LiveOne Inc
For the period ended Dec 31, 2024. Filed Feb 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 14, 2025
LVO$2.45+5.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001437749-24-035385
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-14.
0001437749-25-003961
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 181 previous paragraphs and 182 current paragraphs.
103 unchanged; 62 reworded; 16 added; 12 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 37 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
In January 2025, total paid and monthly active ad-supported users exceeded 860k. Direct-billed Premium subscribers have increased by 78% and overall direct-billed subscribers have increased by 130% since October 2024, when we announced a new conversion program with Tesla.
Current report
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 the PodcastOne’s vast library of popular podcasts. Pursuant to the Agreement, ART19 is required to pay the Company a minimum guarantee of $15.0 million plus 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 the Company and ART19 based on gross sales revenue achieved by PodcastOne under the Agreement.
Current report
On January 28, 2025, we entered into 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 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.
Current report
Membership revenue decreased $2.6 million, or 15%, to $14.3 million for the three months ended December 31, 2024, as compared to $16.9 million for the three months ended December 31, 2023. 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.
Current report
Advertising cost of sales increased by $2.6 million, or 27%, to $12.2 million for the three months ended December 31, 2024, as compared to $9.6 million for the three months ended December 31, 2023. The increase was primarily attributable to growth in our revenue share expense which is in line with increases noted above.
Current report
Sales and Marketing expenses increased by $0.3 million, or 16%, to $1.8 million for the three months ended December 31, 2024, as compared to $1.5 million for the three months ended December 31, 2023, primarily driven by employee costs.
Current report
Amortization of intangible assets decreased by $0.2 million, or 36%, to $0.3 million for the three months ended December 31, 2024, as compared to $0.5 million for the three months ended December 31, 2023. The decrease can be attributed to a portion of the intangible assets reaching their full lives of amortization.
Current report
Revenue increased $2.2 million, or 22%, during the three months ended December 31, 2024, primarily due to increased advertising.
Current report
Revenue decreased $2.5 million, or 15%, during the three months ended December 31, 2024, primarily due to a change in revenue model with our largest OEM customer.
Current report
Operating income decreased by $4.6 million, or 111%, for the three months ended December 31, 2024, driven by the decrease in revenue along with an impairment of $3.8 million in the period.
Current report
Operating loss increased by $1.4 million, or 125%, to $2.5 million for the three months ended December 31, 2024, as compared to $1.1 million for the three months ended December 31, 2023, largely due to an increase in employee costs.
Current report
Nine Months Ended December 31, 2024, as compared to Nine Months Ended December 31, 2023
Current report
Impairment of Intangible Assets
Current report
Nine Months Ended December 31, 2024, as compared to Nine Months Ended December 31, 2023
Current report
Operating income decreased by $1.2 million or 13%, for the nine months ended December 31, 2024, as the increase in revenue of $4.3 million was lower than the increase in operating expenses of $5.5 million primarily due to the $3.8 million impairment charge.
Current report
On June 2, 2021, we 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 our Company and our subsidiaries. In connection with the Original Business Loan Agreement, we issued a promissory note, dated as of June 2, 2021, to the Senior Lender in the principal amount of $7,000,000 (the “Promissory Note”) and established the revolving line of credit in the amount of $7.0 million (the “Revolving Credit Facility”), maturing on June 2, 2023. In July 2022, we extended the maturity date of our revolving credit facility to June 2024 and its variable interest rate was increased to 2.5%. On September 8, 2023 and effective as of August 22, 2023, we entered into a new Business Loan Agreement (the “2023 Business Loan Agreement”) with the Senior Lender, to convert our 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 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 January 28, 2025, we entered into 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 2025 Change in Terms Agreement entered into in connection with the 2025 Business Loan Agreement, we 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 we and our 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.
Removed paragraphs (12)
Previous report
We ended the September 30, 2024 quarter with approximately 3,100,000 paid members on our music platform, up from approximately 2,400,000 at September 30, 2023, representing 27% annual growth. Included in the total number of paid members for the reported periods are certain members which are the subject of a contractual dispute. We are currently not recognizing revenue related to these members.
