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Subsequent Events
12 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

Note 21 — Subsequent Events


Subsequent to March 31, 2021, LiveXLive received notification from its lenders of the Small Business Administration’s Payroll Protection Program (“PPP”) that the balance of the approximately $2.5 million of PPP loans were forgiven. Refer to Note 8 – Notes Payable, for further details.


On April 27, 2021, LiveXLive, Corp., the Company’s wholly owned subsidiary, entered into a binding letter of intent with Modern Drummer Publications, Inc. (“Modern Drummer”) to acquire 100% of the equity interests of Modern Drummer in exchange for consideration comprising of cash and shares of the Company, the number of shares being dependent upon certain closing conditions. The proposed acquisition is subject to approval of the Company’s board of directors along with other customary closing conditions. The acquisition of Modern Drummer is expected to close in July 2021.


On May 26, 2021, the Company entered into a binding letter of intent with Gramophone Media Inc., (“Seller”) to acquire 100% of the equity interests in the Seller in exchange for consideration comprising of cash and shares of the Company, the number of shares being dependent upon certain closing conditions. The terms of the agreement, including the Purchase Price, are subject to approval of the Company’s Board of Directors along with other customary closing conditions. The acquisition of the Seller is expected to close in July 2021.


Effective as of June 7, 2021 (the “Closing Date”), LiveXLive Media, Inc. (the “Company”) entered into a Business Loan Agreement (the “Business Loan Agreement”), with East West Bank (the “Senior Lender”), for revolving credit facility collateralized by all of the assets of the Company and its subsidiaries. The Business Loan Agreement provides for up to $7.0 million in borrowing capacity in the form of a secured first lien revolving credit facility with a maturity date of June 2, 2023 (the “Revolving Credit Facility”). In connection with the Business Loan Agreement, the Company entered into a Promissory Note with the Senior Lender in the principal amount of $7,000,000 (the “Promissory Note”). The net proceeds of the borrowings under the Revolving Credit Facility will be used for the Company’s business operations and general working capital.


In connection with the execution of the Revolving Credit Facility, the holders of the Company’s 8.5% Senior Secured Convertible Notes (the “Subordinated Lenders”) in the aggregate principal amount of $15.0 million (the “Subordinated Notes”) agreed to (i) extend the maturity date of the Subordinated Notes to June 3, 2023 and (ii) subordinate their security interest in all of the Company’s assets to the Senior Lender. In consideration of such loan extension and subordination, the Company issued to the Subordinated Lenders an aggregate of 60,000 shares (the “Shares”) of the Company’s common stock, $0.001 par value per share (the “Common Stock”), with piggyback registration rights. The Shares were issued as restricted securities in a private placement transaction exempt from the registration requirements of the Securities Act of 1933, as amended. All other terms of the Subordinated Notes and related transaction documents will remain the same.


In connection with the extension of the Subordinated Notes, Robert S. Ellin, the Company’s CEO, Chairman, director and principal stockholder, agreed to extend the period during which he cannot dispose of any equity securities of the Company owned by him or any entity of which he is the beneficial owner and not to cease to be the beneficial owner of any other equity securities of the Company of which Mr. Ellin is the beneficial owner as of June 3, 2021 until the Subordinated Notes are paid in full (subject to certain exceptions), without the Subordinated Lenders’ prior written consent.