LiveOne, Inc. Q2 FY2025 Earnings Call

Good morning. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to LiveOne's earnings call. Please be advised that this call is being recorded. I will now turn the conference over to Aaron Sullivan, you may begin.

Thank you. Good morning, and welcome to LiveOne's financial results conference call for the company's second quarter ended September 30, 2024. Presenting on today's call with me is Rob 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 10-K for the year ended March 31, 2024, and subsequent SEC filings. To 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. And we encourage you to periodically visit the Investor Relations website for important content. Following discussion, including response to your questions, contains time-sensitive information and reflects management's view as of the date of this call, November 7, 2024. 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 the call is being recorded. The company is making it available to investors and the media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the completion of the call. Additionally, it is the property of the company and any redistribution, transmission, or rebroadcast of this call or webcast in any form without the company's expressed written consent is strictly prohibited. Now I'd like to turn the call over to LiveOne's CEO, Rob Ellin.

Thank you, Aaron. Good morning, everyone, and thank you for joining us today. We appreciate your continued support. I'll begin with a brief overview of our record-breaking financial results, followed by updates on recent developments and our vision for the future. Q2 financial overview. We achieved record revenues in the history of the company for the first 6 months. Consolidated revenues of $65.7 million, with adjusted EBITDA of $6.6 million. Q2 consolidated revenues of the quarter was $32.6 million, a 14% increase. Our Audio revenues delivered $31.7 million, an 18.18% growth. Our adjusted EBITDA, just on the Audio division, was $5.6 million. We closed the quarter with $11 million in cash, up over $4 million from the previous quarter. And again, earlier in the year, we converted all of our debt at $2.10. Now to our opportunity with Tesla. Tesla has been a little misconstrued in that we extended our contract through May of 2026 under new terms. These new terms are now the seventh different iteration of a 12-year partnership with Tesla. The exciting part is this is everything that our management team has asked for Tesla, which is to give us the opportunity, like to market to our customers to expand to all devices. With that, Tesla will be helping us and has started to already to market our offering to the millions of cars existing out there in North America. We got prominent space on the home screen of Tesla in perpetuity, that beachfront property, when you think back to Sirius or XM Radio, they spend billions of dollars getting to this point to have that ability to convert these customers. We now have direct access to Tesla customers for cross-selling and to upsell them from a $3 subscriber who can only use it in the car to our larger opportunities of podcasting, e-books, live streaming, pay-per-view. Tesla will continue paying monthly fees on existing grandfathered cars. What's exciting about this opportunity is we've never been able to be valued based per subscriber. Subscribers in the space get valued between $200 and $1,000 a subscriber. This has also opened the floodgates to major opportunities with other automakers. We publicly said we are in deep discussions with eight of the major auto companies around the world. I humbly believe it feels like since the announcement that people believe that we were under exclusivity with Tesla; we have an opportunity now to really expand those partnerships with other auto companies. That'll lead into the diversification of our business that we've been talking about for the last 12 months. We hired Bill Wittress as our Head of B2B. We've now expanded that B2B team from one person hired a year ago to now 11 people. We see eight verticals with huge opportunities to diversify and expand the business across automotive, carriers, hardware, retail, hospitality, airlines and travel, loyalty programs, and credit card companies. We announced one of those first major deals was a $24 million, $2 million a month major streaming partnership. Then we announced TextNow with over 100 million users. We've partnered with eBay, Facebook, TikTok. We are actively negotiating with dozens of Fortune 500 and Fortune 250 companies, including those eight auto companies. We fully expect to announce at least two before year-end and two before March 31, our fiscal year-end. Now as we go into our podcast business, we had a really exciting quarter as well. PodcastOne's success continues. We've grown from $20 million to a run rate of $50 million over the past four years. We have 100 podcasts in our pipeline, ten times our normal amount in history. We had eight podcast networks in our M&A pipeline with 185 podcasts, now adding 50 more in the next 24 months. We are adding almost a new podcast every two weeks. LiveOne has also acquired 224,000 additional podcast shares this quarter and over 550,000 shares this year. We will continue to buy back additional stock in PodcastOne, and we now own over 73% of the company. We are on our way to over $100 million over the next 24 months. Podcast to TV and film adaptations. I've talked about this a little bit on our conference calls before. This is just starting to really take off. We now have a slate of over ten podcasts that have the potential to be TV and film adaptations. We have signed two of them to streaming partners, including Varnamtown and Vigilante, and a third opportunity to a documentary, and we see material opportunities to turn these without any additional cost to the company and massive upside for the company. Next our celebrity brands. We've just announced with SuperDuperKyle, our second celebrity brand called Smile. We expect, again, seven to ten celebrity brands a year for the next five years, with unit potential of $10 million to $1 billion of upside and very little cost to the company as we utilize our partners in social media, artists, actors, producers, podcasters, and social media stores to drive these brands across their social media. Our publishing business grew over 300%. Tonight we are launching our live streaming pay-per-view event for SuperDuperKyle's album, of which we own 50% of the publishing. Our live stream and pay-per-view have had over 5 billion engagements in the last four years. With that, we continue to buy back stock. We have now bought back almost 4.5 million shares of stock. We have increased the buyback to $12 million, and we'll continue to buy back at these levels. I am proud of my team. I'm proud of what they've been able to accomplish. We've gone through tougher times than this, including during COVID. We lost all live streaming business and came out of it stronger than ever. When you think back, when COVID hit, we were at $38 million in revenues, lost one-third of our revenues, all of our live business, all of our live streaming. We came out of it, and now we did $65 million for the six months. So we're looking forward to any questions from everyone. I'm going to hand it off to my CFO, Aaron Sullivan. Thank you very much.

