Recently, SEC filings outed LiveXLive, the publicly traded live-streaming company valued at $200 million, for taking $2 million in PPP loans. They recently received the PayCheck Protection Program (PPP) loan from the government. As it turns out, several other companies had just returned their PPP grant, which ignited this investigation. Those companies include the Los Angeles Lakers and Shake Shack. LiveXLive is adamant about keeping this stimulus loan, while the public thought otherwise of the other recipients.
LiveXLive which recently purchased Spring Awakening festival, came under additional scrutiny because it very recently spent $18.1 million to purchase PodcastOne after receiving this PPP loan.
The company stated they have a high chance of receiving a federal audit, but seem to be confident about keeping the loan. Fighting the US Treasury, SBA, and other federal agencies will have serious consequences. Would you really want to start your business back with a bad reputation after this imminent recession?
Adding to the intrigue is the fact that the CFO recently signed a contract extension bumping his salary from $325,000 to $375,000 and included a bonus of $187,500. The company had earlier disclosed that the CEO agreed to take half of his $500,000 salary in shares of company stock.
That said, the company has no intention of returning the loan at this time. As of now over three dozen public companies have returned the money.
Our team is under 100 strong and with this aid, we’ve been able to keep substantially all of our staff employed,
Statement from LiveXLive