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Operator
Ladies and gentlemen, thank you for your patience. Today's conference call will begin shortly. If you would like to register a question at any time, please press star one on your telephone keypad. Thank you. Hello and welcome to the live one incorporated Q1 fiscal 2025 financial results and business update webcast. My name is Elliot and I'll be coordinating your call today. If you would like to register a question during today's events, please press star followed by one on your telephone keypad. I would now like to hand over to Aaron Sullivan, CFO. Please go ahead.
Aaron Sullivan
Thank you. Good morning and welcome to Live One's business update and financial results conference call for the company's first quarter end of June 30, 2024. Presenting on today's call with me is Rob Ellen, CEO and chairman of Live One. 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. 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 in these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2024 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 its Investor Relations website. The company encourages you to periodically visit the 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 13th, 2024, and has accepted required by law, the company does not undertake any obligation to update or revise this information after the date of the call. I'd like to highlight to investors that the call is being recorded. The company is making it available to investors and media via webcast, and the 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 that the company has expressed written consent is strictly prohibited. Now, I would like to turn the call over to Live One CEO, Rob Allen.
Rob Allen
Thank you, Aaron. And good morning, everyone. And thank you for joining us today. I'm thrilled to share the outstanding progress and success that Live One has achieved, driven by our unwavering commitment to a creator-first model. Our audio division, comprising of Slacker Radio and Podcast One, we reached incredible milestones in Q1 of fiscal 2025. we achieved a record-breaking $31.9 million in revenues and $5.1 million in adjusted EBITDA, demonstrating the strength of our business strategy and execution. Looking ahead, we project a phenomenal year, 2025 for Audio Division, which anticipated revenue of $130 to $140 million and adjusted EBITDA ranging from $20 to $25 million. Our solid foundation and exciting opportunity positioning us for continued growth. Under Brad Conkle's leadership, Slacker Radio has experienced remarkable growth, starting with our great partnership with Tesla, and continue to grow that partnership. We added Bill Wichers almost seven months ago, formally headed up a division of Microsoft, doing over hundreds of millions of dollars of B2B deals. He has crafted a strategic roadmap for B2B partnerships, securing and signing four major additional deals with 63 potential partnerships in the pipeline. We're anticipating closing multiple partnerships with market cap companies ranging from a billion to $1 trillion before this year ends. Based on a huge success, signing five major additional partnerships, including the $24 million partnership with one of the largest streaming networks, a Fortune 250 company, which is adding about $2 million of revenues a month. We've expanded our B2B team from one to six professionals and now aggressively moving to hire ahead of each vertical. We fully expect to have a team of over 10 people leading the charge in our B2B Our membership growth continues to grow steadily, increasing from 3.7 million to 3.9 million. We maintain cost-efficient marketing, spending less than a million dollars this year with very little breakage, the lowest by far in the industry. Podcast One, led by Kit Gray, is seeing tremendous success, signing 37 new podcasts in the last 12 months, bringing our total to 187 podcasts. We've sold a second major show to a streaming partner that is moving our podcast from podcasting to television and film. There's a unique amount of money that will be coming in from those television shows, shows over the next couple of years. Our publishing business led by Josh Hallberg grew 300% in our two Grammys. We partnered, partnered with cartoon studios to produce and publish and distribute original programs for Winnie the Pooh, the mega brand funded by funded with over $30 million. Our celebrity brands division, led by Sarah Dee, is set to introduce 10 to 12 celebrity brands over the next 12 months, including Birthday Snacks, Chardonnay with Jeremiah, and Smiley Cough with Kyle. We're expanding our stock buyback again to $12 million. We've purchased over 4.4 million shares of stock and extinguished those, leaving us with additional $6.3 million dedicated to the program. This move underscores our confidence in the company's future and commitment to enhancing shareholder value. In conclusion, we believe our stock remains extremely undervalued given our impressive growth and unlimited future prospects. We're confident in our direction and excited about what lies ahead. Thank you everyone for your support and belief in LiveOne. I'm now going to hand it over to Aaron Sullivan to review the Q1 results.