Thanks, Rob. I'll spend just a few minutes providing a very brief overview of results for the second quarter of fiscal 2025 ended September 30. Consolidated revenue for the three-month period ended September 30, '24, was $32.6 million, an increase of 14% over the prior year period. Slacker posted record revenue for Q2 of $19.5 million, and PodcastOne posted revenue of $12.2 million. Consolidated revenue for the six-month period ended September 30, '24, was a record $65.7 million, an increase of 17% over the prior year period. The second quarter of fiscal '25, revenue consists of 60% membership and 40% advertising, sponsorship, merchandising, and others compared to 58% membership and 42% advertising, sponsorship, and merchandising and other in the prior year period. Consolidated adjusted EBITDA for the three and six months ended September 30, 2024, was $2.9 million and $5.8 million, respectively. On a U.S. GAAP basis, LiveOne posted a consolidated net loss of $2.7 million, or $0.02 per diluted share in Q2 of fiscal '25. As of September 30, 2024, total members, which include members who are currently subject to a contractual dispute, were approximately 4 million. Note that included in the total members are certain members who we are not currently recognizing revenue for. Rob, I'll turn it back to you.

Yes. So I'm going to open up to questions. I look forward to any questions, and then I'll close it out at the end. So thank you very much.

Great results in the quarter. A laundry of questions as some investors have asked me. First question I have is, how many paid subscribers do you have that are either going to be grandfathered in or that are not related to Tesla?

Yes. We can't give that number, Brian, as I've told you before, but, yes, it's a percentage of the total number of subscribers out there. But it's not a number that either Tesla or us are able to provide publicly.

Okay. And then what percentage of your Tesla users listen to your digital radio for more than 10 minutes a day or whatever timeframe you think is statistically significant?

Yes. I think it's really exciting to highlight that even with the recent changes made by Tesla, 285,000 people used our service this week, and for this month, over 1 million people have used it. It's thrilling to see any usage. The average consumer is using it for about 20 minutes, which is extremely high for the industry.

Okay. I know the plan doesn't change until December 1, but have you seen any conversions yet? You said Tesla is already reaching out? Or is it too early, and no one will really sign up until after December 1?

