Live One Inc. fortifies balance sheet with $20M cash and $50M projected B2B revenues, signaling significant growth potential despite past challenges.

UNKNOWN - (00:06:15)

Ryan, are you leading? No waiting on them.

Jim - Operator - (00:06:23)

Good day ladies and gentlemen. Thank you for standing by. My name is Jim and I'll be your conference operator today. At this time I would like to welcome everyone to the Live One Inc. Q1 fiscal year 2026 financial results and Business Update. As a reminder, all phone participants are in a listen only mode, but later you will have the opportunity to ask questions. Today's session is also being recorded. It is now my pleasure to turn the floor over to Mr. Ryan Carhart. Please go ahead sir.

Ryan Carhart - Chief Financial Officer - (00:06:53)

Thank you. Good morning and welcome to LiveOne's Business Update and Financial Results conference call for the company's fiscal first quarter ended June 30, 2025. Presenting on today's call with me is Robert Ellin, CEO and Chairman of LiveOne. I would like to remind you that some of the statements made on today's call are forward looking and are based on current expectations, forecasts and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the Company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the Company's filings with the SEC for information about factors which could cause the Company's actual results to differ materially from these forward looking statements, including those described in its Annual report on Form 10K for the year ended March 31, 2025 and subsequent SEC filings. You'll find reconciliations of non GAAP financial measures to the most comparable GAAP financial measures discussed today in the Company's earnings release, which is posted on the Investor Relations website. The Company encourages you to periodically visit its investor Relations website for important content. The following discussion, including responses to your questions, contains time sensitive information and reflects management's view as of the date of this call, August 13, 2025 and except as required by law, the Company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that this call is being recorded. The Company is making it available to investors and media via webcast and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call. Additionally, it is a property of the Company and any redistribution, transmission or rebroadcast of this call or the webcast in any form without the Company's express written consent is strictly prohibited. Now I would like to turn the call over to LiveOne CEO Robert Ellin. Take it away, Rob.

Robert Ellin - (00:09:19)

Thank you, Ryan. And to start with, I want to thank Ryan for the brilliant job he's done as our new CFO. Coming off the dramatic changes in the Tesla agreement and the loss of those revenues, Ryan has just done an absolutely spectacular job of fixing our balance sheet. We replaced East West Bank who had called in their loan over $7 million. We replaced them with JGB Capital with over 16 and a half million dollars. And then subsequently we just closed a $10 million equity financing. So confidently, I can tell you we have the strongest balance sheet that we've had in many years with over $20 million in cash. And with that, we have also eliminated $14 million of short term liabilities, including two and a half million alone this quarter. We've just taken the initiative to reduce staff by 31%, cutting our staff down from 138 employees to 95 employees. And now we move to the positive side. As we cleaned up the balance sheet, fortified ourselves with a big cash position, long term partners, we now move to the really exciting side of the B2B partnerships that have been worked on for numerous years. Starting with the biggest launch in the history of the company. With a Fortune 500 company, we have the opportunity of driving to 30 plus million paying subscribers. With that partner, we've done the first soft Launch as of April 5th, I'm sorry, as of August 5th. And we see this as a potential opportunity to not only replace Tesla, but could be much bigger than Tesla over the next five years. Secondly, our Amazon deal that we announced a few months ago has gotten off the ground to spectacular start. A $16.5 million three year deal. And we fully expect to not only fit our numbers but but to beat those numbers and start looking at larger Minimum Guarantees based on the traffic and audience that we deliver. We also with our Fortune 250 streaming network, we can now say is well over $26 million and increasing and could finish the year even higher than that. We have 75 additional B2B deals in the works. We are doing soft testing technology. Our technology team is doing a brilliant job of continuing to work with some of the biggest carriers, car companies, retailers, streaming networks, cable networks around the world and many others that could be those next big B2B partners. We also just reported record revenues at a podcast one doing $15 million for the quarter. As you may remember, we started this when we acquired that company doing $17 million a year. And we're now on a run rate to do $60 million plus this year we've just launched for the first time inside of Tesla cars. We have, we have converted a staggering 1.3 million people out of 2 million total cars. Probably as big a number as was actually using our service previously. And for the first time we have just with a large partnership with DAX, the largest programmatic advertiser in the world, we have just launched our ad network and grow from 30% to 82% ad growth in Tesla cars. We have also increased our Average Revenue Per User from $3 to $5. And this is the time to start converting those Tesla subscribers. As you're hearing more and more ads and you have more and more of our hosts driving you to convert, this is the time that we expect the third and fourth quarter of this year is start driving a percentage of those the converting of those Tesla subscribers. We just completed a $10 million equity raise with my good friends at Lucid Lucid David Rosenberg and John Lipman. David was my partner when we did Digital Turbine and raised our first two rounds of money at 2 and $4 a share and subsequently saw that stock grow to 100. We raised this in a bitcoin yield strategy and to advance our Web3 initiatives, we have just added three of the prominent leaders in Web3, including Steve McClurg who ran the first ETF and sold it to Coinbase, Steve Lehman, who sits on the board of Coinbase and Andy Vick we brought back to our team to monetize our 10,000 hours plus of video content through tokenization, Non-Fungible Tokens and other digital assets. We've just sold our third TV show to a network to a streaming platform. Barnum Town vigilante and opportunist. We took in almost a million dollars from those those sales and we now have the opportunity. Those TV shows can now become major hits on those streaming platforms and deliver millions to tens of millions of dollars with no additional cost to the company. As we continue to build our flywheel, we now have a slate of over 20 potential shows on our platform that are all talking to streaming networks about tv, film and bringing back some of my team's background and some of the team team's expertise at delivering some of the greatest and most profitable movies and television shows in history. Our live events business, we, we were shut down during COVID We've had a tough time relaunching it. But now that we're well financed, we've just announced that we will, we will launch our biggest live event since Social Gloves. When we did Social gloves, we did $27 million that night, four and a half million dollars in Earnings Before Interest, Taxes, Depreciation, and Amortization. We are now have announced and are launching reality Olympic series, which would be some of the biggest reality stars in the world in a format like the olympics. With over 275 million followers amongst their audience. Our M and A opportunities, we continue to work with JP Morgan and we have moved very aggressively now to potential mergers, acquisition opportunities, including a potential sale of a subsidiary as we move forward. This team is proven again. We survived Covid. We survived a massive loss in revenues with Tesla. We have turned that around and rebuilt that audience with Tesla, converting 60% of those people back into free and paid subscribers. It'll take time to get those revenues back, but a huge opportunity. And we have now proven that our B2B team is starting to hit on all cylinders. As we look forward over the next three years, I see the opportunity again that we can easily achieve those goals of hitting 10 million subscribers, half a billion dollars in revenues, with substantial bottom line over the next three to five years. With that, I want to offer the opportunity for anyone to open up for Q and A and ask any questions. And I look forward to our upcoming quarter and the rest of this year. Thank you very much.