Aaron Sullivan
Thanks, Rob. I'll spend just a minute providing a very brief overview of our results for the first quarter of fiscal 2025 and at June 30th. Consolidated revenue for the three-month period and at June 30th, 24, was $33.1 million. FACA posted record revenue for Q1 of $18.7 million and adjusted EBITDA of $5.4 million. Podcast One posted record revenue of $13.2 million with an adjusted EBITDA loss of $300,000. For the first quarter of fiscal 2025, revenue consists of 56% membership and 44% advertising, sponsorship, merchandising, and other, compared to 54% membership and 46% advertising, sponsorship, and merchandise in the prior year period. Consolidated adjusted EBITDA for Q1 fiscal 24 was 2.99. On a US GAAP basis, 5.1 posted a consolidated net loss of $1.7 million, or $0.02 a share, Validated share in Q1 fiscal 25. As of June 30, 2024, total members, which include free members, were approximately 3.9 million. Note that included in total members are certain members who are currently subject to a contractual dispute for which we are not currently recognizing revenue. Rob, I'll turn it back to you.
Rob Allen
Great. Great, Aaron, and thank you for the great job you've done. Just to wrap it up, real focus, right now is on those B2B partnerships. That first $24 million deal, the revenues are just kicking in. We're seeing the growth in our revenues. We're seeing a growth in our EBITDA, and we're seeing the opportunity that these B2B deals that we could go on a hot streak here. And as we do, these are major companies is a billion to trillion dollar companies, um, major verticals across auto, um, obviously with Tesla expanding into other auto companies, carriers, carriers around the world, merchandise businesses, retailers, hotels, airlines. There's so many opportunities right now, and the team has really put together a fabulous lineup. And that's why we're going to expand the team. We're going to grow the team for the first time in almost four years. And we're going to focus all that energy on those big $20 million plus partnerships with major partners across those verticals. So I want to thank everyone for joining and open it up for any questions.
Operator
Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from Brian Kinslinger with AGP. Your line is open. Please go ahead.
Brian Kinslinger
Great. Thanks for taking my questions. It's great to see the solid sequential growth in podcast revenue. And you mentioned that the B2B partnership kicking in and beginning to have a material impact sounds like about $2 million a quarter, I think you said. I'm curious, how much more does that partnership have to go in terms of reaching the peak run rate?
Rob Allen
Yeah. So, so we don't give them the exact numbers, Brian on it, but this is, you know, it, it, it started in November and scales up. So I think you'll see that revenue growth in each, each quarter going forward. And yeah, we couldn't be more excited about the partnership and, uh, and the opportunity to get much bigger. This is the beginning of putting our content across large streaming platforms. And I think it's so critical that, you know, the cost of content has become so expensive. It's almost $1.6 million an hour of content. And the beauty of our content is we have AAA content with the biggest social media stars in the world, right? It costs us under $3,000 an hour. So we have the opportunity to really grow that. And I see this as the first of many streaming partners and streaming networks. When you think about music choice on cable or satellite and how many channels where audio, let alone video, and you think about MTV and country music channels and all the
Brian Kinslinger
really is no thought leader in music anymore and we have an opportunity to really be that thought leader across audio and video great and then as it relates i think so correct me if i'm wrong the 24 million dollar b2b partnership you just uh mentioned it was on podcast press release that's the one that was pending on the last call and that's in addition to the other one that's ramping is that right and if that is right Can you comment on details such as is that 24 million over some period of time? And how long do you think before that begins to ramp?
Rob Allen
Yeah, let's be a little bit careful on that. We're going to have a lot more details shortly on the next partnership. And we'll provide that publicly in the very near future. And I think it won't just be one. As we stated earlier, we've now signed four additional major partnerships, and we'll have some real clarity on that coming over the next couple of weeks.
Brian Kinslinger
But just to be clear, that is $24 million partnership, because it just happens to be the same number. I want to be clear, that's different than the $24 million one from November, right?
Rob Allen
No, no, that's the same one. That started in November, and it's growing, and it's scaling up.
Brian Kinslinger
Okay. And then can you speak maybe to the inventory fill rates of podcasts? I guess part of the question is on today's viewership or listeners, sorry, on podcasts, you know, where could, how much better could the inventory fill rates become as you, you know, win lots of these partnerships? Aaron, you want to take that?
Aaron Sullivan
Yeah, I think, you know, we're seeing consistency in our kind of fill rates in terms of what we're able to sell to partners. So, you know, we will try to optimize that. You know, the quicker way to revenue, though, is just to increase the available inventory, right? And that's kind of what we're working towards. Yeah, I think I'll leave it at that. Robert, do you have anything to add?
