Investment Thesis
LiveOne faces critical financial distress with negative stockholders' equity of -$20.5M, indicating technical insolvency. The company is burning cash at -$10.5M operating cash flow annually while generating massive losses (-27.2% net margin) on stagnant revenue, with severe liquidity constraints (current ratio 0.47x) making debt service unsustainable.
Strengths
- Cash position of $5.4M provides minimal runway for operational restructuring
- Revenue base of $77.1M demonstrates existing business operations and potential customer base
- Insider activity (2 Form 4 filings) suggests management engagement, though context unclear
Risks
- Negative stockholders' equity of -$20.5M indicates technical insolvency with liabilities exceeding assets by $12.4M
- Severe liquidity crisis with current ratio of 0.47x and quick ratio of 0.45x; insufficient cash to meet short-term obligations
- Massive cash burn of -$10.5M operating cash flow combined with -$13.7M free cash flow and -$28.1M long-term debt obligations
- Operating losses of -$15.5M on stagnant revenue (+0.0% YoY) with razor-thin 0.6% gross margin indicating structural unprofitability
- Interest coverage ratio of -51.6x demonstrates inability to service debt from operations; imminent refinancing or bankruptcy risk
Key Metrics to Watch
- Operating cash flow trend and path to cash flow positivity
- Cash burn rate and months of liquidity remaining
- Gross margin expansion and revenue growth acceleration
- Debt restructuring announcements or covenant violations
- Stockholders' equity recovery and path to positive book value
Financial Metrics
Revenue
77.1M
Net Income
-21.0M
EPS (Diluted)
$-0.01
Free Cash Flow
-13.7M
Total Assets
46.9M
Cash
5.4M
Profitability Ratios
Gross Margin
0.6%
Operating Margin
-20.1%
Net Margin
-27.2%
ROE
N/A
ROA
-44.7%
FCF Margin
-17.8%
Balance Sheet & Liquidity
Current Ratio
0.47x
Quick Ratio
0.45x
Debt/Equity
N/A
Debt/Assets
126.4%
Interest Coverage
-51.60x
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: 2026-07-28T06:04:54.599182 |
Data as of: 2026-03-31 |
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