LiveWorld Reports Third Quarter Financial Results

SAN JOSE, Calif. & NEW YORK--()--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2015. Total revenues were approximately $2.4 million for the third quarter, as compared to the approximately $3.3 million in total revenues reported for the same period in 2014. The Company’s revenues for the nine months ended September 30, 2015 were approximately $7.3 million, as compared to the $9.9 million for the nine months ended September 30, 2014.

“We are performing well against our objectives, as evidenced by our continued narrowing of the quarterly losses and the improved cash position from our business operations.”

The Company reported a net loss for the quarter of approximately $149,000, or 6% of total revenues. This compares to net income of approximately $5,000, or 1% of total revenues reported for the third quarter of 2014. The Company had a net loss for the nine months ended September 30, 2015 of approximately $1.7 million, or 23% of total revenues, as compared to the net loss of approximately $424,000, or 3% of total revenues for the nine months ended September 30, 2014.

The Company finished the third quarter with approximately $3.6 million in cash and cash equivalents, as compared to the approximately $4.4 million at the end of 2014. The cash position of the Company has improved by $1.3 million from the $2.3 million it had on hand as of June 30, 2015.

“We are focused on our strategy of investing in our next generation software platform, and funding sales and marketing to create new business opportunities in 2016,” Said David Houston, Chief Financial Officer of LiveWorld. “We are performing well against our objectives, as evidenced by our continued narrowing of the quarterly losses and the improved cash position from our business operations.”

Detailed financial information may be downloaded at www.liveworld.com (Investor Relations) or at www.otcmarkets.com

About LiveWorld

LiveWorld is a services and software company that enables brands to enhance the customer experience in social media. Our solutions empower the largest brands in the world, allowing them to develop deeper relationships with their customers in the areas of marketing, customer service, and insights. LiveWorld clients foster social media environments that are natural continuations of the experiences customers have with brands—and with each other—in the real world.

LiveWorld uses the power of content and conversation to help companies achieve business goals, measureable through marketing and operational KPIs. Our services include strategy, campaign management, content moderation, customer engagement, customer service, and social analytics and listening. Our software has been designed to empower human beings to be more effective and allow companies to efficiently address the demands of social at global scale. LiveWorld clients include the #1 brands in consumer packaged goods, retail, pharmaceutical, financial, and travel services. LiveWorld is headquartered in San Jose, California, with offices in New York City, and Austin. Learn more at http://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)  
September 30, December 31,
2015 2014
ASSETS
Current assets
Cash and cash equivalent $ 3,592 $ 4,386
Accounts receivable, net 396 535
Prepaid expenses   136     397  
Total current assets 4,124 5,318
 
Property and equipment, net 46 144
Other assets   17     18  
Total assets $ 4,187   $ 5,480  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 232 $ 99
Accrued employee expenses 488 597
Other accrued liabilities 40 54
Deferred revenue   729     714  
Total liabilities 1,489 1,464
 
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of September 30, 2015 and December 31, 2014 respectively 34 34
Additional paid-in capital 142,079 141,735
Accumulated deficit   (139,415 )   (137,753 )
Total stockholders' equity   2,698     4,016  
Total liabilities and stockholders' equity $ 4,187   $ 5,480  
 
 
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
     
Three Months

Ended September 30,

Nine Months

Ended September 30,

2015   2014 2015     2014
Total revenues $ 2,393 $ 3,337 $ 7,272 $ 9,898
Cost of revenues   907     1,349   3,342     4,101  
Gross Margin 1,486 1,988 3,930 5,797
Operating Expense
Product development 531 809 2,077 2,509
Sales and marketing 457 467 1,421 1,518
General and administrative   643     704   2,059     2,176  
Total operating expense   1,631     1,980   5,557     6,203  
Income / (loss) from operations   (145 )   8   (1,627 )   (406 )
Income / (loss) before tax (145 ) 8 (1,627 ) (406 )
Other Income / Expense (25 )
Provision for income taxes   4     3   10     18  
Net income / (loss)   (149 )   5   (1,662 )   (424 )
 
Basic income / (loss) per share $ (0.00 ) $ 0.00 $ (0.05 ) $ (0.01 )
Shares used in computing basic loss per share 33,388,545 33,375,051 33,388,545 33,357,558
Diluted net income (loss) per share $ (0.00 ) $ 0.00 $ (0.05 ) $ (0.01 )
Shares used in computing diluted income (loss) per share 33,388,545 36,766,596 33,388,545 33,357,558
 
Departmental allocation of stock-based compensation:
Cost of revenues $ 21 $ 17 $ 61 $ 40
Product development 20 18 62 57
Sales and marketing 18 14 52 39
General and administrative   65     21   168     63  
Total stock-based compensation $ 124   $ 70 $ 343   $ 199  
 
 
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
 
Three Months

Ended September 30,

Nine Months

Ended September 30,

2015   2014 2015   2014
Cash flows from operating activities:
Net income (loss) $ (149 ) $ 5 $ (1,662 ) $ (424 )

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

Depreciation of long-lived assets 12 41 66 121
Stock-based compensation 124 70 343 199
Loss on sale of assets 1 ---- 37 ----
Changes in operating assets and liabilities:
Accounts receivable 444 (219 ) 139 (151 )
Other assets 87 (84 ) 263 (184 )
Accounts payable 74 9 133 25
Accrued liabilities 2 18 (123 ) (18 )
Deferred revenue   729     579     15     664  
Net cash provided by (used in) operating activities   1,324     419     (789 )   232  
Cash flows from investing activities:
Purchase of property and equipment   (3 )   (4 )   (5 )   (41 )
Net cash provided by (used in) investing activities   (3 )   (4 )   (5 )   (41 )
Cash flows from financing activities:
Proceeds from exercise of stock options   -----     3     -----     5  
Net cash provided by (used for) financing activities ----- 3 ----- 5
Change in cash and cash equivalent 1,321 418 (794 ) 196
Cash and cash equivalents, beginning of period   2,271     4,191     4,386     4,413  
Cash and cash equivalents, end of period $ 3,592   $ 4,609   $ 3,592   $ 4,609  
 
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid $ 4   $ 3   $ 10   $ 18  
 

Contacts

LiveWorld
IR Contact:
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
TallGrass Public Relations
Seth Menacker, 201-638.7561
Seth.Menacker@tallgrasspr.com

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