Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Quarterly Report constitute "forward-looking statements." These statements, identified by words such as "plan," "anticipate," "believe," "estimate," "should," "expect" and similar expressions include the Company's expectations and objectives regarding its future financial position, operating results and business strategy. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, general economic conditions particularly related to demand for the Company's products and services, changes in business strategy, competitive factors (including the introduction or enhancement of competitive services), pricing pressures, changes in operating expenses, fluctuation in foreign currency exchange rates, inability to attract or retain consulting, sales and/or development talent, changes in customer requirements, and/or evolving industry standards, as well as those factors discussed in the section titled "Part II, Item 1A. Risk Factors" in this Quarterly Report.

Forward looking statements are based on a number of material factors and assumptions, including the availability and final receipt of required government licenses, that sufficient working capital is available to complete the proposed activities, that contracted parties provide goods and/or services on the agreed time frames. While the Company considers these assumptions may be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in the section titled "Risk Factors" in this Quarterly Report.

The Company intends to discuss in its Quarterly Reports and Annual Reports any events or circumstances that occurred during the period to which such documents relate that are reasonably likely to cause actual events or circumstances to differ materially from those disclosed in this registration statement. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on its business or the extent to which any factor, or combination of such factors, may cause actual results to differ materially from those contained in any forwarding looking statement. You are advised to carefully review the reports and documents that the Company files from time to time with the United States Securities Exchange Commission (the "SEC"), particularly its periodic reports filed with the SEC pursuant to the Securities Exchange Act of 1934 (the "Exchange Act").

OVERVIEW

Live Current Media, Inc. (the "Company" or "Live Current") was incorporated under the laws of the State of Nevada on October 10, 1995. The Company operates a segment of its business through its wholly owned subsidiary, Domain Holdings Inc., originally formed under the laws of British Columbia, Canada on July 4, 1994 and re-domiciled to Alberta, Canada on April 14, 1999 ("DHI"). The Company is also the majority shareholder of Perfume.com Inc. (95% ownership), formed under the laws of the State of Delaware on March 13, 2008. Perfume.com Inc. is currently dormant and does not carry on an active business. References herein to the Company include DHI and Perfume.com Inc. (collectively, the "Subsidiaries") unless otherwise stated.

The Company is a development stage, technology company involved in the entertainment industry. Currently enhancing two products, SPRT MTRX and Trivia Matrix, management is positioning the Company to take advantage of the exciting and rapidly growing Sports and Gaming sectors.

Evasyst, Inc.

On January 20, 2022, Live Current Media Inc. (the "Company") entered into an Agreement and Plan of Merger (the "Merger Agreement") with Evasyst Inc. ("Evasyst") and the Company's wholly owned subsidiary formed for the purpose of completing the transactions set out in the Merger Agreement, Evasyst Acquisition Inc. ("LIVC Sub"). On April 22, 2022, the merger was completed. Under the terms of the Merger Agreement, the Company acquired all of the outstanding shares of Evasyst (the "Evasyst Acquisition") by means of a reverse triangular merger, whereby LIVC Submerged with and into LIVC Sub, with LIVC Sub continuing as the surviving corporation (the "Merger"). Upon completion of the Merger all of the outstanding shares of Evasyst's common stock were converted into the right to receive a total of 125,000,000 shares of the Company's common stock and each share of LIVC Sub's common stock outstanding were converted into one share of Evasyst common stock. Upon completion of the Merger, the board of directors of the Company now consists of Mark Ollila (Chairman), David Jeffs, Justin Weissberg, Leslie S. Klinger, Annamaria Rapakko and Heidi Steiger. Mr. Ollila was appointed the Chief Executive Officer of the Company, with Mr. Jeffs maintaining his previous roles as the President and Secretary of the Company and Steve Smith has been appointed as CFO of the Company.



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Evasyst is a digital technology company operating the social video streaming application "Kast". Users of Kast can host public or private watch parties with friends on their PC, Mac, web or mobile device. Kast's technology allows for the creation of intimate private watch parties that scales with millions of users.

The Company will continue to enhance its SPRT MTRX and Trivia Matrix gaming apps as they integrate with Kast, but expects to devote a majority of its resources to the development and commercialization of Kast.

PLAN OF OPERATIONS

Kast

Kast is a video streaming, social media platform referred to as a watch party platform. Members are part of a community that share video content, play games, collaborate remotely and simply hang out together. The platform currently has more than 4 million registered users with tens of thousands or users actively using the site monthly.

Revenue Model. Kast generates revenue in the form of subscription payments. The platform offers monthly and yearly subscriptions and subscriptions with varying levels of enhanced benefits including higher bandwidth and sharing of content.

Although the platform is completely functional and hosts thousands of paying subscribers, development continues with the planned implementation of new video streaming content, new gaming content including SPRT MTRX and Trivia Matrix, live video shopping channels and collaborative tools such as photo editing.

Kast is available online at www.kast.gg, on the Apple App Store and on the Google Play Store.