OPERATOR - (00:16:38)

And to our telephone audience at this time, if you would like to ask a question, please press Star and one on your telephone keypad. Once again, if you would like to ask a question, ladies and gentlemen, that's Star and One on your telephone keypad. If you choose to remove yourself from the queue, press Star one once more. Pressing Star one will also remove you from today's queue. We'll take our first question today from the line of Barry sign at Litchfield Hills.

Barry - (00:17:07)

Hey, good morning, gentlemen. A couple of questions, if you don't mind. First, can you give a rough idea of what the annualized revenue of all the currently signed partnerships would look like for LiveOne and PodcastOne? Because I know that includes podcasts.

Robert Ellin - (00:17:24)

Yeah, we can't go much deeper than we've gone, Barry, in that we've said we expect $50 million in B2B revenues.

Barry - (00:17:31)

Right.

Robert Ellin - (00:17:31)

We can't get deeper than that, but we will shortly. As I just articulated, we've just launched what could be our biggest partnership in history with multiple others that could be very close behind that.

Barry - (00:17:44)

And just to Clarify, Rob, that 50 includes both Slacker and PodcastOne B2B. Correct?

Robert Ellin - (00:17:51)

Correct. It's across our entire Audio Business.

Barry - (00:17:55)

And then on the expense side, you just announced the staff reductions. What does EBITDA look like pro forma with those reductions? And I'm concerned. Have you Reduced the. I know you've added to the slacker team over the last year or so. Have you reduced that team or the slacker technology team? Because those would seem to be key to all the 75 partnerships you're working with.

Robert Ellin - (00:18:21)

Yeah. As you know, we can't provide guidance, you know, at this point and give you numbers. What I can tell you is, is those cuts are across the board, a stance. Substantial amount of those are at slacker.

Barry - (00:18:32)

Right.

Robert Ellin - (00:18:33)

What AI has done, has done for not just us, but for the overall industry, including starting on the content side. It gives us the ability that, you know, we have 500 music channels and growing.

Barry - (00:18:44)

Right.

Robert Ellin - (00:18:44)

And over, you know, over 50 million songs on our platform. We have the ability to curate now utilizing AI with a way smaller staff to be able to deliver, you know, radio stations at an equal or better level than we've ever done before with a way smaller staff. So we've cut. We've cut across the board and we're not done with that, Barry.

Barry - (00:19:04)

Right.

Robert Ellin - (00:19:04)

We will have additional cost savings.

Barry - (00:19:07)

Right.

Robert Ellin - (00:19:08)

Moving forward. So we're really excited about what AI and AI initiatives have done for our industry.

Barry - (00:19:15)

Right.

Robert Ellin - (00:19:15)

Across the board and what it does for our technology team. And couldn't be more excited about the opportunity right now where we are. I wish I could share guidance with you today, but we have not put out any guidance. We will in the very near future.

Barry - (00:19:29)

And then on the Tesla relationship evolution, I think you had at the peak, about 2 million subscribers. I think you said you've converted about 1.3 million to paying. What kind of ARPU are you seeing there? You mentioned AI. I know you've talked in the past about using AI to help your advertising, to help the conversion. How's that going? And then the rest of them are ad supported. So about how many ads supported on top of that, 1.3 million subscribers do we have? And what does ARPU look like there for ad supported?

