SAN JOSE, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the fourth quarter of 2016. Total revenues were approximately $2.8 million for the fourth quarter, as compared to the approximately $2.6 million in total revenues reported for the same period in 2015. The Company’s revenues for the twelve months ended December 31, 2016 were approximately $9.7 million, as compared to the $9.9 million for the twelve months ended December 31, 2015.
The Company reported a net loss for the quarter of approximately $154,000, or 6% of total revenues. This compares to net income of approximately $239,000, or 9% of total revenues reported for the fourth quarter of 2015. The Company had a net loss for the twelve months ended December 31, 2016 of approximately $1.3 million, or 14% of total revenues, as compared to the net loss of approximately $1.4 million, or 14% of total revenues for the twelve months ended December 31, 2015.
The Company finished the fourth quarter with approximately $2.6 million in cash and cash equivalents, as compared to the approximately $3.5 million at the end of 2015.
“In 2016 we launched our Conversation Management Platform and expanded our sales efforts in the healthcare market,” said David Houston, Chief Financial Officer of LiveWorld. “These initiatives are critical to the future success of LiveWorld as we see clients moving towards messaging apps and chatbots resulting greater opportunities for revenue growth.”
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) | ||||||||||
| December 31, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalent | $ | 2,555 | $ | 3,538 | ||||||
| Accounts receivable, net | 726 | 416 | ||||||||
| Prepaid expenses | 102 | 107 | ||||||||
| Total current assets | 3,383 | 4,061 | ||||||||
| Property and equipment, net | 55 | 38 | ||||||||
| Other assets | 20 | 17 | ||||||||
| Total assets | $ | 3,458 | $ | 4,116 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 254 | $ | 89 | ||||||
| Accrued employee expenses | 497 | 474 | ||||||||
| Other accrued liabilities | 71 | 24 | ||||||||
| Deferred revenue | 438 | 472 | ||||||||
| Total current liabilities | 1,260 | 1,059 | ||||||||
| Total liabilities | 1,260 | 1,059 | ||||||||
| Stockholders' equity | ||||||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of December 31, 2016 and 2015 respectively | 34 | 34 | ||||||||
| Additional paid-in capital | 142,600 | 142,200 | ||||||||
| Accumulated deficit | (140,436 | ) | (139,177 | ) | ||||||
| Total stockholders' equity | 2,198 | 3,057 | ||||||||
| Total liabilities and stockholders' equity | $ | 3,458 | $ | 4,116 | ||||||
| LIVEWORLD, INC. | ||||||||||||||||||||
| UNAUDITED CONDENSED STATEMENT OF OPERATIONS | ||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Total revenues | $ | 2,769 | $ | 2,590 | $ | 9,730 | $ | 9,862 | ||||||||||||
| Cost of revenues | 1,080 | 953 | 3,862 | 4,295 | ||||||||||||||||
| Gross Margin | 1,690 | 1,637 | 5,867 | 5,568 | ||||||||||||||||
| Operating Expense | ||||||||||||||||||||
| Product development | 665 | 494 | 2,506 | 2,571 | ||||||||||||||||
| Sales and marketing | 553 | 373 | 2,138 | 1,794 | ||||||||||||||||
| General and administrative | 635 | 540 | 2,507 | 2,600 | ||||||||||||||||
| Total operating expense | 1,853 | 1,407 | 7,151 | 6,965 | ||||||||||||||||
| Income / (loss) from operations | (163 | ) | 230 | (1,284 | ) | (1,398 | ) | |||||||||||||
| Income / (loss) before tax | (163 | ) | 230 | (1,284 | ) | (1,398 | ) | |||||||||||||
| Other Income / Expense | 10 | ---- | 22 | (27 | ) | |||||||||||||||
| Provision for income taxes | ------ | (9 | ) | 1 | (2 | ) | ||||||||||||||
| Net income / (loss) | (154 | ) | 239 | (1,261 | ) | (1,423 | ) | |||||||||||||
| Basic income / (loss) per share | $ | (0.00 | ) | $ | 0.01 | $ | (0.04 | ) | $ | (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 | ) | $ | 0.01 | $ | (0.04 | ) | $ | (0.04 | ) | |||||||||
| Shares used in computing diluted income (loss) per share | 33,388,545 | 33,838,545 | 33,388,545 | 33,388,545 | ||||||||||||||||
| Departmental allocation of stock-based compensation: | ||||||||||||||||||||
| Cost of revenues | $ | 15 | $ | 22 | $ | 69 | $ | 82 | ||||||||||||
| Product development | 25 | 23 | 103 | 86 | ||||||||||||||||
| Sales and marketing | 5 | 9 | 25 | 62 | ||||||||||||||||
| General and administrative | 47 | 67 | 203 | 234 | ||||||||||||||||
| Total stock-based compensation | $ | 92 | $ | 121 | $ | 400 | $ | 464 | ||||||||||||
| LIVEWORLD, INC. | ||||||||||||||||||||
| UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Net income (loss) | $ | (154 | ) | $ | 239 | $ | (1,261 | ) | $ | (1,423 | ) | |||||||||
|
Adjustments to reconcile net income (loss) provided by (used in) operating activities: |
||||||||||||||||||||
| Depreciation of long-lived assets | 10 | 9 | 40 | 75 | ||||||||||||||||
| Stock-based compensation | 92 | 121 | 400 | 464 | ||||||||||||||||
| Loss on sale of assets | ------ | 2 | ------ | 38 | ||||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Accounts receivable | (342 | ) | (20 | ) | (310 | ) | 119 | |||||||||||||
| Other assets | 47 | 28 | 3 | 291 | ||||||||||||||||
| Accounts payable | (54 | ) | (143 | ) | 165 | (10 | ) | |||||||||||||
| Accrued liabilities | 10 | (31 | ) | 72 | (153 | ) | ||||||||||||||
| Deferred revenue | 139 | (257 | ) | (34 | ) | (242 | ) | |||||||||||||
| Net cash provided by (used in) operating activities | (252 | ) | (51 | ) | (926 | ) | (841 | ) | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Purchase of property and equipment | (11 | ) | (3 | ) | (57 | ) | (7 | ) | ||||||||||||
| Net cash provided by (used in) investing activities | (11 | ) | (3 | ) | (57 | ) | (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 | (263 | ) | (54 | ) | (983 | ) | (848 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 2,818 | 3,592 | 3,538 | 4,386 | ||||||||||||||||
| Cash and cash equivalents, end of period | $ | 2,555 | $ | 3,538 | $ | 2,555 | $ | 3,538 | ||||||||||||
| Supplemental disclosure of non-cash financing and investing activities: | ||||||||||||||||||||
| Income tax paid | $ | ------ | $ | ----- | $ | 1 | $ | 2 | ||||||||||||