# EDGAR Filing Document

**Accession Number:** 0001491419
**File Stem:** 0001437749-25-026903
**Filing Date:** 2025-8
**Character Count:** 262181
**Document Hash:** 77bb418cab68f3174c7ae9f5498b492c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-026903.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001437749-25-026903

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LiveOne, Inc.
- **CENTRAL INDEX KEY:** 0001491419
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-EATING PLACES [5812]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 980657263
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38249
- **FILM NUMBER:** 251218066

**BUSINESS ADDRESS:**
- **STREET 1:** 269 SOUTH BEVERLY DRIVE
- **STREET 2:** SUITE 1450
- **CITY:** BEVERLY HILLS
- **STATE:** CA
- **ZIP:** 90212
- **BUSINESS PHONE:** (310) 601-2505

**MAIL ADDRESS:**
- **STREET 1:** 269 SOUTH BEVERLY DRIVE
- **STREET 2:** SUITE 1450
- **CITY:** BEVERLY HILLS
- **STATE:** CA
- **ZIP:** 90212

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LiveXLive Media, Inc.
- **DATE OF NAME CHANGE:** 20170808

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LOTON, CORP
- **DATE OF NAME CHANGE:** 20100507

?xml version='1.0' encoding='ASCII'? lvo20250630_10q.htm

[**Table of Contents**](#toc)

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

**☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**or**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from __________________ to __________________**

**Commission File Number: 001-38249**

**LIVEONE, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **98-0657263** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |
| **269 S. Beverly Dr., Suite #1450**<br> **Beverly Hills, California** | **90212** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(310)</u> <u>601-2505</u>**

(Registrant's telephone number, including area code)

**<u>n/a</u>**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which**<br> **registered** |
| **Common stock, $0.001 par value per share** | **LVO** | **The NASDAQ Capital Market** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant is required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 11, 2025, there were 115,350,524 shares of the registrant's common stock, $0.001 par value per share, issued and outstanding.

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[**Table of Contents**](#toc)

**LIVEONE, INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [PART I — FINANCIAL INFORMATION](#p1) | [PART I — FINANCIAL INFORMATION](#p1) | [1](#p1) |
| Item 1. | [Financial Statements](#i1) | [1](#i1) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2) | [2](#i2) |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#i3) | [16](#i3) |
| Item 4. | [Controls and Procedures](#i4) | [16](#i4) |
| [PART II — OTHER INFORMATION](#p2) | [PART II — OTHER INFORMATION](#p2) | [18](#p2) |
| Item 1. | [Legal Proceedings](#i1_2) | [18](#i1_2) |
| Item 1A. | [Risk Factors](#i1A) | [18](#i1A) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#i2_2) | [25](#i2_2) |
| Item 3. | [Defaults Upon Senior Securities](#i3_2) | [25](#i3_2) |
| Item 4. | [Mine Safety Disclosures](#i4_2) | [25](#i4_2) |
| Item 5. | [Other Information](#i5) | [25](#i5) |
| Item 6. | [Exhibits](#i6) | [26](#i6) |
|  | [Signatures](#sigs) | [28](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i

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[**Table of Contents**](#toc)

**PART I** — **FINANCIAL INFORMATION**

***Item 1. Financial Statements.***

---

| | |
|:---|:---|
|  | **Page** |
| [Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and March 31, 2025 (audited)](#bs) | [F-1](#bs) |
| [Condensed Consolidated Statements of Operations for the](#ops)[three months ended June 30, 2025 and 2024 (unaudited)](#ops) | [F-2](#ops) |
| [Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the three months ended June 30, 2025 and 2024 (unaudited)](#equity) | [F-3](#equity) |
| [Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2025 and 2024 (unaudited)](#cf) | [F-4](#cf) |
| [Notes to the Condensed Consolidated Financial Statements (unaudited)](#notes) | [F-5](#notes) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

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[**Table of Contents**](#toc)

**LiveOne, Inc.**

**Condensed Consolidated Balance Sheets**

***(Unaudited, in thousands, except share and per share amounts)***

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
|  | ***2025*** | ***2025*** |
|  |  | **(Audited)** |
| **<u>Assets</u>** |  |  |
| **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $11891 | $4119 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 30 | 30 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 8326 | 8299 |
| &nbsp;&nbsp;&nbsp; Inventories | 1156 | 1586 |
| &nbsp;&nbsp;&nbsp; Prepaid expense and other current assets | 1543 | 1212 |
| **Total Current Assets** | 22946 | 15246 |
| &nbsp;&nbsp;&nbsp; Property and equipment, net | 1768 | 893 |
| &nbsp;&nbsp;&nbsp; Goodwill | 21712 | 21712 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 2424 | 2569 |
| &nbsp;&nbsp;&nbsp; Other assets | 90 | 97 |
| **Total Assets** | $48940 | $40517 |
| **<u>Liabilities and Stockholders' Equity (Deficit)</u>** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | $26259 | $25180 |
| &nbsp;&nbsp;&nbsp; Accrued royalties | 5190 | 5490 |
| &nbsp;&nbsp;&nbsp; Notes payable, current portion | 453 | 623 |
| Convertible note, current portion | 500 |  |
| &nbsp;&nbsp;&nbsp; Deferred revenue | 1554 | 2141 |
| &nbsp;&nbsp;&nbsp; Senior secured line of credit |  | 2950 |
| **Total Current Liabilities** | 33956 | 36384 |
| &nbsp;&nbsp;&nbsp; Notes payable, net | 149 | 150 |
| &nbsp;&nbsp;&nbsp; Lease liabilities, noncurrent | 81 | 99 |
| Convertible note, noncurrent | 14758 |  |
| &nbsp;&nbsp;&nbsp; Other long-term liabilities | 12028 | 12236 |
| &nbsp;&nbsp;&nbsp; Deferred income taxes | 60 | 60 |
| **Total Liabilities** | 61032 | 48929 |
| **Commitments and Contingencies** |  |  |
| **Stockholders' Equity (Deficit)** |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, $0.001 par value; 10,000,000 shares authorized; 14,428 and 14,002 shares issued and outstanding as of June 30, 2025 and March 31, 2025, respectively | 14428 | 14002 |
| &nbsp;&nbsp;&nbsp; Common stock, $0.001 par value; 500,000,000 shares authorized; 96,529,444 and 96,609,491 shares issued and outstanding as of June 30, 2025 and March 31, 2025, net of treasury shares, respectively | 97 | 97 |
| &nbsp;&nbsp;&nbsp; Additional paid in capital | 234261 | 233495 |
| &nbsp;&nbsp;&nbsp; Treasury stock | (490) | (250) |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (269138) | (265119) |
| **Total LiveOne's Stockholders' Deficit** | (20842) | (17775) |
| &nbsp;&nbsp;&nbsp; Non-controlling interest | 8750 | 9363 |
| Total stockholders' deficit | (12092) | (8412) |
| **Total Liabilities and Stockholders' Deficit** | $48940 | $40517 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-1

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[**Table of Contents**](#toc)

**LiveOne, Inc.**

**Condensed Consolidated Statements of Operations**

***(Unaudited, in thousands, except share and per share amounts)***

 ****

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** |
| **Revenue:** | $19207 | $33078 |
| **Operating expenses:** |  |  |
| Cost of sales | 16825 | 25087 |
| Sales and marketing | 1261 | 1431 |
| Product development | 934 | 1071 |
| General and administrative | 4076 | 5505 |
| Impairment of intangible assets |  | 176 |
| Amortization of intangible assets | 145 | 592 |
| Total operating expenses | 23241 | 33862 |
| **Loss from operations** | (4034) | (784) |
| **Other income (expense):** |  |  |
| Interest expense, net | (687) | (859) |
| Other income (expense) | 857 | 135 |
| Total other income (expense), net | 170 | (724) |
| **Loss before provision for income taxes** | (3864) | (1508) |
| Provision for income taxes |  | 49 |
| **Net loss** | (3864) | (1557) |
| Net loss attributable to non-controlling interest | (271) | (388) |
| **Net loss attributed to LiveOne** | $(3593) | $(1169) |
| **Net loss per share – basic and diluted** | $(0.04) | $(0.02) |
| **Weighted average common shares – basic and diluted** | 96741899 | 94419692 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-2

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[**Table of Contents**](#toc)

**LiveOne, Inc.**

**Condensed Consolidated Statement of Stockholders**' **Equity (Deficit) and Mezzanine Equity**

***(Unaudited, in thousands, except share and per share amounts)***

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Mezzanine*** | ***Mezzanine*** |  |  |  |  |  |  |  |  |  |  |
|  | ***Equity -*** | ***Equity -*** |  |  |  |  |  |  |  |  |  |  |
|  | ***Redeemable*** | ***Redeemable*** |  |  |  |  |  |  |  |  |  | ***Total*** |
|  | ***Convertible*** | ***Convertible*** |  |  |  |  | ***Additional*** |  |  | ***Common Stock in*** | ***Common Stock in*** | ***Stockholders'*** |
|  | ***Preferred Stock*** | ***Preferred Stock*** | ***Preferred Stock*** | ***Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Paid in*** | ***Accumulated*** | ***Non-controlling*** | ***Treasury*** | ***Treasury*** | ***Equity*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Interest*** | ***Shares*** | ***Amount*** | ***(Deficit)*** |
| **Balance as of March 31, 2025** |  | $- | 14002 | $14002 | 96765145 | $97 | $233495 | $(265119) | $9363 | (155654) | $(250) | $(8412) |
| Stock-based compensation |  |  | *-* |  | *-* |  | 157 |  |  | *-* |  | 157 |
| Shares issued pursuant to restricted stock units |  | *-* |  | *-* | 35763 | *-* | *-* | *-* | *-* |  | *-* | *-* |
| Dividends on Series A preferred stock |  |  | 426 | 426 |  |  |  | (426) |  |  |  |  |
| Common stock issued for services |  |  |  |  | 175649 |  | 149 |  |  |  |  | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of PodcastOne common stock |  |  | *-* |  | *-* |  | 460 |  | (342) | *-* |  | 118 |
| Treasury stock purchases |  |  |  |  |  |  |  |  |  | (291459) | (240) | (240) |
| Net loss |  |  | *-* |  | *-* |  |  | (3593) | (271) | *-* |  | (3864) |
| **Balance as of June 30, 2025** |  | $- | 14428 | $14428 | 96976557 | $97 | $234261 | $(269138) | $8750 | (447113) | $(490) | $(12092) |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Mezzanine*** | ***Mezzanine*** |  |  |  |  |  |  |  |  |  |  |
|  | ***Equity -*** | ***Equity -*** |  |  |  |  |  |  |  |  |  |  |
|  | ***Redeemable*** | ***Redeemable*** |  |  |  |  |  |  |  |  |  |  |
|  | ***Convertible*** | ***Convertible*** |  |  |  |  | ***Additional*** |  |  | ***Common Stock in*** | ***Common Stock in*** | ***Total*** |
|  | ***Preferred Stock*** | ***Preferred Stock*** | ***Preferred Stock*** | ***Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Paid in*** | ***Accumulated*** | ***Non-controlling*** | ***Treasury*** | ***Treasury*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Interest*** | ***Shares*** | ***Amount*** | ***Equity*** |
| **Balance as of March 31, 2024** | 5000 | $4962 | 18814 | $18814 | 92487459 | $92 | $216116 | $(238984) | $10339 | (3860039) | $(4782) | $1595 |
| Stock-based compensation | *-* |  | *-* |  | *-* |  | 782 |  |  | *-* |  | 782 |
| Shares issued pursuant to restricted stock units |  | *-* |  | *-* | 161498 | *-* | *-* | *-* | *-* |  | *-* | *-* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on Series A preferred stock |  |  | 378 | 378 |  |  |  | (378) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Conversion of Series A preferred stock into common stock and common stock warrants | (5000) | (4962) | (6395) | (6395) | 5426233 | 5 | 11668 | (316) |  |  |  | 4962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock issued for services |  |  |  |  | 765519 | 1 | 1576 |  |  |  |  | 1577 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of PodcastOne common stock | *-* |  | *-* |  | *-* |  | (468) |  | 468 | *-* |  |  |
| Treasury stock purchases |  |  |  |  |  |  |  |  |  | (402593) | (749) | (749) |
| Net loss | *-* |  | *-* |  | *-* |  |  | (1169) | (388) | *-* |  | (1557) |
| **Balance as of June 30, 2024** |  | $- | 12797 | $12797 | 98840709 | $98 | $229674 | $(240847) | $10419 | (4262632) | $(5531) | 6610 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-3

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[**Table of Contents**](#toc)

**LiveOne, Inc.**

**Condensed Consolidated Statements of Cash Flows**

***(Unaudited, in thousands)***

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** |
| **Cash Flows from Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Net loss | $(3864) | $(1557) |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 289 | 1412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 1456 | 1616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt discount | 59 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of bifurcated embedded derivatives |  | (607) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Recovery of) provision for credit loss | (5) | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of intangible assets |  | 176 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (22) | (1505) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 56 | (255) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 43 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 8 | (312) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (587) | (52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 26 | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued royalties | (231) | 1350 |
| Other liabilities | (275) | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by operating activities | (3047) | 1342 |
| **Cash Flows from Investing Activities:** |  |  |
| Purchases of property and equipment | (1020) | (736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (1020) | (736) |
| **Cash Flows from Financing Activities:** |  |  |
| Payment on capchase loan | (170) |  |
| Payment of dividends |  | (509) |
| &nbsp;&nbsp;&nbsp; Repayment on notes payable |  | (170) |
| Repayment on line of credit | (2950) |  |
| Proceeds from Convertible Debt, net of issuance cost | 15199 |  |
| Purchase of treasury stock | (240) | (749) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 11839 | (1428) |
| Net change in cash, cash equivalents and restricted cash | 7772 | (822) |
| Cash, cash equivalents and restricted cash, beginning of period | 4149 | 7142 |
| **Cash, cash equivalents and restricted cash, end of period** | $11921 | $6320 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid for income taxes | $- | $- |
| &nbsp;&nbsp;&nbsp; Cash paid for interest | $385 | $196 |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| Common stock issued for prepaid expenses | $- | $366 |
| &nbsp;&nbsp;&nbsp; Fair value of shares issued to settle accrued stock to be issued at period end | $- | $220 |
| &nbsp;&nbsp;&nbsp; Fair value of shares received of PodcastOne common stock to settle payables owed | $460 | $- |
| Purchase of intangible assets accrued for at period end | $- | $118 |
| &nbsp;&nbsp;&nbsp; Stock compensation expense capitalized as internally-developed software | $- | $155 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-4

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[**Table of Contents**](#toc)

**LiveOne, Inc.**

***Notes to the Condensed Consolidated Financial Statements* (Unaudited)**

**For the Three Months Ended June 30, 2025 and 2024**

**Note *1*** — **Organization and Basis of Presentation**

*<u>Organization</u>*

LiveOne, Inc. together with its subsidiaries ("we," "us," "our", the "Company" or "LiveOne") is a Delaware corporation headquartered in Beverly Hills, California. The Company is a creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships, live and virtual events.

The Company was reincorporated in the State of Delaware on *August 2, 2017,* pursuant to a reincorporation merger of Loton, Corp ("Loton") with and into LiveXLive Media, Inc., Loton's wholly owned subsidiary at the time. As a result of the reincorporation merger, Loton ceased to exist as a separate entity, with LiveXLive Media, Inc. being the surviving entity. On *December 29, 2017,* the Company acquired Slacker, Inc. ("Slacker"), an Internet music and radio streaming service incorporated in the state of Delaware, and it became a wholly owned subsidiary of LiveOne. On *February 5, 2020,* the Company acquired (i) React Presents, LLC a Delaware limited liability company ("React Presents"), and it became a wholly owned subsidiary of LiveXLive Events, LLC, a wholly owned subsidiary of the Company and (ii) indirectly Spring Awakening, LLC, which is a wholly owned subsidiary of React Presents, a producer, promoter and manager of in person live music festivals and events. On *July 1, 2020,* the Company through its wholly owned subsidiary, LiveXLive PodcastOne, Inc., acquired PodcastOne, Inc. (formerly Courtside Group, Inc.) ("PodcastOne"). On *December 22, 2020,* the Company through its wholly owned subsidiary LiveXLive Merchandising, Inc., acquired Custom Personalization Solutions, Inc. ("CPS"). Effective as of *October 5, 2021,* the Company changed its corporate name to "LiveOne, Inc." On *February 28, 2023,* the Company acquired a majority interest in Splitmind LLC and Drumify LLC. On *September 8, 2023,* PodcastOne completed a spin out from the Company to become a standalone publicly trading company resulting in its direct listing on The NASDAQ Capital Market on such date (the "Direct Listing"). As of the date of this Quarterly Report, PodcastOne continues to be a majority owned subsidiary of the Company.

*<u>Basis of Presentation</u>*

The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the Company's audited consolidated financial statements for the fiscal year ended *March 31, 2025*, and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company's interim unaudited condensed consolidated financial statements for the *three* months ended *June 30, 2025*. The results for the *three* months ended *June 30, 2025* are *not* necessarily indicative of the results expected for the full fiscal year ending *March 31, 2026* ("fiscal *2026*"). The condensed consolidated balance sheet as of *March 31, 2025* has been derived from the Company's audited balance sheet included in the Company's Annual Report on Form *10*-K filed with the U.S. Securities and Exchange Commission (the "SEC") on *July 15, 2025 (*the *"2025* Form *10*-K").

The interim unaudited condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form *10*-Q and Article *10* of Regulation S-*X.* They do *not* include all of the information and footnotes required by GAAP for complete audited financial statements. Therefore, these financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the *2025* Form *10*-K.

*<u>Going Concern and Liquidity</u>*

The Company's interim unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

The Company's principal sources of liquidity have historically been its debt and equity issuances and its cash and cash equivalents (which cash, cash equivalents and restricted cash amounted to $11.9 million as of *June 30, 2025*). As reflected in its interim unaudited condensed consolidated financial statements included elsewhere herein, the Company has a history of losses, incurred a net loss of $3.9 million for the *three* months ended *June 30, 2025*, and used cash of $3.0 million in operating activities for the *three* months ended *June 30, 2025* and had a working capital deficiency of $11.0 million as of *June 30, 2025*. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern within *one* year from the date that these financial statements are filed. The Company's interim unaudited condensed consolidated financial statements do *not* include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *5*

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The Company's ability to continue as a going concern is dependent on its ability to execute its growth strategy and on its ability to raise additional funds. The Company filed a new universal shelf Registration Statement on Form S-*3* (the "Shelf S-*3"*) with the SEC on *February 13, 2025,* which was declared effective by the SEC on *February 26, 2025.* Under the Shelf S-*3,* the Company has the ability to raise up to $150.0 million in cash from the sale of its equity, debt and/or other financial instruments, subject to any limitation as applicable under General Instruction *I.B.6* of Form S-*3.* In *May 2024,* the Company entered into an at-the-market agreement with Roth Capital Partners, LLC ("Roth Capital"), pursuant to which the Company *may,* while the Shelf S-*3* is effective, offer and sell shares of the Company's common stock, $0.001 par value per share (the "common stock"), having an aggregate offering price of up to $25 million from time to time through Roth Capital acting as the Company's sales agent. As of the filing of this Quarterly Report, the Company has *not* sold any shares under such agreement. The uncertain market conditions *may* limit the Company's ability to access capital, *may* reduce demand for its services and *may* negatively impact its ability to retain key personnel. Management *may* seek additional funds, primarily through the issuance of equity and/or debt securities for cash to operate the Company's business. *No* assurance can be given that any future financing will be available or, if available, that it be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it *may* contain terms that result in undue restrictions on its operations, in the case of debt financing or cause substantial dilution for its stockholders, in case of equity and/or convertible debt financing. If the Company is unable to obtain sufficient financing when needed, the Company *may* also have to reduce certain overhead costs through the reduction of salaries and other means and settle liabilities through negotiation. There can be *no* assurance that management's attempts at any or all of these endeavors will be successful.

*<u>Principles of Consolidation</u>*

The Company's interim unaudited condensed consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. Acquisitions are included in the Company's interim unaudited condensed consolidated financial statements from the date of the acquisition. The Company uses purchase accounting for its acquisitions, which results in all assets and liabilities of acquired businesses being recorded at their estimated fair values on the acquisition dates. All intercompany balances and transactions have been eliminated in consolidation.

**Note *2*** — **Summary of Significant Accounting Policies**

There have been *no* material changes in the Company's significant accounting policies from those previously disclosed in the consolidated financial statements included in the *2025* Form *10*-K, other than those included below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *6*

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*<u>Use of Estimates</u>*

The preparation of the Company's condensed consolidated financial statements in conformity with the United States of America generally accepted accounting principles ("GAAP") requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue, allowance for doubtful accounts, the assigned value of acquired assets and assumed and contingent liabilities associated with business combinations and the related purchase price allocation, useful lives and impairment of property and equipment, intangible assets, goodwill and other assets, inventory calculations and reserves, the fair value of the Company's equity-based compensation awards and convertible debt and debenture instruments, fair values of derivatives, and contingencies. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. There is a reasonable possibility that actual results could differ from those estimates and such differences could be material to the financial position and results of operations, specifically in assessing when the collectability of revenue related consideration is probable, and the impairment assessment of goodwill, indefinite lived assets or long-lived assets that are depreciated or amortized.

*<u>Segment Reporting</u>*

The Company presents the financial statements by segment in accordance with ASC Topic *No. 280,* Segment Reporting ("ASC *280"*), to provide investors with transparency into how the chief operating decision maker ("CODM") manages the business. The Company determined the CODM is its Chief Executive Officer. The CODM reviews financial information and allocates resources across the Company's *three* operating segments.

*<u>Revenue Recognition Policy</u>*

The Company accounts for a contract with a customer when an approved contract exists, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and the collectability of substantially all of the consideration is probable. Revenue is recognized when the Company satisfies its obligation by transferring control of the goods or services to its customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company uses the expected value method to estimate the value of variable consideration on advertising and with original equipment manufacturer contracts to include in the transaction price and reflect changes to such estimates in periods in which they occur. Variable consideration for these services is allocated to and recognized over the related time period such advertising and membership services are rendered as the amounts reflect the consideration the Company is entitled to and relate specifically to the Company's efforts to satisfy its performance obligation. The amount of variable consideration included in revenue is limited to the extent that it is probable that the amount will *not* be subject to significant reversal when the uncertainty associated with the variable consideration is subsequently resolved.

*<u>Practical Expedients</u>*

The Company elected the practical expedient and recognized the incremental costs of obtaining a contract, if any, as an expense when incurred if the amortization period of the asset that would have been recognized is *one* year or less.

