LVO

• Balance Sheet & Capital Return

  • Increased cash position by $3.3 million, grew stockholders' equity by $7 million, eliminated $5 million of liabilities in the quarter
  • Completed $7 million of the authorized $12 million stock repurchase program, and will continue aggressive buybacks at current low valuations
  • Acquired 150 thousand additional PodcastOne shares and paid off all of PodcastOne's junior debt
  • Cleared long-standing past payables to music industry partners, brought major music labels in as long-term shareholders/partners

• Partnership & Distribution Growth

  • Secured a 4-year major retail agreement with one of the world's largest retailers, is close to finalizing a second major retail partnership
  • Established a new content partnership with Netflix, which has 700 million global subscribers
  • Maintains existing expanding relationships with top global tech and media firms including Apple, Amazon, Alphabet, AT&T, Samsung, LG, and VIZIO
  • Existing large partner revenue growth: Amazon revenue exceeds $20 million, Paramount annual revenue has grown past $27 million
  • Already has content integrated into three major smart TV brands, and has live content available with AT&T for automotive manufacturers under NDA

• Cost Structure & Operational Efficiency

  • Reduced total headcount from a peak of 350 to approximately 80 employees, creating a much leaner cost structure to support scalable profitable growth
  • Plans to add targeted new hires: a retail partnerships head, a carrier business head, a company president, and B2B sales leadership to support growing segments

• M&A & Strategic Optionality

  • M&A pipeline is the strongest in company history, with over $400 million of potential deals under evaluation, focusing on highly accretive acquisitions similar to PodcastOne and Slacker
  • Receives regular inbound interest from strategic and financial buyers for individual subsidiaries, assets, or the entire company, creating significant strategic optionality
  • The company is in late-stage process for a new accretive M&A transaction

• Content & IP Value

  • Holds over 250,000 hours of owned video content and over 500,000 hours of owned audio content, which is growing
  • Sold the podcast Barnum Town to a major streaming partner, with a potential greenlight for television/film adaptation that would add incremental cash flow from IP
  • AI content licensing is a large new opportunity: the company is in active discussions with 17 AI firms, with current proposed pricing of $100 to $500 per hour for non-exclusive content licensing

• Industry Outlook

  • Management expects a new wave of industry consolidation, as all major streaming platforms are expected to acquire or build out audio/podcast offerings to increase average revenue per user (ARPU)
  • Valuation disconnect: peer companies trade at ~3.7x revenue, while LiveOne trades at ~65% of revenue, representing significant upside as execution continues

• Management expects a clear path to reach $250 million in total annual revenue within the next 3 years, with $100 million in annual revenue achievable in the near term, supported by the company's lean scalable cost structure
• The company expects to begin monetizing AI content licensing starting next quarter
• Updates on major undisclosed partnerships (AT&T automotive, large retail, smart TV integrations) are expected to be available within 30 to 90 days
• Additional stock-for-service deals to complete balance sheet clean-up are expected within 60 to 90 days, for a total of $15 million in such transactions

Consolidated total revenue for the quarter was $19.4 million, with adjusted EBITDA of $4.3 million. On a GAAP basis, LiveOne reported a net loss of $3.1 million, or -$0.23 per basic/diluted share, improved from a net loss of $3.9 million (-$0.40 per share) in the year-ago quarter.

1. Audio Division (entirely contributes the audio segment): Total revenue of $18.6 million, 96% of consolidated revenue, with adjusted EBITDA of $6.3 million. The division contains two core sub-segments:
   • PodcastOne: Record revenue of $16.1 million, 83% of consolidated revenue, with adjusted EBITDA of $1.6 million.
   • Slacker: Revenue of $2.5 million, 13% of consolidated revenue, with adjusted EBITDA of $4.7 million. Slacker's adjusted EBITDA included one-time benefits from stock-for-service deals and elimination of past liabilities.

• All forward-looking statements are based on current assumptions, and actual results may differ materially due to unknown risks and uncertainties, as detailed in LiveOne's SEC filings
• Growth depends on small conversion rates from very large partner distribution, so lower than expected partner adoption or user conversion would negatively impact revenue growth
• Monetization of AI content depends on reaching mutually acceptable terms with content and talent partners, and market pricing for content may differ from current proposed levels
• Achievement of long-term revenue targets depends on successful execution of new partnerships and M&A transactions, which may not close or perform as expected

Q: What is the status of AT&T's automotive content offering with LiveOne, and when will updates be available? Are manufacturers already offering this content? / A: LiveOne is bound by NDA so cannot name specific manufacturers, but content is already live with some manufacturers. A substantial public update is expected in the next 30 to 45 days. This partnership is high-excitement because AT&T is the largest U.S. carrier, and historically LiveOne has generated significant revenue from carrier relationships.

Q: Can you expand on the new Netflix partnership, what content will Netflix subscribers see from LiveOne? / A: To start, LiveOne will provide podcast content to Netflix. Management believes all major streaming platforms will add audio offerings to boost ARPU, since audio content has lower production risk than original video and can be monetized at similar price points to video streaming. This positions LiveOne as an attractive acquisition or partnership target for major platforms.

Q: Where are you in the process of AI content monetization, and could tokenization help with content sales? / A: As of the call date, LiveOne is in active discussions with 17 AI companies, all offering between $100 and $500 per hour for content. The company is working collaboratively with talent and music partners to structure these deals, and expects to begin monetizing this content in the next quarter. There is massive demand for content to train LLMs and robotics, so this represents a large untapped value stream for LiveOne's existing content library.

Q: What is driving the sharp improvement in gross margins, and how much of this is non-recurring? Will margins stay at this level? / A: There was approximately $1.5 million in one-time non-recurring gains from the elimination of old liabilities at Slacker, plus additional benefits from stock-for-service deals that boosted adjusted EBITDA in the quarter. Excluding these one-time items, margins will revert to more normal sustainable levels going forward, unless additional similar stock-for-service deals are completed.

Q: What does the 3-year $250 million revenue target look like in terms of growth drivers and EBITDA? / A: The target is achievable through continued expansion of existing large partnerships: Paramount grew from $2 million to over $27 million in annual revenue, Amazon grew from a small test to $20 million, and new partnerships with Netflix, major retailers, and automakers add incremental growth. With the company's already lean cost structure, revenue growth will flow directly to EBITDA, and the target is achievable through consistent execution on the company's large partner pipeline.