LiveOne, Inc.

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 One 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.

Thank you. Good morning and welcome to Live One's Business Update and Financial Results Conference Call for the company's fiscal first quarter into June 30, 2025. 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 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 accept as required by law the company does not undertake any obligation to update or revise this information after the date of this call. I'd 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 expressed written consent is strictly prohibited. Now, I would like to turn the call over to LiveOne's CEO, Rob Ellen. Take it away, Rob.

Thank you, Ryan. And to start with, I want to thank Ryan for the brilliant job he's 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. And then subsequently, we just closed the $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 in cash. And with that, we have also eliminated $14 million of short-term liabilities, including $2.5 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. And now we move to the positive side. As we 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've done the first soft launch 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 five years. Secondly, our Amazon deal that we announced a few months ago has gotten off the ground to a spectacular start. A $16.5 million three-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 the traffic and audience that we deliver. We also, with our Fortune 250 streaming network, we can now say is well over $26 million in increasing and could finish the year even prior 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 a podcast one doing $15 million for the quarter. As you may remember, we started this when we acquired that company doing $17 million a year, and we're now on a run rate to do $60 million plus this year. We've 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 was actually using our service previously. And for the first time, we have just 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, and this is the time to start converting those Tesla 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 Lucid. Lucid, David Rosenberg, and John Lipton. 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. We have just added three of the prominent leaders in Web3, including Steve McClurg who ran the first ETF and sold the 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've just sold our third TV show through a network to a streaming platform. Barnum Town, Vigilante, and Opportunist. We took in almost a million dollars from those sales and we now have the opportunity, 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. 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've had a tough time relaunching it, but now that we're well financed, we've just announced that we will launch our biggest live event since Social Bluffs. When we did Social Bluffs, we did $27 million at night, $4.5 million at Ebay. We now have announced and are launching Reality Olympics 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. Our M&A opportunities. We continue to work with JPMorgan, 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 is 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'll 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, including 10 million subscribers, a half a billion dollars in revenues, with substantial bottom line over the next three to five 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.