Robert Ellin - (00:20:07)

No, that 1.3 million is total of the Tesla conversions. Right. So there were 2 million cars of which previously the consumer had to choose whether or not they paid for.

Barry - (00:20:18)

Right.

Robert Ellin - (00:20:18)

$10 a month for connectivity.

Barry - (00:20:21)

Right.

Robert Ellin - (00:20:21)

That didn't mean that all those used. That they all used the radio service.

Barry - (00:20:25)

Right.

Robert Ellin - (00:20:25)

In fact, you know, obviously there's a large percentage that didn't. So we couldn't be more proud and more excited by the fact that 1.3 million have converted. We don't break down the exact numbers. Now we're well over 1.5 million total subscribers. And our ARPUs are increasing from $3 right now to a little over $5. And we see opportunities for those to increase, including with our new B2B partnerships to increase to closer to $7. And as you see Spotify and see raising rates substantially, right, you know that we're still at the, you know, the early stages of these, these additional raises in prices and we're so far below the market, we are at a very comfortable level that we are still the cheapest by far in the industry, averaging $5. And even, even at close to $7, we'll still be in that, in the, in the lowest end of the range.

Barry - (00:21:16)

Rob, just to clarify, the $5 Average Revenue Per User, that's a blended ARPU of people who are paying to subscribe as well as advertising revenue from the, from the base.

Robert Ellin - (00:21:27)

No, no, no, that's, that's the paying subscribers, right? Advertising. You're only going to, you're only just starting, right? This is the baby step. So we partner with Dax, your biggest programmatic advertiser.

Barry - (00:21:39)

Right.

Robert Ellin - (00:21:40)

We've just started to launch that advertising. And if you're on our service, you'll notice, right, you're going to get numerous ads, right? There was zero 30 days ago. So all of a sudden those ads are going to kick in. But that's only going to be 50, 60 cents cents in that range, right? You're not going to make up for that $3. What you're going to get is you're going to get the opportunity now by putting in that advertising, right? You're going to get the opportunity of now understanding that customer better, using AI to drive them and convert them, using your host to convert them.

Barry - (00:22:09)

Right.

Robert Ellin - (00:22:09)

And really reaching out to them on a regular basis. And then candidly, you know, as Spotify likes to describe it, a lot of people don't want to hear ads. There are going to be some people that drop off the platform and there's going to be some people that convert. What we're watching is a conversion rate that is above $5.

Barry - (00:22:25)

I better make sure I can renew my subscriptions. so I don't hear all those ads on the reality series. A number of questions there on visibility. It sounds like it's early going, so you probably don't have these. But you know, everybody remembers the huge success of SocialGloves. Do you have a formal name for it? A host location? Do you know your distribution will be on cable, Pay per view? When might we see that? Is it going to be expensive to produce? And then I would assume you're going to monetize it? As well as distribution rights through partnership sales. You want to have, you know, key name sponsors there. So a lot of questions on that, what, what visibility can give on that reality.

Robert Ellin - (00:23:11)

Yeah, so. So you're going to read a lot about it very shortly. It's coming.

Barry - (00:23:15)

Okay.

Robert Ellin - (00:23:15)

This is not the early stages. It's actually moving fast. And if you remember, in Social Gloves, right. In Social Gloves, we were able to get $2 million from Hard Rock Stadium. We were able to get $3 million in NFT money.

Barry - (00:23:27)

Right.

Robert Ellin - (00:23:28)

As you know, crypto is just on fire right now.

Barry - (00:23:30)

Right.

Robert Ellin - (00:23:31)

I just brought in my dear friend Andy Vick, who produced that show, who helped bring in that money, alongside of Jackie Stone, our head of marketing at the time.

Barry - (00:23:39)

Right.

Robert Ellin - (00:23:39)

We couldn't do any of these things, right. For multiple reasons. One was Covid, but then we just weren't capitalized properly.

Barry - (00:23:45)

Right.

Robert Ellin - (00:23:46)

To be in the position to really do this. That show sold 3.3 million dollars of NFTs and had 160 million followers. This already has 2,230 million. And from what I understand from the producers of this show that are partnering with us, they expect the numbers to be over 400 million on social media. So there could be a pay per view component to it. It could be a, there could be a distributor like we did with SocialGloves. It could be a VR element to it, and there's certainly going to be a very sizable NFT element to it and then you can have music on top of it, which we have not announced the artist. So this is going to read and smell exactly like Social Gloves, except for I don't have the risk of someone getting hurt like boxing. I don't have, have the risk of a commission having to approve it.

Barry - (00:24:32)

Right.

