LiveWorld Reports First Quarter Financial Results

SAN JOSE, Calif.--()--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter of 2017. Total revenues were approximately $2.4 million for the first quarter, as compared to the approximately $2.2 million in total revenues reported for the same period in 2016.

The Company reported a net loss for the quarter of approximately $314,000, or 13% of total revenues. This compares to the net loss of approximately $236,000, or 10% of total revenues reported for the first quarter of 2016.

The Company finished the first quarter with approximately $1.9 million in cash and cash equivalents, as compared to the approximately $2.6 million at the end of 2016. This reduction in our cash was a result of operating losses and the timing of our contract renewals for 2017. Our total working capital at the end of the first quarter was approximately $3.7 million while our total working capital at the end of 2016 was approximately $3.4 million, or improvement of approximately $293,000 quarter to quarter. The Company believes it has sufficient working capital to fund operations for the foreseeable future.

“Our first quarter revenues grew by over $175,000, or 8% when compared to the first quarter of 2016,” said David Houston, Chief Financial Officer of LiveWorld. “This improvement is a direct result of our continued efforts in sales and marketing, growth in healthcare and pharma markets, and our strategic investments in our SaaS platform.”

Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at www.otcmarkets.com.

About LiveWorld

At LiveWorld, we provide conversation management software, consulting, and online agent workforce services. These empower companies to manage conversations in messaging apps and social media to develop deeper relationships with customers. We specialize in handling the speed and scale requirements of brands to engage customers 1-on-1 in real-time and deliver personalized interactions with a human touch. Our conversation-centric software is designed to track and manage dialogue, engage customers, and integrate chatbots and human agents with enterprise systems. Companies are able to quickly solve the scale, security, automation, and multi-social channel challenges associated with marketing and customer service programs. LiveWorld services include strategy, campaign management, content moderation, engagement, customer service, and social analytics. Our team of marketing strategists, conversation specialists, chatbot experts, social data analysts, online agents, and software developers collaborate to deliver marketing and customer service solutions that seamlessly integrate software and human teams. LiveWorld clients include the number one brands in consumer packaged goods, retail, pharmaceutical, and financial-travel services. LiveWorld is headquartered in San Jose, California, with an additional office in New York City. 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 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.
UNAUDITED CONDENSED BALANCE SHEETS
(In thousands, except share data)
  (Unaudited)  
March 31, December 31,
2017 2016
ASSETS
Current assets
Cash and cash equivalent $ 1,862 $ 2,555
Accounts receivable, net 1,544 726
Prepaid expenses   270     102  
Total current assets 3,676 3,383
 
Property and equipment, net 51 55
Other assets   19     20  
Total assets $ 3,746   $ 3,458  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 318 $ 254
Accrued employee expenses 497 497
Other accrued liabilities 110 71
Deferred revenue   842     438  
Total current liabilities   1,767     1,260  
Total liabilities 1,767 1,260
 
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of March 31, 2017 and December 31, 2016 respectively. 34 34
Additional paid-in capital 142,695 142,600
Accumulated deficit   (140,750 )   (140,436 )
Total stockholders' equity   1,979     2,198  
Total liabilities and stockholders' equity $ 3,746   $ 3,458  
 
 
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
   
Three Months Ended March 31,
2017 2016
Total revenues $ 2,419 $ 2,243
Cost of revenues   990     926  
Gross Margin 1,429 1,317
Operating Expense
Product development 609 554
Sales and marketing 493 395
General and administrative   647     603  
Total operating expense   1,749     1,552  
Income / (loss) from operations   (320 )   (235 )
Income / (loss) before tax (320 ) (235 )
Other Income / Expense 10
Provision for income taxes   4     1  
Net income / (loss)   (314 )   (236 )
 
Basic income / (loss) per share $ (0.01 ) $ (0.01 )
Shares used in computing basic loss per share 33,388,545 33,388,545
Diluted net income (loss) per share $ (0.01 ) $ (0.01 )
Shares used in computing diluted income (loss) per share 33,388,545 33,388,545
 
Departmental allocation of stock-based compensation:
Cost of revenues $ 15 $ 20
Product development 25 27
Sales and marketing 5 9
General and administrative   50     55  
Total stock-based compensation $ 95   $ 111  
 
 
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
  Three Months Ended March 31,
2017   2016
Cash flows from operating activities:
Net income (loss) $ (314 ) $ (236 )
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets 9 9
Stock-based compensation 95 111
Changes in operating assets and liabilities:
Accounts receivable (818 ) (292 )
Other assets (169 ) (63 )
Accounts payable 64 122
Accrued liabilities 39 (19 )
Deferred revenue   405     (75 )
Net cash provided by (used in) operating activities   (689 )   (443 )
Cash flows from investing activities:
Purchase of property and equipment   (4 )   (24 )
Net cash provided by (used in) investing activities   (4 )   (24 )
Cash flows from financing activities:
Proceeds from exercise of stock options   -------     ------  
Net cash provided by (used for) financing activities   -------     ------  
Change in cash and cash equivalent (693 ) (467 )
Cash and cash equivalents, beginning of period   2,555     3,538  
Cash and cash equivalents, end of period $ 1,862   $ 3,071  
 
Supplemental disclosure of non-cash financing and investing activities:
Income taxes paid $ 4   $ 1  
 

Contacts

LiveWorld Contacts
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
Jason Kapler, 917-722-8281
jkapler@liveworld.com

Contacts

LiveWorld Contacts
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
Jason Kapler, 917-722-8281
jkapler@liveworld.com