LiveOne CEO says company believes stock is ‘significantly undervalued’

In a letter to stockholders, CEO Robert Ellin said, “I am writing to provide an important update on LiveOne’s (LVO) key recent developments, performance and progress on its key strategic priorities to drive stockholder value. I am pleased to report that LiveOne has successfully completed its $45M restructuring initiative and delivered significant cost savings while positioning the company for future growth. Recent Key Achievements: Completed $10M common stock equity financing at $7.50 per share, further strengthening its balance sheet; Reduced workforce to 95 employees from 300+, leveraging AI to drive efficiencies; Eliminated $14M in short-term liabilities; Repurchased $6.5M in stock, with $5.5M remaining in its buyback program; Acquired 347,000 additional shares of PodcastOne (PODC). Bitcoin Treasury Program: Currently $5M is deployed in Bitcoin treasury holdings, including deploying Bitcoin yield strategy with Arca; Board approves up to $500M treasury authorization to expand LiveOne’s crypto asset treasury strategy; Expands Web3 strategy, tokenizing and monetizing 10,000+ hours of video content on blockchain; Adds world-class advisory board, including Lou Kerner, Andy Vick, Steve McClurg, and Steve Lehman. Financial Position: Currently $18M+ in cash, including $5M in Bitcoin, providing a strong foundation for future growth and investment. Business Highlights: Closed 6 B2B deals generating $50M in revenue, with up to 72 potential B2B deals in its pipeline; Added Steve Lehman as Chief Advisor to Rob Ellin, leading M&A and B2B partnership initiatives; Surpassed 1.3M total members, including over 1M Tesla users; Exploring strategic options to increase stockholder value, including consolidation, sale, or merger opportunities. PodcastOne Update: Reported preliminary Q1 Fiscal 2026 record Adjusted EBITDA of $1M+ and Revenue of $14.5M+; Raised guidance to $55-60M in revenue and $4.5-6M in Adjusted EBITDA for Fiscal 2026, representing an increase of $5-6.5M in Adjusted EBITDA compared to last year; Achieved nine consecutive months in Podtrac’s Top 10 Publishers rankings. TV Adaptations: Sold three podcasts to the largest streaming platforms, including “Varnamtown,” “Vigilante,” and “The Opportunist.” Expects green light of a pilot for at least one show shortly, with 10 additional shows in the pipeline Future Plans: Considering potential IPO or merger of Slacker into a SPAC or potential sale to further enhance stockholder value; Intends to continue aggressive stock buyback program to enhance stockholder value; Continues to leverage AI and other technologies to drive growth and efficiency; Increases live events with Reality Games on December 11, with stars such as Kordell Beckham, Chloe Veitch, Chase Demoor and many others. Historically, live events like Social Gloves have generated upwards of $27M in revenue and $4.5M in Adjusted EBITDA. Reverse Stock Split: Recently completed a reverse stock split – a proactive, stockholder-approved move to maintain LiveOne’s Nasdaq listing and strengthen its market position which supports LiveOne’s M&A and partnership efforts, and boosts visibility with institutional investors. Valuation Opportunity: We believe our company’s stock is significantly undervalued, trading at a substantial discount to our industry peers. The industry average multiple is 3.3x revenues, whereas LiveOne is trading at only approximately 60% of revenues, representing a steep discount. In light of this fact, I, Robert Ellin and other LiveOne senior management and board members have committed to purchasing up to $3M n worth of LiveOne shares of common stock, demonstrating our confidence in LiveOne’s future prospects and our belief that LiveOne is materially and considerably undervalued.”