Form 4: LiveOne Director Craig Foster Awarded Restricted Stock Units

Director Craig Foster receives 73,248 Restricted Stock Units (RSUs) as director fees for service on LiveOne's board.

Summary

• Craig Foster, a director of LiveOne, Inc., was granted 73,248 Restricted Stock Units (RSUs) on September 10, 2024.
• These RSUs are compensation for his service on the board of directors from October 1, 2023, to September 30, 2024.
• The RSUs will vest on October 31, 2024, contingent upon Foster's continued service on the board.
• Each RSU represents the right to receive one share of LiveOne's common stock or its cash equivalent.
• The form of payout (cash and/or stock) will be determined by the Board at its discretion.
• Foster has the option to defer settlement of the RSUs until he is no longer on the Board or up to five years from the vesting date.
• Following the transaction, Foster beneficially owns 73,248 RSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard compensation practice, incentivizing board member alignment with company goals. No immediate financial impact is apparent.

Positives

• The grant of RSUs aligns the director's interests with those of the shareholders.
• The vesting requirement incentivizes continued service on the board.
• The option to defer settlement provides flexibility to the director.

Future Outlook

The RSUs will vest on October 31, 2024, subject to the Reporting Person's continued service on the Board through the Vesting Date.

Industry Context

Granting stock options and RSUs to board members is a common practice to align their interests with the company's long-term success and shareholder value. The specific number of RSUs granted would be benchmarked against similar companies and board compensation packages.

Comparison to Industry Standards

• Comparing the size of this RSU grant to those of directors at similar-sized media and entertainment companies would provide context.
• Companies like Spotify, Sirius XM, and iHeartMedia could be considered peers for benchmarking director compensation.
• The vesting schedule and terms of the LiveOne's 2016 Equity Incentive Plan should also be compared to industry best practices.

Stakeholder Impact

• Shareholders: The grant of RSUs aligns the director's interests with those of the shareholders.
• Employees: The grant of RSUs to a director can signal stability and commitment to the company's future.

Next Steps

• The RSUs will vest on October 31, 2024, if Craig Foster continues to serve on the Board.
• The Board will determine the form of payout (cash and/or stock) in accordance with the terms of the 2016 Equity Incentive Plan.

Key Dates