Robert Ellin - (00:24:33)

And in this case, the social media has come to us, the talent has come to us to do this. So the excitement and energy around this is really unique. And yeah, we couldn't be more excited about it. It won't be the only one. There'll be multiple other events like this, small, medium and large. And this will put us back very much in the forefront of that. Live events, music, you know, pop, pop culture crossover that, you know, made us, you know, made this company in the beginning before COVID So we're really excited to be back in that, in that business and excited. The energy. And obviously you get, you get the most important win at the end of it is you get the one time win where in Social, as we did, 27 million that night and four and a half million of EBITDA. But the bigger win is you get all these, you know, you get millions to tens of millions of people coming through, right? Who you're collecting data on, who eventually become your subscribers and your partners.

Barry - (00:25:26)

The flywheel, I think you like to call it. Those are my questions. Thank you.

Robert Ellin - (00:25:33)

Great, thanks, Barry, as always. And it call me. Let's make sure we set up a follow up call.

OPERATOR - (00:25:38)

Our next question today comes from John hickman at Ladenburg. Mr. Your line is open.

John Hickman - (00:25:49)

Hi Rob, can you hear me?

Robert Ellin - (00:25:51)

Hey John, how are you pal?

John Hickman - (00:25:54)

Fine. Could you elaborate a little bit on how this new Fortune 500B2B deal, my work with the 30 million subs, do.

Robert Ellin - (00:26:06)

They.

John Hickman - (00:26:09)

Do the subs have to like opt in to the slacker service? What? How do you get paid here?

Robert Ellin - (00:26:18)

Yeah, so. So I can't answer too many questions yet. We will be able to very shortly. Other than tell you, as I said, there are way over 30 million paying members.

John Hickman - (00:26:28)

Right.

Robert Ellin - (00:26:29)

And having over 30 million paying members, right, whether it's a carrier, a car company, this is a staggering number compared to Tesla.

John Hickman - (00:26:36)

Right.

Robert Ellin - (00:26:37)

And this will be a white label solution where they're actually branding it and aggressively marketing to those members as a product of their own.

John Hickman - (00:26:47)

Right.

Robert Ellin - (00:26:48)

We'll be in the backgrounds of it and we'll be powering it like intel inside.

John Hickman - (00:26:53)

Right.

Robert Ellin - (00:26:53)

But this will be them going out and reaching and using all of the things we built over the 20 years and the $200 million that we spent building slacker radio and building podcast one and building the infrastructure in the live events and so on. They'll be using every muscle in that to be delivering what they believe is a fantastic service, a discount to their members.

John Hickman - (00:27:16)

But their members have opted in.

Robert Ellin - (00:27:20)

Of course. Okay, of course. And opting, opting in. Opting in may be as simplest but pressing a button. Okay, Right. So if you think about, if you think about Disney and Verizon, right?, When Disney launched, they got to 100 million subscribers in no time. How did they get there? Verizon gave it to all of anyone that wants to, that, you know, that re up their service or bought a new phone. They immediately.

John Hickman - (00:27:44)

Right.

Robert Ellin - (00:27:44)

Got Disney service for free and they subsidized it.

John Hickman - (00:27:49)

Okay. Okay, so this $50 million of B2B revenues is over what time period is that.

Robert Ellin - (00:28:01)

Over? Over 12 month period.

John Hickman - (00:28:05)

Beginning like now.

Robert Ellin - (00:28:07)

Correct.

John Hickman - (00:28:09)

Okay.

Robert Ellin - (00:28:11)

Some of that started a little earlier.

John Hickman - (00:28:13)

Right.

Robert Ellin - (00:28:14)

You know, it's, you know, as you're building it up, right. It's a slow build up, but yeah, you'll start to see that really quick. You start to see that really click in the third and fourth quarter, really, the end of the third quarter, beginning of the fourth quarter, starts kicking in a much heavier way.

John Hickman - (00:28:29)

Okay, and then right at the end of your prepared remarks, did you say something about the sale of a subsidiary?

Robert Ellin - (00:28:38)

What I said was is that, you know, based on the inbound calls that have come in, right. And you and I have talked about this. I've been traveling around the world, and as you know, my background historically is signing partnerships globally.

John Hickman - (00:28:51)

Right.

Robert Ellin - (00:28:51)

We've never had that ability before. But in that. Right, there are many people that are missing, you know, any piece of our services.

John Hickman - (00:29:00)

Right?

Robert Ellin - (00:29:01)

So there are multiple inbound calls. And as you hear the likes of Netflix going into audio and Spotify going to video, everybody is infringing on each other's businesses. And you just saw, you know, Napster sell for 210 million. They were doing 40 million in revenues.

John Hickman - (00:29:16)

Right, right.

Robert Ellin - (00:29:17)

You saw a title sell a few years ago for 400 million. Neither one of them were anywhere near profitability. We're losing, you know, fortunes of money. Like, it's really hard to rebuild the dsp. Tesla tried to do it, right. Tesla tried to try to literally, behind our back, years ago, build their own music service. It's really hard to do so. we have had a staggering amount of inbound phone calls. We need to be. We need to be vigilant. We need to be protective of our shareholders, right? And make sure that if a sale of a division happened or a merger happened or a. Or a investor came in, strategic investor came in. There's so many parties in this space right now that must have a music platform, right? Facebook's missing one. Microsoft missing one. Walmart just Boy, Vizio, they're missing one. Costco's missing one. Target's missing one. Every single carrier is missing one. Every single streaming network is missing one.

