LiveWorld Reports First Quarter Financial Results

SAN JOSE, Calif. & NEW YORK--()--LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the first quarter of 2015. Total revenues were approximately $2.6 million for the first quarter as compared to the approximately $3.3 million in total revenues reported for 2014.

The Company reported a net loss for the quarter of approximately $844,000, or 32% of total revenues. This compares to the net loss of approximately $307,000, or 9% of total revenues, reported for the first quarter of 2014. The loss per share on a fully diluted basis were $(0.03) and $(0.01) for the first quarter of 2015 and 2014, respectively.

The company finished the first quarter with approximately $2.8 million in cash and cash equivalents as compared to approximately $4.3 million at the end of the first quarter in 2014. The cash decline was due in part to delays in getting renewals in place and the subsequent billings to clients. We anticipate our cash position to improve in the second quarter of 2015. The Company reported a positive working capital balance of approximately $3.1 million as of March 31, 2015 as compared to the approximately $3.6 million as of March 31, 2014.

“We remain committed to developing products and services which will open up new revenue opportunities to us,” said David Houston Chief Financial Officer of LiveWorld. “The key for us to grow our portfolio of clients is to keep delivering high value marketing and customer support solutions that improve the social customer experience.”

Detailed financial information may be downloaded at www.liveworld.com (financials page) 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)
   
March 31, December 31,
  2015     2014  
ASSETS
Current assets
Cash and cash equivalents $ 2,768 $ 4,386
Accounts receivable 542 535
Prepaid expenses   362     397  
Total current assets 3,672 5,318
 
Property and equipment, net 115 144
Other assets   18     18  
Total assets $ 3,805   $ 5,480  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 360 $ 99
Accrued employee expenses 573 597
Other accrued liabilities 78 54
Deferred revenue   (483 )   714  
Total current liabilities   528     1,464  
 
 
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of March 31, 2015 and December 31, 2014 and December 31, 2012, respectively 34 34
Additional paid-in capital 141,840 141,735
Accumulated deficit   (138,597 )   (137,753 )
Total stockholders' equity   3,277     4,016  
Total liabilities and stockholders' equity $ 3,805   $ 5,480  
 
LIVEWORLD, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
   
Three Months Ended

March 31,

  2015     2014  
Total revenues $ 2,635 $ 3,311
Cost of revenues   1,346     1,411  
Gross Margin 1,289 1,900
Operating Expenses
Product development 868 900
Sales and marketing 522 548
General and administrative   740     748  
Total operating expenses   2,130     2,196  
Income / (loss) before tax (841 ) (296 )
Provision for income taxes   3     11  
Net income   (844 )   (307 )
 
Basic net income per share $ (0.03 ) $ (0.01 )
Shares used in computing basic net income per share 33,388,545 33,321,634
Diluted net income per share $ (0.03 ) $ (0.01 )
Shares used in computing diluted income per share 33,388,545 33,321,634
 
Departmental allocation of stock-based compensation:
Cost of revenues $ 19 $ 11
Product development 21 19
Sales and marketing 16 12
General and administrative   49     20  
Total stock-based compensation $ 105   $ 62  
 
LIVEWORLD, INC.
STATEMENTS OF CASH FLOWS
(In thousands)
  Three Months Ended
March 31,
  2015       2014  
Cash flows from operating activities:
Net income $ (844 ) $ (307 )
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 31 39
Stock-based compensation 105 62
Changes in operating assets and liabilities:
Accounts receivable (7 ) 123
Other assets 33 1
Accounts payable 261 213
Accrued employee expenses and other liabilities 2 73
Deferred revenue   (1,197 )   (279 )
Net cash provided by operating activities   (1,616 )   (75 )
Cash flows from investing activities:
Purchases of property and equipment   (2 )   (21 )
Net cash used in investing activities   (2 )   (21 )
Change in cash and cash equivalents (1,618 ) (96 )
Cash and cash equivalents, beginning of period   4,386     4,413  
Cash and cash equivalents, end of period $ 2,768   $ 4,317  

Contacts

LiveWorld
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
Katelyn Rice, 646-559-1329
katelyn.rice@tallgrasspr.com

Contacts

LiveWorld
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
Katelyn Rice, 646-559-1329
katelyn.rice@tallgrasspr.com