No. We're already seeing some nice sign-ups. We're really excited about it, and we're going to be talking about that, I would say somewhere in the middle of December to the end of December, we'll probably hold a conference call on it. But really exciting, even though they're still giving it away for free, we're signing a lot of subscribers right now. And in signing them, here's what Tesla has done. They have sent out a message which shows the orange button that was previously there to finally giving us that LiveOne branding in the car. When you think about what Sirius and XM paid to get that prime real estate. So in almost every car I've seen, I've been in a lot of Ubers. I was in New York all last week. Every Tesla car you see, I personally own five Tesla cars, have now changed that orange button to the bottom #1 spot in real estate on Tesla, you're going to see that LiveOne button. Now, it takes a little education; people have to figure out what it is, and they click on it, they immediately can hit that bar code and choose to convert, but it's a little tricky because you could also listen for free, so you still have another month for that. But we're really excited about the number of conversions. It's exciting. It's energized. I think we expect almost none, and we're signing a lot every day.

Last question related to Tesla, and I have a few others. When someone buys a new car in North America post December 1, will they get a month or two free like you do with other cars with Sirius? Or will there not be a free subscription?

I can't answer that yet. This is the first time that the company has had the opportunity to talk to those consumers. You're going to see a lot of different things that we never could do before, including advertising. These are things that we didn't have the capability of doing before. We were strictly paid for by Tesla. It was an amazing partnership, and that was the terms of it, no advertising, and so on. Now we'll have the ability to be able to really stretch our arms and really go out there and be able to do the different marketing and different price ranges. As you can already see, if you've hit that code, Brian, we already offer a $3.99, $34.99 for a year, and then $99.99 for a year. So huge discounts to everybody else can jump with Tesla. So it's really exciting to see us have that ability and showcase that and be able to start to sign these subscribers and have the individual as a customer of the company and be able to upsell to podcasting, pay-per-view, live streaming, and all the different verticals and e-books that we have. This is the first time we've had that opportunity to do it.

Great. Switching gears. Are you already integrated into TextNow? And if you are, has there been a meaningful impact yet on the subscriber base in the first four months?

Yes, it's really just beginning. It's an exciting partnership, but we've just started to start the trials. They have over 100 million users. This is like a Boost Mobile for anyone that doesn't know. It's a low-end provider of phone service, so they're a perfect fit for us. We're going to see how well that turns out. And I think both parties are really excited and energized by the partnership, but we're in the very beginning phases of it.

Great. Regarding the Podcast, could you share how many titles were added in the second quarter? How many did you onboard? Also, what are the expectations for the second half of the fiscal year?

That's a great question. I don't think we put the number. Aaron, if you have that, we should have, but we put the total for the year. It's really a staggering number. I think we've added now, for the 12 months, I think we just announced our 49th new podcast. We're adding almost one every two weeks right now. And Brian, these are podcasts with real traffic and real revenues. So the podcast industry is heating up as you can see. The elections, like there's an argument that Elon Musk just came out today and said Trump won the election off the podcast. If anyone that follows this, podcasting is just exploding. You start to see that second wave. You saw $28 billion acquisitions. You're starting to see that second wave kicking in right now. The Kelsey's just signed for $120 million with Amazon. SmartList just moved over to Sirius for $150 million. Joe Rogan just signed for $250 million. It's kind of the haves and have nots right now in podcasting. The smaller podcasts are all coming available. This is our sweet spot, those 50,000 to 250,000, maybe even 500,000 downloads of true podcasters really need a home, and we're really the best place you can come; the only place you can come for a full 360 experience. And as I said, we have over 100 podcasts in our pipeline, the largest by ten times in history. We have eight podcast acquisition mergers in discussions right now. And we've just added Steve Lehman to our team. He's just a great addition to the team. Steve built Premiere Radio from a $30 million public company to a $1 billion public company and is really one of the experts in radio. With the loss of norm, it is a great addition to the team, and I think it's going to be hugely helpful. I fully see us now growing from $50 million to $100 million over the next 24 months.

