DAX, the largest programmatic advertiser in the world. We have just launched our ad network and grown from 30% to 82% ad growth in Tesla cars. We have also increased our ARPU from $3 to $5. This is the time to start converting those Tesla subscribers.

We also just reported record revenues at Podcast 1, doing $15 million for the quarter.

As you may remember we started this when we acquired that company doing 17 million dollars a year and we're now in a run rate to do 60 million dollars plus this year.

We've just launched the first time inside of Tesla cars.

We have.

1.3 million people out of 2 million total cars.

Rob Ellin: As you are hearing more and more ads, and you have more and more of our hosts driving you to convert, this is the time that we expect the third and fourth quarter of this year to start driving a percentage of those to converting of those Tesla subscribers. We just completed a $10 million equity raise with my good friends at Lucid. Lucid, David Rosenberg and John Lipman. David was my partner when we did Digital Turbine and raised our first two rounds of money, at $2 and $4 a share, and subsequently saw that stock grow to $100. We raised this in a Bitcoin yield strategy and to advance our Web3 initiatives.

Probably is bigger number is, was actually using our service previously. And for the first time we've just with a large partnership with Dax, the largest programmatic advertising in the world, we have just launched our ad Network and growing from 30% to 82%, add growth in Tesla cars. We have also increased our rpu from 3 dollars to 5 dollars, and this is the time to start converting those tests with subscribers as you're hearing more and more ads and you have more and more of our hosts driving you to convert. This is the time that we expect the third and fourth quarter of this year to start driving a percentage of those to converting of those Tesla subscribers.

We just completed a 10 million Equity raise with my good friends at Lucian.

Lucid David Rosenberg and John Libman David was my partner when we did digital turbine and raised our first 2 rounds of money, um, at 2 and 4 dollars a share and subsequently saw that stock grow to 100.

We raised this in Bitcoin.

Yield strategy.

Rob Ellin: We have just added three of the prominent leaders in Web3, including Steve McClerk, who ran the first CTF and sold to Coinbase, Steve Lehman, who sits on the board of Coinbase, and Andy Vick, we brought back to our team to monetize our 10,000 hours plus of video content through tokenization, NFTs, and other digital assets. We have just sold our third TV show to a network, to a streaming platform, Barnum Town, Vigilante, and Opportunist. We took in almost a million dollars in from those sales, and we now have the opportunity of those TV shows to now become major hits on those streaming platforms and deliver millions to tens of millions of dollars with no additional cost to the company as we continue to build our flywheel.

And to advance our web 3 initiatives.

We have just added three of the prominent leaders in Web 3, including Steve McClurge, who ran the first CTF and sold to Coinbase; Steve Leman, who sits on the board of Coinbase; and Andy Vic, whom we brought back to our team to monetize our 10,000 hours plus of video content through tokenization, NFTs, and other digital assets.

We've just sold our third TV show.

To a network to a streaming platform. Barnum Town, vigilante, and opportunities. We took in almost $1 million.

From those sales, we now have the opportunity of those TV shows.

To now become major hits on those streaming platforms and deliver Millions to tens of millions of dollars with no additional cost to the company.

Rob Ellin: We now have a slate of over 20 potential shows on our platform that are all talking to streaming networks about TV, film, and bringing back some of my team's background and some of the team's expertise at delivering some of the greatest and most profitable movies and television shows in history. Our live events business. We were shut down during COVID. We have had a tough time relaunching it, but now that we are well financed, we have just announced that we will launch our biggest live event since Social Gloves. When we did Social Gloves, we did $27 million that night and $4.5 million in EBITDA. We now have announced and are launching Reality Olympic series, which would be some of the biggest reality stars in the world in a format like the Olympics with over 275 million followers amongst their audience.

As we continue to build our flywheel.

We now have a slate of over 20 potential shows on our platform that are all talking to streaming networks about TV film, and bringing back some of my team's background. And some of the team team's expertise at delivering, some of the greatest and most profitable movies and television shows in history.

A Live Events business.

We were shut down during coid we've had a tough time, relaunching it. But now that we're well financed. We've just announced that we will. We will launch our biggest live event since social gloves when we did social gloves. We did 27 million that night in 4 and a half million dollars. In Evita, we are now in have announced in a launching reality elliptic series, which will be some of the biggest reality stars in the world.

In a format like the Olympics with over 275 million followers amongst Their audience.

Rob Ellin: Our M&A opportunities, we continue to work with JP Morgan, and we have moved very aggressively now to potential mergers, acquisition opportunities, including a potential sale of a subsidiary. As we move forward, this team has proven again, we survived COVID. We survived a massive loss in revenues with Tesla. We have turned that around and rebuilt that audience with Tesla, converting 60% of those people back into free and paid subscribers. It will take time to get those revenues back, but a huge opportunity, and we have now proven that our B2B team is starting to hit on all cylinders. As we look forward over the next three years, I see the opportunity again that we can easily achieve those goals of hitting 10 million subscribers and half a billion dollars in revenues with substantial bottom line over the next three to five years.

Our M&A opportunities continue to work with JPMorgan, and we have removed very aggressively. Now, to potential merger and acquisition opportunities, including a potential sale of a subsidiary.

As we move forward.

This team has proven again. We survived Co

We survived a massive loss in revenues with Tesla. We have turned that around and rebuilt that audience, with Tesla converting 60% of those people back into free and paid subscribers. It'll take time to get those revenues back, but there is a new opportunity. And we have now proven that our B2B team,

Starting to hit on all cylinders.

Rob Ellin: With that, I want to offer the opportunity for anyone to open up for Q&A and ask any questions, and I look forward to our upcoming quarter and the rest of this year. Thank you very much.

As we look forward over the next 3 years, I see the opportunity again that we can easily achieve those goals. If you need 10 million subscribers, a half a billion dollars in revenues with substantial bottom line over the next 3 to 5 years.

With that, I want to offer the opportunity for anyone to open up for Q&A and ask any questions. And I look forward to our upcoming quarter and the rest of this year,

Thank you very much.

Jim: To our telephone audience at this time, if you would like to ask a question, please press star and one on your telephone keypad. Once again, if you would like to ask a question, ladies and gentlemen, that's star and one on your telephone keypad. If you choose to remove yourself from the queue, press star one once more. Pressing star and one will also remove you from today's queue. We'll take our first question today from the line of Barry Sine at Litchfield Hills.

And to our telephone audience at this time. If you would like to ask a question, please press star and 1 on your telephone keypad.

Once again, if you would like to ask a question, ladies and gentlemen, please press star 1 on your telephone keypad. If you choose to remove yourself from the queue, press star 1. Once more, pressing star 1 will also remove you from today's queue.

We'll take our first question today from the line of very sign at Litchfield Hills.

Ryan Carhart: Hey, good morning, gentlemen. A couple of questions, if you do not mind. First, can you give a rough idea of what the annualized revenue of all the currently signed partnerships would look like for LiveOne Inc. and PodcastOne, because I know that includes PodcastOne?

