SAN JOSE, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets:LVWD), today announced financial results for the first quarter of 2016. Total revenues were approximately $2.2 million for the first quarter, as compared to the approximately $2.6 million in total revenues reported for the same period in 2015.
The Company reported a net loss for the quarter of approximately $236,000, or 10% of total revenues. This compares to net loss of approximately $844,000 or 32% of total revenues reported for the first quarter of 2015.
The Company finished the first quarter with approximately $3.1 million in cash and cash equivalents, as compared to the approximately $3.5 million at the end of 2015.
“Quarter over quarter we reduced our total expenses by approximately $1 million, which resulted in the narrowing of our losses,” said David Houston, Chief Financial Officer of LiveWorld. “In April we announced our next generation Conversation Management Platform which will for the first time in years be available as a standalone SaaS license as well as bundled with our services solutions. We anticipate the SaaS platform will be a major focus of our product development, sales, and marketing moving forward.
Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) 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. 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 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) | |||||||||
| March 31, | December 31, | ||||||||
| 2016 | 2015 | ||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalent | $