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DATE

Wednesday, Aug. 12, 2026, at 10:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer and Chairman - Robert S. Ellin
• Interim Chief Financial Officer - Craig Christensen

TAKEAWAYS

• Revenue -- $19.4 million, driven primarily by an increase in PodcastOne revenue.
• Adjusted EBITDA -- $4.3 million, reflecting a $6.1 million improvement from the prior year's first quarter.
• Audio Division Revenue -- $18.6 million, representing the majority of consolidated revenue.
• Audio Division Adjusted EBITDA -- Record $6.3 million, supported by growth in the podcasting and Slacker segments.
• PodcastOne Revenue -- Record $16.1 million, showing continued momentum in the podcasting division.
• PodcastOne Adjusted EBITDA -- $1.6 million, reflecting improved profitability in the segment.
• Slacker Revenue -- $2.5 million for the quarter.
• Slacker Adjusted EBITDA -- $4.7 million, driven by stock for service deals and the elimination of past liabilities.
• Net Loss -- $3.1 million, or -$0.23 per share, which represents an improvement from a $3.9 million loss in the same period last year.
• Cash Position -- Increased by $3.3 million during the period, bringing total cash and cash equivalents to $8.6 million.
• Stockholders' Equity -- Improved by $6.9 million, resulting in total equity of negative $13.7 million.
• Total Liabilities -- Reduced by $5.5 million, reflecting management efforts to strengthen the balance sheet.
• Stock Repurchase Program -- Repurchased $7 million of the $12 million authorized under the current program.
• Headcount -- Reduced to approximately 86 people from a peak of 350 to lower the fixed cost structure.
• M&A Pipeline -- Over $400 million in potential deals, with management evaluating both strategic and financial acquisition opportunities.
• Three-Year Target -- Management projected a path to over $250 million in annual revenues.
• Paramount Revenue -- Exceeded $27 million, growing from an initial base of $2 million.
• Amazon Revenue -- Reached over $20 million as the distribution partnership expanded.
• AI Content Licensing -- Discussions initiated with 17 AI businesses to license library content at rates of $100 to $500 per hour.
• Content Library -- 250,000 hours of video and 500,000 hours of audio content available for distribution and licensing.
• Junior Debt -- Elimination of all junior debt at the PodcastOne subsidiary during the quarter.
• B2B Strategy -- Establishment of partnerships with companies totaling over $10 trillion in market value to expand distribution.
• Operating Loss -- $3.7 million, showing a $0.3 million year-over-year improvement.
• Retail Agreement -- Signed a 4-year contract with a major global retailer and currently nearing a second retail partnership.

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RISKS

• Christensen stated that current Slacker margins were boosted by "one time pickups" of about $1.5 million from liability eliminations, which may not recur at the same level in future periods.
• Ellin stated, "If Tesla, you know, did not change the contract on us, we were on our way to $250 million... a year ago," acknowledging how major partnership changes can impact long-term revenue targets.

SUMMARY

Management for LiveOne, Inc. (LVO +4.01%) reported first-quarter results for fiscal 2027, highlighting record revenue in the PodcastOne segment and a significant reduction in overall operating costs. The company stated that it has shifted its focus toward B2B partnerships with major retailers and global streaming platforms, such as Netflix, to leverage its 700 million subscribers. Management noted ongoing debt reduction efforts and share repurchase activity, citing a valuation disconnect compared to industry peers. The company is actively pursuing AI licensing opportunities for its extensive audio and video library while evaluating a pipeline of potentially accretive M&A transactions.

• CEO Ellin stated, "I believe this is the strongest and most powerful collection of assets and opportunities I have ever assembled," regarding the current business portfolio.
• Management confirmed a 4-year retail agreement with a major global retailer and indicated that a second agreement is close to finalization.
• The company entered a partnership with Netflix to provide podcast content, which Ellin identified as part of a larger trend of streaming networks adding audio to increase ARPU.
• CFO Christensen noted that the Slacker business was driven by "stock for service deals that covered certain past liabilities," which aided the segment's profitability this quarter.
• The company plans to appoint a president and additional B2B division heads for carriers, auto, and retail sectors to manage expanding partnerships.
• CEO Ellin noted that video content now accounts for approximately 30% of company revenues, up from zero at the time of the company's inception.
• Management projected hitting over $100 million in revenues in the near future as the distribution flywheel continues to accelerate.