Rob Allen
Yeah, I'm not sure I followed the exact question. I think what you're articulating with these additional B2B deals is not just inventory. This is traffic and audience, right? As we spread our tentacles, right, and spread it off across a Fortune 250 company, right, with a massive streaming network, we're getting more eyeballs onto ours. The more traffic, the more audience, the more advertising we're going to get. And I think that answers it, Brian, but I'm not sure I understood fully your question. Yeah, no, yeah, we'll take it offline. Perfect.
Brian Kinslinger
One of my last question is how aggressive are you advertising to increase, you know, your market share or, or growth in downloads and unique listeners? How aggressive? Say that one more time. I guess I'm just curious, is the budget increasing? I mean, what, how are you acquiring new listeners? Oh, yeah. The budget is now yields the beauty of this, of course, Spotify app.
Rob Allen
to continue and TikTok multiple times. And, you know, those opportunities to keep getting our content into new places where already the distribution and the traffic is built is really the key. And part of the beauty is because we own our own technology, right? And all those revenues come for us, right? The more traffic, the more audience, the more revenues we derive. Okay. Thank you.
Operator
We now turn to Barry Stein with Hills Research. Your line is open. Please go ahead.
Barry Stein
Morning, gentlemen. How are you? Barry, good to hear your voice. Okay. Okay. Likewise. On the 63 million pipeline, I'm wondering if we can get a little more breakdown on that. Rob, you mentioned a number of different verticals. You're hiring senior managers for each of the verticals. How does that pipeline break down by vertical? And within that pipeline, how many of those have you tendered a contract to, you know, so you're far along in the process? Could you give us a little more visibility on that pipeline?
Rob Allen
Yeah, I mean, I think, you know, I don't know if I can get much deeper than that from a legal standpoint, but I can tell you this is, you know, A, we absolutely will have additional auto companies this year, right? Number two is because our balance sheet and all the debt was converted at $2.10, right? Our balance sheet is pretty pristine now and very cheap. It gives us the opportunity to expand globally, right? So we have opportunities with carriers around the globe. I love the opportunity. Love, love, love, and couldn't be more excited about where we're going with retail, right? The opportunity that you're watching Amazon, right? And Amazon has so much rich media. Everyone from Best Buy to Walmart to Costco, all came, all the retailers must have, right, that are competing in the digital world, right? Must have content. And you're seeing that happen. And know starting to see some of my thoughts you know come to fruition as you saw walmart buy vizio for 2.3 billion it only sold for 230 million million only three years ago right and when charlie collier bought it now now they're paying 2.3 billion for it that's the first telltale sign they're going to compete head-on with amazon and they're going to they're going to create their own content like amazon prime and i see the same thing across all the retailers you're really exciting in terms of hotels and airlines and loyalty programs really just, you know, massive opportunity for our company. We're one of 10 DSPs in the world. We're the third fastest growing. We've got this very unique content and proving more and more original content like the event we're doing tonight, right? You're going to have more and more original content from music, right, to podcasting, to podcasts turning to television shows that I think that more and more networks need our content. And so I'm really excited about where that's going and Yeah, that 63 deals were, there's way more than that in the sort of pipeline. These are the ones that we think have really moved along that are in shape that have an opportunity to close in the next 12 months.
Barry Stein
And then continuing on that, I believe you've said that there are four deals that are actually signed. You can't discuss who they are, but as they go live, uh, we'll see press releases, you know, with announcements on those and the update on that process.
Rob Allen
Oh, yeah, it's coming. So you know, again, those are all we said before year end is coming. So the year is coming fast, right. And so you're going to see announcements on each one of those shortly. And with those, you'll see some details and highlights where they're going. And, you know, when you're talking about building the trillion, multi trillion dollar partners, right, you got to be careful what they're going to let you say and how much detail they're going to give in it. Right. But for us, as you can imagine, These are very meaningful, right? Every $20 million deal, if four more deals hit, right? And we had those four deals, even if they're half the size of the last one, that's going to put us in the $200 million range next year. What I've told the street is our goal is to get to 10 million subscribers. At 10 million subscribers, we'll be doing half a billion in revenues and $150 million in EBITDA. And that's the goal over the next couple of years.
Barry Stein
And then I want to pick up on the word you've used a couple of times on the call, which is globally. In your script, you talk about serving carriers globally. And then a minute ago in response to my question, you cited the balance sheet cleanup that will allow you to go global. So that's been a long-term aspiration of the company to get global streaming rights. And one of the things I believe that kicks in almost automatically is Tesla. automatically. So is that what you're alluding to? Is that you're closer to getting music streaming rights on a global or at least European basis? And what would the implications of that be?