Previous report
Advertising cost of sales increased by $2.1 million, or 23%, to $11.4 million for the three months ended September 30, 2024, as compared to $9.3 million for the three months ended September 30, 2023. The increase was primarily attributable to growth in our barter expense of $2.5 million offset by a decrease in revenue share expense of $0.4 million for the period.
Previous report
Revenue increased $1.6 million, or 16%, during the three months ended September 30, 2024, primarily due to increased advertising.
Previous report
Operating income increased by $2.1 million or 79%, for the three months ended September 30, 2024, as the increase in revenue was higher than the increase in operating expenses as no significant increases in cost were noted.
Previous report
Six Months Ended September 30, 2024, as compared to Six Months Ended September 30, 2023
Previous report
Membership revenue increased $6.7 million, or 21%, to $38.3 million for the six months ended September 30, 2024, as compared to $31.6 million for the months ended September 30, 2023. The increase was primarily as a result of member growth with our largest OEM customer.
Previous report
Sponsorship and Licensing
Previous report
Ticket/Event
Previous report
Sales and Marketing expenses decreased by $1.3 million, or 30%, to $2.9 million for the six months ended September 30, 2024, as compared to $4.2 million for the six months ended September 30, 2023, primarily driven by reduced payroll costs.
Previous report
Six Months Ended September 30, 2024, as compared to Six Months Ended September 30, 2023
Previous report
Operating income increased by $3.5 million or 60%, for the six months ended September 30, 2024, as the increase in revenue was higher than the increase in operating expenses as no significant increases in cost were noted.
Previous report
Operating loss increased by $0.2 million, or 5%, to $5.3 million for the six months ended September 30, 2024, as compared to $5.1 million for the six months ended September 30, 2023, largely due to an increase in legal and accounting costs.
Reworded paragraphs (62)
Previous wording
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 and six months ended September 30, 2024, 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”).
Current wording
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 and nine months ended December 31, 2024, 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”).
Previous wording
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; changes in laws or regulations tha…
Excerpt shortened here; the source contains the full paragraph.
Current wording
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 amoun…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
For the three months ended September 30, 2024 and 2023, we reported revenue of $32.6 million and $28.5 million, respectively. We have one customer that accounted for more than 10% of its revenue during the three months ended September 30, 2024 and 2023. The customer is an original equipment manufacturer (the “OEM”) who provides premium Slacker service in all of their new vehicles. In the three months ended September 30, 2024 and 2023, total revenue from the OEM was $18.5 million and $14.8 million, respectively.
Current wording
For the three months ended December 31, 2024 and 2023, we reported revenue of $29.4 million and $31.2 million, respectively. We have one customer that accounted for more than 10% of its revenue during the three months ended December 31, 2024 and 2023. The customer is an original equipment manufacturer (the “OEM”) who provides premium Slacker service in all of their new vehicles. In the three months ended December 31, 2024 and 2023, total revenue from the OEM was $13.5 million and $15.5 million, respectively.
Previous wording
On October 1, 2024, we announced an amended relationship with our largest OEM customer. Effective December 1, 2024, the OEM customer will no longer subsidize our products to some of its customers, however, we will 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 will allow 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.
Current wording
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 qualifying grandfathered vehicles for the term of the OEM license agreement.
Previous wording
During our fiscal year ended March 31, 2024, we derived 57% of our revenue from paid memberships and the remainder from advertising, ticketing, sponsorship, merchandising and licensing. Our revenue for the fiscal year ended March 31, 2024 was comprised of 57% from paid members, 40% from advertising and 3% from merchandise.
Current wording
During our fiscal year ended March 31, 2024, we derived 57% of our revenue from paid memberships and the remainder from advertising, ticketing, sponsorship, merchandising and licensing. Our revenue for the nine months ended December 31, 2024, was comprised of 55% from paid members, 40% from advertising and 5% from merchandise.