Rob Ellin: Yeah, we can't go much deeper than we've gone, Barry, in that we've said we expect $50 million in B2B revenues, right? We can't get deeper than that, but we will shortly. As I just articulated, we've just launched what could be our biggest partnership in history with multiple others that could be very close behind that.

And podcast 1 because I know that includes podcasts.

Yeah, we we take so much deeper than we've gone Barry and that we've said we expect fifty million dollars in B2B revenues. Right. We can't get deeper than that but we will shortly. As I just articulated, we've just launched. What could be? Our biggest partnership in history with multiple others, that could be very close behind that?

Ryan Carhart: Just to clarify, Rob, the 50 includes both Slacker and PodcastOne B2B, correct?

Rob Ellin: Correct. It is across our entire audio business.

And just to clarify Rob, the 50 includes both slacker and podcast 1 B to be correct.

Ryan Carhart: On the expense side, you just announced the staff reductions. What does EBITDA look like pro forma with those reductions? I am concerned, have you reduced the, I know you have added to the Slacker Radio team over the last year or so. Have you reduced that team or the Slacker Radio technology team? Those would seem to be key to all of the 75 partnerships you are working with.

Correct. It's it's across our entire audio business.

Rob Ellin: As you know, we can't provide guidance at this point and give you EBITDA numbers. What I can tell you is those cuts are across the board, and a substantial amount of those are at Slacker Radio. What AI has done and has done for not just us, but for the overall industry, including starting on the content side, it gives us the ability that we have 500 music channels and growing. Over 50 million songs on our platform. We have the ability to curate now utilizing AI with a way smaller staff to be able to deliver radio stations at an equal or better level than we've ever done before with a way smaller staff. So we've cut across the board, and we're not done with that, Barry. We will have additional cost savings moving forward.

And then on the uh, expense side, you just announced the staff reductions. What is ibida? Look like pro-forma with those reductions. Uh, and I'm concerned, have you reduced the, I know you've added to the slacker team over the last year or so, um, have you reduced that team or the slacker technology team? Because those would seem to be key to all the 75 Partnerships you're working with.

Yeah, as you know, we can't provide guidance, you know, at this point and give you I thought numbers is what I could tell you is is those cuts are across the board, The Stance substantial amount to those are at slacker, right? What AI is done and has done for not just us, but for the overall industry, including starting on the content side, it gives us the ability that you know, we have 500 music channels and growing right and over you know over 50 million songs on our platform. We have the ability to curate now.

Rob Ellin: So we're really excited about what AI and AI initiatives have done for our industry across the board and what it does for our technology team. Couldn't be more excited about the opportunity right now where we are. I wish I could share guidance with you today, but we have not put out any guidance. We will in the very near future.

Utilizing AI with a way smaller staff to be able to deliver you know, radio stations at an equal or better level than we've ever done before with a way smaller staff. So we've cut, we've cut across the board and we're not done with that, Barry, right? We will have additional cost savings, right? Uh, moving forward. So we're really excited about what Ai and AI initiatives have done for our industry like across the board and what it does for our technology team and couldn't be more excited about about the, uh, the opportunity right now where we are, I wish I could share Guidance with you today, but we have not put out any guidance. We will in the very near future.

Ryan Carhart: On the Tesla relationship evolution, I think you had at the peak about 2 million subscribers. I think you said you have converted about 1.3 million to paying. What kind of ARPU are you seeing there? You mentioned AI. I know you have talked in the past about using AI to help your advertising to help the conversion. How is that going? The rest of them are ad-supported. So about how many ad-supported on top of that 1.3 million subscribers do we have? What does ARPU look like there for ad-supported?

Rob Ellin: No, that 1.3 million is total of the Tesla conversions, right? So there were 2 million cars of which previously the consumer had to choose whether or not they paid for, right, $10 a month for connectivity, right? That didn't mean that all of those used, that they all used the radio service, right? In fact, obviously, there's a large percentage that didn't. So we couldn't be more proud and more excited by the fact that 1.3 million have converted. We don't break down the exact numbers now. We're well over 1.5 million total subscribers. Our ARPUs are increasing from $3 right now to a little over $5. We see opportunities for those to increase, including with our new B2B partnerships to increase to closer to $7.

And then on the uh, uh Tesla uh, relationship Evolution. Um, I think you had at the peak about 2 million subscribers. I think you said, you've converted about 1.3 million to paying, what, kind of art who are you seeing there? Um, you mentioned AI. Um, I know you've talked in the past about using AI to help your advertising to help the conversion. How's that going? And then the rest of them are ad supported. So about how many ads supported on top of that 1.3 million subscribers that we have. And what is our pool look like there for ad supported.

Rob Ellin: As you see Spotify and see raising rates substantially, right, you know that we're still at the early stages of these additional raises in prices. We're so far below the market. We are at a very comfortable level that we are still the cheapest by far in the industry, averaging $5. Even at close to $7, we'll still be in the lowest end of the range.

No that that 1.3 million is total of the Tesla conversions. Right. So there were 2 million cars of which previously the consumer had to choose whether or not they paid for right ten dollars a month for connectivity, right? That didn't mean that. All those used that they all used the radio service, right? In fact, you know, obviously, there's a large percentage that didn't. So we we couldn't be more proud and more excited by the fact that 1.3 million of converted. We don't break down the exact numbers now, we're well over 1.5 million total subscribers and our offers are increasing from 3 dollars right now to a little over 5 dollars. And we see opportunities for those to increase including with our new, B2B Partnerships to increase to closer to $7. And as you see Spotify and see a raising rates substantially, right. You know that we're still at the, you know, the early stages of of these these additional races and prices and we're so far below the market. We are at a very comfortable level that we are still the cheapest by far.

in the industry averaging 5 dollars and even even at close to 7 dollars, we'll still be in that in the in the lowest end of the range

Ryan Carhart: Rob, just to clarify, the $5 ARPU, that is a blended ARPU of people who are paying to subscribe as well as advertising revenue from the base?

Rob Ellin: No, no, no. That is the paying subscribers, right? Advertising, you are only going to, you are only just starting, right? This is the baby steps. We partnered with DAX, the biggest programmatic advertiser, right? We have just started to launch that advertising. If you are on our service, you will notice, right, you are going to get a staggering amount of ads, right? There was zero 30 days ago. All of a sudden, those ads are going to kick in, but that is only going to be $0.50, $0.60 in that range, right? You are not going to make up for that $3.

Uh, Rob just to clarify the, the 5 Dollar rpu, that's a blended rpu of people who are paying to subscribe as well as advertising revenue from the, um, from the base. No, no, no. That's that's the paying subscribers, right, advertising. You're only going to, you're only just starting right? This is the baby step. So we we partner with Dax

Rob Ellin: What you are going to get is you are going to get the opportunity now by putting in that advertising, right? You are going to get the opportunity of now understanding that customer better, using AI to drive them and convert them, using your host to convert them, right? Really reaching out to them on a regular basis. Then candidly, you know, as Spotify likes to describe it, a lot of people do not want to hear ads. There are going to be some people that drop off the platform, and there is going to be some people that convert. What we are watching is a conversion rate that is above $5.

