LiveOne, Inc. Q4 FY2023 Earnings Call

Good morning, and welcome to the LiveOne, Inc. Fourth Quarter Fiscal 2023 Financial Results and Business Conference Call. My name is Carla, and I will be operating this call. I will now hand over to your host, Aaron Sullivan, Interim CFO, to begin. Please go ahead.

Thank you. Good morning, and welcome to LiveOne's business update and financial results conference call for the company's fourth quarter ended March 31, 2023. Presenting on today's call are Rob Ellin, CEO and Chairman; Kit Gray, President of PodcastOne; Bradley Konkol, Head of Slacker; John Semmelhack, President of CPS; Josh Hallbauer, Head of Music; and myself, Aaron Sullivan, Interim CFO. 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 10-K for the year ended March 31, 2022 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 its Investor Relations website. The company encourages you to periodically visit the 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, June 27, 2023. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of the 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 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 CEO, Rob Ellin.

Thank you, Aaron, and good morning, everyone. I'd like to thank everyone for joining us today. After five years and a tremendous amount of hard work and many obstacles, including the consolidation of eight acquisitions into our core business, my team has delivered on a magnificent year and even a bigger start to this year. We are raising our guidance for fiscal 2024. LiveOne's early projections increased to $122 million to $130 million in revenue, with $12 million to $16 million of adjusted EBITDA, and our Audio Division, which includes Slacker and PodcastOne, is projected to generate $100 million to $110 million, with adjusted EBITDA between $18 million and $21 million and over $12 million of operating cash flow. As a creative-first platform, we have built a flywheel which allows us to deliver many different revenue streams from the same piece of content. LiveXLive, Slacker, PodcastOne, Pay-Per-View One, CPS, Splitmind, Drumify, Kast Media, and Fantasy Guru are all substantial creative platforms with big communities. The combination of these platforms provides the most robust offering in music and pop culture at the lowest cost and the highest margins. Proving the superiority of our tech team, our 45 patents combined with unique original programming allowed Slacker Radio to be handpicked by Elon Musk and the Tesla team as the white-label music service branded Tesla Radio. Every Tesla car sold in North America comes with a paid membership to LiveOne, with these memberships being paid directly by Tesla for an average of seven years, and we have just successfully extended our partnership for the 10th consecutive year. The combination of Tesla, Verizon, T-Mobile, Sprint has created exciting B2B partnerships, with an army of over 3,000 artists, podcasters, and social media stars engaging across the LiveOne platform and using their social media to alert fans to listen, watch, and engage on LiveOne, driving our revenues and memberships at record pace. I indicated to the market last year that we would pass 10 million members within five years and over $1 billion in revenues. Exploding out of the gate this year, we have over 350,000 new paid members since January 1, adding over 60,000 new members each month. We passed 3.1 million total members and 2.2 million paid members and expect to exceed 4 million total members this year and over 3 million paid, with an average ARPU of $3.00. To better understand these metrics, Goldman Sachs recently reported that industry growth is expected to reach 1.7 billion paying subscribers for music by 2027. LiveOne would only need 1% of that expected total addressable market to reach our goal. In 2018, we acquired Slacker Radio, which at the time had revenues of $20 million but was losing over $10 million a year with 400,000 total members. We've increased our membership eightfold in just five years. At this pace, reaching 10 million members is an extremely achievable goal. LiveOne reported today 2023 fiscal results with revenues of $99 million and $10.9 million adjusted EBITDA, reflecting a $24.4 million improvement in adjusted EBITDA compared to 2022. Our Audio Division, comprised of the award-winning streaming music platform Slacker Radio and PodcastOne, one of the largest remaining podcast networks, reported record revenues of $86.8 million and a record adjusted EBITDA of $18.2 million, representing an increase of 289% from $6.3 million last year. With the strongest balance sheet in the history of the company, we can now focus our capital and energy on both internal growth as well as external, utilizing our balance sheet to buy back substantial amounts of stock. We believe our stock remains undervalued, and as such, we have undertaken three separate initiatives to unlock substantial shareholder value. First, we have an ongoing share buyback program where we have repurchased 2.9 million shares, leaving an additional $2.3 million available for acquiring more shares. The second initiative is the spin-off of our PodcastOne business. We have received approval on our registration statement, as declared effective by the SEC, and we have increased our dividend to shareholders from 12% to 19%. LiveOne, as the parent company, will own over 74% of PodcastOne. Independent valuations have come out between $230 million and $275 million, which would value that division over $2.60 per share. The spin-out will allow PodcastOne to utilize its stock as currency for both acquisitions and capital formation. We have already announced two planned all-stock acquisitions by PodcastOne: the first is a network called Kast Media, and the second is Fantasy Guru. The combined acquisitions are expected to increase PodcastOne's revenues by $12.5 million and over $2 million of adjusted EBITDA. PodcastOne was acquired very similarly to Slacker three years ago with $20 million in revenues and is now estimating that this quarter alone will be over $10.5 million. We've increased our guidance to $40 million to $45 million this year before acquisitions. Our third initiative is our proposed merger of Slacker Radio with a Nasdaq-listed SPAC, with a minimum valuation of $160 million or another $2.00 per share. Combining these two prices would equate to over $5.00 per share. With that, I'd say this is the most exciting time in the history of the company. We continue to grow and expect our biggest year ever. Now, I'd like to hand it over to my President, Kit Gray at PodcastOne. Thank you, everyone.

