LiveWorld Reports Audited Financial Results for the Full Year 2014

SAN JOSE, Calif. & NEW YORK--()--LiveWorld, Inc. (OTC Markets: LVWD), today announced the audited financial results for the full years 2014. Total revenues were approximately $13.8 million for 2014 as compared to the approximately $14.5 million in total revenues reported for 2013.

The Company reported net loss for 2014 of approximately $0.4 million, or 3% of total revenues. This compares to the net income of approximately $0.8 million, or 7% of total revenues, reported for 2013. The loss per share on a fully diluted basis was $0.01 while the earnings per share was $0.02 for 2014 and 2013, respectively.

The company ended 2014 with approximately $4.4 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $3.8 million as of December 31, 2014.

“In 2014 we saw the company begin to transition our development, sales, and marketing efforts as we put greater emphasis on bringing new and compelling products to market,” states David Houston, Chief Financial Officer of LiveWorld. “We will remain focused on the long-term goals of the company which means making meaningful investments for our future growth.”

Detailed financial information may be downloaded at www.liveworld.com/investor-relations or at www.otcmarkets.com.

About LiveWorld

LiveWorld is a social media solutions company that provides services and software for human engagement at scale to help brands develop deeper relationships with customers. LiveWorld delivers a full range of social media solutions to improve relationship marketing, customer support, and market learning. Our solutions include social & content strategy, campaign management, customer support, moderation & engagement, listening & Insights and measurement and reporting. Our clients include the #1 brands in retail, CPG, pharma, and financial services who use our solutions to engage their customers in a way that’s social, personal, and direct, yet affordable and sustainable on a large scale. LiveWorld is headquartered in San Jose California, with additional offices in New York City and Austin. Learn more at www.liveworld.com and @LiveWorld.

“Safe Harbor" Statement Under The Private Securities Litigation Reform Act

This press release may contain forward-looking information concerning LiveWorld's plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding LiveWorld’s current or future financial performance including but not limited to lists of clients, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, and the results of its product development efforts. Actual results may differ materially from those expressed in the forward looking statements made as a result of, among other things, final accounting adjustments and results, LiveWorld’s ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorld’s ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

 
LIVEWORLD, INC.
BALANCE SHEETS
(In thousands, except share data)
 
  December 31,   December 31,
  2014     2013  
ASSETS
Current assets
Cash and cash equivalent $ 4,386 $ 4,413
Accounts receivable 535 488
Prepaid expenses   397     336  

Total current assets

5,318 5,237
 
Property and equipment, net 144 257
Other assets   18     18  
Total assets $ 5,480   $ 5,512  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 99 $ 159
Accrued employee expenses 597 576
Other accrued liabilities 54 6
Deferred revenue   714     665  
Total current liabilities   1,464     1,406  
 
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 and 33,321,634 issued and outstanding as of December 31, 2014 and December 31, 2013 respectively 34 33
Additional paid-in capital 141,735 141,448
Accumulated deficit   (137,753 )   (137,375 )
Total stockholders' equity   4,016     4,106  
Total liabilities and stockholders' equity $ 5,480   $ 5,512  
 
LIVEWORLD, INC.
STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
 
  Twelve Months Ended December 31,
  2014       2013
Total revenues $ 13,803 $ 14,523
Cost of revenues   5,756     5,262
Gross margin 8,047 9,261
Operating expenses
Product development 3,424 3,725
Sales and marketing 2,104 1,875
General and administrative   2,896     2,840
Total operating expenses   8,424     8,440
Income (loss) from operations (377 ) 821
Other income   ----     6
Income (loss) before tax (377 ) 827
Provision for income taxes   1     15
Net income (loss)   (378 )   812
 
Basic net income (loss) per share $ (0.01 ) $ 0.02
Shares used in computing basic net income (loss) per share 33,353,526 33,259,634
Diluted net income (loss) per share $ (0.01 ) $ 0.02
 
Shares used in computing diluted income (loss) per share 33,353,526 41,291,384
 
Departmental allocation of stock-based compensation:
Cost of goods sold $ 57 $ 31
Product development 72 70
Sales and marketing 55 32
General and administrative   98     66
Total stock-based compensation $ 282   $ 199
 
LIVEWORLD, INC.
STATEMENTS OF CASH FLOWS
(In thousands)
 
  Twelve Months Ended
December 31,
  2014       2013  
Cash flows from operating activities:
Net income (loss) $ (378 ) $ 812
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation 155 134
Stock-based compensation 282 199
Changes in operating assets and liabilities:
Accounts receivable (47 ) 29
Prepaid expenses and other assets (61 ) (61 )
Accounts payable (60 ) (76 )
Accrued liabilities 69 61
Deferred revenue   49     84  
Net cash provided by (used in) operating activities   9     1,182  
Cash flows from investing activities:
Purchase of property and equipment   (42 )   (157 )
Net cash (used in) investing activities   (42 )   (157 )
Cash flows from financing activities:
Proceeds from exercise of stock options   6     6  
Net cash provided by financing activities   6     6  
Change in cash and cash equivalents (27 ) 1,031
Cash and cash equivalents, beginning of year   4,413     3,382  
Cash and cash equivalents, end of year $ 4,386   $ 4,413  
 
Supplemental cash flow information:
Income taxes paid $ 12   $ 4  

Contacts

LiveWorld
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
TallGrass Public Relations
Seth Menacker, 201-638-7561
Seth.Menacker@tallgrasspr.com

Release Summary

LiveWorld, Inc. Financial Results for 2014

Contacts

LiveWorld
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
TallGrass Public Relations
Seth Menacker, 201-638-7561
Seth.Menacker@tallgrasspr.com