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LiveOne Inc. (LVO-4.11%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $29.4 million from $31.2 million in the same quarter the previous year. The decrease is attributed to a change in terms with the company's largest OEM customer.
Cost of sales for the quarter was $22.3 million, representing 76% of sales, compared to 74% in the same quarter of the previous year. This increase in cost ratio is due to increased advertising costs.
The company reported a net loss of $5.6 million for the quarter, compared to a net loss of $2.2 million in the previous year, with the decline attributed to an impairment of intangible assets.
Selling, general, and administrative expenses decreased to $5.2 million from $5.9 million, primarily due to a reduction in share-based compensation expenses.
Net cash provided by operating activities was $10.6 million, while cash used in investing and financing activities was $2.1 million and $4.8 million, respectively.
LiveOne had a working capital deficiency of $18.1 million as of December 31, 2024. The company acknowledges its dependence on converting OEM drivers to direct subscribers to improve its financial position.
The filing also details various financial agreements, including a business loan agreement with East West Bank and a loan agreement with Capchase Inc.
LiveOne does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to issues with accounting for significant transactions.
LiveOne continues to focus on expanding its music services and converting OEM customers to direct subscribers, highlighting its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the LiveOne Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.