*<u>Gross Versus Net Revenue Recognition</u>*

The Company reports revenue on a gross or net basis based on management's assessment of whether the Company acts as a principal or agent in the transaction and is evaluated on a transaction by transaction basis. To the extent the Company acts as the principal, revenue is reported on a gross basis net of any sales tax from customers, when applicable. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service prior to transfer to the customer. Where applicable, the Company has determined that it acts as the principal in all of its membership service, sponsorship, and merchandising streams and *may* act as principal or agent for its ticketing/live events, advertising and licensing revenue streams.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *7*

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The Company's revenue is principally derived from the following services:

*<u>Membership Services</u>*

Membership services revenue substantially consist of monthly to annual recurring membership fees, which are primarily paid in advance by credit card or through direct billings arrangements. The Company defers the portions of monthly to annual recurring membership fees collected in advance and recognizes them in the period earned. Membership revenue is recognized in the period of services rendered. The Company's membership revenue consists of performance obligations that are satisfied over time. This has been determined based on the fact that the nature of services offered are membership based where the customer simultaneously receives and consumes the benefit of the services provided regardless of whether the customer uses the services or *not.* As a result, the Company has concluded that the best measure of progress toward the complete satisfaction of the performance obligation over time is a time-based measure. The Company recognizes membership revenue straight-line through the membership period.

Membership Services consist of:

<u>*Direct member, mobile service provider and mobile app services*</u>

The Company generates revenue for membership services on both a direct basis and through memberships sold through certain *third*-party mobile service providers and mobile app services (collectively the "Mobile Providers"). For memberships sold through the Mobile Providers, the member executes an on-line agreement with Slacker outlining the terms and conditions between Slacker and the member upon purchase of the membership. The Mobile Providers promote the Slacker app through their e-store, process payments for memberships, and retain a percentage of revenue as a fee. The Company reports this revenue gross of the fee retained by the Mobile Providers, as the member is Slacker's customer in the contract and Slacker controls the service prior to the transfer to the member. Membership revenues from monthly memberships sold directly through Mobile Providers are subject to such Mobile Providers' refund or cancellation terms. Revenues from Mobile Providers are recognized net of any such adjustments for variable consideration, including refunds and other fees. The Company's payment terms vary based on whether the membership is sold on a direct basis or through Mobile Providers. Memberships sold on a direct basis require payment before the services are delivered to the customer. The payment terms for memberships sold through Mobile Providers vary, but are generally payable within *30* days.

<u>*Third-Party Original Equipment Manufacturers*</u>

The Company generates revenue for membership services through memberships sold through a *third*-party Original Equipment Manufacturer (the "OEM"). For memberships sold through the OEM, the OEM executes an agreement with Slacker outlining the terms and conditions between Slacker and the OEM upon purchase of the membership. The OEM installs the Slacker app in their equipment and provides the Slacker service to the OEM's customers. The monthly fee charged to the OEM is based upon a fixed rate per vehicle, multiplied by the variable number of total vehicles which have signed up for a paid membership. The number of customers, or the variable consideration, is reported by OEMs and resolved on a monthly basis. The Company's payment terms with OEM are up to *30* days.

*<u>Advertising Revenue</u>*

Advertising revenue primarily consist of revenues generated from the sale of audio, video, and display advertising space to **third*-party advertising exchanges. Revenues are recognized based on delivery of impressions over the contract period to the **third*-party exchanges, either when an ad is placed for listening or viewing by a visitor or when the visitor "clicks through" on the advertisement. The advertising exchange companies report the variable advertising revenue performed on a monthly basis which represents the Company's efforts to satisfy the performance obligation. Additionally, following the acquisition of PodcastOne, we began deriving revenue from podcast advertising. PodcastOne earns advertising revenues primarily for fees earned from advertisement placement purchased by the customer during the time the podcast is delivered to the viewing audience, under the terms and conditions as set forth in the applicable podcasting agreement calculated using impressions.

From time to time the Company enters into barter transactions involving advertising provided in exchange for goods and services. Revenue from barter transactions is recognized ratably over time based on the terms of the contract as delivery of impressions is performed on a consistent basis. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is **not* reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots promised or delivered to the customer. Services received are charged to expense in the same manner. Barter revenue for the *three* months ended *June 30, 2025* and *2024* was $7.0 million and $6.0 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *8*

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*<u>Licensing Revenue</u>*

Licensing revenue primarily consists of sales of licensing rights to digitally stream the Company's live music services. Licensing revenue is recognized when the Company satisfies its performance obligation by transferring control of the goods or services to its customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services, which is typically when the live event has aired. Any license fees collected in advance of an event are deferred until the event airs. We report our licensing revenue on a gross basis as we act as the principal in the underlying transactions.

*<u>Sponsorship Revenue</u>*

Sponsorship revenue primarily consists of sales of sponsorship programs that provide sponsors with opportunities to reach the Company's customers. Sponsorship revenue is recognized as the event airs. Any sponsorship fees collected in advance of the contract term (typically an event) are deferred until the event airs. The Company reports sponsorship revenue on a gross basis as the Company acts as the principal in the underlying transactions.

*<u>Merchandising Revenue</u>*

Revenue is recognized upon the transfer of control to the customer. The Company recognizes revenue and measures the transaction price net of taxes collected from customers and remitted to governmental authorities. Sales also include shipping and handling charges billed to customers, with the related freight costs included in cost of goods sold. Sales commissions are expensed as incurred and are recorded in sales and marketing expenses in the accompanying condensed consolidated statements of operations. The Company's customer contracts do *not* have a significant financing component due to their short durations, which are typically effective for *one* year or less and have payment terms that are generally *30* to *60* days. Wholesale revenue is generally recognized when products are shipped, depending on the applicable contract terms. The Company records a refund liability for expected returns based on prior returns history, recent trends, and projections for returns on sales in the current period. The refund liability at *June 30, 2025* and *2024* was less than $0.1 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *9*

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*<u>Net Income (Loss) Per Share</u>*

Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding during the period adjusted to add back dividends (declared or cumulative undeclared) applicable to the Company's Series A Perpetual Convertible Preferred Stock (the "Series A Preferred Stock"). Diluted earnings (loss) per share is computed using the weighted-average number of common shares and the dilutive effect of contingent shares outstanding during the period. Potentially dilutive contingent shares, which primarily consist of stock options issued to employees, directors and consultants, restricted stock units, warrants issued to *third* parties and accounted for as equity instruments and convertible notes would be excluded from the diluted earnings per share calculation because their effect is anti-dilutive.

Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the *two*-class method required for participating securities such as our preferred stock. Under the *two*-class method, basic and diluted net income (loss) per share attributable to common stockholders is computed by dividing the basic and diluted net income (loss) attributable to common stockholders by the basic and diluted weighted-average number of shares of common stock outstanding during the period. Diluted net income per share attributable to common stockholders adjusts basic net income per share for the potentially dilutive impact of stock options and restricted stock units (RSUs).

The treasury stock method is used to calculate the potentially dilutive effect of stock options and RSUs. The if-converted method is used to calculate the potentially dilutive effect of the Preferred Stock. In both methods, diluted net income (loss) attributable to common stockholders and diluted weighted-average shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules.

At *June 30, 2025* and *2024*, the Company had 2,197,917 and 2,251,667 options outstanding, respectively, 433,850 and 1,726,237 restricted stock units outstanding, respectively, and 3,114,001 and 3,114,001 common stock warrants, respectively, that are excluded from the calculation of diluted earnings per share as their effect is anti-dilutive.

The following table shows the calculation of basic and diluted earnings per share for the periods Series A Preferred Stock was outstanding:

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| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
| In thousands, except per share amounts | ***June 30, 2025*** | ***June 30, 2024*** |
| Net loss attributed to LiveOne | $(3593) | $(1169) |
| Deemed dividends upon redemption of Series A Preferred Stock |  | (378) |
| Dividends on Series A Preferred Stock | (426) | (316) |
| Net loss attributed to LiveOne | $(4019) | $(1863) |
| Basic and diluted weighted average number of shares outstanding | 96741899 | 94419692 |
| Net loss per share – basic and diluted | $(0.04) | $(0.02) |

---

*<u>Cash, Cash Equivalents and Restricted Cash</u>*

Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of *three* months or less.

The following table provides amounts included in cash, cash equivalents and restricted cash presented in the Company's condensed consolidated statements of cash flows for the periods ended *June 30, 2025* and *March 31, 2025* (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30, 2025*** | ***March 31, 2025*** |
| Cash and cash equivalents | $11891 | $4119 |
| Restricted cash | 30 | 30 |
| Total cash and cash equivalents and restricted cash | $11921 | $4149 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *10*

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*<u>Non-</u><u>Controlling</u> <u>Interest</u>*

The Company consolidates entities in which the Company has a controlling financial interest. The Company consolidates subsidiaries in which the Company holds, directly or indirectly, more than *50%* of the voting rights. Non-controlling interests represent *third*-party equity ownership interests in the Company's consolidated entities. The amount of net income (loss) attributable to non-controlling interests is disclosed in the accompanying interim unaudited condensed consolidated statements of operations.

*<u>Restricted Cash and Cash Equivalents</u>*

The Company maintains certain letters of credit agreements with its banking provider, which are secured by the Company's cash for periods of less than *one* year. As of *June 30, 2025* and *March 31, 2025*, the Company had restricted cash of $30,000 and $30,000, respectively.

*<u>Allowance for Credit Losses</u>*

The Company evaluates the collectability of its accounts receivable based on a combination of factors. Generally, it records specific reserves to reduce the amounts recorded to what it believes will be collected when a customer's account ages beyond typical collection patterns, or the Company becomes aware of a customer's inability to meet its financial obligations.

The Company believes that the credit risk with respect to trade receivables is limited due to the large and established nature of its largest customers and the nature of its membership receivables. At *June 30, 2025*, the Company had *no* customers that made up *10%* of the total accounts receivable balance. At *June 30, 2024*, the Company had one customer that made up 29% of the total accounts receivable balance.

The Company's accounts receivable at *June 30, 2025* and *March 31, 2025* is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
|  | ***2025*** | ***2025*** |
| Accounts receivable, gross | $9551 | $9390 |
| Less: Allowance for credit losses | (1225) | (1091) |
| Accounts receivable, net | $8326 | $8299 |

---

*<u>Inventories</u>*

Inventories, principally raw materials awaiting final customization process, are stated at the lower of cost or net realizable value. Inventories are relieved on a *first*-in, *first*-out basis.

The carrying value of inventories is reduced for any excess and obsolete inventory. Excess and obsolete reductions are determined based on currently available information, including the likely method of disposition, such as through sales to individual customers and liquidations, and the age of inventory.

*<u>Concentration of Credit Risk</u>*

The Company maintains cash balances at commercial banks. Cash balances commonly exceed the *$250,000* amount insured by the Federal Deposit Insurance Corporation. The Company has *not* experienced any losses in such accounts, and management believes that the Company is *not* exposed to any significant credit risk with respect to such cash and cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *11*

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*<u>Recently Adopted Accounting Pronouncements</u>*

In *December 2023,* the FASB issued ASU *2023*-*09,* Income Taxes (Topic *740*): Improvements to Income Tax Disclosures ("ASU *2023*-*09"*), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU *2023*-*09* will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions The Company adopted ASU *2023*-*09* on *April 1, 2025* on a prospective basis. The adoption of this standard did *not* have an impact on the Company's interim condensed consolidated financial statements.

*<u>Recently Issued Accounting Pronouncements</u>*

In *November 2024,* the FASB issued ASU *No. 2024*-*03,* Income Statement - Reporting Comprehensive Income - Expense Disaggregation (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses. The amendments in ASU *2024*-*03* require a public business entity to disclose specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information about a public business entity's expenses to help investors (i) better understand the entity's performance, (ii) better assess the entity's prospects for future cash flows, and (iii) compare an entity's performance over time and with that of other entities. ASU *2024*-*03* is effective for fiscal years beginning after *December 15, 2026,* and for interim periods within fiscal years beginning after *December 15, 2027,* with early adoption permitted. We are currently evaluating the impact of the adoption of ASU *2024*-*03.*

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC did *not* or are *not* believed by management to have a material impact on the Company's present or future consolidated financial statement presentation or disclosures.

**Note *3*** — **Revenue**

The following table represents a disaggregation of revenue from contracts with customers for the *three* months ended *June 30, 2025* and *2024* (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** |
| Revenue |  |  |
| Membership Services | $3325 | $18850 |
| Advertising | 15093 | 13074 |
| Merchandising | 789 | 1154 |
| Total Revenue | $19207 | $33078 |

---

For some contracts, the Company *may* invoice up front for services recognized over time or for contracts in which the Company has unsatisfied performance obligations. Payment terms and conditions vary by contract type, although terms generally cover monthly payments. In the circumstances where the timing of invoicing differs from the timing of revenue recognition, the Company has determined its contracts do *not* include a significant financing component. The Company has elected to apply the practical expedient under ASC *606*-*10*-*50*-*14* and *not* provide disclosure of the amount and timing of performance obligations as the performance obligations are part of a contract that has an original expected duration of *one* year or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *12*

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For the *three* months ended *June 30, 2025* and *2024*, one customer accounted for 9% and 53% of the Company's consolidated revenues, respectively.

The following table summarizes the significant changes in the deferred revenue balances during the *three* months ended *June 30, 2025* (in thousands):

---

| | |
|:---|:---|
|  | ***Deferred*** |
|  | ***Revenue*** |
| Balance as of March 31, 2025 | $2141 |
| &nbsp;&nbsp;&nbsp; Revenue recognized that was included in the contract liability at beginning of period | (830) |
| &nbsp;&nbsp;&nbsp; Increase due to cash received, excluding amounts recognized as revenue during the period | 243 |
| Balance as of June 30, 2025 | $1554 |

---

**Note *4*** — **Property and Equipment**

The Company's property and equipment at *June 30, 2025* and *March 31, 2025* was as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
|  | ***2025*** | ***2025*** |
| Property and equipment, net |  |  |
| &nbsp;&nbsp;&nbsp; Computer, machinery, and software equipment | $2597 | $2597 |
| &nbsp;&nbsp;&nbsp; Furniture and fixtures | 564 | 564 |
| &nbsp;&nbsp;&nbsp; Leasehold improvements | 597 | 597 |
| &nbsp;&nbsp;&nbsp; Capitalized internally developed software | 18880 | 18669 |
| Total property and equipment | 22638 | 22427 |
| &nbsp;&nbsp;&nbsp; Less accumulated depreciation and amortization | (20870) | (21534) |
| Total property and equipment, net | $1768 | $893 |

---

Depreciation expense was $0.1 million and $0.8 million for the *three* months ended *June 30, 2025* and *2024*, respectively. During the *three* months ended *June 30, 2024* the Company disposed of $3.3 million of equipment with a corresponding write-off to accumulated depreciation.

During the *three* months ended *June 30, 2025,* the Company wrote off $0.9 million of internally developed software and the corresponding accumulated depreciation as a result of *no* longer using the software in operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *13*

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**Note *5*** — **Goodwill and Intangible Assets**

*<u>Goodwill</u>*

The following table presents the changes in the carrying amount of goodwill for the *three* months ended *June 30, 2025* (in thousands):

---

| | |
|:---|:---|
|  | ***Goodwill*** |
| Balance as of March 31, 2025 | $21712 |
| &nbsp;&nbsp;&nbsp; Acquisitions |  |
| Impairment losses |  |
| Balance as of June 30, 2025 | $21712 |

---

*<u>Indefinite-Lived Intangible Assets</u>*

The following table presents the changes in the carrying amount of indefinite-lived brand and trade names intangible assets that are only in the Company's Slacker operating segment for the *three* months ended *June 30, 2025* (in thousands):

---

| | |
|:---|:---|
|  | ***Tradenames*** |
| Balance as of March 31, 2025 | $774 |
| &nbsp;&nbsp;&nbsp; Acquisitions |  |
| &nbsp;&nbsp;&nbsp; Impairment losses |  |
| Balance as of June 30, 2025 | $774 |

---

*<u>Finite-Lived Intangible Assets</u>*

The Company's finite-lived intangible assets were as follows as of *June 30, 2025* (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | ***Gross*** |  | ***Net*** |
|  | ***Carrying*** | ***Accumulated*** | ***Carrying*** |
|  | ***Value*** | ***Amortization*** | ***Value*** |
| Software | $19281 | $19281 | $- |
| Intellectual property (patents) | 3146 | 2611 | 535 |
| Customer relationships | 6570 | 6570 |  |
| Content creator relationships | 3229 | 2674 | 555 |
| Domain names | 123 | 68 | 55 |
| Brand and trade names | 1071 | 566 | 505 |
| Customer list |  |  |  |
| &nbsp;&nbsp;&nbsp; Total | $33420 | $31770 | $1650 |

---

The Company's finite-lived intangible assets were as follows as of *March 31, 2025* (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | ***Gross*** |  | ***Net*** |
|  | ***Carrying*** | ***Accumulated*** | ***Carrying*** |
|  | ***Value*** | ***Amortization*** | ***Value*** |
| Software | $19281 | $19281 | $- |
| Intellectual property (patents) | 3146 | 2593 | 553 |
| Customer relationships | 6570 | 6570 |  |
| Content creator relationships | 3228 | 2574 | 654 |
| Domain names | 123 | 66 | 57 |
| Brand and trade names | 1071 | 540 | 531 |
| Customer list | 2673 | 2673 |  |
| &nbsp;&nbsp;&nbsp; Total | $36092 | $34297 | $1795 |

---

Intangible assets are amortized over their estimated useful lives based on the pattern in which the economic benefits associated with the asset are expected to be consumed, which to date has approximated the straight-line method of amortization. The estimated useful lives for patents, customer relationships, domain names, brand and tradename and customer list are generally three to 15 years, one to two years, two to five years, seven to ten years and three to four years, respectively.

The Company's amortization expense on its finite-lived intangible assets was $0.1 million and $0.6 million for the *three* months ended *June 30, 2025* and *2024*, respectively. The Company recorded an impairment charge attributed to finite-lived intangibles of none and $0.2 million for the *three* months ended *June 30, 2025* and *2024*, respectively. The impairment for the *three* months ended *June 30, 2024* was the result of the winding down of a podcast show acquired by PodcastOne.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *14*

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*<u>Finder's</u> <u>Agreement</u>*

In *September 2023,* PodcastOne entered into a finder's fee arrangement pursuant to which it agreed to issue shares of PodcastOne common stock at a price of $8.00 per share (subject to adjustment in certain limited circumstances) as a finder's fee to a certain *third* party podcast platform in the event certain former and/or current podcasts creators of such platform entered into new podcasting agreements with PodcastOne, with the amount of the fee to be based on the amount of revenues actually derived by PodcastOne from such podcasts during a predetermined period. Payments made to such *third* party attributed to PodcastOne entering into new podcast contracts were capitalized to content creator relationship intangibles. As of *June 30, 2025* and *March 31, 2025*, the Company has capitalized $2.6 million of payments made to such *third* party. $2.6 million capitalized of payments made to such *third* party which was paid with PodcastOne common stock at a price of $8.00 per share.

The Company expects to record amortization of intangible assets for fiscal years ending *March 31, 2026* and future fiscal years as follows (in thousands):

---

| | |
|:---|:---|
| **For Years Ending March 31,** |  |
| 2026 (remaining nine months) | $508.0 |
| 2027 | 366.0 |
| 2028 | 182.0 |
| 2029 | 182.0 |
| 2030 | 182.0 |
| Thereafter | 230.0 |
|  | $1650.0 |

---

**Note *6*** — **Accounts Payable and Accrued Liabilities**

Accounts payable and accrued liabilities at *June 30, 2025* and *March 31, 2025* were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
|  | ***2025*** | ***2025*** |
| Accounts payable | $16999 | $15269 |
| Accrued liabilities | 9250 | 9911 |
| Lease liabilities, current | 10 |  |
|  | $26259 | $25180 |

---

Accrued revenue share can be attributed to monies owed to content creators who provide their podcast or other media content for the Company to sell to consumers. The Company accrues a liability based on the percentage of revenue owed to each content creator at the time that revenue is recognized.

**Note *7*** — **Notes Payable**

Notes payable at *June 30, 2025* and *March 31, 2025* were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
|  | ***2025*** | ***2025*** |
| SBA loan | $149 | $150 |
| Capchase loan | 453 | 623 |
|  | 602 | 773 |
| Less: Current portion of Notes payable | (453) | (623) |
| Notes payable | $149 | $150 |

---

*<u>SBA Loan</u>*

On *June 17, 2020,* the Company received the proceeds from a loan in the amount of less than $0.2 million from the United States. Small Business Administration (the "SBA"). Installment payments, including principal and interest, begin *12*-months from the date of the promissory note. The balance is payable 30-years from the date of the promissory note, and bears interest at a rate of 3.75% per annum. There are *no* covenants associated with the SBA loan.

*<u>Loan and Security Agreement</u>*

In *August 2023,* the Company entered into a Loan and Security Agreement with Capchase Inc. ("Capchase") pursuant to which the Company borrowed the amount of $1.7 million to further develop and acquire certain podcasts acquired by PodcastOne and for general working capital. The debt is subordinated to the Debentures (as defined below) and bears an interest rate of 9%, which is included in the monthly amortization payments of approximately $73,100, with the final amortization payment due on *February 4, 2026.* As of *June 30, 2025*, the Company was in compliance with covenants under the Capchase agreement.

Maturities of notes payables as of *June 30, 2025* were as follows (in thousands):

---

| | |
|:---|:---|
| **For Years Ending March 31,** |  |
| 2026 (remaining nine months) | $458.0 |
| 2027 | 4.0 |
| 2027 | 4.0 |
| 2028 | 4.0 |
| 2029 | 4.0 |
| Thereafter | 128.0 |
| Total | $602.0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *15*

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**Note *8*** — **Convertible Note**

*<u>Securities Purchase Agreement</u>*

On *May 19, 2025 (*the "Closing Date"), the Company, and PodcastOne entered into a Securities Purchase Agreement (the "SPA") with certain institutional investors (each, a "Purchaser" and collectively, the "Purchasers"), pursuant to which (i) the Company sold to the Purchasers the Company's Original Issue Discount Senior Secured Convertible Debentures (the "Initial Debentures") in an aggregate principal amount of $16,775,000 for an aggregate cash purchase price of $15,250,000, and (ii) if certain conditions are satisfied as set forth in the SPA, including at least *one* of the Conditions (as defined below), the Company *may* sell at its option to the Purchasers the Company's additional Original Issue Discount Senior Secured Convertible Debentures in an aggregate principal amount of $11,000,000 on substantially the same terms as the Initial Debentures (the "Additional Debentures" and collectively with the Initial Debentures, the "Debentures"), in a private placement transaction. The Debentures are convertible into shares of the Company's common stock at the holder's option at a conversion price of $2.10 per share, subject to certain customary adjustments such as stock splits, stock dividends and stock combinations. The Company *may* sell to the Purchasers the Additional Debentures if within *15* months of the Closing Date either of the following conditions have been satisfied during such *15*-month period (the "Conditions"): (*x*) the VWAP (as defined in the SPA) of the common stock has been equal to or greater than $4.20 per share (subject to certain customary adjustments such as stock splits, stock dividends and stock combinations) for 30 consecutive trading days, or (y) Free Cash Flow (as defined in the SPA) has been equal to or greater to $3,000,000 for *three* consecutive fiscal quarters, and has increased in each of the foregoing quarters from the immediately preceding fiscal quarter.