The biggest programmatic Advertiser, right? We've just started the launch that advertising and if you're on our service, you'll notice, right? You're going to get a staggering amount of ads. Right there was Zero 30 days ago. So all of a sudden Those ads are going to kick in, but that's only going to be 50 60 cents cents in that range, right? You're not going to make up for that 3 dollars. What you're going to get is you're going to get the opportunity Now by putting in that advertising, right? You're going to get the opportunity of now.

Don't want to hear it. They're going to be some people that drop off the platform and there's going to be some people that convert we're watching is a conversion rate that is above 5 dollars.

Ryan Carhart: I better make sure I can renew my subscriptions so I do not hear all those ads. On the reality series, a number of questions there on visibility. It sounds like it is early going, so you probably do not have these, but everybody remembers the huge success of Social Gloves. Do you have a formal name for it, a host, location? Do you know your distribution will be on cable, pay-per-view? When might we see that? Is it going to be expensive to produce? I would assume you are going to monetize it as well as distribution rights through partnership sales. You will want to have key name sponsors there. A lot of questions on that. What visibility can you give us on that reality?

Rob Ellin: Yeah, so you are going to read a lot about it very shortly. It is coming, guys. This is not in the early stages. It is actually moving fast. If you remember in Social Gloves, right, in Social Gloves, we were able to get $2 million from Hard Rock Stadium. We were able to get $3 million in NFT money, right? As you know, crypto is just on fire right now, right? I just brought in my dear friend Andy Vick, who produced that show, who helped bring in that money alongside Jackie Stone, our head of marketing at the time, right? We could not do any of these things, right, for multiple reasons. One was COVID, but then we just were not capitalized properly, right, to be in the position to really do this. That show sold $3 million of NFTs and had 160 million followers.

I better make sure I can, um, renew my subscriptions, though. I don't hear all those ads, um, on the reality series. Um, a number of questions there on visibility. It sounds like it's early going, so you probably don't have these. But, you know, everybody remembers the huge success of Social Gloves. Do you have a formal name for it? A host location? Do you know if your distribution will be on cable pay-per-view? When will we see that? Is it going to be expensive to produce? And then I would assume you're going to monetize it as well as distribution rights through partnership sales. You want to have, you know, key names sponsors there. So, a lot of questions on that. What visibility can you give us on that reality?

Yeah, so so you're going to read a lot about it very shortly, it's coming. Okay, this is not in the early stages. This is actually moving fast. And if you remember in Social gloves right in Social gloves, we were able to get 2 million dollars from Hard Rock stadium. We're able to get $3 million in nft money, right? As you know, crypto is just on fire right now, right? I just brought in my dear friend, Andy Vic, who produced that show who helped bring in that money. Alongside a Jackie, stone, or a head of marketing at the time, right? We couldn't do any of these things, right? From multiple reasons, 1 was Co but then we just were capitalized.

Rob Ellin: This already has 230 million. From what I understand from the producers, right, of this show that are partnering with us, they expect the numbers to be over 400 million in social media. So there could be a pay-per-view component to it. There could be a distributor like we did with Social Gloves. There could be a VR element to it. There is certainly going to be a very sizable NFT element to it. Then you are going to have music on top of it, which we have not announced the artist. So this is going to read and smell exactly like Social Gloves, except for I do not have the risk of someone getting hurt like boxing. I do not have the risk of a commission having to approve it, right? In this case, the social media has come to us.

Rob Ellin: The talent has come to us to do this. So the excitement and energy around this is really unique. We could not be more excited about it. It will not be the only one. There will be multiple other events like this, small, medium, and large. This will put us back very much in the forefront of that live events, music, pop culture crossover that made us, made this company in the beginning before COVID. So we are really excited to be back in that business and excited, the energy of it. Obviously, you get the most important win at the end of it. You get the one-time win where in Social Gloves, we did $27 million that night and $4.5 million of EBITDA.

Properly, right, to be in the position to really do this that show. So, 3, 3 million of nfts and had 160 million followers. This already has 230 million and for 1, I understand from the, the producers of this show that a partnering with us, they expect the numbers to be over 400 million in social media. So there could be a pay-per-view component to it. That can be a uh, that could be a distributor like we did with Social Clubs. It could be a VR element to it, and there are certainly going to be a very sizable NFP element to it, and then you can have music on top of it, which we have not announced the artist. So, this is going to read and smell exactly, like social gloves, except I don't have the risk of someone getting hurt like boxing. I don't have have the risk of a commission having to approve it, right? And in this case, the social media has come to us, the talent has come to us to do this. So the excitement and energy around this is is really unique and yeah, we couldn't be more excited about it. It won't be the only 1, there'll be multiple other.

Rob Ellin: The bigger win is you get all of these, you get millions to tens of millions of people coming through, right, who you are collecting data on, who eventually become your subscribers and your partners.

Events like this small medium and large and this will put us back very much in the Forefront of that live events music. You know, pop pop, pop culture crossover that, you know, made us, you know, made this company in the beginning before Co. So we're really excited to be back in that in that business and excited the energy it and obviously you get, you get the most important win at the end of it. You get the 1 time win. We're in Social Clubs. We did 27 million that night in 4 and a half million of ibad. But the bigger win is you get all of these?

You know.

You got millions to tens of millions of people coming through, right? Who you're collecting Gator on, who eventually become your subscribers in your partners?

Ryan Carhart: The flywheel, I think you like to call it. Those are my questions. Thank you.

The flywheel I think you like to call it.

Um, those are my questions. Thank you.

Rob Ellin: Great. Thanks, Barry, as always. Call me. Let's make sure we set up a follow-up call.

Jim: Our next question today comes from John Hickman at Leidenberg. Mr. Hickman, your line is open.

Great. Thanks, Barry. As always, call me. Let's make sure we set up a follow-up call.

Our next question today comes from John Hickman at ladenburg.

John Hickman: Hi, Rob. Can you hear me?

Ryan Carhart: Hey, John. How are you, pal?

Mr. Your line is open. Hi, Rob. Can you hear me?

John Hickman: Could you elaborate a little bit on how this new Fortune 500 B2B deal might work with the 30 million subs? Do the subs have to opt in to the Slacker service? How do you get paid here?

Hey John, how are you, pal?

Fine. Um could you elaborate a little bit on how this uh new Fortune 500 B2B? Um

um deal my work with the 30 million Subs, do they? Um

Do the subs have to like opt in to the...

Rob Ellin: Yeah, so I cannot answer too many questions yet. We will be able to very shortly. I will then tell you, as I said, way over 30 million paying members, right? Having over 30 million paying members, right, whether it is a carrier or a car company, this is a staggering number compared to Tesla, right? This will be a white label solution where they are actually branding it and aggressively marketing it to those members as a product of their own, right? We will be in the backgrounds of it and we will be powering it like Intel inside, right?

