SAN JOSE, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2015. Total revenues were approximately $2.2 million for the second quarter, as compared to the approximately $3.3 million in total revenues reported for the same period in 2014. The Company’s revenues for the six months ended June 30, 2015 were approximately $4.9 million, as compared to the $6.6 million for the six months ended June 30, 2014.
The Company reported a net loss for the quarter of approximately $668,000, or 30% of total revenues. This compares to net loss of approximately $122,000, or 3% of total revenues reported for the second quarter of 2014. The Company had a net loss for the six months ended June 30, 2015 of approximately $1.5 million, or 31% of total revenues, as compared to the net loss of approximately $429,000, or 7% of total revenues for the six months ended June 30, 2014.
The Company finished the second quarter with approximately $2.3 million in cash and cash equivalents, as compared to the approximately $4.4 million at the end of 2014. As a result of delays in signing certain contracts and the resulting delay in the collection of accounts receivables the total cash and cash equivalents were approximately $4.0 million as of August 14, 2015. This increase was due to operations from the company and not any equity or debt financing of the Company.
“We have experienced significant changes in our business in the first half of 2015, and we have taken the time and effort necessary to streamline our expenses. We anticipate seeing the benefits of these changes in our operating results in the second half of 2015,” said David Houston, Chief Financial Officer of LiveWorld. “We are using some of these savings to invest in our platform and to develop new sales opportunities as we move into 2016.”
Detailed financial information may be downloaded at www.liveworld.com (Investor Relations) or at www.otcmarkets.com
About LiveWorld
LiveWorld is a services and software company that enables brands to enhance the customer experience in social media. Our solutions empower the largest brands in the world, allowing them to develop deeper relationships with their customers in the areas of marketing, customer service, and insights. LiveWorld clients foster social media environments that are natural continuations of the experiences customers have with brands—and with each other—in the real world.
LiveWorld uses the power of content and conversation to help companies achieve business goals, measureable through marketing and operational KPIs. Our services include strategy, campaign management, content moderation, customer engagement, customer service, and social analytics and listening. Our software has been designed to empower human beings to be more effective and allow companies to efficiently address the demands of social at global scale. LiveWorld clients include the #1 brands in consumer packaged goods, retail, pharmaceutical, financial, and travel services. LiveWorld is headquartered in San Jose, California, with offices in New York City and Austin. Learn more at http://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 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. | ||||||
| CONDENSED BALANCE SHEETS | ||||||
| (In thousands, except share data) | ||||||
| (Unaudited) | ||||||
| June 30, | December 31, | |||||
| 2015 | 2014 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalent | $ | 2,271 | $ | 4,386 | ||
| Accounts receivable, net | 839 | 535 | ||||
| Prepaid expenses | 221 | 397 | ||||
| Total current assets | 3,331 | 5,318 | ||||
| Property and equipment, net | 57 | 144 | ||||
| Other assets | 17 | 18 | ||||
| Total assets | $ | 3,405 | $ | 5,480 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 157 | $ | 99 | ||
| Accrued employee expenses | 472 | 597 | ||||
| Other accrued liabilities | 53 | 54 | ||||
| Deferred revenue | ----- | 714 | ||||
| Total liabilities | 682 | 1,464 | ||||
| Stockholders' equity | ||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of June 30, 2015 and December 31, 2014 respectively. | 34 | 34 | ||||
| Additional paid-in capital | 141,955 | 141,735 | ||||
| Accumulated deficit | (139,266) | (137,753) | ||||
| Total stockholders' equity | 2,723 | 4,016 | ||||
| Total liabilities and stockholders' equity | $ | 3,405 | $ | 5,480 | ||
| LIVEWORLD, INC. | ||||||||||||
| CONDENSED STATEMENT OF OPERATIONS | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Total revenues | $ | 2,244 | $ | 3,250 | $ | 4,879 | $ | 6,561 | ||||
| Cost of revenues | 1,089 | 1,342 | 2,435 | 2,752 | ||||||||
| Gross Margin | 1,155 | 1,908 | 2,444 | 3,809 | ||||||||
| Operating Expense | ||||||||||||
| Product development | 678 | 799 | 1,546 | 1,699 | ||||||||
| Sales and marketing | 442 | 503 | 964 | 1,050 | ||||||||
| General and administrative | 675 | 725 | 1,415 | 1,474 | ||||||||
| Total operating expense | 1,795 | 2,027 | 3,925 | 4,223 | ||||||||
| Loss from operations | (640) | (119) | (1,481) | (414) | ||||||||
| Loss before tax | (640) | (119) | (1,481) | (414) | ||||||||
| Other Income / Expense | (25) | (25) | ||||||||||
| Provision for income taxes | 3 | 3 | 7 | 15 | ||||||||
| Net loss | (668) | (122) | (1,513) | (429) | ||||||||
| Basic loss per share | $ | (0.02) | $ | (0.00) | $ | (0.05) | $ | (0.01) | ||||
| Shares used in computing basic loss per share | 33,388,545 | 33,327,525 | 33,388,545 | 33,324,580 | ||||||||
| Diluted loss per share | $ | (0.02) | $ | (0.00) | $ | (0.05) | $ | (0.01) | ||||
| Shares used in computing diluted loss per share | 33,388,545 | 33,327,525 | 33,388,545 | 33,324,580 | ||||||||
| Departmental allocation of stock-based compensation: | ||||||||||||
| Cost of revenues | $ | 21 | $ | 12 | $ | 40 | $ | 23 | ||||
| Product development | 22 | 20 | 43 | 40 | ||||||||
| Sales and marketing | 18 | 14 | 34 | 25 | ||||||||
| General and administrative | 54 | 22 | 102 | 42 | ||||||||
| Total stock-based compensation | $ | 115 | $ | 68 | $ | 219 | $ | 130 | ||||
| LIVEWORLD, INC. | ||||||||||||
| CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In thousands) | ||||||||||||
|
Three Months |
Six Months |
|||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (668) | $ | (122) | $ | (1,513) | $ | (429) | ||||
|
Adjustments to reconcile net income (loss) provided by (used in)
operating activities: |
||||||||||||
| Depreciation of long-lived assets | 22 | 41 | 52 | 80 | ||||||||
| (Gain)/Loss on sale of assets | 37 | ---- | 37 | ---- | ||||||||
| Stock-based compensation | 115 | 68 | 219 | 130 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (298) | (55) | (304) | 68 | ||||||||
| Other assets | 141 | (102) | 177 | (101) | ||||||||
| Accounts payable | (202) | (197) | 58 | 16 | ||||||||
| Accrued liabilities | (127) | (109) | (125) | (36) | ||||||||
| Deferred revenue | 483 | 364 | (714) | 85 | ||||||||
| Net cash provided by (used in) operating activities | (497) | (112) | (2,113) | (187) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property and equipment | ----- | (16) | (2) | (37) | ||||||||
| Net cash provided by (used in) investing activities | ----- | (16) | (2) | (37) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from exercise of stock options | ----- | 2 | ----- | 2 | ||||||||
| Net cash provided by (used for) financing activities | ----- | 2 | ----- | 2 | ||||||||
| Change in cash and cash equivalent | (497) | (126) | (2,115) | (222) | ||||||||
| Cash and cash equivalents, beginning of period | 2,768 | 4,317 | 4,386 | 4,413 | ||||||||
| Cash and cash equivalents, end of period | $ | 2,271 | $ | 4,191 | $ | 2,271 | $ | 4,191 | ||||
| Supplemental disclosure of non-cash financing and investing activities: | ||||||||||||
| Income taxes paid | $ | 3 | $ | 3 | $ | 7 | $ | 15 | ||||