Good morning, everyone. Thank you for your time. I appreciate it, and I'm looking forward to updating you on an action-packed fourth quarter with PodcastOne. It was an exciting year for us and especially in that quarter, with a lot of growth. We launched numerous new shows, acquired existing shows, and started new seasons of already hit programs during the quarter. These included A&E's I Survived second season; our smash new hit I've Had It, which is a top five downloaded show in our network; and When Reality Hits, a Vanderpump special, with one of their hit new episodes achieving 375,000 downloads just two weeks ago. We also launched several other shows, including On Brand, and we are set to launch another in mid-July. Additionally, we're commencing a second season of Bad Bad Things, a hit scripted show featuring Barbara Schroeder. We are truly excited about an upcoming scripted project planned for later this year. The network is growing in terms of content and downloads, and we're expanding significantly. A critical part of our business is identifying our core shows and securing multiyear extensions, where we have had great success. We have not lost a single program and have successfully signed multiyear contracts with The LadyGang Network, Adam Carolla, Dr. Drew, Court Junkie, Jordan Harbinger Show, Kaitlyn Bristowe, and more. This positions us great for an exciting year ahead. Recently, one of our shows won a Webby Award. This was with Kail Lowry and her network, which includes Barely Famous, Coffee Convos, and others recognized at the Webby Awards recently in New York City. Our programming has been very well-received and continues to grow. Looking ahead into the new year, we're excited about a number of acquisitions. As Rob noted, we are working hard to acquire assets from Kast Media, which has a great operation featuring excellent personalities and shows that we can't wait to integrate into our network and expand with. Alongside the Fantasy Guru network, which diversifies our model by drawing in 24,000 subscribers who pay monthly for their fantasy information. This is a remarkable time for us as we're seeing the podcasting world come to us. Many larger networks are slowing down their initial investments, which is giving us fantastic opportunities to continue our growth. We're very excited about the future of PodcastOne. Thank you very much for your time today.

Brad, jump in here.

Yes. Thanks, Rob, and good morning to everyone. It's really an exciting time at Slacker Radio, it truly is. To reiterate some of the metrics Rob shared, we have continued to see tremendous increases in our membership KPIs, particularly concerning paid memberships. We've had record growth with 612,000 new members over the last year, which is a 39% year-over-year increase. It's an extremely exciting time, not just because of the record growth, but also due to how we are integrating with LiveOne's flywheel of products, and how our roadmap is currently aligned and what we're strategically poised to do. For example, as part of LiveOne's Audio Division, Slacker's alignment with PodcastOne has never been stronger. We just launched over 60 additional PodcastOne podcasts through the LiveOne Slacker Radio app on Tesla. We also aired our first podcast pay-per-view livestream with Adam Carolla & Friends. On pay-per-view front, for those who love combat sports and ice hockey, we will also be streaming Ice Wars 3 in July. So all that said, most important to our future success at Slacker Radio is our laser focus on strategic business-to-business partnerships to drive both paid memberships and ad-supported revenue. As such, we recently announced a multiyear deal with OTT Studio, in which many of Slacker's expertly curated stations will be playable in OTT Studio's soon-to-launch music app on Roku, Fire TV, and Vizio. We also recently announced a joint strategic partnership with Legible, an e-book, audiobook, and entertainment media company. We will soon be bringing on a new Head of Business Development to leverage additional partnership opportunities across fitness, consumer electronics, and telcos. In summary, just fantastic record growth, amazing collaboration with PodcastOne and across all of LiveOne's flywheel businesses, along with a very strong and exciting business-to-business partnership pipeline on the horizon. With that, back to you, Rob.