INDUSTRY GLOSSARY

• Adjusted EBITDA: A non-GAAP financial measure representing earnings before interest, taxes, depreciation, and amortization, often adjusted for one-time or non-cash items to reflect core operations.
• ARPU: Average Revenue Per User, a metric measuring the average amount of money generated by each individual user of a service.
• B2B: Business-to-business, referring to commercial transactions or partnerships between two companies.
• LLMs: Large Language Models, AI systems trained on extensive data to process and generate human-like content.
• Podtrac: A third-party podcast measurement and ranking service that tracks audience metrics and performance.

Full Conference Call Transcript

Operator: Good morning and thank you for standing by. Welcome to LiveOne's fiscal year 27 first quarter ended June 30, 2026 Financial Results and Business Update Conference Call. During today's call, all participants will be in a listen-only mode. Following the presentation, the conference will be opened for questions. Presenting on today's call is Robert S. Ellin, CEO and Chairman of LiveOne, and Craig Christensen, Interim CFO 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 and 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 vary 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 would cause the company's results to differ materially from these forward looking statements. Including those described in its annual report on Form 10-K for the year ended 03/31/2026 and subsequent SEC filings.

You will 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 its 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, 08/12/2026. And except as required by law, the company does not undertake any obligation to update or revise this information after today's call. I would like to highlight to all participants that this call is being recorded.

The company will make 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 the property of the company and any redistribution transmission, or rebroadcast of this call or the webcast in any form without the company's expressed written consent is strictly prohibited. Now I would like to turn the call over to LiveOne's CEO, Robert S. Ellin.

Robert S. Ellin: Thank you. Afternoon, everyone, and thank you for joining us. This was 1 of the most important and strongest quarters in the history of LiveOne. We delivered $19.3 million in revenues, and $18.6 million of audio revenues at a record $6.3 million of adjusted EBITDA. Our podcast delivered revenues of record revenues over $16.2 million and $1.6 million of adjusted EBITDA. But maybe just as importantly, we increased our cash position by $3.3 million increased our stockholders' equity by $7 million and eliminated $5 million of liabilities for the quarter.

We have now completed $7 million of our $12 million of stock repurchase program and fully are prepared to continue to grow that and buy more and more stock at these low prices. We also acquired 150 thousand shares of PodcastOne and paid off all of the junior debt at PodcastOne. Our focus is simple. Grow revenues, grow EBITDA, generate cash, strengthen the balance sheet, and create shareholder value. And for the first time, I believe, we see a very clear path to the next level of scale. Our B2B pipeline is stronger than it ever has been. We now have partnerships and opportunities with over $10 trillion worth of companies. Across the world.

We have signed major retail agreement with a 4-year agreement with 1 of the biggest retailers in the world. We are very close on a second retailer. And for the first time ever, we have partnered with Netflix and their 700 million global members. Our relationships continue to grow across Apple, Amazon, Alphabet, AT and T, Samsung, LG, VIZIO, and many of the most important largest companies in the world. We are also seeing very meaningful expansion with our existing partners, Amazon representing over $20 million. And Paramount has now passed and on its way over $27 million in revenues. This continues to demonstrate the accelerating opportunity across our major global distribution partners.

Based on the momentum we are seeing, we believe there is a clear path to over $250 million in revenues over the next 3 years. And importantly, this growth is happening against a dramatically leaner cost structure. We have cut our staff down from 350 people at a high to now around 80 and we are not just simply rebuilding revenues. We are building a much more profitable, scalable live 1 with the potential for dramatically increasing EBITDA and cash flow. Our M&A pipeline is the strongest it is ever been with over $400 million of potential deals in the pipeline.

We are evaluating carefully acquisitions mergers across our businesses while continuing to receive substantial inbound interest from strategic and financial buyers looking to acquire individual LiveOne subsidiaries, assets, or potentially the entire company. That gives us tremendous optionality. We can buy, merge, partner, or monetize assets depending on which path creates the greatest value for our shareholders. PodcastOne is another critical part of our flywheel. We believe audio and video belong together. We are watching a transformative move in the industry as you see Netflix enter in a very strong way into podcasting and you see the likes of Fox buying up many podcast networks, as well as OpenAI paying 13.5x revenues for a podcast network.

