LiveWorld Reports Full Year and Fourth Quarter Financial Results

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the fourth quarter of 2018. Total revenues were approximately $2.0 million for the fourth quarter, as compared to the approximately $2.7 million in total revenues reported for the same period in 2017. The Companys revenues for the twelve months ended December 31, 2018 were approximately $7.7 million, as compared to the $9.9 million for the twelve months ended December 31, 2017.

The Company reported a net income for the quarter of approximately $41,000, or 2% of total revenues. This compares to net loss of approximately $113,000, or 4% of total revenues reported for the fourth quarter of 2017. The Company had a net loss for the twelve months ended December 31, 2018 of approximately $637,000, or 8% of total revenues, as compared to the net loss of approximately $1.3 million, or 13% of total revenues for the twelve months ended December 31, 2017.

We had a profitable fourth quarter as a result of reducing overall expenses while increasing our revenues in the healthcare market, said David Houston, Chief Financial Officer of LiveWorld. When we compare our fourth quarter revenues from 2017 to 2018 we saw an almost 50% increase in healthcare related revenues. We intend to continue our strategy to invest for growth, particularly with our healthcare solutions.

The Company finished the fourth quarter with approximately $1.2 million in cash and cash equivalents, as compared to the approximately $2.3 million at the end of 2017. This reduction in our cash was a result of operating losses and the timing of our contract renewals for 2019.

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The Companys revenues for 2018 were material impacted by the end of our multi-year Walmart relationship with LiveWorld in the second quarter of the year. Walmart represented approximately $4.7 million in 2017 or 47% of total revenues as compared to the only $1.7M or 22% of total revenues for year ended 2018. This nearly $3.0 million reduction in revenues was offset by growth with other clients by approximately $800,000 for the full year

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

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 LiveWorlds 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, LiveWorlds ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorlds 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)
   
December 31, December 31,
2018 2017
ASSETS
Current assets
Cash and cash equivalent $ 1,152 $ 2,270
Accounts receivable, net 362 304
Prepaid expenses   142     148  
Total current assets 1,656 2,722
 
Property and equipment, net 24 48
Other assets   22     19  
Total assets $ 1,702   $ 2,789  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 83 $ 190
Accrued employee expenses 386 516
Other accrued liabilities 38 205
Deferred revenue   340     651  
Total current liabilities   847     1,562  
Total liabilities 847 1,562
 
Stockholders’ equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of December 31, 2018 and December 31, 2017 respectively 34 34
Additional paid-in capital 143,233 142,968
Accumulated deficit   (142,412 )   (141,775 )
Total stockholders’ equity   855     1,227  
Total liabilities and stockholders’ equity $ 1,702   $ 2,789  
 
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
       
Three Months Ended Twelve Months Ended
December 31, December 31,
2018 2017 2018 2017
Total revenues $ 2,009 $ 2,680 $ 7,709 $ 9,949
Cost of revenues   824     1,018     3,258     3,945  
Gross Margin 1,185 1,662 4,451 6,004
Operating Expense
Product development 405 543 1,703 2,229
Sales and marketing 282 582 1,219 2,383
General and administrative   462     644     2,161     2,733  
Total operating expense   1,149     1,769     5,083     7,345  
Income / (loss) from operations   36     (107 )   (632 )   (1,341 )
Income / (loss) before tax 36 (107 ) (632 ) (1,341 )
Other Income / Expense 1 3 4 17
Provision for income taxes   (4 )   9     9     14  
Net income / (loss)   41     (113 )   (637 )   (1,338 )
 
Basic income / (loss) per share $ 0.00   $ (0.00 ) $ (0.02 ) $ (0.04 )
Shares used in computing basic loss per share 33,388,545 33,388,545 33,388,545 33,388,545
Diluted net income (loss) per share $ 0.00   $ (0.00 ) $ (0.02 ) $ (0.04 )
Shares used in computing diluted income (loss) per share 33,388,545 33,388,545 33,388,545 33,388,545
 
Departmental allocation of stock-based compensation:
Cost of revenues $ 8 $ 14 $ 40 $ 53
Product development 6 13 36 68
Sales and marketing 6 12 39 60
General and administrative   22     48     149     187  
Total stock-based compensation $ 42   $ 87   $ 264   $ 368  
 
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
 

Three Months Ended Dec 31,

 

Twelve Months Ended Dec 31,

2018   2017 2018   2017
Cash flows from operating activities:
Net income (loss) $ 41 $ (113 ) $ (637 ) $ (1,338 )

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

Depreciation of long-lived assets 7 6 28 29
Stock-based compensation 42 87 264 368
Changes in operating assets and liabilities:
Accounts receivable 132 94 (58 ) 501
Other assets 18 43 2 (47 )
Accounts payable (71 ) 39 (107 ) (64 )
Accrued liabilities (129 ) (98 ) (296 ) 153
Deferred revenue   (367 )   (54 )   (310 )   134  
Net cash provided by (used in) operating activities   (327 )   4     (1,114 )   (264 )
Cash flows from investing activities:
Purchase of property and equipment   (3 )   (12 )   (4 )   (21 )
Net cash provided by (used in) investing activities   (3 )   (12 )   (4 )   (21 )
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 (330 ) (8 ) (1,118 ) (285 )
Cash and cash equivalents, beginning of period   1,482     2,278     2,270     2,555  
Cash and cash equivalents, end of period $ 1,152   $ 2,270   $ 1,152   $ 2,270  
 
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid $ (4 ) $ 9   $ 9   $ 14  
 

LiveWorld Contacts

IR Contact:
David Houston
LiveWorld
[email protected]
(408)
615-8496

PR Contact:
Jason Kapler
LiveWorld
[email protected]
(917)
722-8281