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LiveOne, Inc., a company listed under the NASDAQ Capital Market with the trading symbol LVO, has announced the extension of the maturity date for its promissory note with East West Bank. This note is tied to the company's asset-backed loan credit facility. The new maturity date is set for September 15, 2024, as reported in a recent 8-K filing with the Securities and Exchange Commission.
The extension, agreed upon on Monday, represents a short-term adjustment to LiveOne's financial arrangements with East West Bank. The Beverly Hills-based company, which operates in the retail eating places sector under the Standard Industrial Classification code 5812, did not disclose the reasons for this extension or any terms associated with it.
As per the 8-K filing, the original maturity date was due before the extension was granted. The company, formerly known as LiveXLive Media, Inc., and prior to that as LOTON, CORP, has a fiscal year ending on March 31.
In other recent news, LiveOne has announced a multi-year partnership with TextNow, the leading free phone service provider in the U.S. This collaboration aims to enrich the digital lifestyle of TextNow users by offering them a year of LiveOne's Plus service at a reduced cost. LiveOne's Plus service provides an ad-free experience and exclusive content, enhancing the value of TextNow's services.
In financial developments, LiveOne reported robust growth in its Audio Division for Q1 fiscal 2025, with record-breaking revenues of $31.9 million and adjusted EBITDA of $5.1 million. Despite a consolidated net loss of $1.7 million, LiveOne forecasts strong revenues of $130 million to $140 million and adjusted EBITDA between $20 million to $25 million for the Audio Division in the upcoming fiscal year.
In addition to these financial highlights, LiveOne is expanding its B2B partnerships and membership base. The company has signed four major deals and is anticipating closing partnerships with companies ranging from $1 billion to $1 trillion market cap by the year-end. LiveOne is also expanding its stock buyback program to $12 million, having already purchased over 4.4 million shares.
InvestingPro Insights
In light of LiveOne, Inc.'s recent extension of its promissory note maturity date, a closer look at the company's financial metrics may offer additional context for investors. As per InvestingPro Data, LiveOne holds a market capitalization of $164.52 million, reflecting its size within the retail eating places sector. Despite a challenging period, the company has achieved an 18.81% revenue growth in the last twelve months as of Q1 2025, indicating a positive trajectory in its sales performance.
However, the company's profitability remains a concern, with a negative P/E ratio of -9.64 and an adjusted P/E ratio of -10.42 for the same period. This aligns with an InvestingPro Tip that highlights LiveOne's lack of profitability over the last twelve months. Moreover, the company's short-term obligations currently surpass its liquid assets, which may warrant attention from investors considering the liquidity and financial stability of the company.
For those interested in a deeper analysis, InvestingPro offers additional insights, including a total of 7 InvestingPro Tips for LiveOne, Inc., which can be found at: https://www.investing.com/pro/LVO. These tips provide a more comprehensive view of the company's financial health and future prospects.
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