This is the second round of acquisitions where there was over $10 billion of them in the first round. And I fully expect there will be a larger scale acquisition mode, right, happening in the overall industry. it is very strong belief that you are going to see every streaming network including the Apples, the Amazons, and the Alphabets of the world or the YouTubes of the world, acquiring podcast networks. We have also now officially sold our TV--our podcast Barnum Town to a major streaming partner, and we are hoping for a green light on that in the very near future. This adds to our PodcastOne IP.

Of podcasts that can turn into television or films and dramatically increases our opportunity of generating substantial cash flow from these. AI adds another major layer across our audio and video content, data, and intellectual properties. We have over 250 thousand hours of video content, over 500 thousand hours of audio content, and growing. We see telltale signs that the LLMs are going to be buying up intellectual property, content, data, at somewhere between a $100 to $500 per hour on a nonexclusive basis. The most important message I want investors to take away from this LiveOne flywheel is robust, it is working, and it is accelerating. More partners create more distribution, More distribution creates bigger audiences.

More audiences create more revenues. And more content creates more IP. The more IP creates more opportunities across streaming television, AI licensing, commerce and M&A. And then there is the valuation. The industry companies are trading at about 3.7x revenues while LiveOne is trading at about 65% of revenues. We believe this represents an extraordinary valuation disconnect. As we execute, grow revenues, expand EBITDA, generate cash and strengthen the balance sheet, we believe there is a significant opportunity to close that gap. After more than 30 years of building media and technology companies to over $10 billion worth of companies, I believe this is the strongest and most powerful collection of assets and opportunities I have ever assembled.

I have been through this journey with many companies where stock has had its difficult times and then rebounds in a very extraordinary way. We watched this with digital turbine dropping almost $40 million and then 5 years later, to a $12 billion valuation. I believe LiveOne has today more assets more revenue streams, and more ways to win. Now it comes down to final execution. The flywheel is accelerating, and we see a very strong sign of hitting over $100 million in revenues in the very near future. With that, I want to hand it off to Craig, our CFO, who is done an amazing job and look forward to finalizing our call at the end. Thank you, Craig.

Craig Christensen: Thanks, Robert. I will spend a few minutes just providing a brief overview of the results for our first quarter. Consolidated revenue for the 3 months ended 6/30/2026 was $19.4 million, with positive adjusted EBITDA of $4.3 million Our audio division posted revenue for Q1 of $18.6 million and adjusted EBITDA of $6.3 million The biggest driver adjusted EBITDA was our Slacker business, with stock for service deals that covered certain past liabilities, as well as credit for future services. On a U.S. GAAP basis, for the first quarter, LiveOne posted a consolidated net loss of $3.1 million or -$0.23 per basic and diluted share.

This compares to net loss of $3.9 million or -$0.40 per basic and diluted share in the same quarter last year. At the operating level, our PodcastOne business reported record revenue of $16.1 million and adjusted EBITDA of $1.6 million Our Slacker business posted Q1 revenue of $2.5 million and adjusted EBITDA of $4.7 million. This was primarily driven by stock for service deals and the elimination of certain past liabilities. Overall, we see strong momentum in the first half of fiscal 27, led by the continued growth of PodcastOne, And as Robert mentioned, we have several strategic opportunities gaining traction, which we believe can support the continued growth and create long term value.

So, Robert, turn it back over to you

Robert S. Ellin: And just to finalize, we are well in the process of our next M&A transaction. it is been a few years since we have completed 1. But for anyone that knows me, they are usually super accretive, very much like PodcastOne. We acquired it doing $17 million in revenues and losing $5 million a year. it is now in a run rate to do well over $60 million this year as we finished off the quarter. With almost what we started with, 5 years ago when we acquired it and now is very strong EBITDA.

We are going to continue to buy back stock aggressively down at these low valuations and you know, as a team, I could not be more proud of what they have accomplished this quarter eliminate this kind of liabilities, create this kind of EBITDA, has really been special and really and hence really special to see what our team has done. And we continue to look at ways to increase each of those. And again, we will continue to buy back stocks. Want to thank everyone for joining. Thank our shareholders for the patience. And we look forward to a really exciting end of the year. Thank you.

Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please standby while we compile the Q and A roster. Your first question from the line of Brian Kinstlinger with Alliance Global Partners. Brian, Your line is open. Please go ahead.