John Hickman - (00:30:10)

Right.

Robert Ellin - (00:30:10)

Do you think that at Disney, hbo. And so I'm gonna have an audio version of the platform. They're already. Everyone's already talking about how podcasting is. Is literally moving mountains and how much video is now being sold and the amount of revenues coming from video.

John Hickman - (00:30:26)

Okay, so one last question. So you raised the $10 million to buy Bitcoin. Have you actually purchased it?

Robert Ellin - (00:30:37)

Yeah. So we'll be talking about that literally in the next 72 hours. So we've done. Is. We've done a bitcoin treasury strategy, right, which the partner that we hired to manage that has been delivering between 12 and 15% returns for the last five years. So it's Actually a managed account that is actually a protected. Protects you on the downside.

John Hickman - (00:31:01)

Right.

Robert Ellin - (00:31:01)

And is yielding cash flow, which, as you know, we have a $110 million NOL.

John Hickman - (00:31:08)

Right.

Robert Ellin - (00:31:08)

If they can generate. On $10 million called. If they can generate, generate a million dollars for it, that million dollars of cash flow comes straight through, can be used to either buy additional Bitcoin treasury or to buy other things. The other part that it does for us is again is it positions the company very strongly back into the NFT token market.

John Hickman - (00:31:28)

Right.

Robert Ellin - (00:31:28)

Positions us because we have so much content. It really puts us in a very unique position that, as you know, we, we took in $3 million in NFT money and over 5 million total NFT money off our content in the first round of this. The numbers are going to be staggeringly higher the next time. And that was with no additional cost to us.

John Hickman - (00:31:48)

Let me ask the question a different way. In Q3, when we look at your balance sheet, will there be $10 million of Bitcoin on the balance sheet?

Robert Ellin - (00:31:57)

I mean, you'll see when we, when we publicly announce our next chest move, you'll see what we're doing. Right. I can't ask you what has, what, what has or happened until we publicly release that.

John Hickman - (00:32:09)

Okay. And you said that would be within 72 hours coming any minute now.

Robert Ellin - (00:32:16)

Yeah, Just, just to give you. We've. We've been in the process of setting up our accounts.

John Hickman - (00:32:21)

Right.

Robert Ellin - (00:32:21)

With a, with the coinbases of the world.

John Hickman - (00:32:24)

Right.

Robert Ellin - (00:32:25)

Which took a little longer than we thought would take. So as soon as that is completed, which is momentarily, you'll start to see what our position is there and you're going to start to see some of those things across all of web3 and where this is going.

John Hickman - (00:32:41)

Okay, thanks. Bye.

Robert Ellin - (00:32:44)

Thank you.

OPERATOR - (00:32:45)

Our next question will come from Brian Kensinger at Alliance Global Partners.

Brian Kensinger - (00:32:52)

Great, thanks. I have a list of questions. The first you into one of the questions, you just responded that you expect 50 million of revenue over the next, say, 12 months or so. Can you give us a sense of what the run rate is today on B2B so we can understand the incremental contribution?

Robert Ellin - (00:33:11)

Yeah, we can't give any further guidance than we publicly have. We have not put out guidance yet on Live one.

Brian Kensinger - (00:33:17)

Right. That maybe looking backwards. No, sorry, I'm looking backwards. What is the, what has been the trailing B2B revenue?

Robert Ellin - (00:33:27)

Yeah, so, so the breakdown of it, you know, very small amounts of that today is, is starting. It's just beginning.

Brian Kensinger - (00:33:38)

Okay.

Robert Ellin - (00:33:38)

So you're gonna have A lot. A lot more of that revenue, as I said, a lot more of that revenues end of third quarter and really in the fourth quarter.

Brian Kensinger - (00:33:46)

Okay. And then can you articulate your digital currency strategy? There are those that are raising capital as quickly as they can and they trade at a premium. Mnav, they call it, to buy digital currency rapidly mimicking microstrategy. And then there's others that are just wanting exposure on their balance sheet. So they're raising a little bit of money opportunistically so they have that digital currency exposure.

Robert Ellin - (00:34:12)

We're.

Brian Kensinger - (00:34:13)

Where do you lie in that?

Robert Ellin - (00:34:15)

Yeah, I mean, I think that, you know, the movie hasn't been written yet.

Brian Kensinger - (00:34:18)

Right.

Robert Ellin - (00:34:18)

You know, this is. We wrote the script, we got ourselves in here because we've been a thought leader in technology.

Brian Kensinger - (00:34:24)

Right.

Robert Ellin - (00:34:24)

And my team has been thought leaders in technology for 40 years.

Brian Kensinger - (00:34:27)

Right.

Robert Ellin - (00:34:28)

We always want to be at the forefront of where technology is going and we're huge believers directionally where this is going. But we also want a protected position, which is why we did this. Bitcoin yield, where you have an option strategy against it. So you're protecting against the downside because it is a very volatile market.