Yes, I'm going to hand it off to Josh Hallbauer. Josh is running our publishing and music business and is executing brilliantly, including two acquisitions we just completed with a significant focus on AI. So Josh, please take it from here.

Thanks, Rob, and good morning, everyone. I wanted to mention that we just launched Version 2.0 of our Drumify platform, which we acquired about six months ago. It's a crucial tool for creators in a $9 billion publishing industry. Since the acquisition, we've implemented various AI technologies that have helped creators put together songs from artists like Drake, Chloe Bailey, and NBA YoungBoy, the list goes on. Most importantly, as a creator-first platform, we are diligently searching for royalties owed to these creators. Although they may seem small individually, they accumulate to considerable revenue. We're proud to say that we are the premier platform, Drumify, that ensures artists retain their rights when using a platform like this, unlike others. The publishing industry has seen significant growth over the last five years, and if we capture even a small percentage of that, we believe this could be a $100 million to $150 million company in the next two years. Thanks, Rob.

Excellent. And with that, John, at CPS, our merch business, which is being positioned this year with substantial cost savings and a focus on owning our products. John, over to you.

Thanks, Rob. Good morning, everyone. Custom personalization solutions sell personalized gifts through the Internet, primarily through wholesalers. Overall, we're expecting our revenues to be flat for fiscal year 2023-'24. Continued softness is expected in the mid-market retail environment. We expect sales to expand with a significant number of wholesalers that we've partnered with through improved Christmas programs that we've already secured. Some of these partners include Walmart, Zales, Lillian Vernon, Signals, and Colony Brands. We're actively working to grow in every possible avenue. On the downside, we observed that several wholesale clients in the past 12 months have faced bankruptcy or were sold due to financial difficulties, leading to the discontinuation of those programs. We're working hard to expand wherever we can to offset these sales losses and are adding new clients. JCPenney is expected to go live in Q2, as is Chewy, which will expand from a limited test program to a Q2 rollout. On the operational expense side, as Rob alluded to, we expect to improve by over $900,000 in the current fiscal year. We're reducing our fixed costs by over $600,000 primarily through payroll consolidation and renegotiating contracts, particularly our IT contracts wherever possible. Therefore, in total, we're looking for improvements predominantly through expense control and setting the table for when the mid-market environment improves, so that we can be ready to capitalize on that. Thank you, and back to Rob.

Great. Wrapping up, I want to thank everyone for attending today, and thanks for your patience. We will be continuing our buyback very shortly as we see fantastic opportunities ahead now that our balance sheet has gotten stronger. The company is growing in every aspect. Our sponsorships have significantly expanded over the past three years, from seven sponsors to over 600 this year, and after the acquisition of Kast Media, which will push us over 700 sponsors. Our various revenue streams - sponsorship, advertising, and subscription - are all growing simultaneously, and for the first time, we can truly see the future of where we're heading. As we break the $100 million mark, our team comes together in a unique way, and I couldn't be more proud of our focused team. They are dedicated to improving our bottom-line performance. We have over $200 million in net operating loss. I expect next year, we will be able to capitalize on that as we so. I want to thank everyone for attending and for spending your time with us today.