Brian Kinstlinger: Great. Thanks for taking my questions. My questions will be around the B2B deals, and I will get back in the queue. At what point do you expect AT and T to begin offering their plans to automotive manufacturers Are there any manufacturers that AT and T is already offering live ones content if you buy a car? And if so, which?

Robert S. Ellin: Yeah. So we are we are under NDA on that. We cannot give names at this point. But the answer is yes and now. We will have a, hopefully, very substantial update on that in the next 30 to 45 days. And I am really excited about that partnership and as Brian, you probably know, you know, historically, the company has done and really before I was involved in it, has done, most of their revenues through carriers. Starting with Verizon and T Mobile and, obviously, AT and T being the biggest is really exciting for us to have this opportunity to grow with them.

Brian Kinstlinger: Great. Similar question on smart TVs. You have got 3 of the largest that you are who are integrating your content. Are all 3 now selling TVs that consumers can buy with your content? And if so, can you talk about any evidence of usage, success, subscriptions, anything like that?

Robert S. Ellin: Yeah. This is just the beginning of the beginning, but the answer is yes. Across all 3 of them. And the marketing strategies are just starting to come into place. And we will have a lot more clarity on that in the next 60 to 90 days. But really exciting for them. And not only is it exciting just to have the TVs, but, obviously, when you are talking about the likes of VIZIO, right, you also have potential to move into Walmart Right? And when you are talking about Samsung, you have the opportunity of moving into Android.

And, again, Samsung was the biggest probably was the second largest partner in the history of the company with, with Slack and Radio. And did hundreds of millions of dollars of revenues over a 20 almost 20 year period with them. So really exciting, not only just what you can do in automobiles, but getting inside of these large massive companies and building the relationships. As you know, Brian, once you are in the door, and you have you have contractual relationships, you can really expand to other areas of the business. As well. So the distribution is well beyond just TVs that we see. And really exciting to, have these opportunities.

And, yeah, we have used very tiny numbers, as you know, something like a 0.5% to 1% penetration. And a conversion off of that. And, you know, just take all the numbers of each of these companies combine them, and we just need a little tiny piece of that for the revenues to really ramp up. And we expect that fourth quarter right, as we have said throughout the year. It takes time as you put these in. You know, people need to see them you know, multiple times. Right? They need to experience. They gotta see the branding. They gotta build a relationship with it.

But we see, again, at a very tiny percentage conversion with these partners, just a massive opportunity.

Brian Kinstlinger: Thank you. I am going to slip 1 more in, then I will get back in the queue. You made a comment, Robert, that you have a B2B deal with 1 of the largest retailers in the world. You have obviously you are working with them, and everyone knows that. But is that something new? Is it 1 quick comment? I was not quite sure what to make of it, or am I drawing maybe a blank on another announcement you had?

Robert S. Ellin: No. I mean, all I said is that there was a 4-year contract. Right? We cannot give names, as you know. No different than we originally had our Paramount deal. We could not talk about the name for almost we did not talk about it for almost 2 years, and now it is well over $27 million in revenues. Right? This could be a massive, massive partnership. And you know, shortly, we fully expect to be able to talk about it in detail. Okay. Thanks. I will get back in the queue. Yeah. I mean, to add to that, Brian, I think you are going to see us add a head of partnerships in the retail area.

You will probably see the same thing in the carrier area. As we have now shrunk the team dramatically, you will see some add-on team members coming shortly, including a president of the company. Right? As well as well as area heads and sales heads of B2B you know, divisions of where we are growing. Right? Carriers, auto, retailers, etcetera.

Operator: Your next question from the line of Barry Sine. With Lynchfield Hills Research. Barry, Your line is open. Please go ahead.

Barry Sine: Hey. Good morning, gentlemen. I want to start off and continue on the topic of, b 2 b partners. Robert, you mentioned Netflix. At the beginning of the call, and, obviously, that is a big partner. Are you at liberty to expand on what you are doing with them? And if I was a Netflix subscriber, what would I see from live 1? Would I just see podcasts or is it also music?

Robert S. Ellin: No. You are just going to see podcasts to start? Right? But this is my humble opinion. I did a podcast on this. I think it was 3 months ago, and I said, and, yeah, maybe for once I will be right. Right? I came out and said very clearly that I fully expected every streaming network will move into audio. Right? No different than cable and satellite did. Right? there is still more channel on cable and satellite for Music Choice than there is anything else. I fully expect a that you are going to see the likes of Netflix, Warner, Paramount, Hulu, Disney, every 1 of these streaming networks are going to add audio to their platforms.