Slacker service. What, how do you get paid here? Yes, you're paid here? Yeah, so I can't answer too many questions yet. We will be able to very shortly, other than to tell you, as I said, you know, we have over 30 million paying members. All right, and having over 30 million paying members, right, whether it's a carrier or a car company. This is a staggering number compared to Tesla, all right? And this will be a white-label solution where they're actually branding it and aggressively marketing it to those members.

As a product of their own.

Rob Ellin: This will be them going out and reaching and using all of the things we built over the 20 years and the $200 million that we spent building Slacker Radio and building PodcastOne and building the infrastructure and the live events and so on. They will be using every muscle in that to be delivering what they believe is a fantastic service and a discount to their members.

Fantastic service. A discount to their members.

John Hickman: But their members have to opt in.

But their members have top 10.

Rob Ellin: Of course.

John Hickman: Okay.

Rob Ellin: Of course. Opting in may be as simple as pressing a button.

Of course.

John Hickman: Okay.

Rob Ellin: If you think about Disney and Verizon, when Disney launched, they got to 100 million subscribers in no time. How did they get there? Verizon gave it to anyone that wanted to re-up their service or bought a new phone. They immediately got Disney's service for free, and they subsidized it.

Okay, the question. Okay? And and I'll be, I'll be opting in opt in maybe as simple as pressing a button.

Okay. All right. So if you think about, if you think about Disney and Verizon rights, when Disney launched, they got to 100 million subscribers in no time, how did they get there? Verizon gave it to all of anyone that wants to that, you know, that re-up their service or bought a new phone, they immediately like got Disney service for free.

And they subsidized it.

John Hickman: Okay. So this $50 million of B2B revenue is over what time period?

Okay, so this $50 million of B2B revenues is over what time period?

Rob Ellin: Over a 12-month period.

Over over 12 month, period.

John Hickman: Beginning like now?

Rob Ellin: Correct.

Beginning like now.

John Hickman: Okay.

Correct.

Rob Ellin: Some of that started a little earlier, right? As you are building it up, right? It is a slow build-up, but you will start to see that really click. You start to see that really click in the third and fourth quarter. Really, the end of the third quarter, beginning of the fourth quarter starts kicking in a much heavier way.

Okay, and then did you some it started some of that started a little early here, right? You know? It's, you know, as you're building it up, right? It's a slow build up but you know, you'll start to see that really quick.

You start to see that really click in the third and fourth quarter.

Really the end of the third quarter, beginning of fourth quarter starts kicking in a much heavier way.

John Hickman: Okay. Then right at the end of your prepared remarks, did you say something about the sale of a subsidiary?

Rob Ellin: What I said was that, based on the inbound calls that have come in, right? You and I have talked about this. I have been traveling around the world. As you know, my background historically is signing partnerships globally, right? We have never had that ability before. In that, right, there are many people that are missing any piece of our services, right? There are multiple inbound calls. As you hear the likes of Netflix going into audio and Spotify going to video, everybody is infringing on each other's businesses. You just saw Napster sell for $210 million. They were doing $40 million in revenues, right? You saw Tidal sell a few years ago for $400 million. Neither one of them were anywhere near profitability. We are losing fortunes of money, right? It is really hard to rebuild the DSP. Tesla tried to do it, right?

Okay. And then right at the end of your prepared, remarks, did you say something about the sale of a subsidiary?

What I said was, is that, you know, based on the inbound calls that have come in, right? And you, and I have talked about this. I've been traveling around the world, and as, you know, my background historically is signing Partnerships globally, right? We've never had that ability before, but in that, right there are many people that are missing.

You know, any piece of our services, right? So there are multiple inbound calls and as you hear the likes of Netflix going into audio and Spotify going to video, everybody is infringing on each other's businesses.

Rob Ellin: Tesla tried to literally behind our back years ago build their own music service. It is really hard to do. We have had a staggering amount of inbound phone calls. We need to be vigilant. We need to be protective of our shareholders, right? Make sure that if a sale of a division happened or a merger happened or an investor came in, a strategic investor came in, there are so many parties in this space right now that must have a music platform, right? Facebook is missing one, Microsoft is missing one. Walmart just bought Vizio. They are missing one. Costco is missing one. Target is missing one. Every single carrier is missing one. Every single streaming network is missing one, right? Do you think that Disney, HBO, and so on are going to have an audio version of the platform?

And you just saw, you know, naps to sell for 210 million, they were doing 40 million in revenues, right? Right. You saw title sell a few years ago for 400 million neither 1 of them were anywhere near profitability. We're losing, you know fortunes of money, right? It's really hard to rebuild the DSP. Tesla tried to do it right. Tesla tried to try to literally behind our back years ago, build their own music service. It's really hard to do. So, we have had a staggering amount of inbound phone calls. We need to be, uh, we need to be vigilant. We need to be, uh, protective of our shareholders, right? And make sure that if a sale of a division happen, or a merger happen or a, uh, or a investor came in strategic.

Rob Ellin: Everyone is already talking about how podcasting is literally moving mountains and how much video is now being sold and the amount of revenue is coming from video.

Pastor came in, there's so many parties in this space right now that must have a music platform, right? Facebook's missing 1 Microsoft missing, 1 Walmart just like Vizio they're missing. 1 Costco is missing 1 targets missing and 1 every single carrier is missing 1. Every single screening Network, it's missing 1. Right? Do you think that, that Disney HBO? And so I'm going to have an audio version of the platform. They're already, everyone's already talking about how podcasting is is literally moving mountains and how much video is now being sold in the amount of revenues coming from video.

John Hickman: Okay. So, one last question. You raised the $10 million to buy Bitcoin. Have you actually purchased it?

Okay, so, uh, one last question. So, you raised the $10 million.

Rob Ellin: We will be talking about that literally in the next 72 hours. What we have done is we have done a Bitcoin yield treasury strategy, which the partner that we have hired to manage that has been delivering between 12% and 15% returns for the last five years. It is actually a managed account that is protected, protects you on the downside, and is yielding cash flow, which, as you know, we have a $110 million NOL. If they can generate on a $10 million call, and if they can generate a million dollars for it, that million dollars of cash flow comes straight through and can be used to either buy additional Bitcoin yield treasury or to buy other things. The other part that it does for us, again, is it positions the company very strongly back into the NFT/tokenization market, positions us because we have so much content.

uh, to buy Bitcoin, if you actually purchased it,

Yeah, so we'll we'll be talking about that and literally in the next 72 hours. Um, so we've done is we've done a Bitcoin treasury strategy, right? Which the partner that we retired to manage that has been delivering between 12 and 15% returns for The Last 5 Years. So it's actually a managed account that is actually a protected uh protects you on the downside, right? And is yielding cash flow which as you know we have a hundred and 10 million dollar nol

Rob Ellin: It really puts us in a very unique position that, as you know, we took in $3 million in NFT money and over $5 million total in NFT money off our content in the first round of this. The numbers are going to be staggeringly higher the next time. That was with no additional cost to us.

I if they can generate on 10 million dollars called if they can generate generate a million dollars for it, that million dollars of cash flow comes straight through and can be used to either buy additional Bitcoin treasury or to buy other things. The other part that it does for us is again is it positions the company very strongly back into the nft token market right positions us because we have so much content. Um it really puts us in a very unique position that as you know we we took in 3 million dollars in nft money in over 5 million total and have any money off. Our content. The first round list, the numbers are going to be staggeringly higher the next time.