Thanks, Rob. I'll spend just a few minutes providing a very brief overview of our results for the full year fiscal '23 and the fourth quarter ended March 31, '23. Consolidated revenue for the three and 12-month periods ended March 31, '23, was $25.5 million and $99.6 million, respectively. Our Audio Division posted revenue for the three and 12 months of $22.9 million and $86.8 million, respectively. For the fourth quarter ended March 31, '23, revenue consists of 55% membership and 45% from advertising, sponsorship, merchandising, and ticketing events, compared to 50% membership and 50% advertising, sponsorship, and ticketing events in the prior year period. Consolidated adjusted EBITDA for the three and 12 months was $1.5 million and a record $10.9 million, respectively. On a U.S. GAAP basis, LiveOne posted a consolidated net loss of $4.8 million or $0.06 per diluted share in Q4 fiscal '23, and a net loss of $10 million or $0.12 a share for the 12 months ended March 31, '23. Our Audio Division's adjusted EBITDA for the three and 12 months was $4.5 million and a record $18.2 million, respectively. And as of June 26, we had approximately 2.2 million paid members, a net increase of approximately 292,000 or 15% compared to December 31, '22. Total members, including free members, were approximately 3.1 million as of June 26, '23. Note that included in the total members are certain members who are not currently subject to revenue recognition due to ongoing contractual disputes. Briefly touching on the balance sheet, we ended Q4 with cash of $8.7 million, including restricted cash of $300,000. Rob, I'll turn it back to you.

Thank you, everyone. I'll open it up for questions now, and we look forward to any thoughts you have.

Our first question is from Brian Kinstlinger from Alliance Global Partners. Your line is now open. Please go ahead.

Great. Thanks so much. I got a handful of questions. First, regarding your fiscal '24 revenue guidance, does that include Kast and Fantasy Guru? And if so, what are the assumptions on the timing of the closure? Can you close these acquisitions before the spin-off, or does this spin-off have to happen for them to close?

Yes. Off the bat, that does not include the acquisitions. We expect to close these very quickly, and it does not affect the timing of the spin-off.

Great. How do you determine the actual shares on Fantasy Guru? There was a range. And then, how should we think about any shares issued for Kast? Can you help with a range of valuation for Kast?

Yes. Without going too far because we haven't publicly disclosed it, right, the valuations of the company were valued at $200 million plus. We are acquiring these companies in a manner very similar to how we've acquired Slacker Radio and PodcastOne. There'll be a lot more details to come shortly, Brian, but these are going to be quite accretive to both revenues and EBITDA.

But they're both for PodcastOne shares and not LiveOne shares. Is that right?

Correct.

Great. The $10.5 million of PodcastOne revenue that you've discussed or targeted for the first quarter, can you quantify how much was aided by the Adam Carolla pay-per-view event on June 4? Separately, can you speak to the trends you're seeing in podcasting regarding download growth versus any potential pressures on CPMs?

Yes, sure. The Adam Carolla event was successful. It's not a huge percentage of our total revenue of that $10.9 million, but it was a successful, profitable event that his fans really enjoyed. There were separate levels of engagement where fans could watch online, and there were meet and greets and merchandise, which really enhanced Adam's connection to his fanbase. So there were many positives from that experience. The podcasting industry continues to explode; listeners now reportedly consume about 10 hours per week on average, largely due to more people returning to offices and commuting for work, thus driving increased podcast consumption. On CPMs, we are seeing some pressure as companies are pulling back a tad and requiring more assistance for conversions and sales. We're actively collaborating with agencies and clients to navigate these challenging times to restore what we had previously. However, we’re seeing still significant CPMs, averaging between $25 and $35. Some of our higher-rated shows maintain robust CPMs, leaving us satisfied with where advertising and podcast consumption growth currently stands.

Great. Last question, a two-part question for either Kit or Rob: Are you encountering more opportunities to run pay-per-view events to monetize your talent and content? Also, could you discuss the strategy for continuing to acquire more content through the two podcast acquisitions recently announced?

Yes. On the pay-per-view side, we pulled back significantly last year. However, we are now seeing clear consumer demand for this format from music festivals, music events, podcasters, and live performances. We view this as one of our primary growth engines. Recently, we have announced three pay-per-view events in the last three weeks, which marks our first major push in the space after an extended hiatus. In terms of acquisitions, not only will you see it on the podcast side, as I stated previously, we have an exceptional management team across each subsidiary, and these spin-offs provide us with a chance to use that equity to roll up more acquisitions. We see a considerable opportunity on both the podcast and Slacker sides, especially as our stock is currently undervalued. We plan to leverage that currency for additional acquisitions.

Okay. Thanks, guys.

Next question, please.

Our next question comes from Sean McGowan from ROTH MKM. Your line is now open. Please go ahead.

