Live Ventures (LIVE) Posts Strong Q1 Results, Says Past Results Can No Longer Be Relied Upon

Live Ventures (NASDAQ: LIVE) reports Q1 revenue up 25.4% to $40.3 million. Basic earnings per share of $0.95, up 33.8 percent.

Separately, the company disclosed that on January 18, 2018, the Audit Committee of the Board of Directors, in consultation with management, concluded that the Company’s previously issued financial statements for the quarterly periods ended December 31, 2016, March 31, 2017 and June 30, 2017 (collectively, the “Restated Periods”) should no longer be relied upon because of errors related to the (i) classification of certain debt of our subsidiaries Marquis Industries, Inc. (“Marquis”) and Vintage Stock, Inc. (“Vintage Stock”) as long-term debt when it should have been classified as short-term debt, (ii) characterization of deposits (advance payments) on the purchase of Marquis carpet manufacturing equipment and the related cash flow presentation (operating versus investing), (iii) accounting for the down round provisions contained in certain convertible notes and related warrants we issued in 2012, 2013 and 2014, which warrants were subsequently amended to remove such provisions in December 2014, (iv) classification of certain amounts relating to shares of our Series E Preferred Stock, (v) classification of certain prepaid expenses and other current assets as receivables, and (vi) classification of the seller financing provided by the sellers of Vintage Stock. The errors described above will result in the restatement of our financial statements for the Restated Periods.

The Committee has discussed the matters disclosed herein with Anton & Chia LLP, the Company’s independent registered public accounting firm for quarterly period ended December 31, 2016, and BDO USA, LLP, the Company’s independent registered public accounting firm for the quarterly periods ended March 31, 2017 and June 30, 2017.

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