The Initial Debentures mature on *May 19, 2028* and accrue interest at 11.75% per year. Commencing with the calendar month of *August 2025 (*subject to the following sentence), the holders of the Initial Debentures will have the right, at their option, to require the Company to redeem an aggregate of up to $100,000 of the outstanding principal amount of the Debentures per month. For the month of *August 2025,* the holders *may not* submit a redemption notice for such a redemption prior to *August 18, 2025.* Commencing from *November 18, 2025, May 18, 2026* and *May 18, 2027,* the holders of the Initial Debentures will have the right, at their option, to require the Company to redeem an aggregate of up to $150,000, $250,000 and $300,000, respectively, of the outstanding principal amount of the Initial Debentures per month.

Subject to the satisfaction of certain conditions, including applicable prior notice to the holders of the Initial Debentures, at any time after *May 19, 2026,* the Company *may* elect to prepay all, but *not* less than all, of the then outstanding Initial Debentures for a prepayment amount equal to the outstanding principal balance of then outstanding Initial Debentures plus all accrued and unpaid interest thereon, together with a prepayment premium equal to the following (the "Prepayment Premium"): (a) if the Initial Debentures are prepaid after *May 19, 2026,* but on or prior to *May 19, 2027,* 5% of the entire outstanding principal balance of the outstanding Initial Debentures (or the applicable portion thereof required to be prepaid by the Company); and (c) if the Initial Debentures are prepaid on or after *May 19, 2027,* but prior to the maturity date of the Initial Debentures, 4% of the entire outstanding principal balance of then outstanding Initial Debentures (or the applicable portion thereof required to be prepaid by the Company). Subject to the satisfaction of certain conditions, the Company shall be required to prepay the entire outstanding principal amount of all of then outstanding Initial Debentures in connection with a Change of Control Transaction (as defined in the Initial Debentures) for a prepayment amount equal to the outstanding principal balance of then outstanding Initial Debentures, plus all accrued and unpaid interest thereon, plus the applicable Prepayment Premium based on when such Change of Control Transaction occurs within the period set forth above applicable to such Prepayment Premium; provided, that (*x*) if a Change of Control Transaction occurs on or prior to *May 19, 2026,* plus 10% of the entire outstanding principal balance of then outstanding Initial Debentures; (y) if the Specified Carve-Out Transaction (as defined in the Debentures) in consummated, the Company shall be required to prepay the Initial Debentures, in an aggregate amount equal to the lower of the outstanding principal balance of then outstanding Initial Debentures and $7,500,000, in each case, plus the applicable Prepayment Premium, and (z) if a Permitted Disposition (as defined in the Debentures) pursuant to clause (g) of the definition thereof is consummated, the Company shall be required to prepay the Initial Debentures in an aggregate amount equal to the lower of the outstanding principal balance of then outstanding Initial Debentures and 50% of the *first* $1,000,000 of net proceeds resulting from such Permitted Disposition up to $1,000,000 and 25% of such net proceeds in excess of $1,000,000, in each case, plus the applicable Prepayment Premium.

The resulting discount from the original issuance discount and underwriting fees, of $1.6 million and is being amortized using the effective interest method. Interest expense resulting from the amortization of the discount for the *three* months ended *June 30, 2025* was $0.1 million.

Interest expense with respect to the Initial Debentures for the *three* months ended *June 30, 2025* was $0.2 million. The Initial Debentures include a covenant relating to the requirement to maintain a certain amount cash in the amount of $7.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of *June 30, 2025,* the Company was in compliance with its debt covenants associated with the Initial Debentures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *16*

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**Note *9*** — **Senior Secured Line of Credit**

On *June 2, 2021,* the Company entered into a Business Loan Agreement (the "Original Business Loan Agreement") with East West Bank (the "Senior Lender"), which provided for a revolving credit facility collateralized by all of the assets of the Company and its subsidiaries. In connection with the Original Business Loan Agreement, the Company issued a promissory note, dated as of *June 2, 2021,* to the Senior Lender in the principal amount of $7.0 million (the "Promissory Note") and established the revolving line of credit in the amount of $7.0 million (the "Revolving Credit Facility"), originally maturing on *June 2, 2023.*

In *July 2022,* the Company extended the maturity date of its revolving credit facility to *June 2024* and its variable interest rate was increased to 2.5%. The Revolving Credit Facility bears interest at a variable rate equal to the Wall Street Journal Prime Rate, plus 2.5%. The interest rate for the period ended *June 30, 2025* was 10.00%

On *September 8, 2023* and effective as of *August 22, 2023,* the Company entered into a new Business Loan Agreement (the *"2023* Business Loan Agreement") with the Senior Lender, to convert the Company's revolving credit facility with the Senior Lender into an assets backed loan credit facility with the Senior Lender, which continued to be collateralized by a *first* lien on all of the assets of the Company and its subsidiaries (the "ABL Credit Facility"). The *2023* Business Loan Agreement provided the Company with borrowing capacity of up to the Borrowing Base (as defined in the *2023* Business Loan Agreement). Pursuant to the *2023* Business Loan Agreement, the requirement that the Company and its related entities shall at all times maintain a certain minimum deposit with the Senior Lender was reduced from $8,000,000 to $5,000,000.

On *May 31, 2024,* the Company was granted an extension of *90* days on the maturity date, therefore the Revolving Credit Facility was scheduled to mature in *September 2024.* On *November 1, 2024,* the Company extended the maturity date of its promissory note issued to the Senior Lender, underlying the ABL Credit Facility, from *September 15, 2024* to *November 20, 2024* and the principal amount of the note was decreased to $6.0 million

On *January 28, 2025,* the Company entered into a new Business Loan Agreement (the *"2025* Business Loan Agreement") with the Senior Lender to update certain terms of the ABL Credit Facility, including to reduce the principal amount outstanding under the Promissory Note to $3,750,000, reflecting the Company's repayment of $3,250,000 of the principal amount of the Promissory Note as of such date, and to extend the maturity date of the Promissory Note to *November 20, 2025.* Pursuant to the Change in Terms Agreement, dated as of *January 28, 2025 (*the *"2025* Change in Terms Agreement"), entered into between the Company and the Senior Lender in connection with the *2025* Business Loan Agreement, the Company is agreed to repay the remaining outstanding principal amount of the Promissory Note in *9* equal monthly payments of $400,000 each beginning *February 20, 2025,* and the final *10th* payment of $151,291.67 on *November 20, 2025.* Pursuant to the *2025* Business Loan Agreement, the requirement that the Company and its related entities shall at all times maintain a certain minimum cash deposit with the Senior Lender is maintained at $5,000,000. The ABL Credit Facility continues to be collateralized by a *first* lien on all of the assets of the Company and its subsidiaries.

.

Borrowings under the ABL Credit Facility were subject to certain covenants as set forth in the *2025* Business Loan Agreement and bear interest at a rate equal to the "Money Rate" column of The Wall Street Journal (Western Edition) as determined by the Senior Lender plus 2.50%, resulting in the initial rate of 10.00% and provided, that it shall *not* be less than 7.50%. The Company *may* prepay at any time without penalty all or a portion of the amount owed to the Senior Lender. The *2025* Business Loan Agreement included customary events of default and various financial and other covenants with which the Company had to comply in order to maintain borrowing availability, including maintaining required minimum liquidity amount and Borrowing Base capacity. The occurrence of an event of default could have resulted in the acceleration of all obligations of the Company to the Senior Lender with respect to indebtedness, whether under the *2025* Business Loan Agreement or otherwise. Other covenants included, but were *not* limited to, covenants limiting or restricting the Company's ability to incur indebtedness, incur liens, enter into mergers or consolidations involving debt, dispose of assets, make loans and investments and pay dividends.

In connection with the *2025* Business Loan Agreement, the Promissory Note issued to the Senior Lender continued in effect except as modified by the *2025* Business Loan Agreement and the *2025* Change in Terms Agreement.

As a result of the issuance of the Initial Debentures, the Company paid off the balance of the ABL Credit Facility in full. Interest expense for the *three* months ended *June 30, 2025* and *2024* was $0.2 million and $0.4 million, respectively.

**Note *10*** — **Related Party Transactions**

As of *March 31, 2022,* the Company had unsecured 8.5% Senior Secured Convertible Notes previously issued to Trinad Capital (as defined below). In *February 2023,* the Trinad Notes along with accrued interest thereunder were converted into 6,177 shares of Series A Preferred Stock, with a stated value of $1,000 per share of Series A Preferred Stock and convertible at $2.10 per share, and Trinad Capital also received 200,000 shares of the Company's common stock. On *April 1, 2024,* Trinad Capital converted 3,395.09 shares of Series A Preferred Stock into 1,616,709 shares of the Company's common stock and received 535,399 three-year warrants to purchase the Company's common stock exercisable at a price of $2.10 per share. For the *three* months ended *June 30, 2025* and *2024,* the Company issued 209.66 and 127.03 shares of its Series A Preferred Stock, respectively, to Trinad Capital as dividend payments required by the terms of the Series A Preferred Stock. As of *June 30, 2025,* Trinad Capital owned 4,298.81 shares of Series A Preferred Stock.

On *September 8, 2023,* PodcastOne completed its Direct Listing on the Nasdaq Capital Market which resulted in the Company owning 15,672,186 shares of common stock of PodcastOne along with 1,100,000 common stock warrants to purchase shares of PodcastOne's common stock with an exercise price of $3.00 per share, which remain outstanding of *June 30, 2025.* Also, on *September 8, 2023,* PodcastOne issued 147,044 shares of PodcastOne common stock to the Company's CEO as a result of his ownership of the Company's Series A Preferred Stock and its terms requiring such issuance.

During the *three* months ended *June 30, 2025* and the year ended *March 31, 2025*, the Company received 124,000 and 1,315,880 shares of PodcastOne Common stock with a fair value of $0.5 million and $2.5 million, respectively, in exchange for amounts owed under a cost sharing arrangement between PodcastOne and the Company.

During the *three* months ended *June 30, 2025* and *2024*, the Company issued or reserved 22,413 and 46,113 shares of its common stock with a value of $0.1 million and $0.1 million to relatives of the CEO for services performed, respectively.

**Note *11*** — **Leases**

The Company leases locations with lease terms that are less than *12* months or are on month to month terms. Operating leases with lease terms of greater than *12* months are capitalized in operating lease right-of-use assets and operating lease liabilities in the accompanying condensed consolidated balance sheets. Rent expense for these operating leases totaled $0.1 million and $0.2 million for the *three* months ended *June 30, 2025* and *2024*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *17*

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Operating lease costs for the *three* months ended *June 30, 2025* and *2024* consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** |
| Fixed rent cost | $80 | $155 |
| Short term lease cost | 35 | 67 |
| Total operating lease cost | $115 | $222 |

---

Supplemental balance sheet information related to leases was as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
| **Operating leases** | ***2025*** | ***2025*** |
| Operating lease right-of-use assets | $89 | $97 |
| Operating lease liability, current | $10 | $- |
| Operating lease liability, noncurrent | 81 | 99 |
| Total operating lease liabilities | $91 | $99 |

---

The operating lease right-of-use assets are included in other assets and current operating lease liabilities are included in accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheets.

*Significant judgments*

Discount rate – the Company's lease is discounted using the Company's incremental borrowing rate of 8.5% as the rate implicit in the lease is *not* readily determinable.

Options – the lease term is the minimum noncancelable period of the lease. The Company does *not* include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs.

Lease and non-lease components – non-lease components were considered and determined *not* to be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *18*

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**Note *12*** — **Other Long-Term Liabilities**

Other long-term liabilities consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***March 31,*** |
|  | ***2025*** | ***2025*** |
| Accrued royalties | $7461 | $7392 |
| Accrued legal | 1124 | 1606 |
| Accrued sales tax | 3388 | 2375 |
| Other long-term liabilities | 55 | 863 |
| Total other long-term liabilities | $12028 | $12236 |

---

The Company classified $7.5 million and $7.5 million of accrued royalties into long term based on contractual arrangements with the royalty holders as of *June 30, 2025* and *March 31, 2025*, respectively. In addition, the Company accrued $1.1 million and $1.6 million into long term liabilities as a result of the Sound Exchange settlement as of *June 30, 2025* and *March 31, 2025,* respectively.

**Note *13*** — **Commitments and Contingencies**

*<u>Contractual Obligations</u>*

As of *June 30, 2025*, the Company is obligated under agreements with various music right holders and labels, festivals, clubs, events, concerts, artists, promoters, venues, music labels and publishers and other contractual obligations to make guaranteed payments as follows: $10.9 million for the fiscal year ending *March 31, 2026*, $4.5 million for the fiscal year ending *March 31, 2026,* $0.5 million for the fiscal year ending *March 31, 2027,* $0.4 million for the fiscal year ending *March 31, 2028* and $0.4 million thereafter.

On a quarterly basis, the Company records the greater of the cumulative actual content acquisition costs incurred or the cumulative minimum guarantee based on forecasted usage for the minimum guarantee period. The minimum guarantee period of time is the period that the minimum guarantee relates to, as specified in each agreement, which *may* be annual or a longer period. The cumulative minimum guarantee, based on forecasted usage, considers factors such as listening hours, revenue, members, and other terms of each agreement that impact the Company's expected attainment or recoupment of the minimum guarantees based on the relative attribution method.

Several of the Company's content acquisition agreements also include provisions related to the royalty payments and structures of those agreements relative to other content licensing arrangements, which, if triggered, could cause the Company's payments under those agreements to escalate, which included payments to be made in common stock. In addition, record labels, publishers and performing rights organizations with whom the Company has entered into direct license agreements have the right to audit the Company's content acquisition payments, and any such audit could result in disputes over whether the Company has paid the proper content acquisition costs. However, as of *June 30, 2025*, the Company does *not* believe it is probable that these provisions of its agreements discussed above will, individually or in the aggregate, have a material adverse effect on its business, financial position, results of operations or cash flows.

On *January 15, 2025,* PodcastOne entered into a *three*-year Enterprise Service and Advertising Agreement (the "Agreement") with *ART19* LLC (*"ART19"*), a subsidiary of Amazon.com, Inc. to move the existing network of PodcastOne programming to the *ART19* hosting platform. The Agreement is expected to drive additional monetization opportunities across PodcastOne's vast library of popular podcasts. Pursuant to the Agreement *ART19* is required to pay PodcastOne a minimum guarantee of $15.0 million over the term of the Agreement based on PodcastOne achieving certain minimum impressions amount, which guarantee is subject to adjustment as provided in the Agreement, including if PodcastOne achieves higher minimum impressions amounts. In addition, the Agreement provides for a revenue share split between PodcastOne and *ART19* based on gross sales revenue achieved by PodcastOne under the Agreement. During the *three* months ended *June 30, 2025* the Company recognized $1.4 million in revenue associated with the minimum guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *19*

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*<u>Employment Arrangements</u>*

As of *June 30, 2025*, the Company has an employment agreement and employment arrangement with its *two* named executive officers ("Section *16* Officers") that provide salary payments of $0.7 million and target bonus compensation of up to $0.3 million on an annual basis. Furthermore, such employment agreement contains a severance clause that could require severance payments in the aggregate amount of $0.03 million (excluding the value of potential payouts of discretionary bonuses, pro-rata bonuses, and potential accelerated vesting of equity awards granted to such executive officer) to the Company's CFO.

On *June 27, 2025* and effective as of *June 1, 2025 (*the "Effective Date"), PodcastOne entered into a new employment agreement with Kit Gray, the Company's current President of PodcastOne (the "Gray Employment Agreement"). Pursuant to the Gray Employment Agreement, Mr. Gray was granted, among other things, 150,000 restricted stock units of the Company.

On *June 27, 2025* and effective as of the Effective Date, the Company entered into a new employment agreement with Sue McNamara, the Company's current Chief Revenue Officer of PodcastOne (the "McNamara Employment Agreement"). Pursuant to the McNamara Employment Agreement, Ms. McNamara was granted, among other things, 25,000 restricted stock units of the Company.

The Company's CEO agreed to forgive his salary of $0.5 million per annum for the period from *August 2021* until *December 31, 2022* in exchange for shares of the Company's common stock and/or restricted stock units to be issued in the future. As of *June 30, 2025*, the Company's board of directors has *not* yet determined the number of shares of the Company's common stock and/or restricted stock units to be issued to the CEO as such compensation.

*<u>Legal Proceedings</u>*

From time to time, the Company is involved in legal proceedings and other matters arising in connection with the conduct of its business activities. Many of these proceedings *may* be at the preliminary stages and/or seek an indeterminate amount of damages. In the opinion of management, after consultation with legal counsel, such routine claims and lawsuits are *not* significant and we do *not* currently expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity.

On *June 6, 2025,* Sony Music Entertainment ("Sony") filed a complaint in the U.S. District Court for the Southern District of New York against Slacker and the Company alleging breach of contract and claiming that Slacker owes $2.6 million in unpaid licensing fees to Sony. As a result of LiveOne's guarantee of up to $250,000 of Slacker's payments to Sony, Sony's claim against the Company is in the amount of $250,000. The Company and Slacker are evaluating this claim, have engaged counsel and intend to vigorously defend themselves in this matter.

**Note *14*** — **Employee Benefit Plan**

The Company sponsors a *401*(k) plan (the *"401*(k) Plan") covering all employees. Prior to *March 31, 2019,* only Slacker employees were eligible to participate in the *401*(k) Plan. Employees are eligible to participate in the *401*(k) Plan the *first* day of the calendar month following their date of hire. The Company *may* make discretionary matching contributions to the *401*(k) Plan on behalf of its employees up to a maximum of 100% of the participant's elective deferral up to a maximum of 5% of the employees' annual compensation. The Company's matching contributions were *not* material to the financial statements for the *three* months ended *June 30, 2025* and *2024*.

**Note *15*** — **Stockholders**' **Deficit**

*<u>Authorized Common Stock and Authority to Create Preferred Stock</u>*

The Company has the authority to issue up to 510,000,000 shares, consisting of 500,000,000 shares of the Company's common stock, $0.001 par value per share, and 10,000,000 shares of the Company's preferred stock, $0.001 par value per share (the "preferred stock").

The Company *may* issue shares of preferred stock from time to time in *one* or more series, each of which will have such distinctive designation or title as shall be determined by the Company's board of directors and will have such voting powers, full or limited, or *no* voting powers, and such preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as shall be stated in the resolution or resolutions providing for the issue of such class or series of preferred stock as *may* be adopted from time to time by the Company's board of directors. The Company's board of directors will have the power to increase or decrease the number of shares of preferred stock of any series after the issuance of shares of that series, but *not* below the number of shares of such series then outstanding. In case the number of shares of any series shall be decreased, the shares constituting such decrease will resume the status of authorized but unissued shares of preferred stock.

It is *not* possible to state the actual effect of the issuance of any shares of preferred stock on the rights of holders of the common stock until and unless the Company's board of directors determines the specific rights of the holders of the preferred stock; however, these effects *may* include: restricting dividends on the common stock, diluting the voting power of the common stock, impairing the liquidation rights of the common stock, or delaying or preventing a change in control of the Company without further action by the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *20*

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*<u>Stock Repurchase Program</u>*

In *December 2020,* the Company announced that its board of directors has authorized the repurchase of up to two million shares of its outstanding common stock from time to time. In *November 2022,* the Company announced that its board of directors has authorized it to expand its stock repurchase program by up to an additional $2,000,000 worth of shares of its common stock to be repurchased from time to time. The timing, price, and quantity of purchases under the program will be at the discretion of our management and will depend upon a variety of factors including share price, general and business market conditions, compliance with applicable laws and regulations, corporate and regulatory requirements, and alternative uses of capital. The program *may* be expanded, suspended, or discontinued by our board of directors at any time. Although our board of directors has authorized this stock repurchase program, there is *no* guarantee as to the exact number of shares, if any, that will be repurchased by us, and we *may* discontinue purchases at any time that management determines additional purchases are *not* warranted. We cannot guarantee that the program will be consummated, fully or all, or that it will enhance long-term stockholder value. The program could affect the trading price of our common stock and increase volatility, and any announcement of a termination of this program *may* result in a decrease in the trading price of our common stock. In addition, this program could diminish our cash reserves. The Company purchased 291,459 and 402,593 shares of its common stock under its stock repurchase program for the *three* months ended *June 30, 2025* and *2024* for a total of $0.2 million and $0.7 million, respectively.

*<u>Series A Preferred Stock</u>*

The Series A Preferred Stock is convertible at any time at a Holder's option into shares of the Company's common stock, at a price of $2.10 per share of common stock, bears a dividend of 12% per annum, is perpetual and has *no* maturity date. At the option of the Company, the dividend was to be paid in-kind for the *first 12* months after *April 1, 2024,* and thereafter, the Holders had the option to select whether subsequent dividend payments shall be paid in kind or in cash; provided, that as long as any Series A Preferred Stock is held by the Harvest Funds (as defined below), Trinad Capital shall receive the dividend solely in kind. The Series A Preferred Stock shall have *no* voting rights, except as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock of the Company, dated as of *February 2, 2023 (*the "Certificate of Designation") or as otherwise required by law.

The Company had the option (the "Optional Redemption Right"), on or before the Mandatory Redemption Date (as defined herein), to purchase up to $5,000,000 in aggregate of the then outstanding shares of Series A Preferred Stock held by the Harvest Funds at a cash redemption price per share of Series A Preferred Stock equal to the Stated Value (the "Redemption Price"). The Company was required on or before *August 3, 2024 (*the "Mandatory Redemption Date"), and in any event if prior to the Mandatory Redemption Date the Company consummated any financing transaction in which the Company, directly or indirectly, raised, in aggregate, gross proceeds of more than $20,000,000 of new capital, to purchase $5,000,000 in aggregate of the then outstanding shares of Series A Preferred Stock held by the Harvest Funds (the "Mandatory Redemption Amount") at the Redemption Price (the "Mandatory Redemption"). If the Optional Redemption Right was exercised up to the full $5,000,000 amount, the Mandatory Redemption requirement would be terminated; provided, that if the Optional Redemption Right was exercised in any amount less than $5,000,000, the Mandatory Redemption Amount would be reduced by the amount that the Optional Redemption Right has been elected and exercised. Without the prior express consent of the majority of the votes entitled to be cast by the holders of Series A Preferred Stock outstanding at the time of such vote (the "Majority Holders"), the Company shall *not* authorize or issue any additional or other shares of its capital stock that are (i) of senior rank to the Series A Preferred Stock or (ii) of pari passu rank to the Series A Preferred Stock, in each case in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation. Pursuant to the Letter Agreements (as defined below), the Harvest Funds agreed (*x*) that any future dividends payable on the Series A Preferred Stock shall be paid in-kind or in cash at the option of the Company; provided, that as long as any Series A Preferred Stock is held by the Harvest Funds, Trinad Capital shall receive the dividend solely in kind, (y) to delete the Mandatory Redemption requirement.