And that was with no additional cost to us.

John Hickman: Let me ask the question in a different way. In Q3, when we look at your balance sheet, will there be $10 million of Bitcoin on the balance sheet?

Rob Ellin: You will see when we publicly announce our next jet move, you will see what we are doing. But I cannot ask you what has happened until we publicly release that.

Let me ask the question a different way in Q3. When we look at your balance sheet, will there be 10 million dollars of Bitcoin on the balance sheet?

I mean, you'll see when we publicly announce our next guest move. You'll see what we're doing.

John Hickman: Okay. You said that would be within 72 hours?

Rob Ellin: Coming any minute now. Just to give you a...

Oh, okay. And you said that would be within 72 hours.

Coming any minute now.

John Hickman: For me, Rob.

Rob Ellin: have been in the process of setting up our accounts, right, with the Coinbases of the world, which took a little longer than we thought it would take. As soon as that is completed, which is momentarily, you will start to see what our position is there, and you are going to start to see some of those things across all of Web3 and where this is going.

Yeah, just to give you an update, we've been in the process of setting up our accounts, right? With Coinbase and the like, which took a little longer than we thought it would take. So as soon as that is completed, which is...

Momentarily, you'll start to see what our position is there, and you're going to start to see some of those things across all of Web 3 and where this is going.

John Hickman: Okay. Thanks. Bye.

Rob Ellin: Thank you.

Okay, thank you. Bye.

Jim: Our next question will come from Brian Kenslinger at Alliance Global Partners.

Thank you.

Our next question, will come from Brian kensinger at Alliance Global Partners?

Brian Kenslinger: Great, thanks. I have two questions. The first, to one of the questions you just responded, that you expect $50 million of revenue over the next, say, 12 months or so. Can you give us a sense of what the run rate is today on B2B so we can understand the incremental contribution?

Rob Ellin: Yeah, we can't give any further guidance than we publicly have. We have not put out guidance yet on LiveOne, right? That may be coming shortly.

Great. Thanks. I have a question. The first um you to 1 of the questions you just responded that, you expect 50 million of Revenue over the next say, 12 months or so. Can you give us a sense of what the Run rate is today on B2B? So we can understand the incremental contribution.

Brian Kenslinger: I'm looking backwards. I'm sorry, I'm looking backwards. What has been the trailing B2B revenue?

Yeah, we we can't we can't give any further guidance than we public. You, you have we have not put out guidance yet, on live 1, right? That may be coming backwards. No, sorry I'm looking backwards. What is the what is been? The trailing B2B Revenue.

Rob Ellin: Yeah, so the breakdown of it, a very small amount of that today is kicking in. It's just beginning.

Yeah, so the breakdown of it, you know, a very small amount to that today is kicking in; it’s just beginning.

Brian Kenslinger: Okay.

Rob Ellin: You are going to see a lot more of that revenue. A lot more of that revenue is end of third quarter and really in the fourth quarter.

Brian Kenslinger: Okay. Can you articulate your digital currency strategy? There are those that are raising capital as quickly as they can, and they trade it at a premium. They call it to buy digital currency rapidly, mimicking MicroStrategy. Then there are others that are just wanting exposure on their balance sheet. So they are raising a little bit of money opportunistically so they have that digital currency exposure. Where do you lie in that?

Okay, so you're gonna see a lot, a lot more of that Revenue. As I said, a lot more of that revenues end of third quarter and really in the fourth quarter.

Okay.

and then,

Rob Ellin: Yeah, I mean, I think that, you know, the movie hasn't been written yet, right? This is, we wrote the script. We got ourselves in here because we've been a thought leader in technology, right? My team has been thought leaders in technology for 40 years, right? We always want to be at the forefront of where technology is going, and we're huge believers directionally where this is going. But we also want a protected position, which is why we did this Bitcoin yield where you have an option strategy against it. So you're protecting against the downside because it is a very volatile market, right? We absolutely have, you know, deep plans for and approval by our board, you know, for substantially more money to come in, right? That could come in from a sale of a subsidiary.

Can you articulate your digital currency strategy? There are those that are raising Capital as quickly as they can, and they trade at a premium and now they call it to buy digital currency, rapidly mimicking micro strategy. And then there's others that are just wanting exposure on their balance sheet. So they're raising a little bit of money opportunistically. So they have that digital currency exposure, where, where you lying in that

Rob Ellin: That could come in if the stock performs like it should, right? You know, it was trading at, you know, fair market value. It could come in, right? In the interim right now, we're very focused on what we've accomplished so far. I think you'll see some of that strategy starting to materialize, both the acquisition of Bitcoin yield as well as our NFT and token strategy starting to kick in, which will drive both revenues as well as having a balance sheet that has ownership in what we believe strongly will go way higher over the next couple of years.

Yeah, I mean, I I think that, you know, the movie hasn't been written yet, right? You know, this is we wrote the script, we got ourselves in here because we've been a thought leader in technology, right? And my team has been thought leaders in technology for 40 years, right? We always want to be at the Forefront of where technology is going and we're huge Believers directionally where this is going, but we also want to protect the position, which is why we did this Bitcoin yield, where you have an option strategy against it. So, you're protecting against the downside because it is a very volatile market, right? But we actually have, you know, deep, you know, plans for and approval by our board, you know, for substantially more money to come in, right? And that could come in from a sale of a subsidiary,

Brian Kenslinger: You just recently began aggressively working or focusing on the conversion from ad-supported to paid subscribers for Tesla. I am sure it is too soon to evaluate execution, and you have been clear, it is not going to happen overnight. How long do you think it will take before conversion will have a major impact on the results?

That could come in if the stock performs like it should, all right. And yeah, it was trading at, you know, fair market value. It could come in by in the interim. Right now, we're very focused on what we've accomplished so far and I think you'll see some of that strategy starting to materialize, both the acquisition of Bitcoin yield as well as as our nft and token strategy. Starting to kick in which will drive both revenues as well as having a balance sheet that has ownership. And we believe strongly will be will go way higher over the next couple of years.

Okay.

and then,

Rob Ellin: You know, again, it is such a tricky question, right? As you look at Spotify and they said the reason that they have their free service, right? I could tell you, I keep both because I just want to see how it sounds. I can tell you, honestly, for me, listening to ads all day long is difficult, right? So for me, I would convert immediately, right? But you are going to lose, you are going to lose some people that just walk away because of it. You are going to gain some people and that you are going to gain revenues from those advertising and then you are going to convert a percentage of them. Again, I think our aspirations are the same over a 12-month to 24-month period to convert somewhere between 20% and 30% of those subscribers.

Just recently began aggressively working or focusing on conversion from ad supported to paid subscribers for Tesla. So I'm sure it's too soon to evaluate execution. But and you've been clear, it's not going to happen overnight. But how long do you think it will take before conversion? Has an impactful? Uh, we'll have a Major Impact. Sorry, on the results.