SPRT MTRX

SPRT MTRX is a gaming app, available in both iPhone and Android versions, in which players bid on the final scores of NHL, NBA and NFL games. The events are organized as "Challenges" and cover multiple games over one day. A cash prize is awarded to the player who receives the most points for correctly bidding on the final scores of the games included in the Challenge. The system for bidding on the final scores is unique in the gaming industry.

Revenue Model. The business model entails offering cash prizes to introduce and attract players to the game, developing a large contingent of users and delivering advertisements. This model, free to play (F2P), has proven popular among gamers as the lure of free money is a very attractive inducement.

Enhancements. The Company will continue to enhance the SPRT MTRX through 2022 by adding additional functionality and more sports such as MLB and EPL but does not anticipate generating any significant revenue from SPRT MTRX in fiscal 2022.

SPRT MTRX is available online at www.sprtmtrx.com, on the Apple App Store and on the Google Play Store.

Trivia Matrix

Trivia Matrix is a mobile trivia game app. The game consists of a 4 x 4 grid of eight mixed pairs of trivia data belonging to a specific category. The categories are Geography, History, Sports, Natural World, Pop Culture and Entertainment. The goal of the game is to eliminate each pair of trivia by matching them together and clear the grid of all data. Examples of matches are; actor with movie, musician with band, painter with painting, country with capital and country with silhouette. Players can play individual games to beat the clock or play against other players (H2H) to climb a challenge ladder.

Revenue Model. Trivia Matrix is a free to play (F2P) game. Revenue is generated by presenting advertisements periodically to players who complete games and will be generated by in app purchases (IAP) such as pay to avoid advertisements and pay to gain access to a premium account, which includes more data and more questions. In-app purchases have not yet been enabled.

Trivia Matrix is available online at www.triviamatrixapp.com , on the Apple App Store and Google Play Store.



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RESULTS OF OPERATIONS

The following selected financial data was derived from the Company's unaudited condensed interim consolidated financial statements for the periods ended March 31, 2022 and March 31, 2021. The information set forth below should be read in conjunction with the Company's financial statements and related notes included elsewhere in this Quarterly Report.



                                               Three months ending
Operating expense (income)        March 31, 2022     March 31, 2021     % Change
Domain content and registration $          3,103   $          3,072         1.01%
General and administrative                14,352             12,110        18.51%
Interest expense                           8,127                 51     15833.33%
Management fees                           32,390             32,315         0.23%
Marketing                                 47,043             34,459        36.52%
Professional fees                         12,832              7,404        73.31%
Transfer agent and regulatory              3,671              1,560       135.32%
Website/App maintenance                   30,485                958      3082.15%
Stock based compensation                       -             95,722           n/a
                                         152,003            187,651       -19.00%


Results of Operation

Revenue

The Company did not recognize recurring revenues during the three-month period ended March 31, 2022 or the three-month period ended March 31, 2021. With the merger of Kast having completed on April 22, 2022, the Company expects to start generating subscription revenue on the Kast watch party platform immediately and throughout the remainder of 2022 but does not expect revenue to meet the financial needs of the company in the coming 12 months.

At March 31, 2022 the Company had an accumulated deficit of $18,103,068. The Company is presently in the development stage of its business and cannot provide any assurances that it will be able to generate significant regular or recurring revenues in the near future.



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Operating Expenses

Operating expenses for the three-month period ended March 31, 2022 and the three-month period ended March 31, 2021 were $152,003 and $187,651 respectively. The majority of the difference is attributable to the Company's decision to cease the capitalization of development costs related to SPRT MTRX and Trivia Matrix which has resulted in a Website/App maintenance expense increase of nearly $30,000 in the three-month period ended March 31, 2022 versus the three-month period ended March 31, 2021 and a one-time stock based compensation charge in the quarter ended March 31, 2021 of $95,722. Accrued interest in the amount of $8,127 was made for the Convertible Notes negotiated in the quarter ended March 31, 2022.

Net Loss

The Company recorded a net loss $214,811 for the three-month period ended March 31, 2022 compared to a net gain of $587,369 for the three-month period ended March 31, 2021. The difference in the three month period ended March 31, 2022, was attributable to a decrease in the fair value loss of an equity investment of $19,942, nil of domain sales in the three-month period ended March 31, 2022 compared to $913,240 of domain sales in the three-month period ended March 31, 2021, costs in the three-month period ended March 31, 2022 related to securing financing of $48,685 and website/app maintenance costs increase of $29,527 in the three-month period ended March 31, 2022.

Liquidity and Capital Resources

At March 31, 2022 the Company had working capital of $2,706,227, an increase from the Company's working capital of $566,159 at December 31, 2021. During the three months ended March 31, 2022 the Company had negative operating cash flow. Due to the fact that the Company has incurred recurring operating losses and anticipates incurring further operating losses in the future, there is substantial doubt as to the Company's ability to continue as a going concern.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to shareholders.

CRITICAL ACCOUNTING POLICIES

The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular URL should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of a domain name is less than its carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. When it is determined that the fair value of a domain name is less than it's carrying amount, impairment is recognized.



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RECENT ACCOUNTING PRONOUNCEMENTS

There are no new accounting pronouncements that materially impact the Company's condensed consolidated interim financial statements.

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