LiveOne, Inc. Goodwill & Intangibles Disclosure

Note 5 — Goodwill and Intangible Assets

 

Goodwill

 

The Company currently has three reporting units. The following table presents the changes in the carrying amount of goodwill for the years ended March 31, 2026 and 2025 (in thousands):

 

		Goodwill
Balance as of April 1, 2024		$	23,379
Impairment			(1,667	)
Balance as of March 31, 2025		$	21,712
Impairment			-
Balance as of March 31, 2026		$	21,712

 

The Company recorded an impairment on the goodwill balance of $1.7 million for the year ended March 31, 2025. During the year ended March 31, 2025 the Company performed an quantitative assessment of our Media Group reporting unit. The results of the Company's quantitative goodwill impairment analysis performed indicated an impairment of goodwill within our Media Group reporting unit, and the Company recorded a non-cash impairment charge of $1.7 million. The impairment was driven by the company's most recent cash flow projections as revised in the fourth quarter of Fiscal 2025 which reflected current market conditions and current trends in business performance, including slower than anticipated actualization of bookings. No impairment was recorded for the year ended March 31, 2026.

 

Indefinite-Lived Intangible Assets

 

The following table presents the changes in the carrying amount of indefinite-lived intangible assets in the Company’s reportable segment for the year ended March 31, 2026 (in thousands):

 

		Tradenames
Balance as of April 1, 2024		$	4,637
Acquisitions			-
Impairment losses			(3,863	)
Balance as of March 31, 2025		$	774
Acquisitions			-
Impairment losses			-
Balance as of March 31, 2026		$	774

 

As a result of the change in terms of the agreement with our largest OEM, the Company determined that an impairment of $3.9 million should be recorded as a result of the decrease in forecasted revenues. No impairment was recorded for the year ended March 31, 2026.

 

Finite-Lived Intangible Assets

 

The Company’s finite-lived intangible assets were as follows as of  March 31, 2026 (in thousands):

 

		Gross								Net
		Carrying				Accumulated				Carrying
		Value				Amortization				Value
Software		$	19,281			$	19,281			$	-
Intellectual property (patents)			3,146				2,665				481
Customer relationships			6,570				6,570				-
Content creator relationships			3,228				3,045				183
Domain names			123				75				48
Brand and trade names			1,071				641				430
Customer list			2,673				2,673				-
Total		$	36,092			$	34,950			$	1,142

 

The Company’s finite-lived intangible assets were as follows as of March 31, 2025 (in thousands):

 

		Gross								Net
		Carrying				Accumulated				Carrying
		Value				Amortization				Value
Software		$	19,281			$	19,281			$	-
Intellectual property (patents)			3,146				2,593				553
Customer relationships			6,570				6,570				-
Content creator relationships			3,228				2,574				654
Domain names			123				66				57
Brand and trade names			1,071				540				531
Customer list			2,673				2,673				-
Total		$	36,092			$	34,297			$	1,795

 

Intangible assets are amortized over their estimated useful lives based on the pattern in which the economic benefits associated with the asset are expected to be consumed, which to date has approximated the straight-line method of amortization. The estimated useful lives for patents, content creator relationships, domain names, tradename and customer list are generally three to 15 years, one to two years, two to five years, seven to ten years and three to four years, respectively.

 

The Company’s amortization expense on its finite-lived intangible assets was $0.7 million and $1.9 million for the years ended March 31, 2026 and 2025, respectively. The Company recorded an impairment charge of none and $3.3 million for the year ended March 31, 2026 and 2025, respectively.

 

The $2.2 million impairment recorded within our intellectual property (patents) for the year ended March 31, 2025 was the result of the impairment of certain assets within the Company's Slacker reporting unit as a result of the change in terms with our largest OEM. In addition, the Company recorded an impairment of $0.9 million within our customer relationships intangibles within our Media reporting unit attributed to the decrease in expected future revenues.

 

The Company recorded an impairment charge of none and $0.2 million and none within content creator relationships for the year ended  March 31, 2026 and 2025, respectively. The impairment for the year ended  March 31, 2025 was the result of the winding down of a podcast show acquired by PodcastOne.

 

Finder's Agreement

 

In September 2023, PodcastOne entered into a finder's fee arrangement pursuant to which it agreed to issue shares of PodcastOne common stock at a price of $8.00 per share (subject to adjustment in certain limited circumstances) as a finder’s fee to a certain third party podcast platform in the event certain former and/or current podcasts creators of such platform entered into new podcasting agreements with PodcastOne, with the amount of the fee to be based on the amount of revenues actually derived by PodcastOne from such podcasts during a predetermined period. Payments made to such third party attributed to PodcastOne entering into new podcast contracts were capitalized to content creator relationship intangibles. As of March 31, 2026 and 2025 the Company has capitalized none and $3.1 million, respectively, of payments made to such third party. $2.6 million of the $3.1 million capitalized of payments made to such third party was paid with PodcastOne common stock at an agreed upon price of $8.00 per share. During the year ended March 31, 2025, the Company made an adjustment of $0.5 million to accrued common stock and content creator relationships to account for the settlement of the finder's fee agreement attributed to multiple third party platforms.

 

The Company estimated future amortization expense on its finite-lived intangible assets as of March 31, 2026 to be as follows (in thousands): 

 

For Years Ended March 31,
2027		$	366
2028			182
2029			182
2030			182
2031			182
Thereafter			48
		$	1,142