I have one last question. Rob, I know your team is highly motivated, and there are few people as driven as you. However, your guidance indicates that you will contract before you expand, particularly concerning the execution and conversion of Tesla subscribers. I would like to understand how management is viewing overhead in the short term and whether you anticipate any changes until you see how things develop.

Well, we're not going to make any changes yet because we're so excited about the opportunity. When you get that beachfront property, we're going to give up some revenues in the beginning to now convert these subscribers, which we have the opportunity of perpetuity, but it's really going to showcase that first 90 to 180 days. As we get into the middle of the fourth quarter, we'll have some real decisions to make on that. Remember, you got to remember in this business, almost 70% of those revenues go to the music industry. The good news and bad news is you automatically cut 70% of your cost if you don't sign those subscribers. So now you're just looking at 30% of that. It's an easy fix. As you know, we cut from 350 people when COVID hit, we were at 100, I don't know, 120 at some point. We're probably at 130 right now. We'll do what's needed to be done, and we'll do it. We've proven over and over again that this team is resilient, and then add a maneuver in tough times, and we'll come out even stronger than ever. But we're not going to make any moves on it right now, especially with us seeing subscribers signing up every day right now, and the usage not going down. It's kind of amazing that our usage is not going down when the conversion is tricky right now.

Your next question comes from the line of Barry Sine with Litchfield.

Just a follow-up question on Tesla. Do you have access to their subscriber base? Is it only through the car? Or do you separately have access that you can market to them?

Yes, we've got to be careful, again, we're under strict NDAs with Tesla. What I could tell you is that they have been extraordinarily cooperative. We've worked in collaboration to put the marketing package together as best as we can. As you know, when you're reaching out to millions of people, you have to be careful with the marketing you do and don't. But for anybody that's seen it, you see this beautiful picture that Tesla has sent out across the car as well as in emails to and it goes out multiple times. Every time there's an upgrade, you'll continue to see that. You're going to see that live streaming music has now moved from this orange button with an arrow going to a LiveOne logo. Number 2 is, I should have shared this on this, but yes, next time we will do that is when you look in the car, it is so exciting to see this. You own that beachfront property. We lost some of our tenants for a minute. Now the question is, can you fill that beachfront property? If we could fill that beachfront property, this is going to be a moonshot. And as you know, whether it's yourself or is Brian, nobody has really been able to give us a per-subscriber number here. You look at Spotify, it is trading at $400, right? It's trading at these crazy subscriber numbers. We have such an opportunity right now that if we can convert 25% of our subscribers, and that doesn't count new cars coming, we're going to be in the car in perpetuity. If we can convert those, you're going to start talking about $200 to $1,000 a subscriber in the space. And you're going to give us the ability to upsell those and grow from $3 to a much higher number. I fully expect that number is going to grow from $3 to at least $5. I mean, it could be as high as $7 or $10.

To better understand the subscriber numbers, I recall that in the past, you've shared details about Tesla subscribers within your base. I'm not sure if you've done that recently. Additionally, before 2018, you were providing subscriber counts, which I assume were primarily Tesla. Those subscribers would likely remain with us if I'm correct. The difference between the customer numbers announced for 2018 and what we have now would be the target you’re aiming for with marketing. We're looking at a potential penetration of 25% at a rate of $5 per month. Is this an appropriate way to consider the situation?

I think it's a good thought, right? I mean that's a good thought. Again, we can't give the exact numbers that it grandfathered, but we fully expect a lot of them, and we fully expect to convert a lot. And again, we're cautious in this. This has some risk in it. I definitely have some risk in losing some revenues and EBITDA in the beginning, but you have an opportunity to grow massively and be valued properly and valued against your peers afterwards in a much more unique way.

