LiveWorld Reports First Quarter 2024 Financial Results

Social-First Digital Agency Publishes Business Report Detailing Growth Strategy

CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter 2024.

Three Months 2024 Financial and Business Highlights

• Total three months revenues of $2.6 million
• Healthcare revenues of $2.3 million in Q1 2024
• Net loss from operations of ($498,000)
• Cash decreased by $320,000 to $4.3 million from December 31, 2023
• Added pharma executives to the board of directors, Helen Chang and Jennifer Sherak
• LiveWorld Business Report published detailing business model and growth strategy

Management Commentary

“In the first quarter of 2024 we had controlled losses as we invested in new market segments and new solution sets for our current and new clients in 2024 and 2025,” remarked David Houston, Chief Financial Officer, LiveWorld. “We anticipate the losses to diminish as we see increased revenue for the rest of the 2024.”

LiveWorld is publishing concurrent with this quarterly financial report a business review which covers its vision, business model, solutions, and investment growth strategies. The report is available for download here.

“We are looking to set a foundation for improved growth by unlocking the true power of social media for our clients with an integrated set of solutions across proactive compliance, dynamic engagement, and strategic insight,” added Peter Friedman, Chairman & CEO, LiveWorld. “As we look to expand our core business in the pharma market, we are excited to expand our board of directors with the knowledge and expertise of seasoned industry executives Helen Chang and Jennifer Sherak.”

Financial Review for the Three Months Ended March 31, 2024

Total revenues were approximately $2.6 million for the three months, as compared to approximately $2.7 million in total revenues reported for the same period in 2023. This was a decrease of approximately $176,000 or 6% when compared to the three months of 2023. A portion of the reduced revenues was as a result of delays in obtaining completed contracts and purchase orders from clients, and we expect to see an increase in revenues in the second quarter as a result.

Including the investment based controlled losses, the company reported a net loss for the three months of approximately $498,000 or 20% of total revenues. This compares to net income of approximately $134,000 or 5% of total revenues reported for the three months of 2023.

The company finished the quarter with approximately $4.3 million in cash and cash equivalents, compared to approximately $4.6 million at the end of 2023.

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

About LiveWorld

LiveWorld is a social-first digital agency that unlocks the full potential of social media to transform customer relationships through integrated compliance, engagement, and insight solutions. We provide brand marketers bold creative rooted in strategy that captivates and resonates, social moderation and engagement that activates interactions, software that enriches customer experiences, and compliance that enables and accelerates digital programs.

With over 28 years of making connections, we leverage our social media DNA to deliver emotion-driven behavior change through digital campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, healthcare, and financial-travel services. LiveWorld is headquartered in Campbell, 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)
	March 31,		December 31,
	2024		2023
ASSETS
Current assets
Cash and cash equivalent	$	4,316	$	4,635
Accounts receivable, net		2,263		1,701
Prepaid expenses		349		225
Total current assets		6,928		6,561
Property and equipment, net		43		44
Other assets		26		27
Total assets	$	6,997	$	6,632
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	235	$	238
Accrued employee expenses		661		890
Other accrued liabilities		357		343
Deferred revenue		1,443		438
Total current liabilities		2,696		1,909
Total liabilities		2,696		1,909
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of March 31, 2024, and December 31, 2023 respectively		34		34
Additional paid-in capital		144,207		144,131
Accumulated deficit		(139,940)		(139,442)
Total stockholders' equity		4,301		4,723
Total liabilities and stockholders' equity	$	6,997	$	6,632

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended March 31,
	2024		2023
Total revenues	$	2,572	$	2,748
Cost of revenues		1,577		1,316
Gross Margin		995		1,432
Operating Expense
Product development		272		259
Sales and marketing		510		430
General and administrative		711		608
Total operating expense		1,493		1,297
Income from operations		(498)		135
Income before tax		(498)		135
Other Income		1		1
Provision for income taxes		1		2
Net income from operations		(498)		134
Earnings per share analysis from operations:
Basic income per share	$	(0.01)	$	0.00
Shares used in computing basic loss per share		45,633,442		45,633,442
Diluted net income (loss) per share	$	(0.01)	$	0.00
Shares used in computing diluted income (loss) per share		45,633,442		62,694,122
Departmental allocation of stock-based compensation:
Cost of revenues	$	18	$	15
Product development		5		3
Sales and marketing		8		8
General and administrative		45		33
Total stock-based compensation	$	76	$	59

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended March 31,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	(498)	$	134
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		6		7
Stock-based compensation		76		59
Changes in operating assets and liabilities:
Accounts receivable		(562)		(99)
Other assets		(124)		(109)
Accounts payable		(2)		46
Accrued liabilities		(214)		(241)
Deferred revenue		1,004		799
Net cash provided by (used in) operating activities		(314)		596
Cash flows from investing activities:
Purchase of property and equipment		(5)		(5)
Net cash provided by (used in) investing activities		(5)		(5)
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		(319)		591
Cash and cash equivalents, beginning of period		4,635		3,801
Cash and cash equivalents, end of period	$	4,316	$	4,392
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid	$	1	$	2