Previous wording
On October 1, 2024, we announced an amended relationship with our largest OEM customer. Effective December 1, 2024, the OEM customer will no longer subsidize our products to some of its customers, however, we will 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 will allow 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 grandfathered vehicles for the term of the OEM license agreement.
Current wording
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.
Previous wording
For the quarter ended September 30, 2024 and 2023, all material amounts of our revenue were derived from customers located in the United States and moreover, our largest OEM customer accounted for 57% and 51% 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 September 30, 2024 could cause our revenue to fluctuate significantly.
Current wording
For the quarter ended December 31, 2024 and 2023, all material amounts of our revenue were derived from customers located in the United States and moreover, our largest OEM customer accounted for 46% and 49% 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 December 31, 2024 could cause our revenue to fluctuate significantly.
Previous wording
Moreover, and with the addition of PodcastOne and CPS in July and December 2020, respectively, the percentage of this customer revenue concentration increased and is expected to continue in the future. 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.
Current wording
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.
Previous wording
Advertising revenue increased $1.6 million, or 15%, to $12.3 million for the three months ended September 30, 2024, as compared to $10.7 million for the three months ended September 30, 2023, which is primarily attributable to growth in our barter revenue of $2.4 million offset by a decrease in non-barter advertising revenue of $0.8 million at PodcastOne year-over-year.
Current wording
Advertising revenue increased $2.3 million, or 21%, to $12.9 million for the three months ended December 31, 2024, as compared to $10.6 million for the three months ended December 31, 2023, which is primarily attributable to growth in our barter revenue year-over-year.
Previous wording
Merchandising revenue decreased $0.5 million, or 36%, to 0.8 million for the three months ended September 30, 2024, as compared to $1.3 million the three months ended September 30, 2023, which is due to a reduction in demand from both retail partners and our direct to consumer merchandising business.
Current wording
Merchandising revenue decreased $1.5 million, or 39%, to 2.3 million for the three months ended December 31, 2024, as compared to $3.8 million the three months ended December 31, 2023, which is due to a reduction in demand from both retail partners and our direct to consumer merchandising business.
Previous wording
Membership cost of sales increased by $4.3 million, or 21%, to $24.6 million for the six months ended September 30, 2024, as compared to $20.2 million for the six months ended September 30, 2023. The increase was in line with the higher membership revenues noted above.
Current wording
Membership cost of sales decreased by $3.1 million, or 27%, to $8.2 million for the three months ended December 31, 2024, as compared to $11.3 million for the three months ended December 31, 2023. The decrease was in line with the lower membership revenues noted above.
Previous wording
Production cost of sales increased by $0.9 million, or 95%, to $47,000 for the three months ended September 30, 2024, as compared to $0.9 million for the three months ended September 30, 2023. The decrease can be attributed to the decrease in events year over year.
Current wording
Production cost of sales decreased by $0.1 million, or 47%, to $0.1 million for the three months ended December 31, 2024, as compared to $0.2 million for the three months ended December 31, 2023. The decrease can be attributed to the decrease in events year over year.
Previous wording
Merchandising cost of sales increased by $1.0 million, or 368%, to $0.7 million for the three months ended September 30, 2024, as compared to a credit of $0.3 million for the three months ended September 30, 2023 due to the company purchasing merchandise in the current year for advertising.
Current wording
Merchandising cost of sales decreased by $0.4 million, or 20%, to $1.8 million for the three months ended December 31, 2024, as compared to $2.2 million for the three months ended December 31, 2023 due to the Company purchasing a higher amount of merchandise in the prior year for advertising.
Previous wording
Product development expenses decreased by $0.4 million, or 17%, to $2.2 million for the six months ended September 30, 2024, as compared to $2.7 million for the six months ended September 30, 2023, which was driven by a decrease in employees as compared to the prior year.