Whether they add it as a distributor, or they acquire them. And I see it as really intellectually smart for them to acquire them. Right? You are seeing Netflix doing deals with iHeart. You saw Disney do a deal with iHeart. Right? You see Sirius trying to buy iHeart. All this is coming in when you think about it, right, that audio streaming is charging the same price as Netflix's. Right? Whether it is Spotify, Apple, they are basically almost the exact same price except for the differences in audio music's already made. Right? They do not have the risk of spending $10 billion to $20 billion producing content.

So as they try so hard every year to increase their ARPUs, It makes so much sense to me that a Netflix should have an audio network. Right? Having an audio network will give them the ability to raise their ARPUs way more than they can raise in the dollar a year that they are doing today. And I think the same thing on the audio side. So I think you are going to see a roll up happening. We are gonna see every streaming platform, including Apple, Amazon. Who already have theirs. Right? And YouTube, those have a music network but they are going to go harder into podcasting.

And then you are going to see the other streaming platforms that are competing with them are going to have to have an audio platform. it is going to be so important to them, and I think you will see acquisitions happening in the space quickly.

Barry Sine: Okay. And then my second question is around M&A specifically. You said you are close on a deal. And you have talked about criteria where you gave 1 is the deal being accretive. Where are you shopping? Are you shopping only in podcast I know, you know, Kit is always looking for Oh, no. Perhaps to pick up Yeah. No. Companies.

Robert S. Ellin: No. No. No. No. We are a lot of them. No. No. We have-- yeah. So we brought in Steve Lehman. Right? Steve is Vice Chairman of LiveOne, and Steve's background is rolling up audio Right? he is done some video as well, but rolling up audio as a whole. So there is massive opportunities there, and there is a fractured market. Right? You are either big or you are you are small and kinda left out there. We are looking at both. Right? From the M&A side is we fully expect another acquisition that will be similar to Slacker or a similar to PodcastOne or we acquire it extremely cheaply. Right?

It fits into our flywheel, and it picks up EBITDA for us and is extremely accretive. At the same time, we are looking at big chest moves that could be anything from a buy to a sell. Right? Inbound calls are coming in on a regular basis. You guys are all watching as companies again, podcast networks were bought up at, like, 5 to 15x revenues 5 years ago. The industry was a $600 million industry. Now it is a $25 billion and growing. Right? As video has been added, it is going to continue to grow. And as that happens, I think you are going to see very aggressive you know, moves in the media space.

And you start to see for the first time in 7 years media stocks really moving. Right? Media stocks have had just a miserable, miserable 7 years. And now you see Starz stock is going to 3x and iHeart stock was up 6.5x, 7x. Now it is still up 5x. Same thing with lion's gate. All of a sudden, you are waking up and part of that is because people are realizing how valuable the data is. That data may not just be valuable to other content partners, It could be enormously valuable to the AI models. Right?

As you are figuring out human behavior, right, human movement, so on, you are going to need a substantial amount of content to keep feeding these LLMs and to continue to feed them quickly And they are not gonna be able to get content from the majors. Right? You just saw you just saw the settlement, right, that anthropic just did. They paid up staggering $1.2 billion just to the book industry. Right? They are stealing some books. You can imagine what is going to happen and how long it is gonna take to settle the film, music, television, right, stuff that has been effectively taken whether intentionally or not by the AI models. Right? That is now all blocked.

So I think we are going to have enormous value in the data and the content we have, which content is data. And when you have data, it gives it, you know, just huge value to these AI models.

Barry Sine: And just to follow-up on that, where are you in the process of monetizing, you know, for AI licensing And have you looked at doing that buying via tokenization which would make the content much easier to slice and dice and price and sell?

Robert S. Ellin: But here's what I would tell you. what is really exciting is as of this morning, my team just sent me a message. We are in discussions with 17 AI businesses and growing. All of them looking at somewhere between a $100 to $500 an hour for content. So we are very smartly and very carefully working with our talent Right? Because they are a partner in that. Right? If it is doctor Phil or Adam Carolla, it is any 1 of them, we are working with that content. And the same with our music content, content, which we own.