Rob, you provided an update on the broader pipeline over the summer, and if I remember correctly, there were around 60 significant customers in that pipeline. Could you provide us with an update? You've announced winning two major customers, and you mentioned expecting to win two more by the end of the year and two additional ones by the first quarter, which is in March. Do we still have 60 total opportunities? Has that number increased? You've certainly expanded the team targeting that base. How does the current pipeline look in your ERP system?

Yes. So we didn't increase that number yet, but I fully expect that as we do an update call, in the middle of December to the middle of January, we're going to be talking about that number growing. I wouldn't be hiring. As you know, Barry, I was cutting substantially, and some of that was going to happen anyway because it was consolidation. And some of it was because of COVID, and some of it because we closed our live business and the merch business. The reality is, I wouldn't be growing it to 11 people if those deals aren't moving fast and we don't feel that confident we're going to be announcing sizable deals. And I don't know why people discount it, but the first deal we announced not only did it happen, but it actually worked. That deal may get bigger, and we could be more excited about this. You don't need to land too many $24 million deals to change the history of this company, and as you know, Barry, you know me a long time, and you have people that know me, whether it was iWon, Digital Turbine, it was Majesco. I built so many of these companies off the backs of B2B deals. We never really had the opportunity to do it because we had a messy balance sheet. We had COVID, we lost our live business. Some of the acquisitions we did, which unfortunately, on the merch side of it, never really panned out because of COVID. We had to pivot. We've had to pivot over and over again. Now we don't have to pivot. Right now, we've got to focus our energy on those B2B deals and landing those B2B deals. I would say it's way higher than 65. I can't give you an exact number yet, but I think we'll be talking about it a lot. And I think you're going to see more streaming partners. You are going to see more auto partners. You're going to see a retail partner. I stated in the last call that I expect a higher B2B for retail. I see a massive opportunity there. Everybody in that space has to compete with Amazon. You see Walmart just did a massive deal. They bought Vizio for $2.3 billion. I see telltale signs, there are going to be that music subscription could be synonymous with every one of those retailers. If you want to keep your customers in the funnel and get them to buy more things, it's certainly working amazingly well for Amazon. If they're going to compete with Amazon, they're going to have to do more of it, and they're going to have to do it fast. So we see that as the next big vertical for us. But again, just going back on the auto side of it, it's kind of amazing what's happened.

And one thing you haven't talked about on this call that I believe you've said in the past is an opportunity is the upsell/cross-sell opportunity, whether it's with the Tesla customers or others where you may have the customer relationship and information. You've talked about the celebrity brands line. Will you have an opportunity to cross-sell let's say, somebody from Tesla signs up for a subscription. Can you then cross-sell them some of the celebrity brands products or other live products?

Absolutely. And I mean all this opportunity to open up advertising is game changing for us. We've never been able to talk to our customers before. It was a beautiful deal. They were a great partner. They were paying us $3 a month, but we couldn't talk to those customers. We just had a customer, we got paid and we were able to deliver the music to them. Now we can start to do a lot of that, and you see a lot of telltale signs. Tonight, we're doing this amazing event tonight. We are launching SuperDuperKyle's new albums. He has had over 1 billion streams. We're launching it literally at a place called Harry's, which is around the corner from my house next to the Troubadour. They gave us the entire place tonight to do it. We are live-streaming it. We're launching this Coffee Tonight, this product that we own, as well as we own 50% of that song. So you're seeing that pollination that we've talked about, Barry, where from the same celebrity, same piece of content, we get multiple revenue streams with no additional cost to us.

Do you have the first half of the song or the second half? Never mind. Regarding the eight companies or verticals you mentioned, can you discuss which one or two are the most promising and where you're seeing the most traction? What feedback are you receiving from customers as you make further progress?

