BusinessWire

LiveWorld Reports Second Quarter Financial Results

CAMPBELL, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2020. Total revenues were approximately $2.1 million for the second quarter, as compared to the approximately $1.9 million in total revenues reported for the same period in 2019. This was an increase of approximately $208,000 or 11% when compared to the second quarter of 2019. Total revenues for the six months ended June 30, 2020 were approximately $4.0 million, as compared to the $3.6 million for the six months ended June 30, 2019. This was an increase of approximately $401,000 or 11% when compared to the six months ended June 30, 2019. Healthcare related revenues grew 17% when comparing the second quarter of 2020 to 2019, and grew 16% when comparing the six months ended June 30th.

We reported a net income for the quarter of approximately $28,000, or 4% of total revenues. This compares to net loss of approximately $69,000, or 3% of total revenues reported for the second quarter of 2020. The company had a net loss for the six months ended June 30, 2020 of approximately $61,000, or 0% of total revenues, as compared to the net loss for the six months ended June 30, 2019 of approximately $413,000, or 11% of total revenues.

We finished the second quarter with approximately $2.0 million in cash and cash equivalents, as compared to the approximately $730,000 at the end of 2019. We received proceeds from a loan of approximately $1.0 million, while cash from operations was approximately $1.0 million, an increase of approximately $277,000 or 38%.

In the second quarter we saw overall revenues grow, combined with reduced operating expenses, resulting in a positive income from operations,” said David Houston, Chief Financial Officer of LiveWorld. “We anticipate continued improved operating margins for the remainder of 2020, when compared to 2019.”

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

About LiveWorld

LiveWorld is a digital agency and software company specializing in social media solutions that help companies build stronger customer relationships. We provide consulting, strategy, and creative along with human agents, conversation management software, and chatbots for digital campaigns and social media programs. Our solutions empower companies to deepen relationships with customers, professionals, patients and healthcare providers with emotion driven behavior change through conversations and campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, consumer packaged goods, 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)

June 30,

December 31,

2020

2019

ASSETS

Current assets

Cash and cash equivalent

$

2,033

$

730

Accounts receivable, net

 

1,488

 

843

Prepaid expenses

 

77

 

154

Total current assets

 

3,598

 

1,727

 

Property and equipment, net

 

16

 

15

Other assets

 

25

 

31

Total assets

$

3,639

$

1,773

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

70

$

190

Accrued employee expenses

 

562

 

388

Other accrued liabilities

 

60

 

33

Loan

 

1,027

---------

Deferred revenue

 

1,179

 

383

Total current liabilities

 

2,898

 

994

Total liabilities

 

2,898

 

994

 

Stockholders' equity

Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2020 and December 31, 2019 respectively

 

34

 

34

Additional paid-in capital

 

143,629

 

143,606

Accumulated deficit

 

(142,922)

 

(142,861)

Total stockholders' equity

 

741

 

779

Total liabilities and stockholders' equity

$

3,639

$

1,773

LIVEWORLD, INC.

CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

 

Three Months Ended

June 30,

Six Months

Ended June 30,

2020

2019

2020

2019

Total revenues

$

2,110

$

1,902

$

4,009

$

3,608

Cost of revenues

 

1,075

 

901

 

2,018

 

1,757

Gross Margin

 

1,035

 

1,001

 

1,991

 

1,851

Operating Expense

Product development

 

223

 

303

 

464

 

656

Sales and marketing

 

241

 

284

 

535

 

589

General and administrative

 

480

 

478

 

986

 

1,011

Total operating expense

 

944

 

1,065

 

1,985

 

2,256

Income / (loss) from operations

 

91

 

(64)

 

6

 

(405)

Income / (loss) before tax

 

91

 

(64)

 

6

 

(405)

Other Income / (expense)

 

(63)

 

1

 

(65)

 

1

Provision for income taxes

----------

 

6

 

2

 

9

Net income / (loss)

 

28

 

(69)

 

(61)

 

(413)

 

Basic income / (loss) per share

$

0.00

$

(0.00)

$

(0.00)

$

(0.01)

Shares used in computing basic loss per share

 

45,633,442

 

45,633,442

 

45,633,442

 

40,531,401

Diluted net income (loss) per share

$

0.00

$

(0.00)

$

(0.00)

$

(0.01)

Shares used in computing diluted income (loss) per share

 

45,633,442

 

45,633,442

 

45,633,442

 

40,531,401

 

Departmental allocation of stock-based compensation:

Cost of revenues

$

2

$

5

$

5

$

11

Product development

 

3

 

 

5

 

 

6

 

 

11

Sales and marketing

 

3

 

4

 

5

 

10

General and administrative

 

4

 

6

 

8

 

14

Total stock-based compensation

$

12

$

20

$

24

$

46

LIVEWORLD, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months

Ended June 30,

Six Months

Ended June 30,

2020

2019

2020

2019

Cash flows from operating activities:

Net income (loss)

$

28

$

(69)

$

(61)

$

(413)

Adjustments to reconcile net income (loss) provided by (used in) operating activities:

Depreciation of long-lived assets

 

2

 

5

 

5

 

11

Stock-based compensation

 

12

 

20

 

24

 

46

Changes in operating assets and liabilities:

Accounts receivable

 

907

 

116

 

(645)

 

(108)

Other assets

 

25

 

99

 

82

 

(10)

Accounts payable

 

(63)

 

(92)

 

(120)

 

31

Accrued liabilities

 

225

 

31

 

202

 

11

Deferred revenue

 

(40)

 

137

 

796

 

172

Net cash provided by (used in) operating activities

 

1,096

 

247

 

283

 

(260)

Cash flows from investing activities:

Purchase of property and equipment

 

(7)

---------

 

(7)

 

(4)

Net cash provided by (used in) investing activities

 

(7)

---------

 

(7)

 

(4)

Cash flows from financing activities:

Capital Investment

----------

---------

----------

 

300

Loan

 

609

---------

 

1,027

---------

Proceeds from exercise of stock options

----------

---------

----------

---------

Net cash provided by (used for) financing activities

 

609

---------

 

1,027

 

300

Change in cash and cash equivalent

 

1,698

 

247

 

1,303

 

36

Cash and cash equivalents, beginning of period

 

335

 

941

 

730

 

1,152

Cash and cash equivalents, end of period

$

2,033

$

1,188

$

2,033

$

1,188

 

Supplemental disclosure of non-cash financing and investing activities:

Income taxes paid

----------

 

 

6

 

 

2

 

 

9

 


Contacts

IR Contact:
David Houston
LiveWorld
dhouston@liveworld.com
(408) 615-8496

PR Contact:
Jason Kapler
LiveWorld
jkapler@liveworld.com
(917) 722-8281