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LiveWorld Reports Second Quarter Financial Results
[August 15, 2018]

LiveWorld Reports Second Quarter Financial Results


LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2018. Total revenues were approximately $1.7 million for the second quarter, as compared to the approximately $2.5 million in total revenues reported for the same period in 2017. This represented a reduction in total revenues of $809,000 period over period or 32%. The Company's revenues for the six months ended June 30, 2018 were approximately $4.1 million, as compared to the $4.9 million for the six months ended June 30, 2017. This represents a reduction of $807,000 period over period or 16%.

The Company reported a net loss for the quarter of approximately $358,000, or 20% of total revenues. This compares to net loss of approximately $494,000, or 20% of total revenues reported for the second quarter of 2017. The Company had a net loss for the six months ended June 30, 2018 of approximately $490,000, or 11% of total revenues, as compared to the net loss of approximately $808,000, or 16% of total revenues for the six months ended June 30, 2017.

The Company finished the second quarter with approximately $1.3 million in cash and cash equivalents, as compared to the approximately $656,000 at the end of the first quarter of 2018, an increase of $664,000 or 101%.

The Company said the decline in revenue was due primarily to the end of the Walmart relationship in the second quarter. Walmart was the largest client and it represented 95% of the $809,000 reduction in revenues. The remaining 5% was related to the timing and renewal of other client projects.

"We will continue to invest and expand our footprint in the healthcare sector, including growing our services revenue and innovating our SaaS (News - Alert) platform," said David Houston, Chief Financial Officer of LiveWorld. "We anticipate this investment will result in positive revenue growth in the sector for us in 2018."

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)
   
June 30, December 31,
2018 2017
ASSETS
Current assets
Cash and cash equivalent $ 1,320 $ 2,270
Accounts receivable, net 445 304
Prepaid expenses   138     148  
Total current assets 1,903 2,722
 
Property and equipment, net 35 48
Other assets   21     19  
Total assets $ 1,959   $ 2,789  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 116 $ 190
Accrued employee expenses 393 516
Other accrued liabilities 192 205
Deferred revenue   356     651  
Total current liabilities   1,057     1,562  
Total liabilities 1,057 1,562
 
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of June 30, 2018 and December 31, 2017 respectively 34 34
Additional paid-in capital 143,132 142,968
Accumulated deficit   (142,264 )   (141,775 )
Total stockholders' equity   902     1,227  
Total liabilities and stockholders' equity $ 1,959   $ 2,789  
 

 
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
       
Three Months Ended

June 30,

Six Months Ended

June 30,

2018 2017 2018 2017
Total revenues $ 1,716 $ 2,525 $ 4,138 $ 4,945
Cost of revenues   786     988     1,738     1,979  
Gross Margin 930 1,537 2,400 2,966
Operating Expense
Product development 397 541 928 1,150
Sales and marketing 243 705 733 1,198
General and administrative   638     788     1,218     1,433  
Total operating expense   1,278     2,034     2,879     3,781  
Income / (loss) from operations   (348 )   (497 )   (479 )   (815 )
Income / (loss) before tax (348 ) (497 ) (479 ) (815 )
Other Income / Expense -------- 2 2 12
Provision for income taxes   10     (1 )   13     5  
Net income / (loss)   (358 )   (494 )   (490 )   (808 )
 
Basic income / (loss) per share $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.02 )
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 ) $ (0.01 ) $ (0.02 )
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 $ 13 $ 10 $ 25 $ 25
Product development 9 14 21 39
Sales and marketing 11 29 23 35
General and administrative   47     42     95     91  
Total stock-based compensation $ 80   $ 95   $ 164   $ 190  
 
 
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
  Three Months

Ended June 30,

  Six Months

Ended June 30,

2018   2017 2018   2017
Cash flows from operating activities:
Net income (loss) $ (358 ) $ (494 ) $ (490 ) $ (808 )

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

Depreciation of long-lived assets 7 7 14 15
Stock-based compensation 80 95 164 190
Changes in operating assets and liabilities:
Accounts receivable 1,703 (1,100 ) (141 ) (1,919 )
Other assets 74 65 9 (101 )
Accounts payable (101 ) 4 (74 ) 68
Accrued liabilities (8 ) 5 (136 ) 43
Deferred revenue   (733 )   1,325     (295 )   1,730  
Net cash provided by (used in) operating activities   664     (93 )   (949 )   (782 )
Cash flows from investing activities:
Purchase of property and equipment   --------     (3 )   (1 )   (7 )
Net cash provided by (used in) investing activities   --------     (3 )   (1 )   (7 )
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 664 (96 ) (950 ) (789 )
Cash and cash equivalents, beginning of period   656     1,862     2,270     2,555  
Cash and cash equivalents, end of period $ 1,320   $ 1,766   $ 1,320   $ 1,766  
 
Supplemental disclosure of non-cash financing and investing activities:
Income taxes paid $ 10   $ 1   $ 13   $ 5  


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