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LiveOne faces Nasdaq delisting over share price rule

EditorAhmed Abdulazez Abdulkadir
Published 17/11/2024, 21:28
LVO
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LiveOne, Inc., a company specializing in retail eating places, is facing a potential delisting from The Nasdaq Capital Market after failing to meet the minimum bid price requirement. On November 12, 2024, Nasdaq notified LiveOne that its common stock did not comply with the minimum bid price of $1.00 per share over the previous 30 consecutive business days.

The company, headquartered in Beverly Hills, California, has been provided a 180-day period, until May 11, 2025, to regain compliance with Nasdaq's Listing Rule 5550(a)(2). To achieve this, LiveOne's common stock must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days within this timeframe.

If LiveOne is unable to meet the bid price requirement within the allotted 180 days, it may qualify for an additional 180-day compliance period, contingent on meeting all other initial listing standards for The Nasdaq Capital Market, except the bid price rule. The company might consider a reverse share split as a remedial measure to address the deficiency.

Should LiveOne fail to regain compliance, Nasdaq will issue a notification of delisting, which LiveOne can appeal. However, there is no guarantee that an appeal to a hearings panel would be successful in preventing delisting.

The current situation has no immediate impact on the trading of LiveOne's common stock on The Nasdaq Capital Market. The company is actively monitoring its share price and exploring options to resolve the non-compliance and maintain its listing.

This news comes after the company, formerly known as LiveXLive Media (NASDAQ:LVO), Inc., underwent a name change from LOTON, CORP in 2017. LiveOne's fiscal year ends on March 31, and it operates under the Central Index Key number 0001491419.

This information is based on a recent SEC filing by LiveOne, Inc.

In other recent news, LiveOne Inc. has reported significant developments. The company announced a board member resignation, with Craig Foster stepping down from his role to focus on other professional commitments. LiveOne has expanded its partnership with Tesla (NASDAQ:TSLA), integrating its streaming service into Tesla vehicles, and launched a new platform version, LiveOne 2.0. This move could potentially triple the company's Average Revenue Per User (ARPU).

LiveOne also reported Q1 fiscal 2025 revenues of $31.9 million and adjusted EBITDA of $5.1 million for its Audio Division. Despite a consolidated net loss of $1.7 million, the company 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.

The company has entered into a multi-year partnership with TextNow, offering a year of LiveOne's Plus service at a reduced cost to TextNow users. LiveOne also extended the maturity date for its promissory note tied to an asset-backed loan credit facility with East West Bank to September 15, 2024.

To support continuous product innovation and enhanced content experiences, the company has increased the prices of its subscription plans. Finally, LiveOne is expanding its B2B partnerships and membership base, with plans to close partnerships with companies ranging from $1 billion to $1 trillion market cap by year-end.

InvestingPro Insights

Recent data from InvestingPro sheds light on LiveOne's financial situation, providing context to the company's Nasdaq listing challenges. As of the last twelve months ending Q2 2025, LiveOne's revenue stood at $127.82 million, with a notable revenue growth of 17.1%. However, the company's profitability remains a concern, as highlighted by an InvestingPro Tip indicating that LiveOne has not been profitable over the last twelve months.

The stock's recent performance aligns with the company's listing woes. An InvestingPro Tip notes that LiveOne's stock price has fallen significantly over the last three months, with data showing a steep 50.27% decline in the three-month price total return. This downward trend explains the company's struggle to maintain the $1.00 minimum bid price required by Nasdaq.

Despite these challenges, it's worth noting that LiveOne holds more cash than debt on its balance sheet, according to another InvestingPro Tip. This financial cushion could provide some flexibility as the company navigates its current predicament and explores options to regain Nasdaq compliance.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for LiveOne, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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