We still have to we still have to work with our music partners right, to monetize that, and we could not be more excited about the opportunity. And you know, just to give you color, I personally invested in the company just a couple of dollars. But I saw a friend of mine who started the company, and literally, he is gotten $17 million of contracts up front just to literally give content from security guards, cleaning people, people washing dishes, watching laundry. This is-- if you are going to build robotics and you are gonna build AI, they are going to need a staggering amount of content to keep feeding the system.

Keep it alive, and we have real content. Right? So what I am talking about is only for the practice models Imagine it is worth a $100 to $500 an hour from practice models. What is this content worth? It really goes to market? Where it is exclusive deals to someone. It could be multiples of that. So we see a great sign in that. We fully expect to start to monetize it. In the next quarter. Great. Lots of good info. Thanks, Robert.

Barry Sine: Thanks, Barry.

Operator: Appreciate A reminder, if you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. Your next question from the line of Brian Kinstlinger with Alliance Global Partners. Brian, Your line is open. Please go ahead.

Brian Kinstlinger: Great, thanks. A few follow-ups. The first 1 relates to Netflix. Are they paying annual fees for the content or based on usage?

Robert S. Ellin: We are we are not at liberty to give what the model is today, but you could read if you read these stories of Bill Simmons and you read the story, stories with Disney yesterday, you can get a little bit of an idea some of it is gonna be free. and is going to be ad-driven, right, and traffic-driven. And some of it is going to be some of it is going to be paid for. Right? It depends on which content it is. You can be sure that you are not gonna see us give the likes of a major talent to them, right, without getting-- monetizing it.

And can just tell you that our video content, you know, is probably now 30% of our revenues. Can I give you an exact number of it? But it was zero when I bought this company. Right? So video content is just exploding and it was a great CNBC interview this morning. That literally walked through, you know, how much money is being monetized. In video and what kind of revenues are being driven in video and I just see I just see great telltale signs that the TAM of our business is going to explode over the next 3 years.

Brian Kinstlinger: Great. I have 2 numbers questions. The gross margin has drastically improved Craig, you made some comments that I was not quite sure how to decipher. When I back into the gross margin of non-PodcastOne, you are at 63% 3 quarters ago. You were in the twenties for several quarters. Is there any nonrecurring benefits in there? And if so, can you quantify them?

Craig Christensen: Is this sustainable? Yeah, Brian. You are right. There is some onetime pickups in Q1 in Slacker. As I mentioned in my remarks that we had a elimination of some liabilities it is about $1.5 million. That gets you back to a more normal margin, right, on a gap basis. But then on top of that, we had some stock for service deals, and that is what drove the adjusted EBITDA. So, yeah, there are 1 time pickups there. We expect the margin to kind of sustain back to normal. Unless we can continue to drive those stock for service deals.

Brian Kinstlinger: Yep. Well, that was going to be my next question. We saw the share count jump significantly in the 3 months. Is that related to that stock comp? And how should we think about maybe stock comp and the share count for the remainder of the year?

Robert S. Ellin: I think I answered that. You know? Yeah. We have we have basically given that number. Which was around $15 million. Right? it is $7.50 a share. Right? We picked up some great partners with that. Brian, that we have announced. Right? And they have announced. Right? Including, a fund that is now part of BMI that owns 7% to 8% of the company now. So it is been great for us. Not only is it great from a balance sheet standpoint, right, but it also is great from having real long term deals with the music industry. Right, which we have not had in the 8 years since we acquired it.

Because of the payables that existed on the books previously. So and we will continue to do some deals at $7.50 a share or better. And I fully expect that there will be more of those part of that $15 million over the next 60 to 90 days.

Brian Kinstlinger: Okay. Thank you.

Operator: Your next question from the line of Barry Sine with Litchfield Hills Research. Barry, your line is open. You may now go ahead.

Barry Sine: Hello again. Just as a follow-up on that, on the music partners, the what the record labels Now that you have kind of cleaned that up, you know, you brought some in as shareholders as partners. In the past, Robert, you have talked about going global and many of your, b to b partners, like a Netflix, do have global businesses. And I know you are not yet licensing music to them, just podcasts. But can you talk about the prospects for taking the music part of the business global and adding global licenses so you are not just in North America?