Pursuant to the Exchange Agreements, the Company agreed that at any time that any of the shares of Series A Preferred Stock issued to the Harvest Funds are outstanding, (i) to directly or through its *100%* owned subsidiaries (as applicable), to own on a fully diluted basis at least *66%* of the total equity and voting rights of any and all classes of securities of each of PodcastOne, Slacker, PPV One, Inc., and LiveXLive Events, LLC subsidiaries of the Company, (ii) *not* to issue shares of its common stock or convertible equity securities at a price less than $2.10 per share (subject to certain exceptions), provided, that such consent shall *not* be required in connection with any merger, acquisition or other business combinations of the Company and/or any of its subsidiaries with any unaffiliated *third* party, (iii) *not* to raise more than an aggregate of $20,000,000 of capital in *one* or more offerings, including without limitation, *one* or more equity or debt offerings or a combination thereof, on an accumulated basis commencing after *February 3, 2023 (*the "Qualified Offering"); provided, that such consent shall *not* be required for any equity financing of the Company at a price of $2.25 per share or above, and (iv) if after *February 3, 2023* the Company distributes any of its assets or any shares of its common stock or Common Stock Equivalents (as defined in the Exchange agreements) of any of its subsidiaries pro rata to the record holders of any class of shares of its common stock, the Company shall distribute to the Holders its pro rata portion of any such distribution (calculated on an as-converted basis with respect to the then outstanding Series A Preferred Stock) concurrently with the distribution to the then record holders of any class of its common stock (including an applicable distribution of shares of PodcastOne's common stock to the Harvest Funds in connection with PodcastOne's Spin-Out and special dividend of PodcastOne's common stock to the Company's stockholders of record), in each case without the Majority Holders' prior written consent. Any breach of the aforementioned covenants shall constitute a material breach, which if uncured, shall result in the issuance of an aggregate of 56,473 shares of the Company's restricted common stock (the "Default Shares") to the Holders for each *five* trading days (or pro rata thereof) after the date of the breach; provided, that if such breach is cured within the applicable cure period, *no* Default Shares shall be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *21*

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On *April 1, 2024,* the Company entered into Letter Agreements (collectively, the "Agreements") with (i) Harvest Small Cap Partners Master, Ltd. ("HSCPM"), (ii) Harvest Small Cap Partners, L.P. ("HSCP" and together with HSCPM, the "Harvest Funds"), and (iii) Trinad Capital Master Fund Ltd., a fund controlled by Mr. Ellin, the Company's Chief Executive Officer, Chairman, director and principal stockholder ("Trinad Capital" and collectively with the Harvest Funds, the "Holders"), the holders of the Company's Series A Perpetual Convertible Preferred Stock, par value $0.001 per share (the "Series A Preferred Stock"), with a stated value of $1,000 per share. Pursuant to the Agreements (i) the Holders converted approximately $11.4 million worth of shares of Series A Preferred Stock into shares of the Company's common stock, at a price of $2.10 per share, as follows: HSCPM converted 5,602.09 shares of Series A Preferred Stock into 2,667,664 shares of the Company's common stock, HSCP converted 2,397.91 shares of Series A Preferred Stock into 1,141,860 shares of the Company's common stock, and Trinad Capital converted 3,395.09 shares of Series A Preferred Stock into 1,616,709 shares of the Company's common stock (collectively, the "Shares"), and (ii) HSCPM, HSCP and Trinad Capital received 910,340, 389,660 and 535,399 three-year warrants to purchase the Company's common stock exercisable at a price of $2.10 per share (collectively, the "Warrants").

Each share of Series A Preferred Stock is entitled to receive cumulative dividends payable at a rate per annum of 12% of the Series A Stated Value. During the *three* months ended *June 30, 2025* and *2024*, the Company issued 426 and 378 shares of its Series A Preferred Stock as a dividend in accordance with terms of the Certificate of Designation. As of *June 30, 2025,* there were 14,428 shares of Series A Preferred Stock issued and outstanding, and 6,870,439 shares of the Company's common stock were underlying such shares of Series A Preferred Stock as of such date based on its conversion price.

*<u>LiveOne *2016* Equity Incentive Plan</u>*

The Company's board of directors and stockholders approved the Company's *2016* Equity Incentive Plan, as amended (the *"2016* Plan") which reserved a total of 12,600,000 shares of the Company's common stock for issuance. On *September 17, 2020,* our stockholders approved the amendment to the *2016* Plan to increase the number of shares available for issuance under the plan by 5,000,000 shares increasing the total up to 17,600,000 shares which the Company formally increased on *June 30, 2021.* Incentive awards authorized under the *2016* Plan include, but are *not* limited to, nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance grants intended to comply with Section *162*(m) of the Internal Revenue Code of *1986,* as amended (the "Code"), and stock appreciation rights. If an incentive award granted under the *2016* Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to the Company in connection with the exercise of an incentive award, the shares subject to such award and the surrendered shares will become available for further awards under the *2016* Plan.

The Company recognized share-based compensation expense of $1.5 million and $1.7 million during the *three* months ended *June 30, 2025* and *2024*, respectively. As of *June 30, 2025,* unrecognized compensation costs for unvested awards was $0.3 million, which is expected to be recognized over a weighted-average service period of 1.7 years. The total tax benefit recognized related to share-based compensation expense was none for each of the *three* months ended *June 30, 2025* and *2024*.

The following table summarizes the activity of our options issued under the *2016* Plan to employees during the *three* months ended *June 30, 2025:*

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted-Average*** |
|  |  | ***Exercise Price per*** |
|  | ***Number of Shares*** | ***Share*** |
| Outstanding as of March 31, 2025 | 2201667 | $3.72 |
| Granted |  |  |
| Exercised |  |  |
| Forfeited or expired | (3750) | $5.06 |
| Outstanding as of June 30, 2025 | 2197917 | $3.72 |
| Exercisable as of June 30, 2025 | 2195917 | $3.72 |

---

The following table summarizes the activity of our restricted stock units under the *2016* Equity Plan issued to employees during the *three* months ended *June 30, 2025:*

---

| | |
|:---|:---|
|  | ***Number of Shares*** |
| Outstanding as of March 31, 2025 | 493946 |
| Granted |  |
| Vested | (30763) |
| Cancelled | (29333) |
| Outstanding as of June 30, 2025 | 433850 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *22*

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*<u>PodcastOne *2022* Equity Plan</u>*

On *December 15, 2022,* PodcastOne's board of directors and the Company as the sole stockholder, through its wholly owned subsidiary, LiveXLive PodcastOne, Inc., approved PodcastOne's *2022* Equity Incentive Plan (the *"2022* Plan") which reserved a total of 2,000,000 shares of PodcastOne's common stock for issuance. Incentive awards authorized under the *2022* Plan include, but are *not* limited to, nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance grants intended to comply with Section *162*(m) of the Code and stock appreciation rights. If an incentive award granted under the *2022* Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to PodcastOne in connection with the exercise of an incentive award, the shares subject to such award and the surrendered shares will become available for further awards under the *2022* Plan.

The following table summarizes the activity of PodcastOne's restricted stock units issued to its employees under the *2022* Plan during the *three* months ended *June 30, 2025:*

---

| | |
|:---|:---|
|  | ***Number of*** |
|  | ***Shares*** |
| Nonvested as of March 31, 2025 | 232350 |
| Granted |  |
| Vested | (2500) |
| Forfeited or expired | (73500) |
| Nonvested as of June 30, 2025 | 156350 |

---

Unrecognized compensation costs for unvested PodcastOne restricted stock units issued to employees was $0.1 million, which is expected to be recognized over a weighted-average service period of 0.78 years.

 *<u>Non-</u> <u>Controlling</u> <u>Interest</u>*

On *September 8, 2023,* the Company completed its spin out of PodcastOne from the Company with PodcastOne becoming a standalone publicly trading company (the "Spin-Out"), as a result of which 4.3 million shares of PodcastOne common stock were issued to holders outside of the Company resulting in a non-controlling interest in PodcastOne of 21.64%. The stock dividend of 4.3 million shares was a non-reciprocal transfer between PodcastOne and non-LiveOne shareholders. As a result, the transaction was recorded as a change in non-controlling interest under ASC *810,* which resulted in an increase to non-controlling interest of $$1.5 million. In the Spin-Out, PodcastOne issued an additional 3.2 million shares to non-LVO holders primarily from the conversion of the *PC1* Bridge Loan which resulted in a non-controlling interest of 26.50%, resulting in an increase of $2.5 million to non-controlling interest within the accompanying condensed consolidated statement of stockholders' deficit and mezzanine equity during the year ended *March 31, 2024.* In addition, as a result of the completion of the Spin-Out and PodcastOne's shares of common stock being publicly traded, the variability in the terms of the warrants issued as part of the *PC1* Bridge Loan was resolved so that the warrants issued to purchase PodcastOne's common stock were reclassified to equity and classified within non-controlling interest in the amount of $5.9 million during the year ended *March 31, 2024.* The Company had a non-controlling interest of 29.18% as of *June 30, 2025*.

**Note *16*** — **Business Segments and Geographic Reporting**

The Company determined its operating segments in accordance with ASC *280.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *23*

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Beginning in the *second* quarter of Fiscal *2024,* management has determined that the Company has three operating segments (PodcastOne, Slacker and Media Group). The Audio Group consists of the Company's PodcastOne and Slacker subsidiaries and the Media Group consists of the Company's remaining subsidiaries. As a result of the Spin-Out of PodcastOne, the Company's chief operating decision maker ("CODM") began to make decisions and allocate resources based on *three* operating segments of the business (PodcastOne, Slacker and Media group). The Company's operating segments reflects the manner in which its CODM reviews results and allocates resources. The CODM reviews operating segment performance exclusive of share-based compensation expense, amortization of intangible assets, depreciation, and other expenses (including legal fees, expenses, and accruals) related to acquisitions, associated integration activities, and certain other non-cash charges.

The Company's *three* operating segments are also consistent with its internal organizational structure, which is the way the Company assesses operating performance and allocates resources.

*<u>Customers</u>*

The Company has *one* external customer that accounts for more than *10%* of its revenue and accounts receivable. Such original equipment manufacturer (the "OEM") provides premium Slacker service in its new vehicles. Total revenues from the OEM were $1.7 million and $17.5 million for the *three* months ended *June 30, 2025* and *2024*, respectively. Total receivables from the OEM were 9% and 29% of total accounts receivable as of *June 30, 2025* and *March 31, 2025*, respectively.

*<u>Segment and Geographic Information</u>*

The Company's operations are based in the United States. All material revenues of the Company are derived from the United States. All long-lived assets of the Company are located in the United States, of which $1.1 million resides in PodcastOne, $2.9 million in Slacker and $0.2 million is attributed to our Media Operations as of *June 30, 2025.* 

We manage our working capital on a consolidated basis. Accordingly, segment assets are *not* reported to, or used by, our management to allocate resources to or assess performance of our segments, and therefore, total segment assets and related depreciation and amortization have *not* been presented.

The following tables present the results of operations for our reportable segments for the *three* months ended *June 30, 2025* and *2024*:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***Three months ended*** | ***Three months ended*** | ***Three months ended*** | ***Three months ended*** | ***Three months ended*** |
|  | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** |
|  |  |  |  | ***Corporate*** |  |
|  | ***PodcastOne*** | ***Slacker*** | ***Media*** | ***expenses*** | ***Total*** |
| Revenue | $14994 | $3384 | $829 | $- | $19207 |
| Net income (loss) | $(1054) | $217 | $(991) | $(2036) | $(3864) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** |
|  | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  |  |  |  | **Corporate**  |  |
|  | **PodcastOne** | **Slacker** | **Media** | **expenses** | **Total** |
| Revenue | $13159 | $18704 | $1215 | $- | $33078 |
| Net income (loss) | $(1366) | $3352 | $(1391) | $(2152) | $(1557) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *24*

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*<u>Geographic Information</u>*

All material revenues of the Company are derived from the United States. All long-lived assets of the Company are located in the United States.

**Note *17*** — **Subsequent Events**

<u>*Equity Offering*</u>

On *July 15, 2025,* the Company entered into an underwriting agreement (the "Underwriting Agreement") with Lucid Capital Markets, LLC (the "Underwriter") pursuant to which the Company issued and sold to the Underwriter 13,608,334 shares (the "Shares") of the Company's common stock at an offering price of $0.75 per Share and which included the grant to the Underwriter of an option for the issuance and sales of up to 1,775,000 additional Shares (the "Option") to be sold by the Company (the "Offering"). The aggregate gross proceeds to the Company from the Offering was approximately $9.5 million (including the exercise of the Underwriter's Option), after deducting an underwriting discount of 7% of the price to the public, but before deducting expenses payable by the Company in connection with the Offering. Pursuant to the Underwriting Agreement the Company has also agreed to issue the Underwriter's common stock purchase warrants to purchase up to 4% of the securities sold in the Offering at an exercise price of $0.9375. On *July 16, 2025,* the Underwriter exercised the Option. The Offering, including the Option, closed on *July 17, 2025.*

The Company expects to use the net proceeds from the Offering to fund the acquisition of cryptocurrencies, the development and implementation of a cryptocurrency treasury strategy and for working capital and general corporate purposes.

<u>*Debentures Amendment*</u>

On *August 5, 2025,* the Company amended certain defined terms contained in the Initial Debentures issued to certain institutional Purchasers on *May 19, 2025,* to provide that the Company and/or its subsidiaries shall be permitted to purchase Bitcoin, Solana or Ethereum (collectively, "Crypto") up to an amount as agreed to by the parties from time to time in *one* or more transactions in accordance with the investment guidelines adopted by the Company from time to time and reasonably acceptable to the Purchasers (the "Guidelines"), and that the Company *may* retain *one* or more investment managers to engage in a Bitcoin yield strategy or other active management of any purchased Crypto in accordance with the Guidelines, in each case to further enable the Company to pursue its recently announced crypto asset treasury strategy. The terms of the Initial Debentures and other transactions documents entered into in connection therewith remain unchanged. Pursuant to the Security Agreement entered into by the parties in connection with the issuance of the Initial Debentures, the Purchasers will have a security interest in any purchased Crypto.

<u>*Preferred Stock Exchange*</u>

On *July 15, 2025,* the Company entered into letter agreements (collectively, the "Agreements") with the Harvest Funds and Trinad Capital Master Fund Ltd., a fund controlled by Mr. Ellin, the Company's Chief Executive Officer, Chairman, director and principal stockholder ("Trinad Capital" and collectively with the Harvest Funds, the "Holders"), the holders of the Company's Series A Preferred Stock, which has a stated value of $1,000 per share. Pursuant to the Agreements (i) the Harvest Funds exchanged $4,500,000 worth of its shares of Series A Preferred Stock into 3,000,000 shares of the Company's common stock, at a price of $1.50 per share, and Trinad Capital exchanged $2,250,000 worth of shares of its Series A Preferred Stock into 1,500,000 shares of the Company's common stock at the same price (collectively, the "Shares"), and (ii) the Harvest Funds and Trinad Capital received 3,000,000 and 1,500,000 three-year warrants to purchase the Company's common stock exercisable at a price of $0.01 per share (collectively, the "Warrants").

The Company further agreed, on or prior to the date that is 45 days after the Effective Date, to prepare and file with the SEC a Registration Statement on Form S-*3* (or such other form as applicable) covering the resale under the Securities Act of the Shares, the Warrants and the Warrant Shares. The Company agreed to use its commercially reasonable best efforts to cause such registration statement to be declared effective promptly thereafter on or before 45 days after the filing of such registration statement (or if the SEC issues any comments with respect to such registration statement, on or before 90 days after the filing of such registration statement). Upon effectiveness of such Registration Statement, the Company agreed to use its reasonable best efforts to keep the Registration Statement effective with the SEC for a period equal to three years from the Effective Date for the Warrants, and with respect to the Warrant Shares, so long as any Warrants are outstanding, and to supplement, amend and/or re-file such Registration Statement to comply with such effectiveness requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *25*

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**Item 2. Management**'**s Discussion and Analysis of Financial Condition and Results of Operations**

*As used herein,* "*LiveOne,*" *the* "*Company,*" "*we,*" "*our*" *or* "*us*" *and similar terms include LiveOne, Inc. and its subsidiaries, unless the context indicates otherwise. The following discussion and analysis of our business and results of operations for the three months ended June 30, 2025, and our financial conditions at that date, should be read in conjunction with our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q (this* "*Quarterly Report*"*).*

**Forward-Looking Statements**

Certain statements contained in this Quarterly Report that are not statements of historical fact constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified. These forward-looking statements relate to expectations or forecasts for future events, including without limitation our earnings, revenues, expenses or other future financial or business performance or strategies, or the impact of legal or regulatory matters on our business, results of operations or financial condition. These statements may be preceded by, followed by or include the words "may," "might," "will," "would," "could," "should," "will likely result," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or the negative or other variations thereof or comparable terminology. These forward-looking statements are not guarantees of future performance and are based on information available to us as of the date of this Quarterly Report and on our current expectations, forecasts and assumptions, and involve substantial risks and uncertainties. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to a variety of factors, including: our reliance on our largest OEM customer for a substantial percentage of our revenue; our ability to consummate any proposed financing, acquisition, spin-out, special dividend, distribution or transaction, including the proposed special dividend and spin-out of our pay-per-view business, the timing of the consummation of such proposed event, including the risks that a condition to consummation of such proposed event would not be satisfied within the expected timeframe or at all or that the consummation of any proposed financing, acquisition, spin-out, special dividend, distribution or transaction, the timing of the consummation of such proposed event will not occur; our ability to continue as a going concern; our reliance on one key customer for a substantial percentage of our revenue; if and when required, our ability to obtain additional capital, including to fund our current debt obligations and to fund potential acquisitions and capital expenditures; our ability to attract, maintain and increase the number of our users and paid members; our ability to identify, acquire, secure and develop content; our ability to successfully implement our growth strategy, our ability to acquire and integrate our acquired businesses, the ability of the combined business to grow, including through acquisitions which we are able to successfully integrate, and the ability of our executive officers to manage growth profitably; uncertain and unfavorable outcome(s) of any legal proceedings pending or that may be instituted against us, our subsidiaries, or third parties to whom we owe indemnification obligations and/or our ability to pay any amounts due in connection with any such legal proceedings; changes in laws or regulations that apply to us or our industry; our ability to recognize and timely implement future technologies in the music and live streaming space; our ability to capitalize on investments in developing our service offerings, including the LiveOne App to deliver and develop upon current and future technologies; significant product development expenses associated with our technology initiatives; our ability to deliver end-to-end network performance sufficient to meet increasing customer demands; our ability to timely and economically obtain necessary approval(s), releases and or licenses on a timely basis for the use of our music content on our service platform; our ability to obtain and maintain international authorizations to operate our service over the proper foreign jurisdictions our customers utilize; our ability to expand our service offerings and deliver on our service roadmap; our ability to timely and cost-effectively produce, identify and or deliver compelling content that brands will advertise on and or customers will purchase and or subscribe to across our platform; general economic and technological circumstances in the music and live streaming digital markets; our ability to obtain and maintain licenses for content used on our music platforms; the loss of, or failure to realize benefits from, agreements with our music labels, publishers and partners; unfavorable economic conditions in our industry and economy as a whole; our ability to expand our domestic or international operations, including our ability to grow our business with current and potential future music labels, festivals, publishers, or partners; the effects of service interruptions or delays, technology failures, material defects or errors in our software, damage to our equipment or geopolitical restrictions; costs associated with defending pending or future intellectual property infringement actions and other litigation or claims and/or our ability to pay any amounts due in connection with any such litigation or claims; increases in our projected capital expenditures due to, among other things, unexpected costs incurred in connection with the roll out of our technology roadmap or our plans of expansion in North America and internationally; fluctuation in our operating results; the demand for live and music streaming services and market acceptance for our products and services; our ability to generate sufficient cash flow to make payments on our indebtedness; our incurrence of additional indebtedness in the future; our ability to extend and/or refinance our indebtedness and/or repay our indebtedness when due; the effect of the conditional conversion feature of our Series A Preferred Stock; our compliance with the covenants in our debt agreements; our intent to repurchase shares of our and/or PodcastOne's common stock from time to time under our announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; risks and uncertainties applicable to the businesses of our subsidiaries; and other risks and uncertainties set forth herein. Other factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, those set forth below in Part II – Item 1A. Risk Factors of this Quarterly Report and in Part I – Item 1A. Risk Factors of our 2025 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the "SEC") on July 15, 2025 (the "2025 Form 10-K"), as well as other factors and matters described herein or in the annual, quarterly and other reports we file with the SEC. Except as required by law, we do not undertake any obligation to update forward-looking statements as a result of as a result of new information, future events or developments or otherwise.

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**Overview of the Company**

We are a pioneer in the acquisition, distribution and monetization of live music, Internet radio, podcasting and music-related streaming and video content. Our principal operations and decision-making functions are located in North America. We manage and report our businesses as three operating segments. Our senior management regularly reviews our operating results, principally to make decisions about how we allocate our resources and to measure our segments and consolidated operating performance. In prior fiscal years we generated a majority of our revenue primarily through membership services from our streaming radio and music services and to a lesser extent, through advertising and licensing across our music platform. In May 2020, we launched a new pay-per-view ("PPV") offering enabling new forms of artist revenue including digital tickets, tipping, digital meet and greets, merchandise sales and sponsorship. In July 2020, we entered the podcasting business with the acquisition of PodcastOne and in December 2020, we entered the merchandising business with the acquisition of CPS. Through the operations of our DayOne Music Publishing, Drumify and Splitmind subsidiaries, we operate our music publishing and artist and brand development businesses.

For the three months ended June 30, 2025 and 2024, we reported revenue of $19.2 million and $33.1 million, respectively. We have one customer that accounted for 9% and 53% of our revenue during the three months ended June 30, 2025 and 2024 The customer is an original equipment manufacturer (the "OEM") whose in-car music dashboard contains LiveOne music streaming button/icon, which allows OEM customers to directly connect their subscription to LiveOne. In the three months ended June 30, 2025 and 2024, total revenue from the OEM was $1.7 million and $17.5 million, respectively.

**Recent Developments**

In May 2025, we and PodcastOne entered into a Securities Purchase Agreement with certain institutional investors (the "Purchasers"), pursuant to which we sold to the Purchasers our Original Issue Discount Senior Secured Convertible Debentures in an aggregate principal amount of $16,775,000 for an aggregate cash purchase price of $15,250,000.

On July 15, 2025, holders of our Series A Preferred Stock exchanged $6.75 million of their Series A Preferred Stock into shares of our common stock at a price of $1.50 per share and were issued accompanying warrants.

On July 16, 2025, in connection with the anticipated closing of the public offering discussed below, we announced our intent to launch our bitcoin yield treasury strategy, as part of our board of directors' approval of our up to $500 million crypto asset treasury strategy.

