rtside (US:PODC)2025-11-14 18:51Financial Performance - For the six months ended September 30, 2025, PodcastOne reported revenue of $30.2 million, a 19% increase from $25.3 million in the same period of 2024[125]. - Revenue for the three months ended September 30, 2025, increased by $3.0 million, or 25%, to $15.2 million compared to $12.2 million for the same period in 2024, driven by growth in barter revenue and increased advertising demand[153]. - Revenue increased by $4.8 million, or 19%, to $30.2 million for the six months ended September 30, 2025, compared to $25.3 million for the same period in 2024[162]. - Contribution Margin for the six months ended September 30, 2025, was $5.1 million, compared to $2.6 million for the same period in 2024[175]. - Adjusted EBITDA for the six months ended September 30, 2025, was $1.7 million, compared to a loss of $0.7 million for the same period in 2024[174]. - The company reported a net loss of $2.0 million for the six months ended September 30, 2025, which included non-cash charges of $1.1 million[192]. - The net loss for the three months ended September 30, 2025, was $975,000, compared to a net loss of $1,669,000 for the same period in 2024, resulting in a net loss per share of $0.04[151]. Audience Engagement - PodcastOne has 6.0+ million monthly unique listeners and 17+ million IAB monthly downloads, indicating strong audience engagement[122]. - The company achieved over 3.8 billion network downloads during the quarter ended September 30, 2025, and expanded its programming slate to 194 shows[127]. - The company was ranked as high as 8 on the list of Top Podcast Publishers by Podtrac, reflecting its competitive position in the market[120]. Advertising and Revenue Model - PodcastOne's operating model includes a focus on embedded host read ads, dynamic ads, and programmatic monetization channels to generate revenue[123]. - PodcastOne's advertising strategy emphasizes the effectiveness of host-read embedded promos, with 60% of podcast listeners reporting they have purchased something after hearing a podcast ad[131]. - The company aims to acquire multiple assets over time across a broad spectrum of podcast-related media and companies to drive organic growth and revenue production[122]. - The company is actively pursuing acquisitions of exclusive rights to certain podcasts, including true crime content for potential television and film projects[128]. Operating Expenses - Total operating expenses for the six months ended September 30, 2025, were $32.2 million, compared to $28.3 million for the same period in 2024, reflecting an increase in costs associated with operating as a public company[160]. - Cost of sales for the three months ended September 30, 2025, rose by $2.4 million, or 22%, to $13.5 million, in line with revenue growth as revenue share splits with content creators remained consistent[154]. - Cost of sales rose by $4.2 million, or 19%, to $27.1 million for the six months ended September 30, 2025, in line with revenue growth[163]. - General and administrative expenses increased by $0.3 million, or 22%, to $1.8 million for the three months ended September 30, 2025, attributed to higher stock compensation costs[158]. - General and administrative expenses increased by $0.4 million, or 14%, to $3.3 million for the six months ended September 30, 2025, due to higher professional services and payroll costs[167]. - Stock-based compensation expense for the six months ended September 30, 2025, increased by 169% to $3.4 million, compared to $1.3 million for the same period in 2024[161]. - The company expects operating expenses to continue to increase in dollar amount in the short term due to investments in product innovation and sales growth[145]. Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $2.7 million, primarily from operations and a completed private placement offering[178]. - The company completed a private placement offering of unsecured convertible notes totaling $8.8 million, which were fully converted in September 2023[178]. - LiveOne's net cash provided by operating activities for the six months ended September 30, 2025, was $1.78 million, compared to $45,000 for the same period in 2024[191]. - LiveOne's working capital as of September 30, 2025, was $1.3 million, raising substantial doubt about its ability to continue as a going concern[189]. - LiveOne is looking to secure additional interim financing to continue operations beyond November 2026[188]. - The company has a history of losses and must increase revenue and reduce costs to continue as a going concern[190]. - LiveOne's liquidity will depend on converting OEM drivers to direct subscribers and negotiating flexible terms with music labels[187]. Debt and Indebtedness - As of September 30, 2025, LiveOne's total outstanding consolidated indebtedness was $15.6 million, net of fees and discounts[186]. - LiveOne's Initial Debentures have a principal amount of $16.775 million, maturing on May 19, 2028, with an interest rate of 11.75% per year[181]. - The company repaid a total of $3.25 million of the principal amount underlying the ABL Credit Facility, reducing the facility size to $3.75 million[180]. - As of September 30, 2025, the company did not have any debt covenants and was in compliance with all covenants under the Initial Debentures and the Capchase Loan[198]. Asset Management - The amortization of intangible assets decreased by 62% to $125,000 for the three months ended September 30, 2025, compared to $328,000 for the same period in 2024, due to a reduction in content-related amortization[159]. - Amortization of intangible assets decreased by $0.5 million, or 65%, to $0.25 million for the six months ended September 30, 2025, due to a reduction in content-related amortization[168]. - Impairment of intangible assets decreased to zero for the six months ended September 30, 2025, compared to $0.2 million for the same period in 2024[169]. Investment Activities - For the six months ended September 30, 2025, net cash used in investing activities was $0.1 million for the purchase of fixed assets[194]. - For the six months ended September 30, 2024, net cash used in investing activities was also $0.1 million for the purchase of fixed assets[195]. - No cash was used in or provided by financing activities for the six months ended September 30, 2025[196]. - No cash was used in or provided by financing activities for the six months ended September 30, 2024[197].