EQUITY RESEARCH Telecom, Media, Tech COMPANY UPDATE

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1 A S D S N D F LIVEXLIVE ED IA O RD ( , 5.974, , , ) Relative Strength Index ( ) A x ember FINRA/SIPC Toll Free: EQUITY RESEARCH Telecom, edia, Tech COPANY UPDATE LiveXLive edia, Inc. (Nasdaq/LIVX) BUY 10K Shows Solid Progress $5.77 / Target:$7.00 LiveXLive edia is the first and only live music streaming and social media platform. On Friday, LiveX filed its FY K. There were no major surprises as the company continues to execute on its three-part plan: 1. Build a portfolio of music festivals to stream. It has 27 in the pipeline for the current fiscal year. 2. Attract viewers. In three festival ay lineup attracted 14 million viewers. It just streamed Rock in Rio Lisbon over the last two weekends and has the ontreux azz Festival Coming from une 29 to uly 14 It is targeting 100 million viewers this fiscal year. 3. onetize. As expected, signing new advertising/sponsorship/marketing deals should kick into high gear after the above two milestones are further along. FY2018 revenue was $7.2 mm, EBITDA was negative $12.5 mm and EPS was negative $0.48, all in line with expectations. Our Buy thesis was never predicated on FY2018 results, or FY2019 for that matter, but FY2019 should represent a reasonable representation of the business plan. Our updated model is included, with no material changes. uly 2, 2018 Barry. Sine Senior Research Analyst bsine@dawsonjames.com Estimates F2018A F2019E F2020E Revenue($000s) $7,195 $34,4 $147,040 1Q une 276 7,700 27,140 2Q September 372 9,000 37,280 3Q December 0 8,2 37,420 4Q arch 6,547 9,0 45,200 EPS ($0.48) ($0.39) $0.40 1Q arch (0.08) (0.12) (0.00) 2Q une (0.12) (0.12) Q September (0.10) (0.08) Q December (0.29) (0.07) 0.19 P/E (x) N/A N/A 14.5X EBITDA ($12,454) ($9,865) $29,816 EV/EBITDA (x) N/A N/A 9.4X Stock Data 52-Week Range $ $90.00 Shares Outstanding (mil.) 49.5 arket Capitalization (mil.) $285.9 Enterprise Value (mil.) $280.5 Debt to Capital 17.1% Book Value/Share $0.82 Price/Book 7.0 X Average Trading Volume (3-month) ill 0.1 Insider Ownership 57.8% Institutional Ownership 14.1% Short interest 0.6% We reiterate our Buy rating and $7 price target. When we initiated coverage, we noted that if the company appeared to be tracking towards our numbers, we would value the shares at a more peer-like $9. We note that peers now trade at an average of 10.2x, up from 8.9x putting fair value of LIVX to $10 on this basis. Price target and ratings changes over the past 3 years: Initiation - une 4, Buy - Price Target $7.00 Please find Important Disclosures beginning on Page 4. Page 1 of 5

2 LiveX Thesis Rolls On uly 2, 2018 On Friday, LiveX filed its 10K for the 2018 fiscal year. Of note was the fact that this included a full quarter of Slacker Radio, acquired at the end of December results. These were no surprises that jumped off the page at us, but we are focusing on future growth potential, and not past results. Given the relative inconsequential nature of the K, no earnings call is scheduled but that should change next quarter given how the une quarter is chock full of music festivals. The company webcast the Rock in Rio music festival from Lisbon over the last two weekends with this weekend featuring Katy Perry. We looked in on her live webcast and it was a pretty spectacular stage show. We expect that the company will provide viewership numbers of clusters of festivals, as it did in ay so perhaps we will see some data after the ontreux azz Festival ends on uly 14. We also note that the stock experienced some wild gyrations during the quarter as Russell added it to their microcap index on une 22. The stock hit a high of $11.11 on une 20, before closing Friday at $5.77. We now expect the stock to track more regularly toward our current target and for our target to increase as the company steadily hits its milestones. As we discussed in our initiation report, we value LIVX shares at $7 based on a multiple of 12x our FY2020 EBITDA multiple. With comps up about 10% since our initiation, we see greater potential upside if targets continue to be met. The key risks to our thesis are unchanged since our initiation, but with a bit more visibility on numbers now that a 10K including Slacker has been filed and with a successful Rock in Rio risks are a bit less. As we noted, we see LiveX s business plan in three parts. So the key risk would be in failure to execute. It has already gotten off to a good start with a solid stable of festivals, and appears to be starting to gain traction. It will be interesting to see if Slacker can post sequential growth in the une quarter after favorable management comments about subscriber numbers. On monetization, management cannot really attract much revenue until it can demonstrate viewership, so we do not expect much visibility on that front for the next quarter or two. So the key risks remain, with perhaps some minor mitigation in risk since our last report. LiveXLiveedia Page 2 of 5