Brian Kensinger - (00:34:43)

Right.

Robert Ellin - (00:34:44)

But we absolutely have, you know, deep, you know, plans for, and approval by our board, you know, for substantially more money to come in.

Brian Kensinger - (00:34:52)

Right.

Robert Ellin - (00:34:52)

And that could come in from a sale of a subsidiary. That could come in if the stock performs like it should.

Brian Kensinger - (00:34:58)

Right.

Robert Ellin - (00:34:59)

You know, it's trading at, you know, fair market value. It could come in.

Brian Kensinger - (00:35:02)

Right.

Robert Ellin - (00:35:03)

In the interim, right now we're very focused on what we've accomplished so far. And I think you'll see some of that strategy starting to materialize. Both the acquisition of Bitcoin yield as well as, as our NFT and token strategy starting to kick in, which will drive both revenues as well as having a balance sheet that has ownership and we believe strongly will be. Will go way higher over the next couple of years.

Brian Kensinger - (00:35:29)

Okay. And then you just recently began aggressively working or focusing on conversion from ad supported to paid subscribers for Tesla. So I'm sure it's too soon to evaluate execution.

Robert Ellin - (00:35:42)

But.

Brian Kensinger - (00:35:43)

And you've been clear it's not going to happen overnight, but how long do you think it will take before conversion has an impactful. Will have a major impact. Sorry. On the results.

Robert Ellin - (00:35:56)

You know, again, it's such a tricky question, right. You know, as you look at, you know, Spotify and they say the reason they have their free service. Right. And I could tell you I keep both because I just want to see how it sounds. And I tell you honestly, you know, for me, listening to ads all day long is difficult.

Brian Kensinger - (00:36:11)

Right.

Robert Ellin - (00:36:12)

So for me, I would convert immediately.

Brian Kensinger - (00:36:14)

Right.

Robert Ellin - (00:36:14)

But you're going to lose, you're going to lose some people that just walk away because of it. You're going to, you're going to gain some people that, you're going to gain revenues from those advertising and then you're going to convert a percentage of them. And again, I think our aspirations are the same over a 12 month to 24 month period, convert somewhere between, between 20 and 30% of those subscribers.

Brian Kensinger - (00:36:36)

Got it? Now, you talked about the, my last question is, you Talked about the B2B partnership with the 30 million paid subscribers, but in the press release you talk about the Fortune 250 streaming network and maybe this is something you've talked about in the past. So maybe I'm just confused. So I apologize. Can you provide any detail around that as well like you have for the, for the $100 billion company?

Robert Ellin - (00:37:02)

Not yet. We will be able to very shortly. So all I can tell you is that there's been a soft launch, right. Which has gone exceptionally well. There'll be a larger launch shortly. It has leaked out there from the management of the company. So there are some things, if you search around, you may be able to find it. We want to be good partners. We want to be spectacular partners.

Brian Kensinger - (00:37:25)

Right.

Robert Ellin - (00:37:25)

Makes sense.

Brian Kensinger - (00:37:26)

And because there are more of these deals that are now inches away, you know, some just, there's some like, you know, I'm a big, I'm a big basketball guy. When you go on a hot streak, we just feel like that streak's coming.

Robert Ellin - (00:37:37)

Right.

Brian Kensinger - (00:37:37)

And obviously this has been, you know, this is a tough, long sales process. You're talking about massive companies. We truly believe that we will have another car company and another carry company and a retailer this year, all three of them over the 12 month period. And we're behind. So we have to accept that. We have accepted these took longer than we expected. And some of that obviously is, you know, there was some skepticism about our balance sheet. There was some skepticism about our cash position.

Robert Ellin - (00:38:03)

Right.

Brian Kensinger - (00:38:03)

Now that we've cleaned those things up, I think all that has gone away is now about what can we do with this business now and how big can we grow it and can we recover from the loss of Tesla.

Robert Ellin - (00:38:13)

Right.

Brian Kensinger - (00:38:14)

You know, when Covid hit, as you know, we lost 50% of our revenues. We not only recovered, we grew from 38 million and we grew 200 million.

Robert Ellin - (00:38:20)

Right.

Brian Kensinger - (00:38:21)

We've now taken a Second missile that we have to recover from, right? And I give my team so much credit. Nobody's backed off, nobody stopped everybody's focus. People were working around the clock and they're literally the excitement and energy. I haven't seen this much excitement and energy since I bought Slacker Radio. Going back since I bought Podcast one, right, We've gone through some great times. We've had some great stock runs. We've gone through some really difficult times. This has been a difficult time on both sides, both the stock as well as the business. And I could tell you that, you know, there's more optionality in this company than any company I've ever been involved with before. I got to fight through, I got to battle through, but at least now I got plenty of cash, I got plenty of balance sheets, and I've got amazing assets here that if I can keep fighting to survive, right, we're going to come out of this stronger than ever. And, you know, over the next couple of years, this will be. This will be, you know, I think. I think it'll be my biggest company I've ever built and it's the best team I've ever had. So I just got to keep them focused, keep them energized, right? And. And keep bottling. Good.

