LiveWorld Reports Third Quarter Financial Results

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2018. Total revenues were approximately $1.6 million for the third quarter, as compared to the approximately $2.3 million in total revenues reported for the same period in 2017. The Companys revenues for the nine months ended September 30, 2018 were approximately $5.7 million, as compared to the $7.3 million for the nine months ended September 30, 2017.

The Company reported a net loss for the quarter of approximately $188,000, or 13% of total revenues. This compares to net loss of approximately $418,000, or 18% of total revenues reported for the third quarter of 2017. The Company had a net loss for the nine months ended September 30, 2018 of approximately $678,000, or 12% of total revenues, as compared to the net loss of approximately $1.2 million, or 17% of total revenues for the nine months ended September 30, 2017.

The Company finished the third quarter with approximately $1.5 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 one-time restructuring costs.

The reduction in revenue was a result of Walmart ending its relation with the Company in the second quarter of 2018. Walmart represented 45% of revenues for the third quarter of 2017 and 0% for the third quarter of 2018. For the third quarter the Company had revenues of approximately $1.6 million which was a reduction of approximately $762,000 as compared to the $2.3 million for the same period in 2017. The decline in Walmart related revenues was approximately $1 million period over period, and this was offset by increases in revenues from our other clients of approximately $225,000 for the third quarter of 2018.

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We saw our healthcare related revenues grow approximately 36% from the second quarter to the third quarter of 2018, said David Houston, Chief Financial Officer of LiveWorld. Additionally, our cost reduction activities decreased our net loss by approximately 48% from a loss of $358,000 for the second quarter to $188,000 for the third quarter of 2018. We anticipate seeing the net loss continue to improve for the rest of 2018.

Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorlds 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 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)
   
September 30, December 31,
2018 2017
ASSETS
Current assets
Cash and cash equivalent $ 1,482 $ 2,270
Accounts receivable, net 494 304
Prepaid expenses   164     148  
Total current assets 2,140 2,722
 
Property and equipment, net 28 48
Other assets   20     19  
Total assets $ 2,188   $ 2,789  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 154 $ 190
Accrued employee expenses 365 516
Other accrued liabilities 189 205
Deferred revenue   708     651  
Total current liabilities   1,416     1,562  
Total liabilities 1,416 1,562
 
Stockholders’ equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of September 30, 2018 and December 31, 2017 respectively 34 34
Additional paid-in capital 143,190 142,968
Accumulated deficit   (142,452 )   (141,775 )
Total stockholders’ equity   772     1,227  
Total liabilities and stockholders’ equity $ 2,188   $ 2,789  
 
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
       
Three Months Ended

Sept 30,

Nine Months Ended

Sept 30,

2018 2017 2018 2017
Total revenues $ 1,562 $ 2,324 $ 5,700 $ 7,268
Cost of revenues   695     948     2,434     2,926  
Gross Margin 867 1,376 3,266 4,342
Operating Expense
Product development 370 536 1,298 1,686
Sales and marketing 204 603 937 1,802
General and administrative   482     657     1,699     2,089  
Total operating expense   1,056     1,796     3,934     5,577  
Income / (loss) from operations   (189 )   (420 )   (668 )   (1,235 )
Income / (loss) before tax (189 ) (420 ) (668 ) (1,235 )
Other Income / Expense 1 2 3 14
Provision for income taxes   ——–     ——-     13     5  
Net income / (loss)   (188 )   (418 )   (678 )   (1,226 )
 
Basic income / (loss) per share $ (0.01 ) $ (0.01 ) $ (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 $ (0.01 ) $ (0.01 ) $ (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 $ 7 $ 14 $ 32 $ 38
Product development 9 16 30 56
Sales and marketing 10 13 33 48
General and administrative   32     48     127     139  
Total stock-based compensation $ 58   $ 91   $ 222   $ 281  
 
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
 

Three Months Ended Sept 30,

 

Nine Months Ended Sept 30,

2018   2017 2018   2017
Cash flows from operating activities:
Net income (loss) $ (188 ) $ (418 ) $ (678 ) $ (1,226 )
Adjustments to reconcile net income (loss) provided by

(used in) operating activities:

Depreciation of long-lived assets 7 6 21 22
Stock-based compensation 58 91 222 281
Changes in operating assets and liabilities:
Accounts receivable (48 ) 2,246 (189 ) 327
Other assets (26 ) 14 (16 ) (87 )
Accounts payable 38 (171 ) (36 ) (103 )
Accrued liabilities (31 ) 208 (168 ) 251
Deferred revenue   352     (1,463 )   57     267  
Net cash provided by (used in) operating activities   162     513     (787 )   (268 )
Cash flows from investing activities:
Purchase of property and equipment   ——–     (1 )   (1 )   (9 )
Net cash provided by (used in) investing activities   ——–     (1 )   (1 )   (9 )
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 162 512 (788 ) (277 )
Cash and cash equivalents, beginning of period   1,320     1,766     2,270     2,555  
Cash and cash equivalents, end of period $ 1,482   $ 2,278   $ 1,482   $ 2,278  
 
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid $ ——–  

$

——-   $ 13   $ 5  

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

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

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