3 uly 2, 2018 LiveXLive edia Income Forecast Dollars in thousands, except per share data E 2020E Fiscal years ended arch 31 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR une Sept Dec arch une Sept Dec arch une Sept Dec arch Slacker Radio 6,795 6,795 7,000 7,000 7,000 7,000 28,000 7,140 7,280 7,420 7,700 29,540 YoY grow th 3.0% 312.1% 2% 4% 6% 10% 5.5% Seq grow th LiveXLive ,000 1,2 2,0 6,4 20,000 30,000 30,000 37,0 117,0 # of events Revenue per event $138 $41 $80 $100 $200 $2 $0 $239 $1,000 $1,0 $2,000 $2,0 $1,679 YoY grow th Seq grow th 185.7% -37.5% 100.0%.0% 0.0% 25.0% Revenue ,547 7,195 7,700 9,000 8,2 9,0 34,4 27,140 37,280 37,420 45, ,040 YoY grow th % % 45.1% 378.8% 252.5% 314.2% 353.6% 375.8% 326.8% Seq grow th 17.6% 116.9% 91.7% 1.2% 185.7% 137.4% 100.4% 120.8% Cost of Revenue ,543 6,694 3,0 5,000 2,0 2,0 13,0 10,000 10,000 7,0 7,0 35,000 Per festival , Gross argin ,200 4,000 5,7 7,000 20,9 17,140 27,280 29,920 37, ,040 As a percent of revenue 71.4% 80.7% 0.0% 7.0% 54.5% 44.4% 69.7% 73.7% 60.8% 63.2% 73.2% 80.0% 83.4% 76.2% Selling General and Admin 2,288 3,754 2,618 9,000,288 9,240 9,000 9,075 9,0 36,8 16,284 22,368 22,452 27,120 88,224 As a percent of revenue 828.1% % 137.5% 212.5% 120.0% 100.0% 110.0% 100.0% 106.9% 60.0% 60.0% 60.0% 60.0% 60.0% Related Party As a percent of revenue 24.2% 1.4% 1.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Operating income (2,180) (3,543) (2,708) (9,087) (14,877) (5,040) (5,000) (3,325) (2,0) (,865) 856 4,912 7,468 10,580 23,816 Operating margin -65.5% -55.6% -40.3% -26.3% -46.1% 3.2% 13.2% 20.0% 23.4% 16.2% Interest expense (635) (759) (901) (1,628) (3,922) (900) (900) (900) (900) (3,600) (900) (900) (900) (900) (3,600) Fair value of w arrants (193) Earnings from investment in affiliate Impairment loss Loss on sale of investment in affiliate - (22) (22) (635) (759) (901) (1,457) (4,137) (900) (900) (900) (900) (3,600) (900) (900) (900) (900) (3,600) Pretax Income (2,8) (4,302) (3,608) (10,543) (19,014) (5,940) (5,900) (4,225) (3,400) (19,465) (44) 4,012 6,568 9,680 20,216 Taxes Net income - continuing ops (2,8) (4,302) (3,608) (10,549) (19,020) (5,940) (5,900) (4,225) (3,400) (19,465) (44) 4,012 6,568 9,680 20,216 Net income margin % -16.0% % % -77.1% -65.6% -51.2% -35.8% -56.5% -0.2% 10.8% 17.6% 21.4% 13.7% Diluted shares outstanding 35,528 36,016 36,543 36,568 39,595,0,525,5,575,538,600,625,6,675,638 Seq change , , EPS diluted ($0.08) ($0.12) ($0.10) ($0.29) ($0.48) ($0.12) ($0.12) ($0.08) ($0.07) ($0.39) ($0.00) $0.08 $0.13 $0.19 $0.40 EBITDA (1,562) (2,890) (1,339) (7,587) (12,454) (3,540) (3,0) (1,825) (1,000) (9,865) 2,356 6,412 8,968 12,080 29,816 Source: Company reports and Dawson ames estimates LiveXLiveedia Page 3 of 5

4 uly 2, 2018 Important Disclosures: LIVEXLIVE EDIA ORD ( , 5.974, , , ) 100 Relative Strength Index ( ) x A S D S N D F A Source: etastock Price target and ratings changes over the past 3 years: Initiated Buy une 4, 2018 Price Target $7.00 Dawson ames Securities, Inc. (the Firm ) is a member of the Financial Industry Regulatory Authority ( FINRA ) and the Securities Investor Protection Corporation ( SIPC ). The Firm does not make a market in the securities of the subject company (s). The Firm has NOT engaged in investment banking relationships with LIVX in the prior twelve months, as a manager or co-manager of a public offering and has NOT received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has NOT received other compensation from the subject company(s) in the last 12 months for services unrelated to the managing or co-managing of a public offering. Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of uly 2, 2018, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company (s) of this report. The Firm, its officers, directors, analysts or employees may effect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may effect transactions as principal or agent in those securities. Analysts receive no direct compensation in connection with the Firm's investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report. Although the statements in this report have been obtained from and are based upon recognized statistical services, issuer reports or communications, or other sources that the Firm believes to be reliable, we cannot guarantee their accuracy. All LiveXLiveedia Page 4 of 5

5 uly 2, 2018 opinions and estimates included in this report constitute the analyst s judgment as of the date of this report and are subject to change without notice. Information about valuation methods and risks can be found in the VALUATION and RISK FACTORS sections of this report. The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. Additional information is available upon request. Ratings Definitions: 1) Buy: the analyst believes the price of the stock will appreciate and produce a total return of at least 20% over the next months; 2) Neutral: the analyst believes the price of the stock is fairly valued for the next months; 3) Sell: the analyst believes the price of the stock will decline by at least 20% over the next months and should be sold. The following chart reflects the range of current research report ratings for all companies followed by the analysts of the Firm. The chart also reflects the research report ratings relating to those companies for which the Firm has performed investment banking services in the last twelve months. Company Coverage Company Coverage Ratings Distribution # of Companies % of Total # of Comp % of Total arket Outperform (Buy) 21 88% 7 100% arket Perform (Neutral) 3 13% 0 0% arket Underperform (Sell) 0 0% 0 0% Total % 7 100% Analyst Certification: The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson ames employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson ames and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report. LiveXLiveedia Page 5 of 5