Robert Ellin - (00:39:28)

Great. Last question. Actually, follow up. If some of these are white labeled, will you ever be able to announce who they are? Because we won't see it, right? As a Live One button or a Slacker button, or are there some cases where you won't be able to announce?

Brian Kensinger - (00:39:44)

You actually will. You actually will see it. Not only will you see it, you'll actually see Powered By. It'll be very much like intel inside. You'll see Powered By Live one, right? Because these are. These are, of course, audio. Video. This isn't necessarily just audio. This. There's massive opportunities. As you know, streaming network is more video, right? So our video content is now coming into fruition. As you see podcasting as well as all of our live stuff, right? We have thousands of hours of the biggest music events in the world that can all be revived and brought back. And now you're watching that video being so important, especially for AI models, right? So, you know, one of our holdings that you represent, you know, they're making a lot of money off of Google just wanting their content because they can't get the A plus. They can't get to Disney and, and, you know, Warner, so they have to use content to build those AI models. We have a lot of content that can be monetized right now, I've always talked about this flywheel, right? I just watched one of my dear friends literally, you know, make tens of millions of dollars utilizing his video content of effectively. It's a podcast that he was doing for 15 years and literally he's getting paid by Google just to use that for their AI models to build those because they don't have enough content to do it on to prove their models improve my out. So I see a lot of, a lot of opportunities there for us to really utilize that flywheel that we've been talking about for years. And as, you know, video, YouTube just came out and said, you know, their numbers, you know, YouTube podcasts are just going through the roof. It's gonna be billions of dollars.

Robert Ellin - (00:41:14)

Right.

Brian Kensinger - (00:41:14)

It's gonna dwarf the audio numbers in the next five years. So I see, you know, tremendous opportunity for us to monetize all this rich media. And as you know, with music, it's very inexpensive to have made this content. And this content has enormous value because you have the biggest stars in the world.

Robert Ellin - (00:41:31)

Okay, thanks so much.

OPERATOR - (00:41:35)

And a reminder to our phone audience, that is star and one, if you'd like to ask a question, we'll hear from the line of Sean McGowan at Roth Capital Partners.

Sean McGowan - (00:41:46)

Thank you. Hi, Rob. Hi, Mark. Question about the ARPU figure, is that, just want to clarify, is that actually what you're getting now or is that a goal, like for the near term? Are you actually getting an average of $5 per paying user?

Robert Ellin - (00:42:06)

That's what we're getting.

Sean McGowan - (00:42:07)

Okay, thanks. That's what I figured. And to clarify also, when you become a paying subscriber, you then don't have any ads, correct? Okay. On those shows that you mentioned, you know, Varnum vigilante opportunists that are, you know, are in production now for other screens, where does that revenue go? Is that it? Is that within podcast or is that somewhere else when you, when you start booking out revenue? Want to know where we're going to see it?

Robert Ellin - (00:42:40)

Well, that's, that's going to be more on the podcast side on those three shows. But that doesn't mean that some of the other content doesn't cross over.

Sean McGowan - (00:42:48)

Right.

Robert Ellin - (00:42:48)

Monetizing of television, film.

Sean McGowan - (00:42:51)

Right.

Robert Ellin - (00:42:51)

Could be anything from documentaries. You know, we shot six years of Rock and Rio, right. Having full content, some of the greatest content in the world. There could be multiple revenue streams that come out of it and then the NFT side of it.

Sean McGowan - (00:43:03)

Right.

Robert Ellin - (00:43:03)

And the tokenization side of that could be coming, coming more on the live one side probably than the podcast side in the beginning. But on those three specific television shows, right, which are true crime, those three shows have been sold to major networks. Those shows are, you know, they're close, right. I can't tell you they're fully green yet. But if one of them gets greenlit, you know, that was the upfront money, right? The million dollars was the upfront money. Now that, that money going forward is you get paid per episode, right? You get paid back end on it, and we have no additional costs, Not a single dollar of additional cost in that. Right.

Sean McGowan - (00:43:39)

Makes sense. I just wanted to know where we would be looking for that revenue going forward, you know, when it starts to come in. Assuming that they get greenlit, you mentioned a total of 20 potential shows on the platform. Any sense of, you know, when there could be some realization on that, Are we talking about, you know, a couple of years from now or a couple of quarters from now, A couple of weeks from now?

Robert Ellin - (00:44:01)

I mean, we're, we're, you know, you sit, you sit waiting by, by the phone in these things, right? And obviously you've just watched the transformation, right? Warner, Warner just changed the whole team. Paramount just got taken over.

Sean McGowan - (00:44:12)

Right.