Current wording
Product development expenses increased by $0.4 million, or 61%, to $1.1 million for the three months ended December 31, 2024, as compared to $0.7 million for the three months ended December 31, 2023, which was driven by an increase in employee costs.
Previous wording
General and administrative expenses decreased by $0.1 million, or 1%, to $6.3 million for the three months ended September 30, 2024, as compared to $6.4 million for the three months ended September 30, 2023, largely due to an increase in share-based compensation of $0.5 million offset by a $0.6 million decrease in cost attributed to accounting, license and payroll.
Current wording
General and administrative expenses decreased by $0.6 million, or 11%, to $5.2 million for the three months ended December 31, 2024, as compared to $5.9 million for the three months ended December 31, 2023, largely due to a decrease in share-based compensation of $0.6 million.
Previous wording
Impairment of intangible assets increased $0.2 million, or 100%, to $0.2 million for the six months ended September 30, 2024, as compared to none for the six months ended September 30, 2023, which is attributed to the impairment of intangible assets of PodcastOne, see Note 5 – Goodwill and Intangible Assets to our condensed consolidated financial statements included elsewhere in this Quarterly Report.
Current wording
Impairment of intangible assets increased $3.7 million to $3.8 million for the three months ended December 31, 2024, as compared to $0.2 million for the three months ended December 31, 2023, which is attributed to the impairment of intangible assets of Slacker (see Note 5 – Goodwill and Intangible Assets to our condensed consolidated financial statements included elsewhere in this Quarterly Report).
Previous wording
Total other expense decreased by $4.5 million, or 83%, to $1.0 million of expense for the three months ended September 30, 2024, as compared to $5.4 million of expense for the three months ended September 30, 2023. The increase is primarily driven by a reduction of the gain from changes in derivative liabilities of $4.2 million in the prior year period.
Current wording
Total other expense decreased by $1.0 million, or 66%, to $0.5 million of expense for the three months ended December 31, 2024, as compared to $1.5 million of expense for the three months ended December 31, 2023. The decrease is primarily driven by a reduction of interest expense due to the pay down of the line of credit.
Previous wording
Net loss attributable to non-controlling interests for the three months ended September 30, 2024 was $0.5 million compared to $0.4 million for the three months ended September 30, 2023, which resulted from the Spin-Out of PodcastOne.
Current wording
Net loss attributable to non-controlling interests for the three months ended December 31, 2024 was $0.4 million compared to $0.7 million for the three months ended December 31, 2023, which resulted from the Spin-Out of PodcastOne and DayOne Publishing.
Previous wording
Operating loss increased by $1.6 million or 154%, for the six months ended September 30, 2024, as the increase in revenue was lower than the increase in operating expenses due to growing the business.
Current wording
Operating loss decreased by $1.4 million or 53%, for the three months ended December 31, 2024, as the increase in revenue was higher than the increase in operating expenses due to growing the business.
Previous wording
Adjusted EBITDA* decreased by $0.5 million, or 529%, to $(0.4) million for the three months ended September 30, 2024, as compared to $0.1 million for the three months ended September 30, 2023. This was largely due to an increase in general and administrative cost associated with operating as a public company.
Current wording
Adjusted EBITDA* decreased by $0.3 million, or 88%, to $(0.7) million for the three months ended December 31, 2024, as compared to $(0.4) million for the three months ended December 31, 2023. This was largely due to an increase in general and administrative cost associated with operating as a public company.
Previous wording
Adjusted EBITDA* increased by $1.8 million, or 19%, to $11.2 million for the six months ended September 30, 2024, as compared to $9.4 million for the six months ended September 30, 2023. This was largely due to additional Contribution Margin in the current period.
Current wording
Adjusted EBITDA* decreased by $2.5 million, or 37%, to $4.3 million for the three months ended December 31, 2024, as compared to $6.8 million for the three months ended December 31, 2023. This was largely due to lower revenue achieved for the three months ended December 31, 2024, which resulted in a lower Contribution Margin in the current period.