Robert S. Ellin: I think I think the answer is the minute we have our first partner, that is that is a global partner that needs this across the board will be the minute we go sit down and start negotiating. And we are in a completely different position than we have been in the last 8 years. Right? We have had these, you know, massive payables from the acquisition of Slacker in the beginning Right? Now that is strengthened, cleaned up, and so many of music partners, we have signed just about every 1 of them now. We got a couple left to do over the next as I said, 30 to 90 days.

But if we can get that cleaned up, we will certainly be exploring that and looking at that opportunity. Also, podcasting is exploding around the world too. Right? there is a real opportunity with it, you know, globally as well to expand that.

Barry Sine: And my last question you threw out a number that is pretty significant, aspirational number of $250 million in revenue, 3 years out. And I know that is not guidance, but could you flesh out that vision a little bit more? What does that look like in terms of balance between podcasting, between B2B deals, and then financially, what does that look like from an EBITDA standpoint? what is the vision on this company with that 250 million of revenue 3 years out?

Robert S. Ellin: Yeah. I think we want to get to adjusted EBITDA like we are doing now. Right? We have taken our cost structure down. As you know, if COVID did not hit, we were on our way to $250 million you know, 6 years ago. Right? If Tesla, you know, did not change the contract on us, we were on our way to $250 million you know, a year ago. Right? Year in year and 4 months ago. So we are back on track now. We are highly confident. Right? And when you talk about $10 trillion worth of companies that we are in partnerships with, we just gotta keep growing them. Right?

A Paramount could grow. it is growing from $2 million to over $27 million. Amazon's growing, you know, literally just starting off as a test is now growing to $20 million. Right? We are now in position with you know, 10, 12, 14 partners that all have, you know, they are all multibillion to trillion dollar companies. We just gotta execute. Right? We got to execute. We got to deliver-- we got to deliver for them. And we gotta continue to sign more and more of those partnerships. And then it is just a numbers game. The bigger their distribution partners are, right, the more traffic we are gonna get, the more revenues we are gonna drive.

When you go onto a Netflix as an example, right, you put a couple of shows on the story, you got 700 million subscribers right around the world. Right? I cannot tell you exactly what that number is gonna be day 1, there is gonna be some numbers. Alright? And so that is just the beginning. When you control that, right, that environment, when we go into Netflix, no different than we are on YouTube, or on Spotify, whatever advertising is played during that show, we get the revenues from. Then there could be subscription revenues. Right?

Our subscription revenues, all of a sudden, ramped up with 1 of our big podcasters which started to be a real number every month. And I just see, you know, that is just a big opportunity for us to grow. And I think Netflix is missing an audio network. I think Walmart is missing a audio network. I think Costco is missing an audio network. I think that Facebook is missing an audio network. I think Microsoft is missing an audio network. I think every carrier is missing 1. Everyone is coming back. AI is running the world. Everybody's scared. Everybody's infringing on each other's businesses. And it is so critical right now for people to own their own data.

There is nothing that is used more than audio content no matter what. More than video, there is always gonna be audio. Right? there is still gonna be 2 hours a day in a car. there is gonna be usage on mobile. it is hard to watch as much on a mobile device as going to listen on a mobile device. I think we are right in the sweet spot, and I think with Craig's help and a new president of the company, right, and a couple of more B2B people, 250 million is very achievable in the next 3 years.

Barry Sine: Great. Thank you.

Operator: There are no further questions at this time. We will now turn the call back to Robert S. Ellin for closing remarks.

Robert S. Ellin: I think I said everything today. Very humbly, Right? We are humbled by where our stock is today. We are pretty shocked because media has had some life to it. It looked like the stock was gonna run last quarter, had a little run up to 7. Yeah. I could not break those levels. But we are gonna keep buying back stock. We are gonna keep our foot on the pedal. We are going to continue to clean the balance sheet until we get rid of any of the outstanding issues that are out there. We are gonna continue to build massive real partnerships with billion to trillion dollar companies. And, again, I just wanna thank everyone for their patience.

We are right there next year. We will be buying stock as soon as soon as the as soon as the restriction is off, as soon as we get legal restriction off, which is any day now, we will continue to buy more stock. And, just could not be more proud of my team and what we have got accomplished. In this year, but just in this quarter. it is just amazing to see $7 million added to net equity, $3 million of extra cash, it is just a telltale sign of where we are going, and we are gonna continue to grow these things.

Thank you, everyone, and we look forward to talking to you soon, with the next update.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.