US live-music and streaming firm LiveXLive has published its latest financial results, including a warning about the company’s financial viability over the next 12 months.

LiveXLive generated $9.7m of revenues in the final quarter of 2019, up by 8.2% year-on-year. However, operating expenses of $17.6m nudged the company into its latest quarterly net loss – $8.8m – while the financials note its history of losses, and a ‘working capital deficiency’ of $21.9m at the end of 2019.

“While management believes it has sufficient sources of liquidity to fund its operations over the next twelve months, these factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date that these financial statements are filed,” noted the financial filing, later adding: “Management is currently seeking additional funds, primarily through the issuance of equity and/or debt securities for cash to operate the Company’s business.”

The financials came as LiveXLive announced the acquisition of music promoter React Presents, which promotes more than 250 shows a year, paying ‘a purchase price of $2m in debt’. The investor presentation accompanying the financials also revealed that LiveXLive ended 2019 with 820,000 paying subscribers for its streaming services.

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Stuart Dredge

Music Ally's Head of Insight

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