Previous wording
Revenue decreased $0.7 million, or 45%, to $0.9 million during the three months ended September 30, 2024, as compared to $1.6 million for the three months September 30, 2023, primarily due to decrease in merchandising revenue due to a reduction in demand from both retail partners and our direct to consumer business.
Current wording
Revenue decreased $1.6 million, or 40%, to $2.4 million during the three months ended December 31, 2024, as compared to $4.0 million for the three months December 31, 2023, primarily due to decrease in merchandising revenue due to a reduction in demand from both retail partners and our direct to consumer business.
Previous wording
Operating loss increased by $0.5 million, or 45%, to $1.7 million for the three months ended September 30, 2024 from $1.1 million for the three months ended September 30, 2023, as a result of a decrease in Contribution Margin coupled with the increase in expenses due to an increase in general and administrative expenses.
Current wording
Operating loss decreased by $0.2 million, or 21%, to $0.9 million for the three months ended December 31, 2024 from $1.1 million for the three months ended December 31, 2023, as a result of an increase in Contribution Margin coupled with the decrease in expenses due to a decrease in general and administrative expenses.
Previous wording
Adjusted EBITDA* loss increased by $0.3 million, or 50%, to a $(0.8) million loss for the three months ended September 30, 2024, as compared to a $(0.6) million loss for the three months September 30, 2023. This was largely due to the decrease in revenues compared to the prior year.
Current wording
Adjusted EBITDA* loss decreased by $1.9 million, or 78%, to a $(0.5) million loss for the three months ended December 31, 2024, as compared to a $(2.4) million loss for the three months December 31, 2023. This was largely due to the decrease in revenue compared to the prior year.
Previous wording
Corporate Adjusted EBITDA* loss decreased $0.2 million, or 8%, to $(3.3) million for the six months ended September 30, 2024 as compared to $(3.5) million for the year ended September 30, 2023. The increase was largely due to the increase in costs noted above.
Current wording
Corporate Adjusted EBITDA* loss decreased $0.7 million, or 104%, to $(1.5) million for the three months ended December 31, 2024 as compared to $(0.8) million for the three months ended December 31, 2023. The decrease was largely due to the increase in costs noted above.
Previous wording
Membership revenue increased $3.0 million, or 19%, to $19.5 million for the three months ended September 30, 2024, as compared to $16.4 million for the months ended September 30, 2023. The increase was primarily as a result of member growth with our largest OEM customer.
Current wording
Membership revenue increased $4.8 million, or 8%, to $52.6 million for the nine months ended December 31, 2024, as compared to $48.5 million for the months ended December 31, 2023. The increase was primarily as a result of member growth with our largest OEM customer.
Previous wording
Advertising revenue increased $3.9 million, or 18%, to $25.4 million for the six months ended September 30, 2024, as compared to $21.5 million for the six months ended September 30, 2023, which is primarily attributable to growth in barter revenue of $4.3 million offset by non-barter advertising revenue of $0.5 million at PodcastOne year-over-year.
Current wording
Advertising revenue increased $6.1 million, or 19%, to $38.2 million for the nine months ended December 31, 2024, as compared to $32.1 million for the nine months ended December 31, 2023, which is primarily attributable to growth in revenue at PodcastOne year-over-year.
Previous wording
Merchandising revenue decreased $1.0 million, or 35%, to $2.0 million for the six months ended September 30, 2024, as compared to $3.0 million the six months ended September 30, 2023, which is due to a reduction in demand from both retail partners and our direct to consumer merchandising business.
Current wording
Merchandising revenue decreased $2.5 million, or 37%, to $4.3 million for the nine months ended December 31, 2024, as compared to $6.8 million the nine months ended December 31, 2023, which is due to a reduction in demand from both retail partners and our direct to consumer merchandising business.
Previous wording
Sponsorship and licensing revenue decreased by $0.1 million, or 100%, to none for the six months ended September 30, 2024, as compared to $0.1 million for the six months ended September 30, 2023. The decrease was primarily due to no significant events occurring for the six months ended September 30, 2024.