Thank you. Good morning, guys. I also had a couple of questions. I don't know if Josh is still on the line, but I wanted to delve a bit deeper into Drumify. Can you explain how that gets monetized and what the relationship will look like going forward? Did I hear that you're anticipating that, alone, could become a $150 million business?

Yes, I'm here. The way Drumify monetizes is that we split the back-end revenue with creators who upload to the platform on a 50-50 basis. The publishing and the master rights are negotiated post-release, with the front-end royalties when the songs are downloaded being split 60-40. To project the potential, yes, I believe it could become a $100 million to $150 million business. This platform is altering how songs are created, allowing individuals to share sounds and construct songs innovatively. There’s a lot of potential here that we are just beginning to tap into.

Okay, thanks. Is that included in the Audio numbers for the company?

There's very little in those projections today, Sean. I can attest that Josh's partner, Aidan, who started this is a bright young man who is impressively changing the industry. When I remember my career and acquisitions like Digital Turbine, you see recurring revenue generated from these innovative platforms. The buzz is palpable as we launched 2.0, and we are garnering significant interest from creators wanting to join our network. With Josh's extensive experience at Roc Nation and performance in curating songs, we anticipate this division could grow exponentially. The industry landscape shows us that every day as we add new songs and subscribers, more dollars flow into publishing, driving growth.

Thank you. Question for Aaron. There have been some updates regarding debt repayment and relevant changes. Can you provide insight into the current balance sheet status and expectations for interest expenses across fiscal '24?

Sure, Sean. So regarding our changes on the balance sheet: we converted preferred convertible debt into preferred shares, so that interest rate remains consistent. Additionally, we paid back $3 million of the PodcastOne bridge notes, substantially over 50% of the balance. Therefore, we expect to see over a 50% reduction in that interest expense going forward. That's the most significant change to our interest line.

Indeed, and just to clarify, there’s only $2 million left in that debt. We're pleased with the buyback of $3 million of the $5 million total. We are nearly debt-free at this point. Our only remaining debt consists of the credit facility against receivables and inventory. We have roughly $29 million in short-term assets and over $8 million in cash, and our total line consists of a mere $7 million.

Alright. Thank you for that. Rob, can you update us on the timing for finalizing the podcast spin-off? Also, what about the timeline for the Slacker transaction?

Regarding PodcastOne, we’ve received SEC approval. We're currently awaiting Nasdaq’s requirement for the required audits, which we will deliver this week. Following that, a conference call with Nasdaq will take place, and we will push to finalize this as fast as possible. Ideally, I hope to complete this before the end of summer, possibly even by July. For Slacker, SPAC processes typically take three to four months minimum. We announced the deal around five weeks ago, and while this will take some time, we expect to share updates soon, and we are utilizing our currency effectively to pursue potential acquisitions during this period.

All right, thank you very much.

Thank you as always.

Our next question comes from Jon Hickman from Ladenburg. Please go ahead.

Hi, Rob. I guess this question is for Aaron. I just want to check my math. From your release today, it seems like Slacker is on track for approximately $90 million in annual revenues if you annualize the $22 million figure, while PodcastOne is potentially around $40 million based on the same metrics. Adding those amounts should yield $130 million, which aligns with your guidance of $120 million to $130 million. Is my calculation accurate?

You're a bit off on the Slacker side. The $22 million you're referring to comes from the Audio Division, which includes both Slacker and PodcastOne.

Okay, thank you for the clarification. I have no further questions. Thanks.

Thank you.

Thanks, Jon, as always.

Our next question comes from Kevin Dede from H.C. Wainwright. Your line is now open.

Hi, Rob.

Hey, Kevin. How are you doing, man?

Good. Thanks for taking my question. I'm curious about the international sphere; that question usually comes up. How is your progress going there?

Excellent. As we've articulated, we needed to clean up the payables from the initial Slacker acquisition, which has now been resolved. We're now in a position with record labels and publishers where previously we owed them money, and now, we have advances with many of them. This is a unique time for us to expand internationally through both acquisition and internal growth. Typically, subscription models generate roughly 50% of revenue from the U.S. and 50% from abroad. I believe this is the year for us to focus on global growth, and we see major expansion opportunities indeed.

