LiveOne Further Consolidates & Updates Financial Guidance

Consolidating

LIVEONE will implement more than $14 million in annual cost and expense reductions, which includes the previously announced $5.6 million of implemented annual cost savings. The 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, will also update guidance for its fiscal year ending MARCH 31, 2022 ("Fiscal 2022") and provide guidance for fiscal year ending MARCH 31, 2023 ("Fiscal 2023").

Due to the heightened concern about 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 on 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 a 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*.

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, said, "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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