Current wording
Sponsorship and licensing revenue decreased by $0.1 million, or 100%, to none for the nine months ended December 31, 2024, as compared to $0.1 million for the nine months ended December 31, 2023. The decrease was primarily due to no significant events occurring for the nine months ended December 31, 2024.
Previous wording
Ticket/Event revenue decreased by $12,000, or 100%, to none for the three months ended September 30, 2024, as compared to $12,000 for the three months ended September 30, 2023, driven by the lack of any in-person events during the current year period.
Current wording
Ticket/Event revenue decreased by $15,000, or 100%, to none for the nine months ended December 31, 2024, as compared to $15,000 for the nine months ended December 31, 2023, driven by the lack of any in-person events during the current year period.
Previous wording
Membership cost of sales increased by $1.8 million, or 17%, to $12.4 million for the three months ended September 30, 2024, as compared to $10.6 million for the three months ended September 30, 2023. The increase was in line with the higher membership revenues noted above.
Current wording
Membership cost of sales increased by $1.4 million, or 5%, to $32.8 million for the nine months ended December 31, 2024, as compared to $31.4 million for the nine months ended December 31, 2023. The increase was in line with the higher membership revenues noted above.
Previous wording
Advertising cost of sales increased by $5.6 million, or 31%, to $23.2 million for the six months ended September 30, 2024, as compared to $17.7 million for the six months ended September 30, 2023. The increase was primarily attributable to growth in our barter expense of $5.5 million and an increase in revenue share expense of $0.1 million year-over-year.
Current wording
Advertising cost of sales increased by $8.3 million, or 31%, to $35.4 million for the nine months ended December 31, 2024, as compared to $27.0 million for the nine months ended December 31, 2023. The increase was primarily attributable to growth in revenue share expense year-over-year.
Previous wording
Production and ticketing cost of sales decreased by $1.5 million, or 67%, to $0.8 million for the six months ended September 30, 2024, as compared to $2.3 million for the six months ended September 30, 2023. The Company started to reduce the number of events held beginning with the six months ended September 30, 2023.
Current wording
Production and ticketing cost of sales increased by $0.5 million, or 165%, to $0.2 million for the nine months ended December 31, 2024, as compared to a credit of $0.3 million for the nine months ended December 31, 2023. The Company started to reduce the number of events held beginning with the nine months ended December 31, 2023. In addition, the Company negotiated reduction on past payables owed with vendors in the prior year.
Previous wording
Merchandising cost of sales increased by $1.5 million, or 319%, to $1.1 million for the six months ended September 30, 2024, as compared to $0.5 million credit for the six months ended September 30, 2023 due to lower merchandising revenues noted above and a write off of merchandise during the six months ended September 30, 2023.
Current wording
Merchandising cost of sales decreased by $1.4 million, or 28%, to $3.5 million for the nine months ended December 31, 2024, as compared to $4.9 million credit for the nine months ended December 31, 2023 due to lower merchandising revenues noted above and a write off of merchandise during the nine months ended December 31, 2023.
Previous wording
Sales and Marketing expenses decreased by $0.8 million, or 34%, to $1.5 million for the three months ended September 30, 2024, as compared to $2.3 million for the three months ended September 30, 2023, primarily driven by reduced payroll costs.
Current wording
Sales and Marketing expenses decreased by $1.0 million, or 17%, to $4.7 million for the nine months ended December 31, 2024, as compared to $5.7 million for the nine months ended December 31, 2023, primarily driven by reduced employee costs.
Previous wording
Product development expenses decreased by $0.3 million, or 19%, to $1.2 million for the three months ended September 30, 2024, as compared to $1.4 million for the three months ended September 30, 2023, which was driven by a decrease in employees as compared to the prior year.
Current wording
Product development expenses decreased by $0.1 million, or 1%, to $3.3 million for the nine months ended December 31, 2024, as compared to $3.4 million for the nine months ended December 31, 2023, which was driven by a decrease in employee costs as compared to the prior year.