On July 17, 2025, we completed an underwritten public offering of shares of our common stock for aggregate gross proceeds to us of approximately $9.5 million (including the exercise of the underwriter's option), after deducting an underwriting discount, but before other offering expenses. We expect to use the net proceeds from the public offering to fund the acquisition of cryptocurrencies, the development and implementation of our cryptocurrency treasury strategy and for working capital and general corporate purposes.

**Basis of Presentation**

The following discussion and analysis of our business and results of operations and our financial conditions is presented on a consolidated basis. In addition, a brief description is provided of significant transactions and events that have an impact on the comparability of the results being analyzed.

**Opportunities, Challenges and Risks**

During our three months ended June 30, 2025 we derived 7% of our revenue from paid memberships and $79% from advertising and the remainder from merchandising and licensing.

We believe our operating results and performance are, and will continue to be, driven by various factors that affect the music industry. Our ability to attract, grow and retain users to our platform is highly sensitive to rapidly changing public music preferences and technology and is dependent on our ability to maintain the attractiveness of our platform, content and reputation to our customers. Beyond fiscal year 2024, the future revenue and operating growth across our music platform will rely heavily on our ability to grow our member base in a cost effective manner, continue to develop and deploy quality and innovative new music services, provide unique and attractive content to our customers, continue to grow the number of listeners on our platform and live music festivals we stream, grow and retain customers and secure sponsorships to facilitate future revenue growth from advertising and e-commerce across our platform.

As our music platform continues to evolve, we believe there are opportunities to expand our services by adding more content in a greater variety of formats such as podcasts and video podcasts, extending our distribution to include pay television, OTT and social channels, deploying new services for our members, artist merchandise and live music event ticket sales, and licensing user data across our platform. Our acquisitions of PodcastOne and CPS are reflective of our flywheel operating model. Conversely, the evolution of technology presents an inherent risk to our business. Today, we see large opportunities to expand our music services within North America and other parts of the world where we will need to make substantial investments to improve our current service offerings. As a result, and during the fiscal year ending March 31, 2026, we will continue to invest in product and engineering to further develop our future music apps and services, and we expect to continue making significant product development investments to our existing technology solutions over the next 12 to 24 months to address these opportunities.

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On October 1, 2024, we announced an amended relationship with our largest OEM customer. Effective December 1, 2024, the OEM customer no longer subsidizes our products to some of its customers, however, we offer all OEM customer vehicles in North America the opportunity to convert to become direct subscribers of our LiveOne music app. The direct subscription to our LiveOne app allows such users for the first time to access their LiveOne music and LiveOne's other service offerings directly across all of their devices. Our LiveOne music streaming button/icon, which allows users to directly connect their subscription to LiveOne, is expected to remain in the OEM customer's music streaming services dashboard in perpetuity. As a result, we believe that we now have a unique opportunity to convert as many of such OEM's drivers as possible to a higher priced LiveOne subscription service creating a meaningful upside opportunity for us, and we are working in good faith with such OEM customer to convert as many of these drivers as possible. The OEM customer will continue to pay us monthly for qualifying grandfathered vehicles for the term of the OEM license agreement.

As our platform matures, we also expect our Contribution Margins\*, adjusted earnings before income tax, depreciation and amortization ("Adjusted EBITDA")\* and Adjusted EBITDA Margins\* to improve in the near and long term, which are non-GAAP measures as defined in section following below titled, "Non-GAAP Measures". Historically, our live events business has not generated enough direct revenue to cover the costs to produce such events, and as a result generated negative Contribution Margins\*, Adjusted EBITDA\*, Adjusted EBITDA Margins\* and operating losses. Historically, we produced and digitally distributed the live music performances of many of these large global music events to fans all around the world.

Growth in our music services is also dependent upon our ability to convert as many of the OEM drivers as possible to become direct subscribers of our LiveOne app, the number of customers that use and pay for our services, the attractiveness of our music platform to sponsors and advertisers and our ability to negotiate favorable economic terms with music labels, publishers, artists and/or festival owners, and the number of consumers who use our services. Growth in our margins is heavily dependent on our ability to convert as many of the OEM drivers as possible to become direct subscribers of our LiveOne app and to otherwise grow our membership base in a cost-efficient manner, coupled with the managing the costs associated with implementing and operating our services, including the costs of licensing music with the music labels, producing, streaming and distributing video and audio content and sourcing and distributing personalized products and gifts. Our ability to attract and retain new and existing customers will be highly dependent on our ability to convert as many of the OEM drivers as possible to become direct subscribers of our LiveOne app, on our ability to execute on our B2B opportunities pipeline that would allow us to convert as many of their customers as we can into direct subscribers of our LiveOne app and to implement and continually improve upon our technology and services on a timely basis and continually improve our network and operations as technology changes and as we experience increased network capacity constraints as we continue to grow.

For the quarter ended June 30, 2025 and 2024, all material amounts of our revenue were derived from customers located in the United States and moreover, our largest OEM customer accounted for 9% and 53% of our consolidated revenue, respectively. This significant concentration of revenue from one customer poses risks to our operating results, and any change in the means this customer utilizes our services beyond June 30, 2025 could cause our revenue to fluctuate significantly.

In the long term, we plan to expand our business internationally in places such as Europe, Asia Pacific and Latin America, and as a result will continue to incur significant incremental upfront expenses associated with these growth opportunities.

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**Consolidated Results of Operations**

***Three Months Ended June 30, 2025, as compared to Three Months Ended June 30, 2024***

The following tables set forth our results of operations for the periods presented. The period-to-period comparison of financial results is not necessarily indicative of future results (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| **Revenue:** | $19207 | $33078 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Cost of sales | 16825 | 25087 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 1261 | 1431 |
| &nbsp;&nbsp;&nbsp; Product development | 934 | 1071 |
| &nbsp;&nbsp;&nbsp; General and administrative | 4076 | 5505 |
| Impairment of intangibles |  | 176 |
| &nbsp;&nbsp;&nbsp; Amortization of intangible assets | 145 | 592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 23241 | 33862 |
| **Income (loss) from operations** | (4034) | (784) |
| **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense, net | (687) | (859) |
| &nbsp;&nbsp;&nbsp; Other expense | 857 | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense), net | 170 | (724) |
| **(Loss) income before income taxes** | (3864) | (1508) |
| Provision for (benefit from) income taxes |  | 49 |
| **Net loss** | (3864) | (1557) |
| Net loss attributable to non-controlling interest | (271) | (388) |
| Net loss attributed to LiveOne | $(3593) | $(1169) |
| **Net loss per share - basic and diluted** | $(0.04) | $(0.01) |
| **Weighted average common shares – basic and diluted** | 96741899 | 94419692 |

---

The following table sets forth the depreciation expense included in the above line items (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Depreciation expense |  |  |  |
| &nbsp;&nbsp;&nbsp; Cost of sales | $23 | $37 | -38% |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 73 | 66 | 11% |
| &nbsp;&nbsp;&nbsp; Product development | 583 | 461 | 26% |
| &nbsp;&nbsp;&nbsp; General and administrative | (678) | 256 | -365% |
| Total depreciation expense | $1 | $820 | -100% |

---

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The following table sets forth the stock-based compensation expense included in the above line items (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Stock-based compensation expense |  |  |  |
| &nbsp;&nbsp;&nbsp; Cost of sales | $1020 | $315 | 224% |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 18 | (40) | -145% |
| &nbsp;&nbsp;&nbsp; Product development | 53 | 118 | -55% |
| &nbsp;&nbsp;&nbsp; General and administrative | 365 | 1307 | -72% |
| Total stock-based compensation expense | $1456 | $1700 | -14% |

---

The following table sets forth our results of operations, as a percentage of revenue, for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Revenue | 100% | 100% |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp; Cost of sales | 88% | 76% |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 7% | 4% |
| &nbsp;&nbsp;&nbsp; Product development | 5% | 3% |
| &nbsp;&nbsp;&nbsp; General and administrative | 21% | 17% |
| Impairment of intangibles | 0% | 1% |
| &nbsp;&nbsp;&nbsp; Amortization of intangible assets | 1% | 2% |
| Total operating expenses | 121% | 102% |
| (Loss) income from operations | -21% | -2% |
| Other income (expense), net | 1% | -2% |
| Income (loss) before income taxes | -20% | -5% |
| Income tax provision (benefit) | 0% | 0% |
| Net loss | -20% | -5% |
| Net loss attributable to non-controlling interest | -1% | -1% |
| Net loss attributed to LiveOne | -19% | -4% |

---

***Revenue***

Revenue was as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| &nbsp;&nbsp;&nbsp; Membership services | $3325 | $18850 | -82% |
| &nbsp;&nbsp;&nbsp; Advertising | 15093 | 13074 | 15% |
| &nbsp;&nbsp;&nbsp; Merchandising | 789 | 1154 | -32% |
| Total Revenue | $19207 | $33078 | -42% |

---

*Membership Revenue*

Membership revenue decreased $15.5 million, or 82%, to $3.3 million for the three months ended June 30, 2025, as compared to $18.9 million for the three months ended June 30, 2024. The decrease was primarily a result of the change in terms with our largest OEM customer. Beginning on December 1, 2024, we began converting customers directly to our LiveOne music app as our largest OEM customer no longer subsidized our product.

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*Advertising Revenue*

Advertising revenue increased $2.0 million, or 15%, to $15.1 million for the three months ended June 30, 2025, as compared to $13.1 million for the three months ended June 30, 2024, which is primarily attributable to growth in our barter revenue which increased $1.0 million quarter-over-quarter.

*Merchandising*

Merchandising revenue decreased $0.4 million, or 32%, to 0.8 million for the three months ended June 30, 2025, as compared to $1.2 million the three months ended June 30, 2024, which is due to a reduction in demand from both retail partners and our direct to consumer merchandising business.

***Cost of Sales***

Cost of sales was as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| &nbsp;&nbsp;&nbsp; Membership | $2504 | 12165 | -79% |
| &nbsp;&nbsp;&nbsp; Advertising | 13691 | 11846 | 16% |
| &nbsp;&nbsp;&nbsp; Production and Ticketing | 558 | 68 | 721% |
| &nbsp;&nbsp;&nbsp; Merchandising | 72 | 1008 | -93% |
| Total Cost of Sales | $16825 | $25087 | -33% |

---

*Membership*

Membership cost of sales decreased by $9.7 million, or 79%, to $2.5 million for the three months ended June 30, 2025, as compared to $12.2 million for the three months ended June 30, 2024. The decrease was in line with the lower membership revenues noted above.

*Advertising*

Advertising cost of sales increased by $1.8 million, or 16%, to $13.7 million for the three months ended June 30, 2025, as compared to $11.8 million for the three months ended June 30, 2024. The increase was primarily attributable to growth in our revenue share expense which is in line with increases in revenue noted above.

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*Production and Ticketing*

Production cost of sales increased by $0.5 million, or 721%, to $0.6 million for the three months ended June 30, 2025, as compared to $0.1 million for the three months ended June 30, 2024. The increase can be attributed to additional resourced hired to close out some of the operations.

*Merchandising*

Merchandising cost of sales decreased by $0.9 million, or 93%, to $0.1 million for the three months ended June 30, 2025, as compared to $1.0 million for the three months ended June 30, 2024 due to the Company purchasing a higher amount of merchandise in the prior year based on higher demand.

***Other Operating Expenses***

*Other operating expenses were as follows (in thousands):*

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Sales and marketing expenses | $1261 | $1431 | -12% |
| Product development | 934 | 1071 | -13% |
| General and administrative | 4076 | 5505 | -26% |
| Impairment of intangible assets |  | 176 | -100% |
| Amortization of intangible assets | 145 | 592 | -76% |
| Total Other Operating Expenses | $6416 | $8775 | -27% |

---

*Sales and Marketing Expenses*

Sales and Marketing expenses decreased by $0.2 million, or 12%, to $1.3 million for the three months ended June 30, 2025, as compared to $1.4 million for the three months ended June 30, 2024, primarily driven by employee costs.

*Product Development*

Product development expenses increased by $0.1 million, or 13%, to $1.0 million for the three months ended June 30, 2025, as compared to $1.1 million for the three months ended June 30, 2024, which was driven by an increase in employee costs.

*General and Administrative*

General and administrative expenses decreased by $1.4 million, or 26%, to $4.1 million for the three months ended June 30, 2025, as compared to $5.5 million for the three months ended June 30, 2024, largely due to a decrease in depreciation of $0.9 million as a result of impairments to long lived assets in the fourth quarter of our fiscal year ended March 31, 2025 ("fiscal 2025").

*Impairment of Intangible Assets*

Impairment of intangible assets decreased $0.2 million to none for the three months ended June 30, 2025, as compared to $0.2 million for the three months ended June 30, 2024, which is attributed to the impairment of intangible assets of PodcastOne (see Note 4 – Goodwill and Intangible Assets to our condensed consolidated financial statements included elsewhere in this Quarterly Report).

A*mortization of Intangible Assets*

Amortization of intangible assets decreased by $0.4 million, or 76%, to $0.1 million for the three months ended June 30, 2025, as compared to $0.6 million for the three months ended June 30, 2024. The decrease can be attributed to a portion of the intangible assets reaching their full lives of amortization and impairments recorded in the fourth quarter of fiscal 2025.

***Total Other Income (Expense)***

*Total other income (expense) was as follows (in thousands):*

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Total other income (expense), net | $170 | $(724) | -123% |

---

Total other expense decreased by $0.9 million, or 123%, to income of $0.2 million for the three months ended June 30, 2025, as compared to $0.7 million of expense for the three months ended June 30, 2024. The decrease is primarily driven by a reduction of interest expense due to the pay down of the line of credit.

***Net Income (Loss) Attributable to Non-Controlling Interests***

Net loss attributable to non-controlling interests for the three months ended June 30, 2025 was $0.3 million compared to $0.4 million for the three months ended June 30, 2024, which resulted from the Spin-Out of PodcastOne.

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**Business Segment Results**

***Three Months Ended June 30, 2025, as compared to Three Months Ended June 30, 2024***

**Audio Group - PodcastOne Operations**

Our Audio Group Operations, which include our PodcastOne operating results were, and discussions of significant variances are, as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Revenue | $14994 | $13159 | 14% |
| Cost of Sales | 13555 | 11709 | 16% |
| Sales & Marketing, Product Development and G&A | 2011 | 2263 | -11% |
| Intangible Asset Amortization | 125 | 553 | -77% |
| Operating Income (Loss) | $(697) | $(1366) | -49% |
| Operating Margin | -5% | -10% | -55% |
| Adjusted EBITDA\* | $580 | $(316) | -284% |
| Adjusted EBITDA Margin\* | 4% | -2% | 6% |

---

\* See "—Non-GAAP Measures" below for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin.

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*Revenue*

Revenue increased $1.8 million, or 14%, during the three months ended June 30, 2025, primarily due to increased advertising.

*Operating Income (Loss)*

Operating loss decreased by $0.7 million or 49%, for the three months ended June 30, 2025, as the increase in revenue was complimented by the decrease in operating expenses due to growing the business.

*Adjusted EBITDA*

Adjusted EBITDA\* increased by $0.9 million, or 284%, to $0.6 million for the three months ended June 30, 2025, as compared to $(0.3) million for the three months ended June 30, 2024. This was largely due to an increase in revenue and expenses.

**Audio Group - Slacker Operations**

Our Audio Group Operations, which include our Slacker operating results were, and discussions of significant variances are, as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Revenue | $3384 | $18704 | -82% |
| Cost of Sales | 2641 | 12302 | -79% |
| Sales & Marketing, Product Development and G&A | 921 | 2120 | -57% |
| Intangible Asset Amortization | 18 | 89 | -80% |
| Operating Income (Loss) | $(196) | $4193 | -105% |
| Operating Margin | -6% | 22% | -126% |
| Adjusted EBITDA\* | $(191) | $5425 | -104% |
| Adjusted EBITDA Margin\* | -6% | 29% | -35% |

---

\* See "—Non-GAAP Measures" below for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin.

*Revenue*

Revenue decreased $15.3 million, or 82%, during the three months ended June 30, 2025, primarily due to a change in terms with our largest OEM customer.

*Operating Income (loss)*

Operating income decreased by $4.4 million, or 105%, for the three months ended June 30, 2025, driven by the decrease in revenue which was higher than the reduction in operating expenses.

*Adjusted EBITDA*

Adjusted EBITDA\* decreased by $5.6 million, or 104%, to $(0.2) million for the three months ended June 30, 2025, as compared to $5.4 million for the three months ended June 30, 2024. This was largely due to lower revenue achieved for the three months ended June 30, 2025, which resulted in a lower Contribution Margin in the current period.

**Media Group Operations**

Our Media Group Operations which consist of all of our other operating subsidiaries outside of PodcastOne and Slacker operating results were, and discussions of significant variances are, as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **% Change** |
| Revenue | $829 | $1215 | -32% |
| Cost of Sales | 629 | 1076 | -42% |
| Sales & Marketing, Product Development and G&A | 1160 | 1200 | -3% |
| Intangible Asset Amortization | 2 | 126 | -98% |
| Operating Income (Loss) | $(962) | $(1187) | -19% |
| Operating Margin | -116% | -98% | 19% |
| Adjusted EBITDA\* | $(715) | $(628) | 14% |
| Adjusted EBITDA Margin\* | -86% | -52% | -35% |

---

\* See "—Non-GAAP Measures" below for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin.

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*Revenue*

Revenue decreased $0.4 million, or 32%, to $0.8 million during the three months ended June 30, 2025, as compared to $1.2 million for the three months June 30, 2024, primarily due to decrease in merchandising revenue due to a reduction in demand from both retail partners and our direct to consumer business.

*Operating Income (Loss)*

Operating loss decreased by $0.2 million, or 19%, to $1.0 million for the three months ended June 30, 2025 from $1.2 million for the three months ended June 30, 2024, as a result of an increase in Contribution Margin coupled with the decrease in expenses due to a decrease in general and administrative expenses.

*Adjusted EBITDA*

Adjusted EBITDA\* loss decreased by $0.1 million, or 14%, to a $(0.7) million loss for the three months ended June 30, 2025, as compared to a $(0.8) million loss for the three months June 30, 2024. This was largely due to the decrease in revenue compared to the prior year.

**Corporate expense**

Our Corporate operating results and discussions of significant variances are, as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **%** |
|  | **Three months ended** | **Three months ended** | **Change** |
|  | **June 30,** | **June 30,** | **2025 vs.** |
|  | **2025** | **2024** | **2024** |
| Sales & Marketing, Product Development, and G&A | $2179 | $2424 | -10% |
| Operating Loss | $(2179) | $(2424) | -10% |
| Operating Margin | N/A | N/A | -% |
| Adjusted EBITDA\* | $(1486) | $(1578) | -6% |

---

\* See "—Non-GAAP Measures" below for the definition and reconciliation of Adjusted EBITDA.

*Operating Loss*

Operating loss decreased by $0.2 million, or 10%, to $2.2 million for the three months ended June 30, 2025, as compared to $2.4 million for the three months ended June 30, 2024, largely due to a decrease in employee costs.

*Adjusted EBITDA*

Corporate Adjusted EBITDA\* loss increased $0.1 million, or 14%, to $(0.7) million for the three months ended June 30, 2025 as compared to $(0.6) million for the three months ended June 30, 2024. The decrease was largely due to the increase in costs noted above.

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**Non-GAAP Measures**

*Contribution Margin*

Contribution Margin is a non-GAAP financial measure defined as Revenue less Cost of Sales before share-based compensation, depreciation and amortization of developed technology.

*Adjusted EBITDA*

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date, (e) depreciation and amortization (including goodwill impairment, if any), and (f) certain stock-based compensation expense. We use Adjusted EBITDA to evaluate the performance of our operating segment. We believe that information about Adjusted EBITDA assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.

*Adjusted EBITDA Margin*

Adjusted EBITDA Margin is a non-GAAP financial measure that we define as the ratio of Adjusted EBITDA to Revenue.

The following table sets forth the reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP financial measure for the three months ended June 30, 2025 and 2024 (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Non-** |  |  |  |
|  |  |  |  | **Recurring** |  |  |  |
|  | **Net** | **Depreciation** |  | **Acquisition and** | **Other** | **(Benefit)** |  |
|  | **Income** | **and** | **Stock-Based** | **Realignment** | **(Income)** | **Provision** | **Adjusted** |
|  | **(Loss)** | **Amortization** | **Compensation** | **Costs** | **Expense** | **for Taxes** | **EBITDA** |
| **Three Months Ended June 30, 2025** |  |  |  |  |  |  |  |
| Operations – PodcastOne | $(1054) | $152 | $1465 | $17 | $- | $- | $580 |
| Operations – Slacker | 217 | 71 | 92 | (10) | (561) |  | (191) |
| Operations – Other | (991) | 66 | 181 |  | 29 |  | (715) |
| Corporate | (2036) |  | (282) | 470 | 362 |  | (1486) |
| Total | $(3864) | $289 | $1456 | $477 | $(170) | $- | $(1812) |
| **Three Months Ended June 30, 2024** |  |  |  |  |  |  |  |
| Operations – PodcastOne | $(1366) | $619 | $394 | $37 | $- | $- | $(316) |
| Operations – Slacker | 3352 | 750 | 505 | 146 | 672 |  | 5425 |
| Operations – Other | (1391) | 217 | 318 | 197 | 31 |  | (628) |
| Corporate | (2152) | 2 | 483 | 19 | 21 | 49 | (1578) |
| Total | $(1557) | $1588 | $1700 | $399 | $724 | $49 | $2903 |

---

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The following table sets forth the reconciliation of Contribution Margin to Revenue, the most comparable GAAP financial measure (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| **Revenue:** | $19207 | $33078 |
| Less: |  |  |
| Cost of sales | (16825) | (25087) |
| Amortization of developed technology | (212) | (775) |
| &nbsp;&nbsp;&nbsp; **Gross Profit** | **2170** | **7216** |
| Add back: |  |  |
| Share-based compensation | 932 |  |
| Depreciation | 23 |  |
| Developed technology | 212 | 775 |
| &nbsp;&nbsp;&nbsp; **Contribution Margin** | $**2382** | $**7991** |

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**Liquidity and Capital Resources**

**Current Financial Condition**

As of June 30, 2025, our principal sources of liquidity were our cash and cash equivalents, including restricted cash balances in the amount of $11.9 million, which primarily are invested in cash in banking institutions in the U.S. The vast majority of our cash proceeds were received as a result of our operations, incurrence of debt, the issuance of convertible notes and public offerings of our common shares. As of June 30, 2025, we have a convertible note balance of $15.3 million, the Capchase Loan (as defined below) of $0.5 million and an SBA loan balance of $0.1 million.

As reflected in our condensed consolidated financial statements included elsewhere in this Quarterly Report, we have a history of losses and incurred a net loss of $3.6 million for the three months ended June 30, 2025, and cash used in operating activities of $3.0 million for the three months ended June 30, 2025 and had a working capital deficiency of $11.0 million as of June 30, 2025. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year from the date that the financial statements are issued. Our condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to execute our strategy and on our ability to raise additional funds through the sale of equity and/or debt securities via public and/or private offerings.