You know, again it's such a tricky question, right? You know, as you look at, you know, Spotify and they said the reason that they have their free service, right? And I can tell you, I keep both because I just want to see how it sounds and I can tell you, I honestly, you know, for me, listen to ads all day long, it's difficult, right? So for me, I would convert immediately, right? But you're going to lose, you're going to lose some people that just walk away because of it, you're going to, you're going to gain some people. Now, you're going to gain revenues from those advertising and then you're going to convert a percentage of them. And again, I I think our

Aspirations or or the same over a 12-month to 24-month, period, to convert somewhere between between 20 and 30% of those subscribers.

Brian Kenslinger: Got it. You talked about the B2B partnership with the 30 million paid subscribers, but in the press release, you talked about the Fortune 250 streaming network. Maybe this is something you have talked about in the past, so I am just confused, so I apologize. Can you provide any detail around that as well, like you have for the $100 billion company?

Got it.

Rob Ellin: Not yet. We will be able to very shortly.

Company.

Rob Ellin: All I can tell you is that there has been a soft launch, which has gone exceptionally well. There will be a larger launch shortly. It has leaked out there from the management of the company. So there are some things, if you search around, you may be able to find it. We want to be good partners. We want to be spectacular partners.

Jim: Makes sense.

Rob Ellin: Because there are more of these deals that are now inches away, there is something like, I am a big basketball guy. When you go on a hot streak, we just feel like that streak is coming, right? This has been a tough, long sales process. You are talking about massive companies. We truly believe that we will have another car company and another carrier company and a retailer this year, all three of them over the 12-month period. We are behind, so we have to accept that, and we have to accept that these took longer than we expected. Some of that obviously is, there was some skepticism about our balance sheet. There was some skepticism about our cash position, right? Now that we have cleaned those things up, I think all of that has gone away.

Not yet, we will be able to very shortly. So I can tell you is that there's been a soft launch. All right? Which is gone exceptionally. Well, there'll be a larger launch shortly. Um, it has leaked out there from the management of the company. So there are some things if you search around, you may be able to find it and we want to be good partners. We want to be spectacular Partners. Right. Makes sense. And because there are more of these deals that are now inches way, you know, some just there's some like, you know, I'm a big, I'm a big basketball guy. When you go on a hot streak, we just feel like that streak's coming, right? And obviously, this has been, you know, this is a tough long sales process. You're talking about massive companies, we truly believe that we will have another car company and another carrier company and a retailer this year, all 3 of them over the 12 month, period, and we're behind. So we have to accept that and we have accepted the piece took longer than we expected. And some of that obviously is, you know, there was some skepticism about our balance sheet, there was some skepticism about our cash

Rob Ellin: It is now about what can we do with this business now and how big can we grow it and can we recover from the loss of Tesla, right? When COVID hit, as you know, we lost 50% of our revenues. We not only recovered, we grew from $38 million and we grew to $100 million, right? We have now taken a second missile that we have to recover from, right? I give my team so much credit. Nobody has backed off. Nobody stopped. Everybody is focused. People are working around the clock and they are literally the excitement and energy. I have not seen this much excitement and energy since I bought Slacker Radio going back, since I bought PodcastOne, right? We have gone through some great times. We have had some great stock runs. We have gone through some really difficult times.

Position right now that we've cleaned those things up. I think all of that has gone away. It is now about what can we do with this business now, and how big can we grow it? And can we recover from the loss of Kesler? When Co hit, as you know, we lost 50% of our revenues. We not only recovered; we grew from $38 million and we grew it to $100 million. Right? We've now taken a second missile that we have to recover from, right? And I give my team so much credit. Nobody's backed off. Nobody stopped. Everybody's focused.

Rob Ellin: This has been a difficult time on both sides, both the stock as well as the business. I can tell you that, there is more optionality in this company than any company I have ever been involved with before. I have got to fight through. I have got to battle through, but at least now I have got plenty of cash. I have got plenty of balance sheet, and I have got amazing assets here that if I can keep fighting to survive, right, we are going to come out of this stronger than ever. Over the next couple of years, this will be, this will be, I think, I think it will be my biggest company I have ever built. It is the best team I have ever had. I just have got to keep them focused, keep them energized, right? And keep battling with it.

People working around the clock, um, and they're literally the excitement and energy. I haven't seen this much excitement and energy since I bought Slacker Radio going back since I bought podcast 1, right we've gone through some great times. We've had some great stock runs. We've got through some really difficult times. This has been a difficult time on both sides built the stock as well as the business. And I can tell you that, you know, there's more optionality in this company than any company I've ever been in with before.

Jim: Great. Last question, actually, a follow-up. If some of these are white labeled, will you ever be able to announce who they are? Because we won't see it, right? There's a LiveOne music streaming button/icon or a Slacker Radio button. Or are there some cases where you won't be able to announce?

I got to fight through, I got to battle through, but at least now I got plenty of cash. I got plenty of balance sheets and I've got amazing assets here that if I can keep fighting to survive, all right, we're going to come out of this stronger than ever and, you know, over the next couple of years, this will be, this will be, you know, I think I think it'll be my biggest company I've ever built and it's the best team I've ever had. So I just got to keep them focused, keep them energized. All right. And uh and um and keep battling with this.

Rob Ellin: You actually will. You actually will see it. Not only will you see it, you will actually see powered by it. It will be very much like Intel Inside. You will see powered by LiveOne, right? Because these are, these are of course audio, video. This is not necessarily just audio. There is massive opportunities, as you know, streaming network is more video, right? So our video content is now coming into fruition, as you see, podcasting as well as all of our live stuff, right? You have thousands of hours of the biggest music events in the world that can all be revived and brought back. Now you are watching that video being so important, especially for AI models, right?

Great last question actually follow up if if some of these are white labeled, will you ever be able to announce who they are? Because we won't see it, right? As a live, 1 button, or a slack, or button, what or are there some cases where you won't be able to know?

You actually will, you actually will see it. Not only will you see it, you'll actually see "powered by"—it will be very much like "Intel Inside." You'll see "Pi by LiveOne."

Rob Ellin: So, you know, one of our holdings that you represent, you know, they are making a lot of money off of Google, just wanting their content because they cannot get the A-plus content. They cannot get to Disney and, you know, Warner. So they have to use content to build those AI models. We have a lot of content that can be monetized right now. I have always talked about this flywheel, right? I just watched one of my dear friends literally, you know, make tens of millions of dollars utilizing his video content of effectively what is a podcast that he was doing for 15 years. Literally, he is getting paid by Google just to use that for their AI models to build those because they do not have enough content to do it on to prove their models and prove them out.