Yes. I think you're going to hear a lot of this. Obviously, the live streaming partner, they do $2 million a month, placing our content inside of other streaming partners. It's a telltale sign. You're watching all these streaming partners struggled tremendously. The cost of content has skyrocketed. Minimum wage has gone up tremendously. The cost of production has gone up tremendously. Competition is fierce. Netflix is eating everybody's lunch, and it's costing $1.6 million an hour for content, right? Well, we've got this great luxury that audio content, podcasting content, pay-per-view content, music content is way cheaper. We have 3,000 hours of programming, 3,000 artists who performed on our platform; everyone from Justin Bieber to Bruce Springsteen, The Rolling Stones. We own that video. We own the interviews in the backstage in the green rooms with some of the biggest stars in the world. All that MTV-like content has unique value. Our podcasting, you're just watching it. Again, just to highlight the president's election. You just watch the numbers that Trump delivered on Joe Rogan and Tucker Carlson, and of course, the Board, every politician in there. It's magical what's happening in the podcasting. I'd be calling for this; during COVID podcasting grew from $400 million to $2 billion. It's on its way to $25 billion. And it's not just because of podcasting, now every television host, every radio host is becoming a podcaster. It's a better medium and it's starting to reach globally as well. We see big opportunities there. And you're going to start to see those celebrity brands from our podcasters. Our podcasters, just think about this; 50% of the revenues come from direct response. They're selling everything from insurance to better health to Viagra. This is superstars talking to their super fans. They've got massive influence over it. I fully expect to see multiple podcasters of ours launching their own products over the next 24 months.

I have a question for Aaron. Can you hear me okay?

Hey, Jon.

Hello?

Okay. So the G&A expense, it was up quite a bit this quarter. Is there something in there that is different?

There's a little bit more stock-based compensation running through. Are you comparing it sequentially or year-over-year?

Sequentially.

Yes. There's a bit more stock-based compensation included, and we also incurred higher audit fees. This is mainly due to the timing of our reviews and audits from the previous period, but it should balance out over the year.

Okay. And then my other questions have been answered. I just wanted to maybe ask a little bit about the other B2B opportunities. I mean, it seems to me like if you could sign one or two more like the first streaming one you have, your issues with Tesla would kind of disappear. Is that not the case?

Yes, we are excited about the Tesla opportunity. This presents a significant potential for us. Regarding the B2B deals, we have signed some and plan to expand those, with more similar deals coming soon. I view these as enhancements rather than replacements.

I want to return for a moment to what you mentioned earlier about the podcast industry. There seemed to be a time when it was extremely popular, but then some major players started to step back, which gave you the chance to acquire some shows. Are you noticing that the market is picking up again? Is this influencing the nature of the negotiations you’re having regarding these shows? Are attractive deals making a comeback and are the costs for acquiring shows increasing?

It's an interesting thing. It's kind of the haves and have-nots. Like the big shows you can't compete on even if you had a pool of money, right? These deals, the Kelseys and the Smart List, I mean, they're really just multiple multiples, 5, 10 times revenues. You're not going to compete in those. But the smaller deals, there's very few of us left. There's very few competitors who can really compete in it. There's a little bit of VC money that came in, so there's a couple of deals done. But I could tell you today, we just signed another $1 million podcast; just got signed and will be announced next week. We're signing pretty fast, and we're in the trenches right now. We just bid on $12 million of podcast deals in the last 10 days. There are a lot of opportunities for the small to midsized podcasts. There are not opportunities for the big ones. The big ones, you're not getting close to.

Okay. And the heat on the big ones is not indicative of the cost of getting the small ones going up?

There's some competition, but it's interesting. I've mentioned this before, Sean. We're actively negotiating and have just announced extensions with Adam Corolla and LadyGang. We consistently retain our biggest podcasts in that space. We're starting to see many smaller podcasts from Spotify, Apple, and Amazon that are too small for them to manage, and they're actually falling into our hands. Additionally, we now have opportunities with some midsize podcasts that we weren't able to pursue before. While there are other bidders, we see a significant chance to acquire some of these. If we could secure half of the $12 million we've recently bid on, and given that we already acquired $1 million worth, I believe we will, it would represent a substantial increase for us in the upcoming quarters.