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On October 1, 2024, we announced an amended relationship with our largest OEM customer. Effective December 1, 2024, the OEM customer no longer subsidizes our products to some of its customers, however, we offer all OEM customer vehicles in North America the opportunity to convert to become direct subscribers of our LiveOne music app. The direct subscription to our LiveOne app allows such users for the first time to access their LiveOne music and LiveOne's other service offerings directly across all of their devices. Our LiveOne music streaming button/icon, which allows users to directly connect their subscription to LiveOne, is expected to remain in the OEM customer's music streaming services dashboard in perpetuity. The OEM customer will continue to pay us monthly for grandfathered vehicles for the term of the OEM license agreement. Accordingly, the change in our relationship with the OEM customer in October 2024 is likely to cause our liquidity and cash flows to fluctuate significantly beyond June 30, 2025. Our liquidity will depend upon our ability to convert as many of the OEM drivers as possible to become direct subscribers of our LiveOne app and the OEM customer continuing to pay for any grandfather users, as well as our ability to enter into new B2B agreements to provide our services that could materially contribute to our liquidity and cash flows. In addition, our liquidity will depend on our ability to negotiate with our music labels, publishers and other partners to achieve flexibility in the terms of our license agreements to match our OEM driver conversions. Furthermore, our liquidity will be dependent on our ability to extend and/or refinance the terms of our senior secured line of credit and/or our ability to pay any amounts that we have agreed to pay under the SX Settlement Agreement.

Our long-term ability to continue as a going concern is dependent upon our ability to increase revenue, reduce costs, achieve a satisfactory level of profitable operations, and obtain additional sources of suitable and adequate financing. Our ability to continue as a going concern is also dependent its ability to further develop and execute on our business plan. We may also have to reduce certain overhead costs through the reduction of salaries and other means and settle liabilities through negotiation. There can be no assurance that management's attempts at any or all of these endeavors will be successful.

**Sources of Liquidity** 

On September 8 2023, we entered into a Business Loan Agreement (the "2023 Business Loan Agreement") with our then senior lender, to convert our then existing revolving credit facility into an assets backed loan credit facility, which is continued to be collateralized by a first lien on all of the assets of our Company and our subsidiaries (the "ABL Credit Facility"). The 2023 Business Loan Agreement provided us with borrowing capacity of up to the Borrowing Base (as defined in the 2023 Business Loan Agreement). On May 31, 2024, we extended the maturity date of the ABL Credit Facility to September 2, 2024. On January 28, 2025, we entered into a new Business Loan Agreement (the "2025 Business Loan Agreement") with such lender to update certain terms of the ABL Credit Facility, including to reduce the principal amount outstanding under the Promissory Note to $3,750,000, reflected in our repayment of $3,250,000 of the principal amount of the Promissory Note as of such date, and to extend the maturity date of the Promissory Note to November 20, 2025.

In August 2023, we entered into a Loan and Security Agreement with Capchase Inc. ("Capchase") pursuant to which we borrowed $1.7 million to further develop and acquire certain podcasts acquired by PodcastOne and for general working capital (the "Capchase Loan"). The Capchase Loan is subordinated to the ABL Credit Facility and bears an interest rate of 9%, which is included in the monthly amortization payments of approximately $73,100, with the final amortization payment due on February 4, 2026.

On May 19, 2025 (the "Closing Date"), we and PodcastOne entered into a Securities Purchase Agreement (the "SPA") with certain institutional investors (each, a "Purchaser" and collectively, the "Purchasers"), pursuant to which (i) we sold to the Purchasers our Original Issue Discount Senior Secured Convertible Debentures (the "Initial Debentures") in an aggregate principal amount of $16,775,000 for an aggregate cash purchase price of $15.25 million, and (ii) if certain conditions are satisfied as set forth in the SPA, including at least one of the Conditions (as defined below), we may sell at its option to the Purchasers our additional Original Issue Discount Senior Secured Convertible Debentures in an aggregate principal amount of $11,000,000 on substantially the same terms as the Initial Debentures (the "Additional Debentures" and collectively with the Initial Debentures, the "Debentures"), in a private placement transaction. The Debentures are convertible into shares of our common stock at the holder's option at a conversion price of $2.10 per share, subject to certain customary adjustments such as stock splits, stock dividends and stock combinations. We may sell to the Purchasers the Additional Debentures if within 15 months of the Closing Date either of the following conditions have been satisfied during such 15-month period (the "Conditions"): (x) the VWAP (as defined in the SPA) of the common stock has been equal to or greater than $4.20 per share (subject to certain customary adjustments such as stock splits, stock dividends and stock combinations) for 30 consecutive trading days, or (y) Free Cash Flow (as defined in the SPA) has been equal to or greater to $3,000,000 for three consecutive fiscal quarters, and has increased in each of the foregoing quarters from the immediately preceding fiscal quarter. The Initial Debentures mature on May 19, 2028 and accrue interest at 11.75% per year. Commencing with the calendar month of August 2025 (subject to the following sentence), the holders of the Initial Debentures will have the right, at their option, to require us to redeem an aggregate of up to $100,000 of the outstanding principal amount of the Debentures per month. For the month of August 2025, the holders may not submit a redemption notice for such a redemption prior to August 18, 2025. Commencing from November 18, 2025, May 18, 2026 and May 18, 2027, the holders of the Initial Debentures will have the right, at their option, to require us to redeem an aggregate of up to $150,000, $250,000 and $300,000, respectively, of the outstanding principal amount of the Initial Debentures per month.

Subject to the satisfaction of certain conditions, including applicable prior notice to the holders of the Initial Debentures, at any time after May 19, 2026, we may elect to prepay all, but not less than all, of the then outstanding Initial Debentures for a prepayment amount equal to the outstanding principal balance of then outstanding Initial Debentures plus all accrued and unpaid interest thereon, together with a prepayment premium equal to the following (the "Prepayment Premium"): (a) if the Initial Debentures are prepaid after May 19, 2026, but on or prior to May 19, 2027, 5% of the entire outstanding principal balance of the outstanding Initial Debentures (or the applicable portion thereof required to be prepaid by us); and (c) if the Initial Debentures are prepaid on or after May 19, 2027, but prior to the maturity date of the Initial Debentures, 4% of the entire outstanding principal balance of then outstanding Initial Debentures (or the applicable portion thereof required to be prepaid by us). Subject to the satisfaction of certain conditions, we shall be required to prepay the entire outstanding principal amount of all of then outstanding Initial Debentures in connection with a Change of Control Transaction (as defined in the Initial Debentures) for a prepayment amount equal to the outstanding principal balance of then outstanding Initial Debentures, plus all accrued and unpaid interest thereon, plus the applicable Prepayment Premium based on when such Change of Control Transaction occurs within the period set forth above applicable to such Prepayment Premium; provided, that (x) if a Change of Control Transaction occurs on or prior to May 19, 2026, plus 10% of the entire outstanding principal balance of then outstanding Initial Debentures; (y) if the Specified Carve-Out Transaction (as defined in the Debentures) in consummated, the Company shall be required to prepay the Initial Debentures, in an aggregate amount equal to the lower of the outstanding principal balance of then outstanding Initial Debentures and $7,500,000, in each case, plus the applicable Prepayment Premium, and (z) if a Permitted Disposition (as defined in the Debentures) pursuant to clause (g) of the definition thereof is consummated, the Company shall be required to prepay the Initial Debentures in an aggregate amount equal to the lower of the outstanding principal balance of then outstanding Initial Debentures and 50% of the first $1,000,000 of net proceeds resulting from such Permitted Disposition up to $1,000,000 and 25% of such net proceeds in excess of $1,000,000, in each case, plus the applicable Prepayment Premium. Our obligations under the Debentures can be accelerated upon the occurrence of certain customary events of default. In the event of default and acceleration of our obligations, we would be required to pay the applicable prepayment amount described above.

In connection with the issuance of the Debentures, we paid off all obligations owed thereunder, and terminated the 2025 Business Loan Agreement and all related loan agreements.

On July 16, 2025, in connection with the anticipated closing of the public offering discussed below, we announced our intent to launch our bitcoin yield treasury strategy, as part of our board of directors' approval of our up to $500 million crypto asset treasury strategy.

On July 17, 2025, we completed an underwritten public offering of shares of our common stock for aggregate gross proceeds to us of approximately $9.5 million (including the exercise of the underwriter's option), after deducting an underwriting discount, but before other offering expenses. We expect to use the net proceeds from the public offering to fund the acquisition of cryptocurrencies, the development and implementation of our cryptocurrency treasury strategy and for working capital and general corporate purposes.

Our cash flows from operating activities are significantly affected by our cash-based investments in our operations, including acquiring live music events and festivals rights, our working capital, corporate infrastructure to support our ability to generate revenue and conduct operations through cost of services, product development, sales and marketing and general and administrative activities, and to further implement our crypto asset treasury strategy. Cash used in investing activities has historically been, and is expected to be, impacted significantly by our investments in business combinations, our platform, our infrastructure and equipment for our business offerings, and sale of our investments, and to further implement our crypto asset treasury strategy. We expect to make additional strategic acquisitions to further grow our business and continue to implement our crypto asset treasury strategy, which may require significant investments, capital raising and/or acquisition of additional debt in the near and long term. Over the next twelve to eighteen months, our net use of our working capital could be substantially higher or lower depending on the number and timing of new live festivals and paid users that we add to our businesses and capital resources needed to implement our crypto asset treasury strategy, including for the maximum announced amount.

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Subject to applicable limitations in the instruments governing our outstanding indebtedness, we may from time to time repurchase our debt, including the Debentures, in the open market, through tender offers, through exchanges for debt or equity securities, in privately negotiated transactions or otherwise.

In the future, we may utilize additional commercial financings, bonds, notes, debentures, lines of credit and term loans with a syndicate of commercial banks or other bank syndicates and/or issue equity securities (publicly or privately) for general corporate purposes, including acquisitions and investing in our intangible assets, music equipment, platform and technologies, and to further implement our crypto asset treasury strategy. We may also use our current cash and cash equivalents to repurchase some or all of our Debentures, and pay down our debt, in part or in full, subject to repayment limitation set forth in the applicable debt agreements. Management plans to fund our operations over the next twelve months through the combination of improved operating results, spending rationalization, and the ability to access sources of capital such as through the issuance of our equity and/or debt securities. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to us. We filed a new universal shelf Registration Statement on Form S-3 (the "Shelf S-3") with the SEC on February 4, 2025, which was declared effective by the SEC on February 17, 2025. Under the Shelf S-3, we will have the ability to raise up to $150.0 million in cash from the sale of our equity, debt and/or other financial instruments. In May 2024, we entered into an at-the-market agreement with Roth Capital Partners, LLC ("Roth"), pursuant to which we may, while the Shelf S-3 continues to be effective, offer and sell shares of our common stock having an aggregate offering price of up to $25 million from time to time through Roth acting as our sales agent. As of the filing of this Quarterly Report, we have not sold any shares under such at-the-market agreement.

**Sources and Uses of Cash**

The following table provides information regarding our cash flows for the three months ended June 30, 2025 and 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Net cash (used in) provided by operating activities | $(3047) | $1342 |
| Net cash used in investing activities | (1020) | (736) |
| Net cash provided by (used in) financing activities | 11839 | (1428) |
| Net change in cash, cash equivalents and restricted cash | $7772 | $(822) |

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***Cash Flows Provided by Operating Activities***

*For the three months ended June 30, 2025*

Net cash used in operating activities of $3.0 million primarily resulted from our net loss during the period of $3.9 million, which included non-cash charges of $0.6 million largely comprised of depreciation and amortization and stock-based compensation. The remainder of our sources of cash used in operating activities of $0.2 million was from changes in our working capital, primarily from timing of accounts receivable, accounts payable and accrued liabilities, accrued royalties, and deferred revenue.

*For the three months ended June 30, 2024*

Net cash provided by operating activities of $1.3 million primarily resulted from our net loss during the period of $1.6 million, which included non-cash charges of $2.5 million largely comprised of depreciation and amortization, stock-based compensation, change in fair value of derivatives and impairment of intangibles. The remainder of our sources of cash used in operating activities of $0.4 million was from changes in our working capital, primarily from timing of accounts receivable, accounts payable and accrued liabilities, accrued royalties, and deferred revenue.

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***Cash Flows Used In Investing Activities***

*For the three months ended June 30, 2025*

Net cash used in investing activities of $1.0 million was due to the purchase of equipment during the three months ended June 30, 2025.

*For the three months ended June 30, 2024*

Net cash used in investing activities of $0.7 million was due to the purchase of equipment during the three months ended June 30, 2024.

***Cash Flows Provided by Financing Activities***

*For the three months ended June 30, 2025*

Net provided by financing activities of $11.8 million was due proceeds received of $15.2 million from our convertible debt offset by the repayment on our line of credit of $3.0 million, repayment of our Capchase Loan of $0.2 million and repurchase of common stock under the Company's share repurchase program of $0.2 million.

*For the three months ended June 30, 2024*

Net cash used in financing activities of $1.4 million was due to the payment of dividends of $0.5 million, repayment of our Capchase Loan of $0.2 million and repurchase of common stock under the Company's share repurchase program of $0.7 million.

***Debt Covenants***

As of June 30, 2025 we were in compliance under the Capchase Loan and the Initial Debentures.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

Not required for smaller reporting companies.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

We maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

As of the end of the period covered by this Quarterly Report, we carried out an evaluation (the "Evaluation"), under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) pursuant to Rule 13a-15 of the Exchange Act. Based upon the Evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective.

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**Limitations of Disclosure Controls and Procedures**

Our disclosure controls and procedures are designed to reasonably ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. A control system, no matter how well designed and operated, can provide only reasonable assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Inherent limitations to any system of disclosure controls and procedures include, but are not limited to, the possibility of human error and the circumvention or overriding of such controls by one or more persons. In addition, we have designed our system of controls based on certain assumptions, which we believe are reasonable, about the likelihood of future events, and our system of controls may therefore not achieve its desired objectives under all possible future events.

**Changes in Internal Control over Financial Reporting**

There have been no changes in our internal control over financial reporting, during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**CEO and CFO Certifications**

Exhibits 31.1 and 31.2 to this Quarterly Report are the Certifications of our Chief Executive Officer and Chief Financial Officer, respectively. These Certifications are required in accordance with Section 302 of the Sarbanes-Oxley Act (the "Section 302 Certifications"). This Item 4 of this Quarterly Report, which you are currently reading, is the information concerning the Evaluation referred to above and in the Section 302 Certifications and this information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.

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**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings.**

We are from time to time, party to various legal proceedings arising out of our business. Certain legal proceedings in which we are involved are discussed in Note 13 - Commitments and Contingencies, to the condensed consolidated financial statements included elsewhere in this Quarterly Report, and are incorporated herein by reference. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

**Item 1A. Risk Factors.**

We operate in a rapidly changing environment that involves a number of risks, which could materially affect our business, financial condition or future results, some of which are beyond our control. In addition to the other information set forth in this Quarterly Report on Form 10-Q, the risks and uncertainties that we believe are most important for you to consider are discussed in Part I-Item 1A under the heading "Risk Factors" in our Annual Report. During the three months ended June 30, 2025, there were no material changes to the risk factors that were disclosed in our Annual Report on Form 10-K for the year ended March 31, 2025 except as noted below.

**Risks Related to Our Business and Industry**

***We rely on our largest OEM customer for a substantial percentage of our revenue. The loss of our largest OEM customer or the significant reduction of business or growth of business from such customer could significantly adversely affect our business, financial condition and results of operations.***

Our business is dependent, and we believe that it will continue to depend on our customer relationship with Tesla, which accounted for 9% of our consolidated revenue for the three months ended June 30, 2025, and 53% of our consolidated revenue for the three months ended June 30, 2024. Our existing agreement with Tesla governs our music services to certain of its car user base in North America, including our audio music streaming services. As of May 2025, Tesla has extended the term of our license agreement (the "license agreement") until at least May 2026, and the license agreement is expected to continue to be renewed thereafter on its terms. Tesla has agreed to pay us for any grandfathered users for the term of the license agreement, however Tesla no longer pays us for any other users beginning December 2024. If we fail to maintain certain minimum service level requirements related to our service with Tesla or other obligations related to our technology or services, Tesla may terminate the license agreement to provide them with such service. Tesla may also terminate our license agreement for convenience at any time with prior notice to us. If Tesla terminates our license agreement, further modifies the services that we provide to Tesla under such agreement, requires us to renegotiate the terms of such agreement or we are unable to renew such agreement on mutually agreeable terms, no longer pays for and/or makes our music services available to Tesla's paid grandfathered car user base, no longer makes an option for its car users to sign up for LiveOne, becomes a native music service provider, replaces our music services with one or more of our competitors and/or we experience a significant further reduction of business from Tesla, our business, financial condition and results of operations would be materially adversely affected.

In addition, revenue we generate from Tesla from grandfathered car users is indirectly subsidized by Tesla to its customers, which Tesla plans to carry indefinitely but is not obligated to do so, including its ability to reclassify or renegotiate with us the definition of a "paid grandfathered user" under the license agreement and/or make available, terminate and/or change our music services for convenience at any time with prior notice to us. Should our user revenue services no longer be subsidized by and/or made available by Tesla to its grandfathered customers or if Tesla reclassifies or renegotiates with us the definition of a paid grandfathered user or demands credit for past users that no longer meet such requirement, there can be no assurance that we will continue to maintain the same number of paid grandfathered users or receive the same levels of service revenue from such users in the future. There is no assurance that we would be able to replace Tesla or lost business with Tesla with one or more B2B customers that generate comparable revenue. Furthermore, there could be no assurance that Tesla will continue indefinitely to pay us for grandfathered car users.

Tesla has also integrated Spotify Premium to its cars' in-dash touchscreen for its Model S, Model X and Model 3 vehicles. Tesla owners now have access to our music streaming services, as well as those of Spotify and TuneIn natively. There is no assurance that our music streaming services will be available in every current and/or future Tesla model. Furthermore, our current and future competitors like Spotify, Apple Music, Tesla (if it becomes a native music service provider) and others may have more well-established brand recognition, more established relationships with, and superior access to content providers and other industry stakeholders, greater financial, technical and other resources, more sophisticated technologies or more experience in the markets in which we compete. If we are unable to compete successfully for users against our competitors by maintaining and increasing our presence and visibility, the number of users of our network may fail to increase as expected or decline and our advertising sales, user revenues and other revenue streams will suffer.

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***We rely on our relationship with our largest OEM customer for a substantial percentage of our potential subscribers who are now eligible to convert to become direct customers of LiveOne. Our inability to convert a significant number of these subscribers could cause a significant reduction of our business and could significantly adversely affect our business, financial condition and results of operations.***

Our business is dependent, and we believe that it will continue to depend on our customer relationship with Tesla, our largest OEM customer. Commencing in October 2024, we began working with Tesla to convert Tesla's connectivity package users to become direct subscribers (users) of our Premium or Plus service. The direct subscription to LiveOne allows such users for the first time to access their LiveOne music and LiveOne's other service offerings directly across all of their devices. LiveOne's music streaming button/icon, which allows users to directly connect their subscription to LiveOne, is expected to remain in Tesla's music streaming services dashboard in perpetuity. As a result, we believe we now have a unique opportunity to convert as many of Tesla's drivers as possible to a higher priced LiveOne subscription service creating a meaningful upside opportunity for our Company, and we are working in good faith with Tesla to convert as many of these drivers as possible.

We believe that with the full cooperation from Tesla, we can convert a substantial number of such users to become direct subscribers of LiveOne. However, there is no assurance that we would be able to convert a substantial number of such users to become direct subscribers of LiveOne and/or replace Tesla or lost business with Tesla with one or more other B2B customers that generate comparable revenue. If we fail to convert a significant number of these drivers as direct subscribers of LiveOne that could cause a significant reduction of our business and could significantly adversely affect our business, financial condition and results of operations. In addition, even such drivers elect to directly pay for their subscription to LiveOne services, there can be no assurance that we will continue to maintain the same number of paid subscribers or receive the same levels of subscription service revenue and subscription revenue may substantially fluctuate accordingly. Accordingly, there could be no assurance that our revenue and/or EBITDA continues to grow at the same rate of growth as in our 2026 fiscal year or at all.

***We have incurred significant operating and net losses since our inception and anticipate that we will continue to incur significant losses for the foreseeable future.***

As reflected in our consolidated financial statements included elsewhere herein, we have a history of losses, incurred significant operating and net losses in each year since our inception, including net losses of $3.9 million and $20.4 million for the three months ended June 30, 2025 and fiscal year ended March 31, 2025, respectively, and cash (used in) provided by operating activities of $(3.0) million and $6.4 million for the three months ended June 30, 2025 and fiscal year ended March 31, 2025, respectively. As of June 30, 2025, we had an accumulated deficit of $269.1 million and a working capital deficit of $11.0 million.

We expect to continue to incur substantial and increased expenses as we continue to execute our business approach, including expanding and developing our content and platform and potentially making other accretive acquisitions, and anticipate incurring additional losses until such time that we can generate significant increases to our revenues, and/or reduce our operating costs and losses. To date, we have financed our operations through cash generated from our business, the sale of equity and/or debt securities (including convertible securities), and after PodcastOne's acquisition by us on July 1, 2020, also through our sale of PodcastOne's and our equity and/or debt securities (including convertible securities). The size of our future net losses will depend, in part, on the rate of future expenditures and our ability to significantly grow our business and increase our revenues. We expect to continue to incur substantial and increased expenses as we grow our business. We also expect a continued increase in our expenses associated with our operations as a publicly-traded company. We may incur significant losses in the future for a number of other reasons, including unsuccessful acquisitions, costs of integrating new businesses, expenses, difficulties, complications, delays and other unknown events. As a result of the foregoing, we expect to continue to incur significant losses for the foreseeable future and we may not be able to achieve or sustain profitability.

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The likelihood of our success must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered by a growing company, the difficulties that may be encountered with integrating acquired companies and the highly competitive environment in which we operate. For example, while several companies have been successful in the digital music streaming industry and the online video streaming industry, companies have had no or limited success in operating a premium Internet network devoted to live music and music-related video content. We cannot assure you that our business will be profitable or that we will ever generate sufficient revenue to fully meet our expenses and support our anticipated activities.

Our ability to meet our total liabilities of $61.0 million as of June 30, 2025, and to continue as a going concern, is dependent on our ability to increase revenue, reduce costs, achieve a satisfactory level of profitable operations, obtain additional sources of suitable and adequate financing and further develop and execute on our business plan. We may never achieve profitability, and even if we do, we may not be able to sustain being profitable. As a result of the going concern uncertainty, there is an increased risk that you could lose the entire amount of your investment in our company, which assumes the realization of our assets and the satisfaction of our liabilities and commitments in the normal course of business.