Rob Allen
I'm hoping you'll see very shortly. And, you know, this is we've gone through some, you know, some tough times here. We had to survive COVID. We lost our entire live business. We were inches away from having all those licenses and moving overseas to then, but it was unaffordable, right? You know, post COVID we lost, you know, 30% of our revenues and a big part of the growth story of the company. We had to pivot it right and turn it. We've, this team has just done a magical job of fighting through, you know, adversity and difficult times. And we've proven we're going to survive it, but not only going to survive, we're going to expand around the globe. And for anyone that knows me, my last few companies, including Digital Termine, was built off the backs of carriers, right, overseas. We have tremendous relationships over there. So it's definitely in the forefront of positioning where the company is going. And absolutely, if you look at all the, you know, if you look at all the memberships, whether it's Netflix or Spotify, half their revenues come to the U.S. and half come overseas, right? We have 25, 28% of our traffic is overseas. We're not deriving any revenues from it. But it had to be affordable. It had to make sense. And now's the time where we're ready and in a way better position to be able to do that. And I think you'll start to see long-term deals with our partners, our existing partners. Not only those 63 right there in the pipeline, but also our existing partners start to see for the first time long-term partnerships and expansion of where our content can live.
Barry Stein
Okay, that's great. And then my last question, you just alluded to my last question. You started to mention live events. And I know in the early history of the company, pre-COVID, that was the main event, live events. I saw and I thought it was interesting that you put a press release that you're doing a live event in the Hamptons. And previously what you've said is that you would not do live events unless they were profitable and you would need to get a sponsor to do that. So are we, is the company dipping its toes back in the water on live events? And does that mean you found a way to do this more profitably?
Rob Allen
Yeah, absolutely. And you know, the, the, the event that we're doing tonight, we have great sponsors from 11 vodka on, right. Um, we're positioning ourselves again that we've proven, right. And Josh Alder runs our music has proven, you know, we had, we had Teddy swims play at our studio in Dudley Hills. Right. And next thing you know, after seeing him on a streaming platform, the guy becomes one of the biggest stars in the world, right? We had Kid LAROI before anyone heard of him. So we're going back to our thesis that as a thought leader in music, it is critical to be a thought leader in not just audio but video. And now that we have the resources, right, and we obviously have the relationships with the talent as well as the industry, this is the time to really step on the gas. You're going to watch something pretty spectacular tonight. You're going to see 12 artists perform of all genre of music. You're going to see one of the greatest pianists, classical pianist play all the way up, all the way up to the main squeeze. And in between, you're going to see, you know, some of the great R&B and hip hop artists performing. So it's going to be a really special night. And our talent is getting closer to our company, as you can see by the celebrity deals, right? these celebrity partnerships, we don't only want to be able to derive revenues just by putting music up. We're starting to own products in conjunction with that talent. And I'm really proud of the team and what they've done. Sarah, who's joined us, is head of our celebrity brands, brings a unique talent to the company, unique skill, driving massive revenues. She was at White Claw when they were doing 600,000 revenues I think she left when they were doing about $4 billion. We see a huge opportunity to be able to drive more and more revenues off of those relationships with podcasters, as well as with social media stars, including artists.
Barry Stein
Okay, that's my questions. Congratulations on a great quarter, guys.
Rob Allen
Thanks, Barry, and thanks for your support.
Operator
We now turn to Sean McGowan with Roth Capital Partners. Your line is open. Please go ahead.
spk03
Thank you. I apologize if these questions have been asked or I got dropped from the call a couple of times. First, Aaron, cost of sales seems to be a little higher than we had expected, particularly at podcast one. Can you talk about what's driving that?
Aaron Sullivan
Yeah. Hi, Sean. How are you? Yeah. So, you know, our content acquisition costs have been a little bit higher than we anticipated. That's kind of, you know, the upfront cost to signing some of these deals and new podcasts. You know, going forward, we expect it to level out over the next couple of quarters about where we're at today and then, you know, start to improve from there.
spk03
And tying that question for Rob, then, is this surprising to you? I thought we were in an environment where it was actually going to be easier to pick up shows that were either getting dropped or not getting renewed on the same terms from other networks. Is that proving not to be the case or less of the case than you had expected?