Right. Because these are, these are, of course, audio video. This is this isn't necessarily this audio. There's, there's massive opportunities as you know, streaming network is more video, right? So our video content is now coming into fruition as you see podcasting, as well as all of our live stuff, right? We have thousands of hours of the biggest amusement events in the world that can all be revived and brought back and now you're watching that video being so important especially for AI models, right? So you know, 1 of our Holdings, are you represent, you know, they're making a lot of money off of Google just wanting their content because they can't get the A+ company. They can't get to Disney and and uh, you know, water. So they have to use content to build those AI models. We have a lot of content that can be monetized right now. I've always talked about this flywheel. All right, um, I just watched 1 of my dear friends, literally, you know, make tens of millions of dollars, utilizing his video content of effectively. That's a podcast that he was doing for 15 years and literally he's getting paid by Google.

Rob Ellin: So I see a lot of opportunities there for us to really utilize that flywheel that we have been talking about for years. As you know, video, YouTube just came out and said, you know, their numbers, you know, YouTube podcasts are just going through the roof. It is going to be billions of dollars, right? It is going to dwarf the other numbers in the next five years. So I see, you know, tremendous opportunity for us to monetize all of this rich media. As you know, with music, it is very inexpensive to have made this content. This content has enormous value because you have the biggest stars in the world.

Just to use that for their AI models to build those because they don't have enough content to do it on to prove their models and prove them out. So I see a lot of a lot of opportunities there for us to really utilize that flywheel that we've been talking about from years. And as you know, video YouTube just came out and said, you know their numbers, you know, YouTube podcast are just going through the roof, it's going to be billions of dollars, right? It's going to dwarf the other numbers in the next 5 years. So I see, you know, tremendous opportunity for us to monetize all of this rich media.

And as you know, with music, it's very inexpensive to have made this content and this content has enormous value because you have the biggest stars in the world.

Jim: Okay. Thanks so much. A reminder to our phone audience that is star and one if you would like to ask a question. We will hear from the line of Sean McGowan at Roth Capital Partners.

Okay, thanks so much.

And a reminder to our phone audience that is star and 1. If you'd like to ask a question, we'll hear the from the line of Sean McGowan at Roth Capital partners.

Sean McGowan: Thank you. Hi, Rob. Hi, Mark. Question about the ARPU figure. Is that, I just want to clarify, is that actually what you are getting now, or is that a goal like for the near term? Are you actually getting an average of $5 per paying user?

Uh, thank you. Hi Rob, hi Mark. Um, question about um,

Rob Ellin: That's what we're getting.

Actually, what you're getting now, or is that a goal for the near term? Or are you actually getting an average of $5 per paying user?

Sean McGowan: Okay. Thanks. That is what I figured. To clarify also, when you become a paying subscriber, you then do not have any ads?

That's what we're getting.

Okay, thanks. That's what I figured And to clarify. Also, when you become a paying subscriber you, you then don't have any ads.

Rob Ellin: Correct.

Sean McGowan: Okay. On those shows that you mentioned, Barnum, Vigilante, Opportunist, that are in production now for other screens, where does that revenue go? Is that within PodcastOne or is that somewhere else? When you start booking that revenue, I want to know where we are going to see it.

Correct.

Okay. Um,

On those shows that you mentioned you know, varnum vigilante. Opportunists that are you know are in in production now for uh other screens, where does that Revenue go? Is that a is that Within

Rob Ellin: That is going to be more on the podcast side on those three shows. That does not mean that some of the other content does not cross over, right? Monetizing of television, film, right, could be anything from documentaries. We shot six years of Rock and Rio, right? Having full content, some of the greatest content in the world. There could be multiple revenue streams that come out of it. Then the NFT side of it, right, and the tokenization side of it, that could be coming more on the LiveOne side, probably than the podcast side in the beginning. On those three specific television shows, right, which are true crime, those three shows have been sold to major networks. Those shows are, you know, they are closed, right?

Uh, podcast or was that somewhere else when you, when you start booking that Revenue, want to know where we're going to see it.

Rob Ellin: I cannot tell you they are fully greenlit yet, but if one of them gets greenlit, you know, that was the upfront money, right? The $1 million was the upfront money. Now that money going forward is you get paid per episode, right? You get paid back end on it. We have no additional costs, not a single dollar of additional costs in there.

Well, that's going to be more on the podcast side for those three shows. But that doesn't mean that some of the other content doesn't cross over, right? Monetizing of television and film, right? It could be anything from documentaries. You know, we shot six years of Rock in Rio, right? Having full content, some of the greatest content in the world. There could be multiple revenue streams that come out of it. And then the NFP side of it, right? And the tokenization side of that could be coming more on the live one side, probably than the podcast side in the beginning. But on those three specific television shows, all right, which are true crime, those three shows have been sold to major networks. Those shows are, you know, they're closed, right? And I can't tell you they're fully greenlit yet, but if one of them gets greenlit, you know, that was the upfront money, right? The million dollars was upfront money.

Sean McGowan: Right. Makes sense. I just wanted to know where we would be looking for that revenue going forward, you know, when it starts to come in, assuming that they get greenlit. You mentioned a total of 20 potential shows on the platform. Any sense of, you know, when there could be some realization on that? Are we talking about, you know, a couple of years from now or a couple of quarters from now, a couple of weeks from now?

Now that that money going forward is you get paid per episode. All right? You get paid back end on it and we have no additional costs, not a single dollar of additional cost from that.

Right, um, makes sense. I just wanted to know where we would be looking for that revenue going forward. You know, when it starts to come in, assuming if they get green-lit. Um, you mentioned a total of 20 potential shows on the platform. Any sense of, you know, when?

Rob Ellin: I mean, we're, we're, you know, you sit, you sit waiting by the phone in these things, right? And obviously, you've just watched the transformation, right? Warner just changed the whole team. Paramount just got taken over, right? You know, management teams are moving left and right. So you got to get, you got to get, you know, you got to get in those crosshairs of getting signed. The beautiful part of this is, we're right now in the trenches of, it could be greenlit next week, it could be three months, it could be six months, but they're in the trenches. They're in, they're in production today, meaning they're paying millions of dollars to writers, producers, right, to build towards making a show. That doesn't mean they'll greenlight, right? You still got to get that final greenlight, right? Because there's only X amount of shows greenlit a year.

There could be some realization on that. Are we talking about, you know, a couple of years from now, or a couple of quarters from now, or a couple of weeks from now?

I mean we're we're you know you should you sit waiting uh by by the phone in these things, right. And obviously you've just watched the transformation, right? What are what are just changed the whole team Paramount just got taken over right you know management teams are moving left and right so you got to get, you got to get you know you got to get in this crosshairs of getting signed with the beautiful part of this is we're right now in the trenches of

Rob Ellin: But having three of them there, I'd be shocked if at least one of them wasn't greenlit. Barnum Town is one of my favorite podcasts ever made. That'd be, that'd be the top of my list. Vigilante has multiple seasons that can get picked up. It's not even just, just one. It's, you know, multiple seasons have an opportunity of being picked up as different shows. And Opportunist could be, could be a, could be multiple seasons, but it also has elements of documentaries and so on, which doesn't make you as much money, but there's still very nice money for it. As I said, Sean, this is just, this is just pure cash flow, right? You know, we just collect a check. You know, it's when I produced the movie 300, that production money, I still get, I still got checks on it 21 years later, right?