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**Risks Related to Our Company**

***We may not have the ability to repay the amounts then due under our Debentures at maturity.***

On May 19, 2025 (the "Closing Date"), we and PodcastOne, our majority owned subsidiary, entered into a Securities Purchase Agreement (the "SPA") with certain institutional investors (each, a "Purchaser" and collectively, the "Purchasers"), pursuant to which (i) we sold to the Purchasers our Original Issue Discount Senior Secured Convertible Debentures (the "Initial Debentures") in an aggregate principal amount of $16,775,000 for an aggregate cash purchase price of $15,250,000, and (ii) if certain conditions are satisfied as set forth in the SPA, including at least one of the Conditions (as defined below), we may sell at our option to the Purchasers our additional Original Issue Discount Senior Secured Convertible Debentures in an aggregate principal amount of $11,000,000 on substantially the same terms as the Initial Debentures (the "Additional Debentures" and collectively with the Initial Debentures, the "Debentures"). The Debentures are convertible into shares of our common stock at the holder's option at a conversion price of $2.10 per share, subject to certain customary adjustments such as stock splits, stock dividends and stock combinations. We may sell to the Purchasers the Additional Debentures if within 15 months of the Closing Date either of the following conditions have been satisfied during such 15-month period (the "Conditions"): (x) the VWAP (as defined in the SPA) of our common stock has been equal to or greater than $4.20 per share (subject to certain customary adjustments such as stock splits, stock dividends and stock combinations) for 30 consecutive trading days, or (y) Free Cash Flow (as defined in the SPA) has been equal to or greater to $3,000,000 for three consecutive fiscal quarters, and has increased in each of the foregoing quarters from the immediately preceding fiscal quarter. The Initial Debentures mature on May 19, 2028 and accrue interest at 11.75% per year. Commencing with the calendar month of August 2025 (subject to the following sentence), the holders of the Initial Debentures will have the right, at their option, to require us to redeem an aggregate of up to $100,000 of the outstanding principal amount of the Debentures per month. Commencing from November 18, 2025, May 18, 2026 and May 18, 2027, the holders of the Initial Debentures will have the right, at their option, to require us to redeem an aggregate of up to $150,000, $250,000 and $300,000, respectively, of the outstanding principal amount of the Initial Debentures per month.

Over the term of the Debentures and at maturity, the outstanding principal amount of the Debentures and the Capchase Loan (as defined below), will become due and payable by us in installments. As of June 30, 2025, $4 million of the principal amount of the Capchase Loan is due and matures in fiscal 2026 and the principal amount of the Debentures is due and matures in fiscal 2029. The holders of the Debentures may also require us to redeem the Debentures up to $0.8 million due in fiscal 2026, $1.2 million due in fiscal 2027, $1.2 million due in fiscal 2028 and $13.6 million due in fiscal 2029.

Our failure to repay any outstanding amount under the Debentures would constitute a default under such financing agreement. A default would increase the interest rate to the default rate under the Debentures or the maximum rate permitted by applicable law until such amount is paid in full. A default under the Debentures could also lead to a default under agreements governing our future indebtedness, including the Capchase Loan. A default under the Capchase Loan could also lead to a default under agreements governing our future indebtedness, including the Debentures. If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the Debentures loan and/or the Capchase Loan when due or make cash payments thereon as required prior to maturity. Furthermore, upon the occurrence and during the continuation of any event of default, the holders of the Debentures and Capchase shall have the right to, among other things, take possession of our and our subsidiaries' assets and property constituting the collateral thereunder (including, without limitation, any securities of PodcastOne that we own) and the right to assign, sell, lease or otherwise dispose of all or any part of the collateral.

***If we do not comply with the provisions of the Debentures financing agreements, the Capchase Loan and/or the SX Settlement, such parties may terminate their obligations to us, accelerate our debt and/or require us to repay all outstanding amounts owed thereunder.***

The Debentures financing agreements and the Capchase Loan contain provisions that limit our operating activities, including a covenant relating to the requirement to maintain a certain amount cash (as provided in the Debentures financing agreements). The Debentures are secured by all of our and our subsidiaries' assets. If an event of default occurs and is continuing, the applicable lender may among other things, terminate its obligations thereunder, accelerate its debt and require us to repay all amounts thereunder. For example, on October 13, 2022, a judgement was ordered in favor of SoundExchange, Inc. ("SX") against us and Slacker in the United States District Court Central District of California in the amount of approximately $9.8 million. On October 13, 2022, the court entered a judgment against the defendants for the amount of $9,765,397. In February 2023, we settled the dispute (the "SX Settlement Agreement") to pay the outstanding amount in equal monthly payments subject to increase in the event we complete certain future financings, which agreement, as amended in January 2025, requires us and Slacker to pay SX the remaining sum on or before February 1, 2027, in 48 equal monthly payments. As of June 30, 2025, we owed $1.3 million to SX under the SX Settlement Agreement. If for any reason we and Slacker fail to comply with the terms of the SX Settlement Agreement, SX will have the right to declare a default under the SX Settlement Agreement and at its option require us to repay all outstanding amounts owed thereunder and/or enforce its consent judgment and/or pursue a new judgment against us and/or Slacker, which would materially adversely impact our business, operating results and financial condition. Our debt agreement with Capchase contains a covenant that if a material adverse change occurs in our financial condition, or if such senior secured lender reasonably believes the prospect of payment or performance of its loan is materially impaired, the lender at its option may immediately accelerate its debt and require us to repay all outstanding amounts owed thereunder. If for any reason we and Slacker fail to comply with the terms of the SX Settlement Agreement, our Debentures lenders, and which would then also allow Capchase to declare a default under their loan agreement with us, may declare an event of default and at its option may immediately accelerate their debt and require us to repay all outstanding amounts owed under the Debentures, which would materially adversely impact our business, operating results and financial condition. As of June 30, 2025, we were in compliance with covenants under the Debentures and the Capchase Loan.

***Our debt agreements contain restrictive and financial covenants that may limit our operating flexibility, and our substantial indebtedness may limit cash flow available to invest in the ongoing needs of our business.***

We have a significant amount of indebtedness. Our total outstanding consolidated indebtedness as of June 30, 2025 was $15.9 million, net of fees and discounts. While we have certain restrictions and covenants with our current indebtedness, we could in the future incur additional indebtedness beyond such amount including by issuing the Additional Debentures subject to Conditions. Our existing debt agreements with the Debentures and the Capchase Loan lenders contain certain restrictive covenants that limit our ability to merge with other companies or consummate certain changes of control, make certain investments, pay dividends or repurchase shares of our common stock, transfer or dispose of assets, or enter into various specified transactions. We therefore may not be able to engage in any of the foregoing transactions unless we obtain the consent of our senior secured lenders and/or repay the amount owed to such lenders. Our debt agreements also contain certain covenants, including maintaining a minimum cash amount at all times and are secured by substantially all of our and our subsidiaries' assets. There is no guarantee that we will be able to generate sufficient cash flow or sales to pay the principal and interest owed under our debt agreements or to satisfy all of the covenants. We and/or our subsidiaries may also incur significant additional indebtedness in the future.

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Our substantial debt combined with our other financial obligations and contractual commitments could have other significant adverse consequences, including:

● requiring us to dedicate a substantial portion of cash flow from operations to the payment of interest on, and principal of, our debt, which will reduce the amounts available to fund working capital, capital expenditures, product development efforts and other general corporate purposes;

● increasing our vulnerability to adverse changes in general economic, industry and market conditions;

● obligating us to restrictive covenants that may reduce our ability to take certain corporate actions or obtain further debt or equity financing;

● limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and

● placing us at a competitive disadvantage compared to our competitors that have less debt or better debt servicing options.

We intend to satisfy our current and future debt service obligations with our existing cash and cash equivalents and funds from external sources, including equity and/or debt financing. However, we may not have sufficient funds or may be unable to arrange for additional financing to pay the amounts due under our existing debt. Funds from external sources may not be available on acceptable terms, if at all. In the event of an acceleration of amounts due under our debt instruments as a result of an event of default, including upon the occurrence of an event that would reasonably be expected to have a material adverse effect on our business, operations, properties, assets or condition or a failure to pay any amount due, we may not have sufficient funds or may be unable to arrange for additional financing to repay our indebtedness or to make any accelerated payments.

***We depend upon third-party licenses for sound recordings and musical compositions and other content and an adverse change to, loss of, or claim that we do not hold any necessary licenses may materially adversely affect our business, operating results and financial condition.***

To secure the rights to stream sound recordings and the musical compositions embodied therein, we enter into license agreements to obtain licenses from rights holders such as record labels, aggregators, artists, music publishers, performing rights organizations, collecting societies and other copyright owners or their agents, and pay substantial royalties or other consideration to such parties or their agents around the world. Though we work diligently in our efforts to obtain all necessary licenses to stream sound recordings and the musical compositions embodied therein, there is no guarantee that the licenses available to us now will continue to be available in the future at rates and on terms that are favorable or commercially reasonable or at all. The terms of these licenses, including the royalty rates that we are required to pay pursuant to them, may change as a result of changes in our bargaining power, changes in the industry, changes in the laws and regulations, or for other reasons. Increases in royalty rates or changes to other terms of these licenses may materially impact our business, operating results, and financial condition.

We enter into license agreements to obtain rights to stream sound recordings, including from the major record labels that hold the rights to stream a significant number of sound recordings, such as Universal Music Group, Sony Music Entertainment, Warner Music Group and SX, as well as others. If we fail to obtain these licenses or if any of such licenses are terminated or suspended, the size and quality of our catalog may be materially impacted and our business, operating results and financial condition could be materially harmed.

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We generally obtain licenses for two types of rights with respect to musical compositions: mechanical rights and public performance rights. With respect to mechanical rights, for example, in the United States, the rates we pay are, to a significant degree, a function of a ratemaking proceeding conducted by an administrative agency called the Copyright Royalty Board. The rates that the Copyright Royalty Board set apply both to compositions that we license under the compulsory license in Section 115 of the Copyright Act of 1976 (the "Copyright Act"), and to a number of direct licenses that we have with music publishers for U.S. rights, in which the applicable rate is generally pegged to the statutory rate set by the Copyright Royalty Board. The most recent proceeding before the Copyright Royalty Board (the "Phonorecords III Proceedings") set the rates for the Section 115 compulsory license for calendar years 2018 to 2022. The Copyright Royalty Board issued its initial written determination on January 26, 2018. The rates set by the Copyright Royalty Board may still be modified if a party appeals the determination and are also subject to further change as part of future Copyright Royalty Board proceedings. If any such rate change increases, our sound recordings and musical compositions license costs may substantially increase and impact our ability to obtain content on pricing terms favorable to us, and it could negatively harm our business, operating results and financial condition and hinder our ability to provide interactive features in our services or cause one or more of our services not to be economically viable. Based on management's estimates and forecasts for the next two fiscal years, we currently believe that the proposed rates will not materially impact our business, operating results, and financial condition. However, the proposed rates are based on a variety of factors and inputs which are difficult to predict in the long-term. If Slacker's business does not perform as expected or if the rates are modified to be higher than the proposed rates, its content acquisition costs could increase and impact its ability to obtain content on pricing terms favorable to us, which could negatively harm Slacker's business, operating results and financial condition and hinder its ability to provide interactive features in its services, or cause one or more of Slacker's services not to be economically viable.

In the United States, public performance rights are generally obtained through intermediaries known as performing rights organizations ("PROs"), which negotiate blanket licenses with copyright users for the public performance of compositions in their repertory, collect royalties under such licenses, and distribute those royalties to copyright owners. The royalty rates available to Slacker today may not be available to it in the future. Licenses provided by two of these PROs, the American Society of Composers, Authors and Publishers ("ASCAP") and Broadcast Music, Inc. ("BMI"), cover the majority of the music we stream and are governed by consent decrees relating to decades old litigations. In 2019, the U.S. Department of Justice indicated that it was formally reviewing the relevance and need of these consent decrees. Changes to the terms of or interpretation of these consent decrees up to and including the dissolution of the consent decrees, could affect our ability to obtain licenses from these PROs on reasonable terms, which could harm its business, operating results, and financial condition. In addition, an increase in the number of compositions that must be licensed from PROs that are not subject to the consent decrees, or from copyright owners that have withdrawn public performance rights from the PROs, could likewise impede Slacker's ability to license public performance rights on favorable terms. As of June 30, 2025, we owed $12.7 million in aggregate royalty payments to such PROs.

In other parts of the world, including Europe, Asia, and Latin America, we obtain mechanical and performance licenses for musical compositions either through local collecting societies representing publishers or from publishers directly, or a combination thereof. We cannot guarantee that its licenses with collecting societies and its direct licenses with publishers provide full coverage for all of the musical compositions we make available to our users in such countries. In Asia and Latin America, we are seeing a trend of movement away from blanket licenses from copyright collectives, which is leading to a fragmented copyright licensing landscape. Publishers, songwriters, and other rights holders choosing not to be represented by collecting societies could adversely impact our ability to secure favorable licensing arrangements in connection with musical compositions that such rights holders own or control, including increasing the costs of licensing such musical compositions, or subjecting us to significant liability for copyright infringement.

With respect to podcasts and other non-music content, we produce or commission the content itself or obtain distribution rights directly from rights holders. In the former scenario, we employ various business models to create original content. In the latter scenario, we and/or PodcastOne negotiates licenses directly with individuals that enable creators to post content directly to our service after agreeing to comply with the applicable terms and conditions. We are dependent on those who provide content on our service complying with the terms and conditions of our license agreements as well as the PodcastOne Terms and Conditions of Use. However, we cannot guarantee that rights holders or content providers will comply with their obligations, and such failure to do so may materially impact our business, operating results, and financial condition.

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There also is no guarantee that we have all of the licenses we need to stream content, as the process of obtaining such licenses involves many rights holders, some of whom are unknown, and myriad complex legal issues across many jurisdictions, including open questions of law as to when and whether particular licenses are needed. Additionally, there is a risk that rights holders, creators, performers, writers and their agents, or societies, unions, guilds, or legislative or regulatory bodies will create or attempt to create new rights that could require us to enter into license agreements with, and pay royalties to, newly defined groups of rights holders, some of which may be difficult or impossible to identify.

Even when we can enter into license agreements with rights holders, we cannot guarantee that such agreements will continue to be renewed indefinitely. For example, from time to time, our license agreements with certain rights holders and/or their agents may expire while we negotiate their renewals and, per industry custom and practice, we may enter into brief (for example, month-, week-, or even days-long) extensions of those agreements or provisional licenses and/or continue to operate on an at will basis as if the license agreement had been extended, including by our continuing to make music available. During these periods, we may not have assurance of long-term access to such rights holders' content, which could have a material adverse effect on its business and could lead to potential copyright infringement claims. Furthermore, if we fail to timely make any royalty or license payments to such rights holders, they may elect to terminate or suspend our license agreements with them.

It also is possible that such agreements will never be renewed at all. The lack of renewal, or suspension or termination, of one or more of our license agreements, or the renewal of a license agreement on less favorable terms, also could have a material adverse effect on its business, financial condition, and results of operations.

***Our failure to meet the continued listing requirements of Nasdaq could result in a delisting of our common stock and penny stock trading, and we may need to seek to effect a reverse stock split of our common stock to avoid delisting.***

Our common stock is currently listed on Nasdaq, which has qualitative and quantitative listing criteria. In March 2025, we received a notice from the Listing Qualifications Department the Nasdaq Stock Market ("Nasdaq"), regarding the fact that the market price of our shares of common stock was below the $1.00 minimum bid price requirement for continued listing (the "Bid Price Rule"). There can be no assurance that we will be able to correct the Bid Price Rule deficiency, or that we will be able to continue to meet all of the other criteria necessary for Nasdaq to allow us to remain listed. If we fail to satisfy the applicable continued listing requirement and continue to be in non-compliance after notice and the applicable grace period ends (which is six months in the case of the Bid Price Rule, subject to an additional six-month extension), Nasdaq may commence delisting procedures against our Company (during which we may have additional time of up to six months to appeal and correct our non-compliance). At that time, we may appeal the relevant delisting determination to a hearings panel pursuant to the procedures set forth in the applicable Nasdaq Listing Rules. However, there can be no assurance that, if we do appeal the delisting determination by Nasdaq to the panel, that such appeal would be successful. In order to regain compliance with the Bid Price Rule we may need to seek to effect a reverse stock split of our common stock prior to September 24, 2025, subject to up to a 180-day extension, if granted to us by Nasdaq. We are seeking shareholder approval at our 2025 Annual Meeting of stockholders to allow our board of directors to implement a reverse stock split at a ratio to be determined in the discretion of our board of directors within a range of no less than one-for-three through one-for-ten (without reducing the authorized number of shares of common stock) (the "Reverse Split"). There can be no assurance we will be able to obtain stockholder approval for the Reverse Split. We may be unable to complete a Reverse Split, and even if we do, we may still be unable to meet the minimum bid price requirement, and we may be unable to meet other applicable Nasdaq listing requirements, including maintaining minimum levels of shareholders' equity or market values of our common stock. We will continue to actively monitor the closing bid price of our common stock and will evaluate available options to resolve the deficiency and regain compliance with the Bid Price Rule. There can be no assurance that we will be able to regain compliance with the Bid Price Rule and thereby to maintain the listing of its common stock on The Nasdaq Capital Market.

If our common stock is ultimately delisted from Nasdaq, our common stock would likely then trade only in the over-the-counter market and the market liquidity of our common stock could be adversely affected and their market price could decrease. If our common stock were to trade on the over-the-counter market, selling our common stock could be more difficult because smaller quantities of shares would likely be bought and sold, transactions could be delayed, and we could face significant material adverse consequences, including: a limited availability of market quotations for our securities; reduced liquidity with respect to our securities; a determination that our shares are a "penny stock," which will require brokers trading in our securities to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our securities; a reduced amount of news and analyst coverage for our Company; and a decreased ability to issue additional securities or obtain additional financing in the future. These factors could result in lower prices and larger spreads in the bid and ask prices for our common stock and would substantially impair our ability to raise additional funds and could result in a loss of institutional investor interest and fewer development opportunities for us.

In addition to the foregoing, if our common stock are ultimately delisted from Nasdaq and they trade on the over-the-counter market, the application of the "penny stock" rules could adversely affect the market price of our common stock and increase the transaction costs to sell those shares. The SEC has adopted regulations which generally define a "penny stock" as an equity security that has a market price of less than $5.00 per share, subject to specific exemptions. If our common stock are ultimately delisted from Nasdaq and then trade on the over-the-counter market at a price of less than $5.00 per share, our common stock would be considered a penny stock. The SEC's penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and the salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer's account. In addition, the penny stock rules generally require that before a transaction in a penny stock occurs, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's agreement to the transaction. If applicable in the future, these rules may restrict the ability of brokers-dealers to sell our common stock and may affect the ability of investors to sell their shares, until our common stock is no longer considered a penny stock.

***We rely on key members of management, particularly our Chairman and Chief Executive Officer, Mr. Robert Ellin, and our Chief Financial Officer, Vice President, Treasurer and Secretary, Ryan Carhart, and the loss of their services or investor confidence in them could adversely affect our success, development and financial condition.***

Our success depends, to a large degree, upon certain key members of our management, particularly our Chairman and Chief Executive Officer, Robert Ellin, and our Chief Financial Officer, Vice President, Treasurer and Secretary, Ryan Carhart. Each of Messrs. Ellin and Carhart have extensive knowledge about our business and our operations, and the loss of either of them or any other key member of our senior management (including senior management of Slacker and PodcastOne) would likely have a material adverse effect on our business and operations. We do not currently have an effective employment agreement with Mr. Ellin. We do not currently maintain a key-person insurance policy for either of Messrs. Ellin or Carhart or any other member of our management. Our executive team's expertise and experience in acquiring, integrating and growing businesses, particularly those focused on live music and events, have been and will continue to be a significant factor in our growth and ability to execute our business strategy. The loss of Mr. Ellin, Mr. Carhart or any of our other executive officers or key employees could slow the growth of our business or have a material adverse effect on our business, results of operations and financial condition.

**Risks Related to Our Cryptocurrency Assets Treasury Strategy**

***We may not be able to successfully implement our cryptocurrency assets treasury strategy, whether for the full announced amount or at all, and our efforts in this area may not achieve the intended results.***

We have recently announced a new strategic initiative to launch a cryptocurrency assets treasury strategy. As part of such initiative, our board authorized the expansion of such strategy to up to $500 million. As part of this strategic strategy, we plan to launch our newly formed Bitcoin yield treasury strategy program as part of our plan to build a robust cryptocurrency treasury as a core pillar of initiative. While we believe this strategic move may provide substantial future growth and other opportunities to our Company, this initiative is at an early stage and the cryptocurrency assets treasury strategy is still nascent, unproven and rapidly evolving. There is no assurance that we will be able to successfully implement our plans or generate meaningful revenues, profits or capital or assets appreciation from this strategy. The success of our strategy depends on a number of factors, many of which are outside of our control, including the long-term viability of bitcoin and other digital assets, their adoption, usage and price appreciation, competition from other companies who have adopted a similar strategy, technological and regulatory developments, ability to acquire meaning cryptocurrency assets and our ability to acquire the necessary technical and financial expertise.

Currently we have limited experience with the cryptocurrency assets treasury strategy and limited capital resources, and there can be no assurance that our strategic initiative will be successful or that we will be able to achieve our strategic objectives in this area in a timely manner or whether we will be able to implement such strategy for the full announced amount or at all. If we are unable to successfully execute our strategy or if the digital assets market fails to grow as expected, our business, results of operations or financial condition could be materially and adversely affected.

***Bitcoin and other digital assets are novel assets, and are subject to significant legal, commercial, regulatory and technical uncertainty.***

Bitcoin and other digital assets are relatively novel and are subject to significant uncertainty, which could adversely impact their price. The application of state and federal securities laws and other laws and regulations to digital assets is unclear in certain respects, and it is possible that regulators in the United States or foreign countries may interpret or apply existing laws and regulations in a manner that adversely affects the price of bitcoin.

The U.S. federal government, states, regulatory agencies, and foreign countries may also enact new laws and regulations, or pursue regulatory, legislative, enforcement or judicial actions, that could materially impact the price of bitcoin or the ability of individuals or institutions such as us to own or transfer bitcoin. For example, the U.S. executive branch, SEC, the European Union's Markets in Crypto Assets Regulation, among others have been active in recent years, and in the U.K., the Financial Services and Markets Act 2023, or FSMA 2023 became law. It is not possible to predict whether, or when, any of these developments will lead to Congress granting additional authorities to the SEC, Commodity Futures Trading Commission ("CFTC"), or other regulators, or whether, or when, any other federal, state or foreign legislative bodies will take any similar actions. It is also not possible to predict the nature of any such additional authorities, how additional legislation or regulatory oversight might impact the ability of digital asset markets to function or the willingness of financial and other institutions to continue to provide services to the digital assets industry, nor how any new regulations or changes to existing regulations might impact the value of digital assets generally and bitcoin specifically. The consequences of increased regulation of digital assets and digital asset activities could adversely affect the market price of bitcoin and in turn adversely affect the market price of our common stock.

