Investment Thesis
LiveOne is in severe financial distress with negative stockholders' equity of -$19.0M, indicating liabilities exceed assets. The company is unprofitable with a -22.7% net margin, negative free cash flow of -$11.0M, and deteriorating liquidity (0.54x current ratio) that threatens operational viability. With only $8.6M in cash against $28.1M in long-term debt and an inability to cover interest expenses (-52.8x coverage ratio), the company faces critical solvency challenges.
Strengths
- Revenue base of $58.2M provides some operational foundation
- 7 Form 4 insider filings in last 90 days may indicate management engagement
- Cash position of $8.6M provides minimal near-term runway
Risks
- Negative stockholders' equity of -$19.0M indicates balance sheet insolvency
- Negative free cash flow of -$11.0M with only $8.6M cash means runway is limited to months
- Unable to cover interest expenses with operating income (negative coverage ratio)
- Current ratio of 0.54x indicates acute liquidity crisis and inability to meet short-term obligations
- Net margin of -22.7% demonstrates fundamental unprofitability despite revenue
- Operating cash flow of -$8.5M indicates core business cannot generate cash
Key Metrics to Watch
- Stockholders' equity trend (currently negative $19.0M)
- Operating cash flow and cash burn rate (currently -$8.5M)
- Current ratio and cash position sustainability (0.54x, $8.6M remaining)
- Debt refinancing or restructuring announcements
- Revenue trend stability and gross margin improvement potential
Financial Metrics
Revenue
58.2M
Net Income
-13.2M
EPS (Diluted)
$-0.01
Free Cash Flow
-11.0M
Total Assets
52.3M
Cash
8.6M
Profitability Ratios
Gross Margin
0.9%
Operating Margin
-18.1%
Net Margin
-22.7%
ROE
N/A
ROA
-25.3%
FCF Margin
-18.9%
Balance Sheet & Liquidity
Current Ratio
0.54x
Quick Ratio
0.50x
Debt/Equity
N/A
Debt/Assets
120.2%
Interest Coverage
-52.77x
Long-term Debt
28.1M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-01T10:42:11.029528 |
Data as of: 2025-12-31 |
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