Okay. And turning for a minute to the celebrity brands. Some of these categories you've been talking about for a while, and you've got a lot more that you've announced and the new ones that you're talking about, when do we really start to see some kind of needle-moving revenue from these lines? Are we on the threshold of that?

We're optimistic about our Wine With Jeremih as we just secured distribution in California and Georgia, with Pennsylvania coming soon. We received 600 cases in our first week, which may not seem large initially, but this could lead to orders in the thousands if they sell well. There's a significant opportunity in this market. As we've seen with Avion and Entourage, even reaching $20 million in revenue can result in a sale for $250 million if the growth trajectory is strong. There are minimal costs on our end, and we're set to launch our second line, Purple Rose, with a major celebrity talent we have yet to reveal. Additionally, SuperDuperKyle will be collaborating with us on various projects, including a podcast and a live stream tonight. He has over a billion streams and is releasing an album we produced, giving us ownership of half the music. We expect to achieve a lot through this partnership, including working with renowned talent like Anderson Paak for an event tonight at his venue. We're excited about our plans to potentially launch eight to ten celebrity brands and possibly integrate existing brands looking for our expertise. We have a strong team, including Sarah DeBolt, who's consulting for us and has a successful track record, such as increasing White Wash's revenue and launching Kevin Hart's tequila. Our team has a wealth of experience in marketing celebrity brands, and we believe there's great potential for various products beyond coffee and alcohol. We've also expanded our lineup to include Vanderpump and other housewives, opening more opportunities in diverse categories.

Great. And with the economics on the music business, which can be pretty opaque sometimes. When you say you own half the song, do you mean you get half the economics up and down the stream on that song?

We own half the publishing. If it did like iSpy did, which was Kyle's song, last time, we make tens of millions off of it. I can't tell you it's going to do that. But even if it made us hundreds of thousands, this is all brand new money, brand-new revenue streams coming in. Our publishing business was up 300%. It's just starting to really grow. We've just announced a partnership that I'm surprised the street didn't read into. I announced an AI partnership that Seekr and Intel. Intel is obviously competing with NVIDIA. It was the biggest chip maker in the world. They got to come back somehow, and they're entering the AI world in a positive way. They are building and spending all the money on it to build out the entire platform for us for beats and sounds across Drumify. Between Drumify and Splitmind in publishing, as you know, because you know it all too well from Renaissance, these publishing sells for 16 to 25 times EBITDA. We have an opportunity here. We don't have to get that big to have a division that's worth a lot of money. So you've got massive optionality in our publishing. And Josh Hallbauer, who ran the Vision Roc Nations and had multiple #1 songs. We got another #1 song. We just hit it with Brent Faiyaz and Wizkid, the #1 African song ever to come to the markets, and it's already done, I think, 13 million streams, about to hit radio. One of those songs could be millions to tens of millions of dollars of cash flow to the company. So keep your fingers crossed. Again, these aren't guaranteed, but there's a lot of optionality. When you start to see those kinds of numbers and the amount we have, we own a piece of 1,000 songs right now and growing.

Okay. A couple of questions for Aaron. Aaron, slipping back to a question on G&A. Are you suggesting that the G&A level that we see in the September quarter is, there are reasons for that to be higher than what we should expect in December and subsequent quarters because of the timing of some of those costs?

Yes, exactly. So I would expect G&A to drop down back to kind of historical levels.

And Aaron, when will the 10-Q be filed?

10-Q will be filed, I'll say, early next week. So maybe one or two days before the deadline.

And I'll just close my questions with a comment. Rob, I echo what you said about The Opportunist podcast by Tim Ballard is really excellent. Some of the more recent podcasts, I thought were a little weak, frankly, in that series, but this was outstanding. A good job to the team.

That concludes today's conference call. Thank you all for joining. You may now disconnect.