Robert Ellin - (00:44:13)

You know, management teams are moving left and right. So you got to get, you got to get, you know, you got to get in those crosshairs of getting signed with. The beautiful part of this is we're right now in the trenches of could be greenlit next week. It could be three months or could be six months, but they're in the trenches. They're in. They're in production today, meaning they're paying millions of dollars to writers, producers, right, to build towards making a show. That doesn't mean they'll green light, right. You still got to get that final green light, right? Because there's only X amount of shows greenlit a year, but having three of them there, I'd be shocked if at least one of them wasn't greenlit. And Barnum Town is one of my favorite podcasts ever made. That. That'd be a top of my list. Vigilante has multiple seasons that can get picked up. It's not even just, just one. It's, you know, multiple seasons have an opportunity of being picked up as different shows and opportunities hot. Could be. Could be a. Could be multiple seasons. But it also has elements of documentaries and so on, which doesn't make you as much money, but there's still very nice money for it. And yeah, as I said, John, this is just, it's just Pure cash flow.

Sean McGowan - (00:45:18)

Right.

Robert Ellin - (00:45:18)

You know, we just collect the check. You know, it's when I produce the movie 300, that production money I still get, I still got checks on it 21 years later.

Sean McGowan - (00:45:26)

Right.

Robert Ellin - (00:45:26)

I just got to check for Spiderwick Chronicles. You know, that money just keeps flowing through, and every time it goes back in the system. Now, obviously, it's not nearly as big as it used to be, but it. It's money. It gets paid to you for the rest of your life.

Sean McGowan - (00:45:40)

Okay? So every day there's something that reminds me that I'm getting older. And the. The idea that 300 was 21 years ago is the thing that's going to make me feel older.

Robert Ellin - (00:45:49)

Thank you.

Sean McGowan - (00:45:49)

Appreciate it.

Robert Ellin - (00:45:50)

Yeah, Yeah. I feel old with you.

Sean McGowan - (00:45:54)

The. A little bit more color on that reality show. Can you tell us, like, what. What kind of show are we talking about? Did you. Is it a. Is it a, you know, physical, athletic competition show? Like, you know.

Robert Ellin - (00:46:05)

Yes. Like the Olympics. Like the Olympics. There'll be a long jump. There'll be one. The beauty of this is no one's getting hurt.

Sean McGowan - (00:46:12)

Right.

Robert Ellin - (00:46:12)

No one's getting injured.

Sean McGowan - (00:46:13)

Right.

Robert Ellin - (00:46:14)

And the faces, right, aren't just there for a couple of minutes of a fight.

Sean McGowan - (00:46:18)

Right.

Robert Ellin - (00:46:19)

They're there for hours at a time. And they're collaborating over a full weekend in this. And you'll read about it shortly. It'll be done in Los Angeles. It'll be done at a major stadium.

Sean McGowan - (00:46:28)

Right.

Robert Ellin - (00:46:28)

It'll be done with some of the best people in the industry. And you're going to see reality names of some of the biggest stars. Stars, you know, battle of the Network.

Sean McGowan - (00:46:36)

Star brought back from the 70s. Right. That kind of thing.

Robert Ellin - (00:46:41)

Exactly, exactly, exactly. Literally, to a T. You hit it right in the nose.

Sean McGowan - (00:46:47)

Got it. See, it pays to be old sometimes. And where would that revenue be, that.

Robert Ellin - (00:46:53)

Revenues at Live one?

Sean McGowan - (00:46:55)

Okay, a couple of other questions. When will the Q be out?

Robert Ellin - (00:47:02)

We're on track to file tomorrow.

Sean McGowan - (00:47:03)

You should see it tomorrow.

Robert Ellin - (00:47:05)

Okay. Figure that. Okay. And just to clarify, Rob, when you were talking about the 50 million in revenue over the next 12 months, and you said more 3Q and 4Q, I assume you meant fiscal 3Q and 4Q.

Sean McGowan - (00:47:20)

Yeah.

Robert Ellin - (00:47:22)

Okay. All right, that's it for me. Thank you very much.

OPERATOR - (00:47:29)

And Mr. Carhartt, Mr. Ellen, I will turn the call back to you for any additional or closing remarks that you have.

Robert Ellin - (00:47:36)

Yes, I want to thank everyone for taking the time and taking the call and. And just reiterate that the company has just brought back another 300,000 plus shares. We also brought back a lot of podcast one shares. We still have five and a half million dollars remaining on our buyback. We will be prudent and smart about we use that capital. And as I articulate on this, I truly believe this is the most exciting time for the company in many years where we have tremendous amount of optionality or tremendous amount of upside. And you know, these partnerships, Amazon partnership, streaming, Fortune 250 company s and P100 company right. We really 500 company. We really put ourselves in a position where that B2B business, right, which is what I built my entire career on, really feels like. It's building that momentum. The flywheel is building and revenues coming through different places. We got a lot to make up with Tesla. That doesn't happen easily. But this team will come through as they always do and we'll prove ourselves shortly. And I just want to again just tell you how proud I am, my team, of not only surviving this, but coming out of it and coming out of it strong again. And this should be a really exciting next six months for this company.

OPERATOR - (00:48:58)

Ladies and gentlemen, this does conclude today's teleconference and we do thank you all for your participation. Thank you. You may now disconnect your lines.