rtside (US:PODC)2023-11-20 21:19Revenue Performance - Revenue for the six months ended September 30, 2023, was $21.2 million, representing a year-over-year growth of 23% compared to $17.2 million in the same period of 2022[122] - Revenue increased by $2.0 million, or 24%, to $10.5 million for the three months ended September 30, 2023, compared to $8.5 million for the same period in 2022[148] - Revenue increased by $3.9 million, or 23%, to $21.2 million for the six months ended September 30, 2023, compared to $17.2 million for the same period in 2022[158] Podcast Metrics - The number of podcast downloads for the year ended March 31, 2023, was 617,445,568, a 5% increase from 590,412,840 in 2022, while downloads for the six months ended September 30, 2023, decreased by 36% to 223,349,413 from 349,554,739 in 2022[134] - PodcastOne has over 4.8 million monthly unique listeners and generates over 20 million IAB monthly downloads[119] Acquisitions and Content Strategy - The company has acquired exclusive rights to several true crime podcasts, including ownership and intellectual property rights for potential television and film projects[123] - PodcastOne's revenue model is primarily ad-supported, relying on the sale of audio, video, and social advertising delivered through impressions[125] - PodcastOne's advertising strategy focuses on host-read embedded ads, which are believed to enhance user experience and provide better returns for advertisers[125] Financial Losses and Expenses - The company reported a net loss of $7.0 million for the year ended March 31, 2023, compared to a net loss of $3.6 million in 2022[122] - Net loss for the three months ended September 30, 2023, was $(10.9) million, compared to $(0.5) million for the same period in 2022[146] - General and administrative expenses rose by $0.5 million, or 80%, to $1.2 million for the three months ended September 30, 2023, due to additional costs related to the Spin-Out and Finder's Fee Agreement[153] - Total other expense increased by $9.2 million, or 1,404%, to $9.9 million for the six months ended September 30, 2023, primarily due to an increase in derivative loss and interest expense related to the Bridge Loan[165] - Net loss for the six months ended September 30, 2023, was 52% of revenue, compared to a net loss of 5% for the same period in 2022[165] Operating Expenses - Operating expenses totaled $11.9 million for the three months ended September 30, 2023, compared to $8.3 million for the same period in 2022, reflecting a 43% increase[146] - Operating expenses as a percentage of revenue increased to 106% for the six months ended September 30, 2023, compared to 102% for the same period in 2022[160] - Total stock-based compensation expense increased by $352,000, or 60%, to $938,000 for the six months ended September 30, 2023, compared to $586,000 for the same period in 2022[160] Cash Flow and Financing - As of September 30, 2023, cash and cash equivalents amounted to $0.5 million, with a related party payable balance of $2.4 million[172] - The company reported a net cash used in operating activities of $3.0 million for the six months ended September 30, 2023, compared to a net cash used of $4.2 million for the same period in 2022[183] - The company had working capital of $0.6 million as of September 30, 2023, raising substantial doubt about its ability to continue as a going concern[181] - Management anticipates that existing cash resources will not be sufficient to meet current operating and liquidity needs beyond November 2024 without additional financing[179] Debt and Loans - The company completed a private placement offering of Bridge Notes for gross proceeds of $8.0 million, with a maturity date extended to October 15, 2023[173] - In August 2023, the company entered into a $1.7 million secured loan with an interest rate of 8% and a maturity of 30 months[176] - On September 8, 2023, the company completed a Qualified Event, converting approximately $7.02 million of Bridge Notes into approximately 2,341,000 shares of common stock[177] - As of September 30, 2023, the company's total outstanding consolidated indebtedness was $8.9 million, net of fees and discounts[178] - The company was not in compliance with all covenants under the ABL Credit Facility as of September 30, 2023, but cured the default within the cure period[190] Development and Operations - The company operates Launchpad One, a self-publishing podcast platform aimed at independent podcasters, which serves as a talent pool for discovering new podcasts[121] - The company aims to mitigate risk by acquiring multiple assets across a broad spectrum of podcast-related media and companies[118] - PodcastOne's operating model includes a comprehensive in-house team for sales, production, marketing, and technology, allowing for scalable operations and attracting talent[120]