Previous wording
General and administrative expenses increased by $30,000, or 0%, to $11.8 million for the six months ended September 30, 2024, as compared to $11.8 million for the six months ended September 30, 2023, largely due to an increase in share-based compensation of $1.2 million offset by a $1.2 million decrease in cost attributed to accounting, license and payroll.
Current wording
General and administrative expenses increased by $0.3 million, or 20%, to $1.5 million for the nine months ended December 31, 2024, as compared to $1.2 million for the nine months ended December 31, 2023, largely due to an increase in share-based compensation of $0.6 million offset by a $0.3 million decrease in cost attributed to accounting, licenses and payroll.
Previous wording
Amortization of intangible assets increased by $0.1 million, or 20%, to $0.5 million for the three months ended September 30, 2024, as compared to $0.5 million for the three months ended September 30, 2023. The increase can be attributed to the addition of intangibles attributed to acquired podcast at PodcastOne.
Current wording
Amortization of intangible assets increased by $0.3 million, or 20%, to $1.5 million for the nine months ended December 31, 2024, as compared to $0.2 million for the nine months ended December 31, 2023. The increase can be attributed to the addition of intangibles attributed to acquired podcast at PodcastOne.
Previous wording
Total other income (expense) decreased by $4.0 million, or 71%, to $1.6 million of expense for the six months ended September 30, 2024, as compared to $5.6 million of expense for the six months ended September 30, 2023. The increase is primarily driven by a reduction of the gain from changes in derivative liabilities of $3.0 million in the prior year period offset by a decrease in interest expense of $1.0 million due to the conversion of the Bridge Loan.
Current wording
Total other income (expense) decreased by $5.6 million, or 70%, to $2.2 million of expense for the nine months ended December 31, 2024, as compared to $7.1 million of expense for the nine months ended December 31, 2023. The increase is primarily driven by a reduction of the gain from changes in derivative liabilities of $4.1 million in the prior year and a decrease in interest expense of $1.9 million due to the conversion of the Bridge Loan.
Previous wording
Net loss attributable to non-controlling interests for the six months ended September 30, 2024 was $0.9 million, compared to $0.4 million for the six months ended September 30, 2023, which resulted from the Spin-Out of PodcastOne.
Current wording
Net loss attributable to non-controlling interests for the nine months ended December 31, 2024 was $1.8 million, compared to $1.0 million for the nine months ended December 31, 2023, which resulted from the Spin-Out of PodcastOne and DayOne Publishing.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Impairment of intangible assets increased $4.0 million, to $3.6 million for the nine months ended December 31, 2024, as compared to $0.1 million for the nine months ended December 31, 2023, which is attributed to the impairment of intangible assets of Slacker in the period, see (Note 5 – Goodwill and Intangible Assets to our condensed consolidated financial statements included elsewhere in this Quarterly Report).
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Sponsorship and licensing revenue decreased by $97,000, or 100%, to none for the three months ended September 30, 2024, as compared to $97,000 for the three months ended September 30, 2023. The decrease was primarily due to no significant events occurring for the three months ended September 30, 2024.
Previous report — wording carried elsewhere
Ticket/Event revenue decreased by $14,000, or 100%, to none for the six months ended September 30, 2024, as compared to $14,000 for the six months ended September 30, 2023, driven by the lack of any in-person events during the current year period.
Previous report — wording carried elsewhere
Amortization of intangible assets increased by $0.4 million, or 62%, to $1.1 million for the six months ended September 30, 2024, as compared to $0.7 million for the six months ended September 30, 2023. The increase can be attributed to the addition of intangibles attributed to acquired podcast at PodcastOne.
Previous report — wording carried elsewhere
Revenue increased $6.8 million, or 21%, during the six months ended September 30, 2024, primarily due to increased membership revenue as a result of increased membership growth with our largest OEM customer.