You mentioned the live events opportunity earlier. Can you elaborate on what you're seeing and how this fits within your model? Will this fall under Audio, or tie more closely to the PodcastOne spin-off?

That's an excellent question. To clarify, we will not return to live events where we're producing our shows at our expense. We learned our lesson, especially after acquiring React in Chicago, even with substantial revenues. We experienced many challenges, including COVID-19 and being shut down for three years. We recognized that we couldn't compete in that space. However, on the digital side, consumer demand has surged, especially during COVID, similar to how the sports industry experienced growth 40 years ago. Consumers demand to see major events like Coachella and Rock in Rio, with numbers resembling Super Bowl viewership. Events like this are driving significant pay-per-view revenue, and our recent events are successfully funded upfront. So, you won't see us host live events; instead, we'll partner with companies like Live Nation and AEG, which we believe will yield massive opportunities. We anticipate seeing one of our first pay-per-view events this year and believe there is considerable potential for revenue.

How do you foster relationships with firms like Live Nation and AEG while establishing a pay-per-view audience to prevent them from seeking internal alternatives?

It's a great question. Brad and the tech team have strategically developed a robust pay-per-view platform, which has received numerous patents, establishing our reputation in this space. We are uniquely positioned in the market, which has value in delivering high-quality production and streaming experiences globally. The key is for us to build strategic relationships and assure the networks that we can deliver superior production and viewer experiences.

Lastly, Rob, just for clarity, you mentioned earlier that most valuations in podcasting are coming in close to 1 times revenue. I want to understand how you're assessing those valuations against your perception that LiveOne itself is overly discounted. How do you expect these acquisitions to be accretive based on your perspective?

Yes, Kevin, I think you've misunderstood. The valuations for podcasting companies have typically ranged from 5 times to 30 times revenues. Just recently, Sirius Radio purchased a podcast network generating $10 million for a whopping $150 million in cash. Overall, the industry has experienced rapid growth; revenue surged from $400 million pre-COVID to an estimated $1.6 billion this year, and that's projected to reach $7 to $10 billion over the next few years. We're currently in a unique position to roll up those smaller networks that lack a cohesive management strategy and creator relationship. We have over 100 potential acquisitions lined up consisting of podcast networks, successfully attracting creators who have become available.

Can you elaborate on how the integration between PodcastOne and Slacker has affected membership growth?

Certainly. We've seen outstanding collaboration between the two platforms. With the integration allowing over 100 podcasts to now be accessible through Tesla vehicles, we've opened up a significant revenue stream. Additionally, the combination of music and podcast content enhances our value offering, which in turn attracts and retains subscribers. We are still in the early stages of this integration but the groundwork is solid, and I couldn't be more thrilled with the synergy between Kit and Brad’s teams. I expect this year to be quite pivotal as we realize our growth objectives.

Do you foresee this trend of integrating podcast content into Slacker continuing?

Absolutely. We're focused on creator-first initiatives; by increasing the original program offerings, we enrich our spacing. This approach yields better margins and helps support the multiple revenue streams we've constructed based on the same content. We're expanding relationships with creators, whether they are musicians or podcasters, to build momentum and foster innovations across audio. We see additional revenue opportunities arising from artists with substantial social media followings. The merging of music and podcasting and creative aspects will catalyze engagement and potentially significant revenue growth. Thank you very much for your thoughtful questions, Kevin. We appreciate your continued support.

We have no further questions registered. I will now hand back to Rob Ellin for final remarks.

I just want to thank everyone again for being here with us today. As you can see, this is the most exciting time in the history of the company. We have assembled a giant community across audio, video, pay-per-view, and social media, which will only continue to expand. I am genuinely excited about this unique cluster of opportunities within LiveOne. For our past investors, I truly believe we are on the cusp of achieving unicorn-like status with multiple facets within this company. As we grow and excel, market evaluations are constantly shifting. The value of our divisions, particularly as articulated around PodcastOne and Slacker, have been estimated at substantial figures, indicating the essence of our audio division. The trajectory of our growth suggests the potential for substantial fortunes. I am eager to see PodcastOne launch independently, as well as the success of Slacker Radio. Thank you all for your time and commitment today, and we promise to work diligently for our shareholders.

This concludes today's call. Thank you for joining. You may now disconnect your lines.