Moreover, the risks of engaging in a crypto reserve treasury strategy are relatively novel and have created, and could continue to create, complications due to the lack of experience that third parties have with companies engaging in such a strategy, such as increased costs of director and officer liability insurance or the potential inability to obtain such coverage on acceptable terms in the future.

The growth of the digital assets industry in general, and the use and acceptance of bitcoin in particular, may also impact the price of bitcoin and is subject to a high degree of uncertainty. The pace of worldwide growth in the adoption and use of bitcoin may depend, for instance, on public familiarity with digital assets, ease of buying, accessing or gaining exposure to bitcoin, institutional demand for bitcoin as an investment asset, the participation of traditional financial institutions in the digital assets industry, consumer demand for bitcoin as a means of payment, and the availability and popularity of alternatives to bitcoin. Even if growth in bitcoin usage occurs in the near or medium-term, there is no assurance that bitcoin usage will continue to grow over the long-term.

Because bitcoin has no physical existence beyond the record of transactions on the bitcoin blockchain, a variety of technical factors related to the bitcoin blockchain could also impact the price of bitcoin. For example, malicious attacks by miners, inadequate mining fees to incentivize validating of bitcoin transactions, hard "forks" of the bitcoin blockchain into multiple blockchains, and advances in digital computing, algebraic geometry, and quantum computing could undercut the integrity of the bitcoin blockchain and negatively affect the price of bitcoin. The liquidity of bitcoin may also be reduced and damage to the public perception of bitcoin may occur, if financial institutions were to deny or limit banking services to businesses that hold bitcoin, provide bitcoin-related services or accept bitcoin as payment, which could also decrease the price of bitcoin. Similarly, the open-source nature of the bitcoin blockchain means the contributors and developers of the bitcoin blockchain are generally not directly compensated for their contributions in maintaining and developing the blockchain, and any failure to properly monitor and upgrade the bitcoin blockchain could adversely affect the bitcoin blockchain and negatively affect the price of bitcoin.

The liquidity of bitcoin may also be impacted to the extent that changes in applicable laws and regulatory requirements negatively impact the ability of exchanges and trading venues to provide services for bitcoin and other digital assets.

***We face risks relating to the custody of our crypto assets, including the loss or destruction of private keys required to access our crypto assets and cyberattacks or other data loss relating to our crypto assets holdings.***

We will hold our crypto assets with regulated custodians that have duties to safeguard our private keys. Our custodial services contracts will not restrict our ability to reallocate our crypto assets among our custodians, and our crypto assets holdings may be concentrated with a single custodian from time to time, including immediately after this offering. In light of the significant amount of crypto assets we hold, we continually evaluate the need to engage additional custodians. Additional custodians could achieve a greater degree of diversification in the custody of our bitcoin as the extent of potential risk of loss is dependent, in part, on the degree of diversification. If there is a decrease in the availability of digital asset custodians that we believe can safely custody our crypto assets, for example, custodians discontinue or limit their services in the United States, we may need to enter into agreements that are less favorable than our currently anticipated agreements or take other measures to custody our crypto assets, and our ability to seek a greater degree of diversification in the use of custodial services would be materially adversely affected. In addition, holding our crypto assets with regulated custodians could affect the availability of receiving digital assets that may result from "forks" of the applicable blockchains if our custodians are unable to support or otherwise provide us with such digital assets, thereby reducing the amount of digital assets we may hold as a result. While our custodians will carry insurance policies to cover losses for commercial crimes and cyber and tech errors or omissions, the policy limits vary per provider and would be shared among all of their customers, and subject to various limitations and exclusions (such as if a loss arises due to our failure to protect our login credentials and devices). The insurance that covers losses of our crypto assets holdings may cover only a small fraction of the value of the entirety of our crypto assets holdings, and there can be no guarantee that such insurance will be maintained as part of the custodial services we will have or that such coverage will cover losses with respect to our bitcoin. Moreover, our use of custodians exposes us to the risk that the crypto assets our custodians hold on our behalf could be subject to insolvency proceedings and we could be treated as a general unsecured creditor of the custodian, inhibiting our ability to exercise ownership rights with respect to such bitcoin. Any loss associated with such insolvency proceedings is unlikely to be covered by any insurance coverage we maintain related to our crypto assets.

Bitcoin is controllable only by the possessor of both the unique public key and private key(s) relating to the local or online digital wallet in which the bitcoin is held. While the bitcoin blockchain ledger requires a public key relating to a digital wallet to be published when used in a transaction, private keys must be safeguarded and kept private in order to prevent a third party from accessing the bitcoin held in such wallet. To the extent the private key(s) for a digital wallet are lost, destroyed, or otherwise compromised and no backup of the private key(s) is accessible, neither we nor our custodians will be able to access the bitcoin held in the related digital wallet. Furthermore, we cannot provide assurance that our digital wallets, nor the digital wallets of our custodians held on our behalf, will not be compromised as a result of a cyberattack. The bitcoin blockchain, as well as other digital assets and blockchain technologies, have been, and may in the future be, subject to security breaches, cyberattacks, or other malicious activities.

***Regulatory change reclassifying bitcoin as a security could lead to our classification as an*** "***investment company***" ***under the Investment Company Act of 1940, as amended, or the 1940 Act, and could adversely affect the market price of bitcoin and the market price of our common stock.***

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally will be deemed to be an "investment company" for purposes of the 1940 Act if (1) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or (2) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an "investment company," as such term is defined in the 1940 Act, and are not registered as an "investment company" under the 1940 Act as of the date of this Quarterly Report.

While senior SEC officials have stated their view that bitcoin is not a "security" for purposes of the federal securities laws, a contrary determination by the SEC could lead to our classification as an "investment company" under the 1940 Act, if the portion of our assets consists of investments in bitcoin exceeds 40% safe harbor limits prescribed in the 1940 Act, which would subject us to significant additional regulatory controls that could have a material adverse effect on our business and operations and may also require us to change the manner in which we conduct our business.

We monitor our assets and income for compliance under the 1940 Act and seek to conduct our business activities in a manner such that we do not fall within its definitions of "investment company" or that we qualify under one of the exemptions or exclusions provided by the 1940 Act and corresponding SEC regulations. If bitcoin is determined to constitute a security for purposes of the federal securities laws, we would take steps to reduce the percentage of bitcoin that constitute investment assets under the 1940 Act. These steps may include, among others, selling bitcoin that we might otherwise hold for the long term and deploying our cash in non-investment assets, and we may be forced to sell our bitcoin at unattractive prices. We may also seek to acquire additional non-investment assets to maintain compliance with the 1940 Act, and we may need to incur debt, issue additional equity or enter into other financing arrangements that are not otherwise attractive to our business. Any of these actions could have a material adverse effect on our results of operations and financial condition. Moreover, we can make no assurance that we would successfully be able to take the necessary steps to avoid being deemed to be an investment company in accordance with the safe harbor. If we were unsuccessful, and if bitcoin is determined to constitute a security for purposes of the federal securities laws, then we would have to register as an investment company, and the additional regulatory restrictions imposed by 1940 Act could adversely affect the market price of bitcoin and in turn adversely affect the market price of our common stock.

***We may be subject to regulatory developments related to crypto assets and crypto asset markets, which could adversely affect our business, financial condition, and results of operations.***

As bitcoin and other digital assets are relatively novel and the application of state and federal securities laws and other laws and regulations to digital assets is unclear in certain respects, it is possible that regulators in the United States or foreign countries may interpret or apply existing laws and regulations in a manner that adversely affects the price of bitcoin. The U.S. federal government, states, regulatory agencies, and foreign countries may also enact new laws and regulations, or pursue regulatory, legislative, enforcement or judicial actions, that could materially impact the price of bitcoin or the ability of individuals or institutions such as us to own or transfer bitcoin.

***Our cryptocurrency treasury strategy exposes us to risk of non-performance by counterparties***

Our bitcoin treasury strategy exposes us to the risk of non-performance by counterparties, whether contractual or otherwise. Risk of non-performance includes inability or refusal of a counterparty to perform because of a deterioration in the counterparty's financial condition and liquidity or for any other reason. For example, our execution partners, custodians, or other counterparties might fail to perform in accordance with the terms of our agreements with them, which could result in a loss of bitcoin, a loss of the opportunity to generate funds, or other losses.

**Risks Related to the Ownership of Our Common Stock**

***Conversion of our Series A Preferred Stock will dilute the ownership interest of our existing stockholders, including holders who had previously converted their convertible notes, or may otherwise depress the price of our common stock.***

As of July 15, 2025, the shares of our Series A Preferred Stock (together with any accrued dividends) are convertible into approximately 3.7 million shares of our common stock at a price of $2.10 per share of common stock, and our outstanding Debentures are convertible into approximately 7.86 million shares of our common stock at a price of $2.10 per share of common stock. The conversion of some or all of the shares of our Series A Preferred Stock and/or Debentures into shares of our common stock will dilute the ownership interests of our existing stockholders. In addition, any sales in the public market of the shares of our common stock issuable upon such conversion and/or any anticipated conversion of the Series A Preferred Stock and/or Debentures into shares of our common stock could adversely affect prevailing market prices of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24

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[**Table of Contents**](#toc)

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

*Issuance of Unregistered Securities*

Other than as set forth below and as reported in our Current Reports on Form 8-K, there have been no other sales or issuances of unregistered securities during the period covered by this Quarterly Report that were not registered under the Securities Act.

During the three months ended June 30, 2025, we issued 175,649 shares of our common stock valued at $0.1 million to various consultants. We valued these shares at prices between $0.84 and $0.91 per share, the market price of our common stock on the date of issuance.

During the three months ended June 30, 2024, we issued 35,763 shares of our common stock valued at $0.1 million to various employees. We valued these shares at prices between $0.84 and $0.95 per share, the market price of our common stock on the date of issuance.

We believe the offers, sales and issuances of the securities described above were made in reliance on the exemption from registration contained in Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder and involved a transaction by an issuer not involving any public offering. Each of the recipients of securities in any transaction exempt from registration either received or had adequate access, through employment, business or other relationships, to information about us.

*Purchases of Equity Securities by the Issuer and Affiliated Purchasers*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **(c)** | **(d)** |
|  |  |  | **Total** | **Maximum** |
|  |  |  | **number of** | **number** |
|  |  |  | **shares** | **(or approximate** |
|  |  |  | **(or units)** | **dollar value) of** |
|  | **(a)** |  | **purchased** | **shares** |
|  | **Total** | **(b)** | **as part of** | **(or units)** |
|  | **number of** | **Average** | **publicly** | **that may yet** |
|  | **shares** | **price paid** | **announced** | **be purchased** |
|  | **(or units)** | **per share** | **plans or** | **under the plans** |
| **Period** | **purchased** | **(or unit)** | **programs** | **or programs** |
| April 1, 2025 – April 30, 2025 |  | $- |  | $6500000 |
| May 1, 2025 – May 31, 2025 | 24056 | $0.74 | 24056 | $6500000 |
| June 1, 2025 – June 30, 2025 | 267403 | $0.81 | 291459 | $6500000 |
| Total (April 1, 2025 – June 30, 2025) | 291459 | $0.79 | 291459 | $6500000 |

---

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item *5.* Other Information.**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *25*

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[**Table of Contents**](#toc)

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| 3.1 | [Certificate of Incorporation of the Company (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on August 8, 2017).](http://www.sec.gov/Archives/edgar/data/1491419/000121390017008330/f8k080217ex3i_livexlivemed.htm) |
| 3.2 | [Certificate of Amendment to the Certificate of Incorporation of the Company, dated as of September 30, 2017 (Incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form S-1, Amendment No. 3, filed with the SEC on October 6, 2017).](http://www.sec.gov/Archives/edgar/data/1491419/000121390017010383/fs12017a3ex3-2_livexlivemed.htm) |
| 3.3 | [Bylaws of the Company (Incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K, filed with the SEC on August 8, 2017).](http://www.sec.gov/Archives/edgar/data/1491419/000121390017008330/f8k080217ex3ii_livexlivemed.htm) |
| 3.4 | [Amendment No. 1 to the Bylaws of the Company (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on January 14, 2021).](http://www.sec.gov/Archives/edgar/data/1491419/000121390021002268/ea133247ex3-1_livexlivemedia.htm) |
| 3.5 | [Certificate of Merger, dated as of September 30, 2021, between the Company and LiveOne, Inc. ((Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on October 12, 2021).](http://www.sec.gov/Archives/edgar/data/1491419/000121390021052422/ea148634ex3-1_liveoneinc.htm) |
| 4.1 | [Form of Warrants, dated July 15, 2022, issued by PodcastOne to the purchasers of PodcastOne's 10% Original Issue Discount Convertible Promissory Notes, dated July 15, 2022 (Incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K, filed with the SEC on July 20, 2022).](http://www.sec.gov/Archives/edgar/data/1491419/000121390022040403/ea163077ex4-2_liveone.htm) |
| 4.2 | [Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock of the Company, dated as of February 2, 2023 (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K, filed with the SEC February 7, 2023).](http://www.sec.gov/Archives/edgar/data/1491419/000121390023008720/ea172780ex4-1_liveoneinc.htm) |
| 4.3 | [<u>Warrant to Purchase Common Stock, dated as of April 1, 2024, issued by the Company to Harvest Small Cap Partners, L.P. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K, filed with the SEC April 5, 2024).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390024030849/ea020335801ex4-1_live.htm) |
| 4.4 | [<u>Warrant to Purchase Common Stock, dated as of April 1, 2024, issued by the Company to Harvest Small Cap Partners, Ltd. (Incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K, filed with the SEC April 5, 2024).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390024030849/ea020335801ex4-2_live.htm) |
| 4.5 | [<u>Warrant to Purchase Common Stock, dated as of April 1, 2024, issued by the Company to Trinad Capital Master Fund Ltd. (Incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K, filed with the SEC April 5, 2024).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390024030849/ea020335801ex4-3_live.htm) |
| 4.6 | [<u>Form of 11.75% Original Issue Discount Senior Secured Convertible Debentures (Incorporated by reference to Exhibit 4.1 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex4-1_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on May 23, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex4-1_liveone.htm) |
| 4.7 | [<u>Warrant to Purchase Common Stock, dated as of July 15, 2025, issued by the Company to Harvest Small Cap Partners, L.P. (Incorporated by reference to Exhibit 4.1 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex4-1_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex4-1_liveone.htm) |
| 4.8 | [<u>Warrant to Purchase Common Stock, dated as of July 15, 2025, issued by the Company to Harvest Small Cap Partners Master, Ltd. (Incorporated by reference to Exhibit 4.2 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex4-2_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex4-2_liveone.htm) |
| 4.9 | [<u>Warrant to Purchase Common Stock, dated as of July 15, 2025, issued by the Company to Trinad Capital Master Fund Ltd. (Incorporated by reference to Exhibit 4.3 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex4-3_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex4-3_liveone.htm) |
| 4.10 | [<u>Form of Underwriter</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064904/ea024928301ex4-1_liveone.htm)[<u>'</u><u>s Warrant (Incorporated by reference to Exhibit 4.1 to the Company</u><u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 17, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064904/ea024928301ex4-1_liveone.htm) |
| 10.1† | [Form of Director/Officer Indemnification Agreement (Incorporated by reference to Exhibit 10.14 to the Company's Current Report on Form 8-K, filed with the SEC on April 30, 2014).](http://www.sec.gov/Archives/edgar/data/1491419/000114420414026474/v375930_ex10-14.htm) |
| 10.2† | [The Company's 2016 Equity Incentive Plan (Incorporated by reference to Exhibit 10.23 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 14, 2016).](http://www.sec.gov/Archives/edgar/data/1491419/000161577416008266/s104586_ex10-23.htm) |
| 10.3† | [Amendment No. 1 to the Company's 2016 Equity Incentive Plan (Incorporated by reference to Exhibit 10.23 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on February 13, 2019).](http://www.sec.gov/Archives/edgar/data/1491419/000121390019002273/f10q1218ex10-23_livexlive.htm) |
| 10.4† | [Amendment No. 2 to the Company's 2016 Equity Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on July 6, 2021).](http://www.sec.gov/Archives/edgar/data/1491419/000121390021035791/ea143593ex10-1_livexlive.htm) |
| 10.5† | [Form of Director Option Agreement under 2016 Equity Incentive Plan (Incorporated by reference to Exhibit 10.24 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 14, 2016).](http://www.sec.gov/Archives/edgar/data/1491419/000161577416008266/s104586_ex10-24.htm) |
| 10.6† | [Form of Employee Option Agreement under 2016 Equity Incentive Plan (Incorporated by reference to Exhibit 10.25 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 14, 2016).](http://www.sec.gov/Archives/edgar/data/1491419/000161577416008266/s104586_ex10-25.htm) |
| 10.7† | [Employment Agreement, dated as of September 7, 2017, between the Company and Robert S. Ellin (Incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K, filed with the SEC on September 8, 2017).](http://www.sec.gov/Archives/edgar/data/1491419/000121390017009529/f8k090117bex10-3_livexlive.htm) |
| 10.8† | [Amendment No. 1 to Employment Agreement, dated as of December 15, 2017, between the Company and Robert Ellin (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on December 15, 2017).](http://www.sec.gov/Archives/edgar/data/1491419/000121390017013306/f8k121417ex10-1_livexlive.htm) |
| 10.9† | [Amendment No. 2 to Employment Agreement, dated as of December 14, 2017, between the Company and Robert Ellin. (Incorporated by reference to Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on February 14, 2023).](http://www.sec.gov/Archives/edgar/data/1491419/000121390023011502/f10q1222ex10-9_liveoneinc.htm) |
| 10.10† | [<u>Employment</u>](http://www.sec.gov/Archives/edgar/data/1491419/000143774925022739/ex_838513.htm)[<u>Offer Letter,</u> <u>dated as of August 29, 2023, between LiveXLive, Corp. and Ryan Carhart (Incorporated by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000143774925022739/ex_838513.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

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---

| | |
|:---|:---|
| 10.11 | [<u>Exchange Agreement, dated as of February 3, 2023, between the Company and Harvest Small Cap Partners, L.P. (Incorporated by reference to Exhibit 10.1 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390023008720/ea172780ex10-1_liveoneinc.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC February 7, 2023).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390023008720/ea172780ex10-1_liveoneinc.htm) |
| 10.12 | [<u>Exchange Agreement, dated as of February 3, 2023, between the Company and Harvest Small Cap Partners, Ltd. (Incorporated by reference to Exhibit 10.2 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390023008720/ea172780ex10-2_liveoneinc.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC February 7, 2023).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390023008720/ea172780ex10-2_liveoneinc.htm) |
| 10.13 | [Exchange Agreement, dated as of February 3, 2023, between the Company and Trinad Capital Master Fund Ltd. (Incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K, filed with the SEC February 7, 2023).](http://www.sec.gov/Archives/edgar/data/1491419/000121390023008720/ea172780ex10-3_liveoneinc.htm) |
| 10.14 | [<u>Loan and Security Agreement, dated as of August</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390023064619/ea183093ex10-1_liveoneinc.htm)[<u>2, 2023, between the Company and Capchase Inc. (Incorporated by reference to Exhibit 10.1 to the Company</u><u>'</u><u>s Current Report on Form 8-K, filed with the SEC on August 8, 2023).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390023064619/ea183093ex10-1_liveoneinc.htm) |
| 10.15 | [<u>Securities Purchase Agreement, dated as of May 19, 2025, between the Company and the Purchasers (Incorporated by reference to Exhibit 10.1 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex10-1_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on May 23, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex10-1_liveone.htm) |
| 10.16 | [<u>Subsidiary Guarantee, dated as of May 19, 2025, made by the Guarantors, in favor of the Secured Parties (as defined therein) (Incorporated by reference to Exhibit 10.2 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex10-2_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on May 23, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex10-2_liveone.htm) |
| 10.17 | [<u>Security Agreement, dated as of May 19, 2025, among the Company, the Guarantors, Purchasers and JGB Collateral, LLC (Incorporated by reference to Exhibit 10.3 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex10-3_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on May 23, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025047412/ea024297201ex10-3_liveone.htm) |
| 10.18 | [<u>Letter Agreement, dated as of July 15, 2025, between the Company and Harvest Small Cap Partners, L.P. (Incorporated by reference to Exhibit 10.1 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex10-1_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex10-1_liveone.htm) |
| 10.19 | [<u>Letter Agreement, dated as of July 15, 2025, between the Company and Harvest Small Cap Partners Master, Ltd. (Incorporated by reference to Exhibit 10.2 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex10-2_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex10-2_liveone.htm) |
| 10.20 | [<u>Letter Agreement, dated as of July 15, 2025, between the Company and Trinad Capital Master Fund Ltd. (Incorporated by reference to Exhibit 10.3 to the Company</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex10-3_liveone.htm)[<u>'</u><u>s Current Report on Form 8-K, filed with the SEC on July 15, 2025).</u>](http://www.sec.gov/Archives/edgar/data/1491419/000121390025064338/ea024909101ex10-3_liveone.htm) |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act.](ex_837682.htm) |
| 31.2\* | [Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act.](ex_837683.htm) |
| 32.1\*\* | [Certification of Principal Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_837684.htm) |
| 32.2\*\* | [Certification of Principal Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_837685.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

---

| | |
|:---|:---|
| † | Management contract or compensatory plan or arrangement. |
| \* | Filed herewith. |
| \*\* | Furnished herewith. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **LIVEONE INC.** | **LIVEONE INC.** |
| Date: August 14, 2025 | By: | /s/ *Robert S. Ellin* |
|  | Name:  | Robert S. Ellin |
|  | Title:  | Chief Executive Officer and Chairman |
|  |  | (Principal Executive Officer) |
| Date: August 14, 2025 | By: | /s/ *Ryan Carhart* |
|  | Name:  | Ryan Carhart |
|  | Title:  | Chief Financial Officer<br> (Principal Financial Officer and<br> Principal Accounting Officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CEO PURSUANT TO RULE 13a-14(a) OR 15d-14(a)**

**OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Robert S. Ellin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of LiveOne, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2025

---

| |
|:---|
| */s/ Robert S. Ellin* |
| Robert S. Ellin |
| Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CFO PURSUANT TO RULE 13a-14(a) OR 15d-14(a)**

**OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Ryan Carhart, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of LiveOne, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2025

---

| |
|:---|
| */s/ Ryan Carhart* |
| Ryan Carhart |
| Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of LiveOne, Inc. (the "Company") on Form 10-Q for the quarter ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert S. Ellin, as the Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| |
|:---|
| */s/ Robert S. Ellin* |
| Robert S. Ellin |
| Chief Executive Officer |

---

August 14, 2025

This Certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of LiveOne, Inc. (the "Company") on Form 10-Q for the quarter ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ryan Carhart, as the Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| |
|:---|
| */s/ Ryan Carhart* |
| Ryan Carhart |
| Chief Financial Officer |

---

August 14, 2025

This Certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.