LiveOne (LVO) Updates Financial Guidance

LiveOne (Nasdaq: LVO), a global platform for livestream and on-demand audio, video, and podcast/vodcast content in music, comedy, and pop culture, and owner of LiveXLive, PodcastOne, Slacker Radio, React Presents, Gramophone Media, Palm Beach Records and Custom Personalization Solutions, announced today that it is implementing further consolidation amounting to more than $14 million in annual cost and expense reductions. The company also is updating guidance for its fiscal year ending March 31, 2022 ("Fiscal 2022") and providing guidance for fiscal year ending March 31, 2023 ("Fiscal 2023").

• LiveOne is implementing further cost and expense reductions from both operations and corporate overhead which will increase the previously implemented $5.6 million of annual cost savings to a total of over $14 million annually.
• LiveOne plans to spin-out its existing PPV business, PPVOne, as a separate public company and its plan to distribute a minority portion of the new company's equity to LiveOne's stockholders, anticipated to take place by March 31, 2022.
• Due to the heightened concern of the COVID variants, LiveOne has elected to cancel the planned live music festival "Spring Awakening Excursions: Cancun Awakening" previously scheduled for January 13-17, 2022 and has moved its planned second iteration of the Social Gloves franchise, Self-Made Knockout, from Q4 Fiscal 2022 to Q1 Fiscal 2023.
• LiveOne's recent live EDM music event, Spring Awakening Music Festival: Autumn Equinox held in Chicago in October 2021 ("SAMF"), was seriously impacted by the Delta COVID variant as well as adverse weather which caused the audience to be evacuated due to lightning. LiveOne expects to take a charge of approximately $3 million in the current Q3 Fiscal 2022. LiveOne is actively pursuing an insurance claim for costs incurred in connection with such festival and expects a material recovery of its costs.
• Given the cancellation and rescheduling of planned live events as well as the challenges incurred at the Chicago SAMF, LiveOne is updating its guidance for FY 2022 of revenue between $110 million - $112 million with ($8 Million) in Adjusted EBITDA* and for FY 2023 of revenue between $120 - $140 Million with $2 Million - $8 Million in Adjusted EBITDA.*
• LiveOne expects to report positive adjusted EBITDA* in Q1 Fiscal 2023 ending June 30, 2022.
• Paid subscribers as of December 15, 2021 increased to over 1,337,000, a net increase of approximately 81,000 as compared to 1,256,000 on September 30, 2021. Included in the total number of subscribers for the reported periods are certain subscribers which are the subject of a contractual dispute. LiveOne is currently not recognizing revenue related to these subscribers.
• As previously announced in January 2021, with the assistance of J.P. Morgan, LiveOne is continuing a process to explore strategic alternatives in order to enhance shareholder value. Potential alternatives may include, among others, a strategic acquisition, divestiture, merger, sale or other form of business combination. There can be no assurance that LiveOne's efforts will result in a specific transaction or any particular outcome or its timing.

LiveOne's CEO and Chairman, Robert Ellin, commented, "Throughout calendar 2021 we have invested over $18 million in building and owning sustainable, valuable franchises in audio music, live music and events, podcasting/vodcasting, OTT, pay-per-view and live streaming. With that sunk cost behind us, as well as the successful consolidation of our seven previous acquisitions, we are now focused on building upon our significant revenue growth over the past two years, as well as achieving positive adjusted EBITDA* in Q1 Fiscal 2023."

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