Could be green lit, next week. It could be 3 months or it could be 6 months, but they're in the trenches, they're in, they're in production today meaning they're paying millions of dollars to writers producers right to build towards making a show. That doesn't mean they'll green light, right? You still got to get that final green light, right? Because there's only x amount of shows green lit a year but having 3 of them there I'd be shocked. If at least 1 of them wasn't green lit and Barnum Town's 1 of my favorite podcasts ever made that that'd be the top of my list. Vigilante, has multiple Seasons that can get picked up.

Rob Ellin: I just got a check for Spider-Way Chronicles. You know, that money just keeps flowing through, and every time it goes back in the system. Now, obviously, it's not nearly as big as it used to be, but it's money that gets paid to you for the rest of your life.

It's not even just just 1 it's you know, multiple seasons have an opportunity of being picked up as different shows and opportunities hot to be, could be a could be multiple Seasons, but it also has elements of documentaries. And so on, which doesn't make you as much money, but there's still very nice money for it. And, you know, as I said Sean, this is just, this is just pure cash flow, right? You know, we we just collect the check, you know, it's when I produce the movie 300 that production money I still get, I still got checks on it, 21 years later, right? I just got to check for Spiderwick Chronicles, you know, that money just keeps flowing through and every time it goes back and the system. Now obviously it's not merely as big as it used to be, but it, it, it's money that gets paid to you for the rest of your life.

Sean McGowan: Every day there is something that reminds me that I am getting older, and the idea that 300 was 21 years ago is the thing that is going to make me feel older. Thanks. Appreciate it.

Rob Ellin: Yeah, yeah, no, I feel old with you.

Okay. Uh, so every day there's something that reminds me that I'm getting older. And the idea that 300 was 21 years ago is the thing that's going to make me feel older. Thank you, appreciate it. Yeah, yeah, yeah, no, no, I feel old with you.

Sean McGowan: A little bit more color on that reality show. Can you just tell us like what kind of show are we talking about? Is it a, is it a, you know, physical athletic competition show?

the uh,

Rob Ellin: Yes, like the Olympics. Like the Olympics. There will be a long jump. There will be, and the beauty of this is no one's getting hurt, right? No one's getting injured, right? The faces, right, aren't just there for a couple of minutes of a fight, right? They're there for hours at a time, and they're collaborating over a full weekend of this. You will read about it shortly. It will be done in Los Angeles. It will be done at a major stadium, right? It will be done with some of the best people in the industry. You are going to see reality names of some of the biggest stars.

A little bit more color on that reality show. Did, can you just tell us like what? What kind of show are we talking about? Did you? Is it a? Is it a, you know, physical athletic competition show? Like, you know? Yeah, yeah. Like the Olympics, like the Olympics, you know, they, they'll be a long jump, they'll be, we're on the beauty of this. Nobody's getting hurt, right? No 1's getting injured. All right, and the faces right aren't just there for a couple of minutes in the fight, right? They're there for hours at a time and they're collaborating over a full weekend of this and you'll read about it shortly. It'll be done in Los Angeles.

Sean McGowan: This is the battle of the network stars brought back from the 70s, right? That kind of thing?

Rob Ellin: Exactly. Exactly. Exactly. Exactly. Literally to a T, you hit it right in the nose.

It's also going to be done at a major stadium. All right, I'll be done with some of the best people in the industry, and you're going to see the real names of some of the biggest stars you know. So this is a battle of the Network Stars brought back from the '70s, right? That kind of thing.

Sean McGowan: Got it. See, it pays to be old sometimes. Where would that revenue be?

Exactly that. Exactly, exactly. Exactly. It literally, to a tee, you hit it right on the nose.

Rob Ellin: That revenue is at LiveOne.

Sean McGowan: Okay. A couple of other questions. When will the Q be out?

Yeah, revenues. At live 1.

Okay.

Uh, a couple of other questions. So when will the QB out?

Jim: are on track to file tomorrow, so you should see it tomorrow.

Sean McGowan: Okay. Figured that. Okay. Just to clarify, Rob, when you were talking about the $50 million in revenue over the next 12 months, and you said more Q3 and Q4, I assume you meant fiscal Q3 and Q4?

The file tomorrow. So you should see it tomorrow. Okay. Figure that okay. Uh and just to clarify um Rob when you were talking about the 50 million in Revenue over the next 12 months and you said more 3 q and 4 q. I assume you meant fiscal 3 q and and 4 q.

Rob Ellin: Yeah.

Sean McGowan: Okay. All right. That is it for me. Thank you very much.

Yeah.

Okay. Um, all right, that's it for me. Thank you very much.

Jim: Mr. Carhart and Mr. Ellin, I will turn the call back to you for any additional or closing remarks that you have.

And Mr. Carhartt and Mr. Ellen.

I will turn the call back to you for any additional or closing remarks that you have.

Rob Ellin: Yes, I want to thank everyone for taking the time and taking the call. I just want to reiterate that the company has just bought back another 300,000 plus shares. We have also bought back a lot of PodcastOne shares. We still have $5.5 million remaining on our buyback. We will be prudent and smart about when we use that capital. As I articulate on this, I truly believe this is the most exciting time for the company in many years, where we have a tremendous amount of optionality and a tremendous amount of upside. These partnerships, the Amazon partnership, streaming Fortune 250 company, S&P 100 company, we are really a 500 company. We really put ourselves in a position where that B2B business, which is what I built my entire career on, really feels like it is building that momentum.

Yes, I want to thank everyone for taking the time and taking the call and um and just, you know, reiterate that the company is just bought back, another 300,000 plus shares. We also bought back a lot of podcast, 1 shares. Uh, we still have 5 and a half million dollars, remaining on our buyback. All right? Uh, we will be prudent and smart about. We use that Capital. Um, and as I take you on this, I truly believe. This is the most exciting time for the company. In many years where we have tremendous amount of optionality, once you mentioned that upside, and, you know, these Partnerships Amazon partnership streaming Fortune, 250 company, um, smpp 100 company, right? We really have 500 companies, we

Really put ourselves in a position where that B2B business light, which is what I built my entire career on.

Rob Ellin: The flywheel is building and revenue is coming from different places. We got a lot to make up with Tesla. That does not happen easily, but this team will come through, as they always do, and we will prove ourselves shortly. I just want to again just tell you how proud I am of my team of not only surviving this, but coming out of it and coming out of it strong again. This should be a really exciting next six months for this company.

Really feels like it's building. That momentum, the flywheel is building and revenue is coming from different places. We got a lot to make up with Tesla. All right, that, that doesn't happen easily. Um, but this team will will come through, uh, as they always do and, uh, and we'll prove ourselves shortly. And I just want to, I just want to again, just tell you how proud, I am of my team of not only surviving this, but coming out of it and coming out of it, strong again. And, um, this should be a really exciting next 6 months for this company.

Jim: Ladies and gentlemen, this does conclude today's teleconference, and we do thank you all for your participation. You may now disconnect your lines.

Ladies and gentlemen, this does conclude today's teleconference, and we do thank you all for your participation. You may now disconnect your lines.