LiveXLive Media Expresses "Substantial Doubt" About Its Prospects

LiveXLive Media Expresses “Substantial Doubt” About Its Prospects

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(Hypebot) — LiveXLive Media, best known for live streaming concerts, has acquired EDM concert and festival promoter React Presents for a reported $2 million in debt.

But the purchase comes at a time when the future of LiveXLive is seriously in question.

The company generated $9.7 million in revenue in Q4 2019 up by 8.2% year-on-year. But a quarterly net loss of $8.8 million and a ‘working capital deficiency’ of $21.9m at the end of 2019. In other words, unless LiveXLive can get new investments of more than $22 million, it will run out of money before the end of the year.

In the filing, the company highlighted issue:

“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”

“Management is currently seeking additional funds, primarily through the issuance of equity and/or debt securities for cash to operate the Company’s business.”

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