Rob Allen
Yeah. no it's actually really exciting i mean we're just signing so many podcasts we're announcing one almost every week and there's a cost to it right the way that it works sean in in podcasting you and i talked about this a little bit is is you sign the podcast right you pay them some money right they even if they start doing the podcast the next morning you're paying them for the next three months and you're not collecting back your money for three to four months so there's a window of time so i would say you know you know aaron hit it right in the nose but it's really It's really exciting how many podcasts we're signing, and they're adding about $350,000 to $500,000 on average per revenue. Every single one of these podcasts is a joint. So there's going to be a little cost to it in the beginning, but it can't really be better than growing the revenues right now and doing that. And we'll achieve. We'll get that in the back end. We'll get those back in the back end when we start to get paid by the advertisers.
spk03
So it's not so much that you have to pay more per podcast to get them. It's just that you're signing more than you're expected to. So that's why the cost is higher.
Rob Allen
Yeah. Yeah. And you know, this, this has been really exciting. There's been some really exciting, you know, signings as well. Yeah. That, that, um, you know, there's a little bit of, there's a little bit of money. It's got to go out the door day one.
spk03
Okay. Got it. Um, And then in terms of, you talked a lot about these deals that you're in process with and signing and, you know, lining up more partners. So is your strategy then to only update or improve or increase the revenue guidance once the deals are signed? Because, you know, I would have thought that if you're signing new deals and you're close on some others, maybe you can increase the revenue guidance. Is it, you're just going to wait until they're nailed down?
Rob Allen
Well, I think, I think, you know, the guidance is a good number right now. And, We're going to, as we announce the next B2B deals, right? Again, the bigger our distribution is, the bigger our audience is, right? The more revenues we're going to drive. So I'd be surprised if we don't raise those guidance again at the end of the next quarter. But, you know, let's look carefully. This is great growth, spectacular growth for Podcast One. Let's look at that number again at the end of this quarter and really make sure that we're going to beat the number. Right? It's a tough market out there, as you know. We want to make sure we beat the numbers.
spk03
All right. Thank you very much. Appreciate it.
Operator
We now turn to John Levierkis with Levierkis Financial. Your line is open. Please go ahead.
John Levierkis
Hey, guys. Congratulations on a strong quarter. And sorry for the technical problems on the conference call with Sean. There were some issues. But anyway, excellent presentation. Quick question for you. So at one time, the company disclosed its relationship with J.P. Morgan to represent them in strategic dialogue. Any comments you want to make and what your plans are there and how it's progressing?
Rob Allen
I mean, we've always been an acquisition vehicle. And we've been hampered, you know, over the last couple of years from doing that with you know, all the different, you know, all the different difficulties that have been out there. This is certainly a time that, you know, both offensive and defensively, we continue to aggressively explore and are extremely excited about the opportunities that are out there, right? And, you know, as we keep moving up the ladder, we're number 11 in the world in podcasting. We're number 10 in audio, right? We're certainly a candidate in some ways. could come aggressively try to buy us. But we're also looking at some great assets that media assets have been decimated. And probably even more on the public side than the private, there's some great assets out there that we will aggressively look at. If we can find another slacker, we can find another podcast one. We bought both of those companies doing 20 million in revenues. Slacker is now at a run rate to do 85. We bought podcast one doing 20 million. It's now on a run rate to do over $50 million. If we can find another great asset that is accretive to us and fits in with the team and the skills that we have, we are absolutely aggressively looking on both sides, both offensively and defensively. And the entire J.P. Morgan team is coming in for the event tonight. So we're deep in the trenches with them on a regular basis on all the excitement and energy around both sides, both offensively and defensively.
