LIVE CURRENT MEDIA INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION (form 10-K)

Management’s Discussion and Analysis

The following selected financial data was derived from the Company’s audited and
unaudited consolidated financial statements. The information set forth below
should be read in conjunction with the Company’s consolidated financial
statements and related notes included elsewhere in this registration statement.
In addition, upon completion of the Evasyst Acquisition, of which there is no
assurance, the Company expects to focus its resources on the development of
Evasyst’s video streaming business and the Company’s own Gaming business. These
businesses are significantly different from the domain name and web development
business that the Company has historically been engaged in. As a result,
historical results and capital requirements are not expected to be reflective of
the Company’s financial results and capital requirements moving forward.

Summary of Results

                                     12 months ended
                                  December     December
                                  31, 2021     31, 2020     % Change
Operating expenses (income)
Impairment of computer software $  195,962   $        -           n/a
Domain content and registration      3,072        3,140        -2.17%
General and administration          52,032       42,162        23.41%
Interest expense                         -          204           n/a
Management fees                    123,651      123,708        -0.05%
Marketing                           90,195       23,376       285.84%
Professional fees                   79,839       60,450        32.07%
Transfer agent and regulatory       30,201       29,229         3.33%
Travel                               2,481            -           n/a
Website Development                 62,302        1,506     4,036.92%
                                $  639,735   $  283,775       125.45%




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Results of Operation

Revenue

The Company recognized a gain of $913,246 from the sale of a domain name during
the year ended December 31, 2021 (2020 – $117,466). The Company did not
recognize recurring revenues during its 2021 or 2020 fiscal years. The Company
continues to market its domain names in its portfolio and considers offers
received for domain names in its portfolio. The Company believes its portfolio
of domain names will continue to maintain its value over time. The Company does
not anticipate earning significant advertising revenue from SPRT MTRX or Trivia
Matrix in the 2022 fiscal year.

The Company has an accumulated deficit of $17,888,257 at December 31, 2021. The
Company is presently in the development stage of its business and cannot provide
any assurances that it will be able to generate regular or recurring revenues in
the near future.

Operating Expenses

Operating expenses for the year ended December 31, 2021 were $639,735 as
compared to $283,775 for the year ended December 31, 2020, an increase of
approximately $356,000. The change is mainly due to an increase in development
costs associated with Trivia Matrix and an increase in marketing activities and
impairment expense related to SPRT MTRX.

Net Loss

The Company recorded a net loss of $150,615 for the year ended December 31, 2021
and net profit of $231,999 for the year ended December 31, 2020. The majority of
the difference is the result of two transactions as follows: During the year
ended December 31, 2021 the Company had a net gain of $913,246 from the sale of
domain names compared to a net gain of $117,466 in the year ended December 31,
2020. In 2021 the equity investment resulting from the sale of the eBalance
distribution rights described below decreased in value by $346,253 compared to
an increase of $47,147 in 2020. In addition, in 2020 the Company recorded a one
time gain on the sale of a licence related to the eBalance distribution rights
transaction of $351,134. And in 2021 the Company recorded $95,722 in stock based
compensation relating to the issuance of options to management, directors and
consultants.

On January 29, 2020, the Company made the decision to exit the medical device
distribution business and agreed to sell back to Cell MedX Corp. (“Cell MedX”)
the exclusive worldwide distribution rights to Cell MedX’s eBalance microcurrent
device, acquired in 2019 (the “Distribution Rights”). Under the terms of the
agreement, the Company sold the Distribution Rights back to Cell MedX in
consideration for a royalty on future sales of the eBalance device capped at
US$507,500, plus warrants to purchase up to 2,000,000 shares in the common stock
of Cell MedX (the “Warrants”) exercisable for a period of three (3) years.
1,000,000 of the Warrants are exercisable at a price of $US0.50 per share (the
“$0.50 Warrants”), with the remaining 1,000,000 Warrants exercisable at US$1.00
per share (the “$1.00 Warrants”). The Warrants are subject to an acceleration
right, with the $0.50 Warrants being subject to acceleration if Cell MedX’s
common stock trades at or above $1.00 per share for 30 consecutive trading days,
and the $1.00 Warrants being subject to acceleration if Cell MedX’s common stock
trades at or above $1.75 per share for 30 consecutive trading days.

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Liquidity and Capital Resources

At December 31, 2021, the Company had a working capital surplus of $566,159,
compared to $41,938 at December 31, 2020. The Company’s only source of cashflow
during the year ended December 31, 2021 was through the sale of domain names
totaling $913,246. Due to the fact that the Company has incurred recurring
losses and anticipates incurring further losses in the future, the Company has
determined there is substantial doubt as to its ability to continue as a going
concern.

In February 2022, the Company completed the February 2022 Convertible Note
Offering for gross proceeds of $1,500,000, and in March 2022, the Company
completed the March 2022 Convertible Note Offering for gross proceeds of
$886,000. See “Recent Sales of Unregistered Securities” for additional details
regarding the February 2022 Convertible Note Offering and the March 2022
Convertible Note Offering.

The Company does not anticipate purchasing any plant or significant equipment in
the immediate future.

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

Other recent accounting pronouncements issued by the FASB (including its
Emerging Issues Task Force), the American Institute of Certified Public
Accountants, and the SEC did not, or are not believed by management to, have a
material impact on the Company’s present or future financial position, results
of operations or cash flows.

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