John Levierkis
Sounds great, Deet. The slacker acquisition looks to be brilliant, and what a job that Brad's been doing. Any quick comment on that? You mentioned 63 B2B contracts in a pipeline, but actually now you're saying that that's really the core opportunities, and there's vastly more than that in a pipeline. That's an interesting comment. and what's the intellectual property there that how many patents do you have and what how that differentiates from the rest seems to be really taking off that business its unique model etc yeah uh well yeah we we have over 40 patents um i think you know from a patent standpoint
Rob Allen
You know, we're one of the thought leaders in the space. I think from the standpoint of our IP, this is the first time we're starting to showcase how valuable our IP could be. And just think about taking a podcast, right? And I said, Barnumtown would be a bidding war, right? We just sold the rights to it. And we'll talk about who the partner is very shortly, right? And in taking a podcast that cost us almost no money, right? You know, literally limited money and now selling it to television, but very serious money. My background previously and my team's background, we've made a lot of movies. We've made a lot of television shows. The cost is zero to us going forward. So when you own that IP, you get a second window of money that could be staggering. All right. And, you know, I said we're going to sell one a year for the next couple of years. Now we've sold two this year. If we could sell two a year, it could be tens of millions of dollars in profits, let alone revenues, but profits that come to the company over the next few years with no additional cost to us. And just to give you an idea on both Vigilante and Barnum Town, their streaming partners are going to be in. By the time we turn the corner, Vigilante, they've already spent well over a million dollars on Vigilante. Varnum Town will be well over a million dollars shortly that, you know, his studios are spending money on. And because we have a proven, not only do we have proven IP, but on top of having the IP, we have proof that there's an audience. When we go into those negotiations, we go with a very different bullet than you go in when you just go in and you got a book or a script or great story. I see really, really super opportunities and excitement around that. And Yeah, for anyone that doesn't know, I owned Atmosphere Films previously and was fortunate enough to have the movie 300 and Spiderwick Chronicles. And when the studios are paying for these things, you never know how they can go. And 300 ended up doing $1.1 billion in revenues. So we're really energized about owning our own IP and kind of this team skill is owning our own IP. Great.
John Levierkis
Thank you, Rob.
Operator
We now turn to Sakem Ismailois with, sorry, a private investor. Your line is open, please go ahead. Sakem, your line is open.
Aaron
Sakem Ismailois Sorry, I was muted. Thank you all for your presentation and congratulations on your remarkable results. And most of my questions already been answered, but I still have some more questions. And first of all is I noticed that, you know, general and administrative costs quite increased. And could you explain it? How could you spend this cost?
Rob Allen
I'm having a little trouble hearing.
Aaron Sullivan
I'll take that one. Yeah, I think the question was are G&A expenses have increased? So, yeah, there are two drivers to that. One is additional stock-based compensation. We've had some executive contracts that have some stock-based comp in them, and that's kind of across the business unit. And then specifically as it relates to Podcast One, and this is kind of included in consolidated results as well, there's additional G&A just as it's a separate public entity. So you've got additional legal accounting and just general public company expenses. That's really what's driving the increase in G&A.
Aaron
So there's no extra ordinal costs included there.
Aaron Sullivan
Sorry, I didn't quite catch that. Can you repeat that?
Aaron
There was some extra ordinal costs were included in GNA costs.
Rob Allen
Yeah, I think if we can hear you right, it's really, yeah, I think it's really hard to hear you, but, but, uh, I think, I think, you know, just to answer you, Aaron and our finance team have done a brilliant job in that we're filing, uh, two audited financials rights as additional costs there, both legal and accounting for both, both the public companies, live one and podcast one. And then we also explored the opportunity. uh of doing a stack with slacker radio right and so there was there was also additional costs of doing the audits on slacker so and you know stay tuned on that you know there'll be some excitement and energy around that as well uh but there is additional both legal and accounting costs to this okay uh thank you and one more question uh
Aaron
Is that a revenue from our division? Maybe in some extent explained by seasonal factor? Is there any seasonal factor in your our division revenue?
Rob Allen
Have you tried that one more time? I think that I really apologize. I think the question is,
Aaron Sullivan
Is there seasonal pressure across the business units? I think that was the question. Seasonal factors.
Rob Allen
Yeah, we have some season. You got it.
Aaron Sullivan
Go ahead, Rob. All right, so I'll take it. In our merchandise business and in podcasts, our Q3, which is fiscal Q3 or calendar Q4, that's our largest quarter. But other than that, you know, our subscription business, no seasonality there. And that kind of evens things out a little bit.
Aaron
Okay. Thank you.
Operator
As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now. We have no further questions. I'll now hand back to Robert Ellen for any final remarks.
Rob Allen
Yeah, I think we covered a lot today. I think we covered a lot in the earnings and how spectacular the numbers were. I want to thank everyone for joining and thank everyone for the support. And we look forward to updating everyone very shortly on some major B2B partnerships. And those four that we have already signed will be announced shortly, and there'll be more to come. So thank you everyone and appreciate it. And we look forward to the next call.
Operator
Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
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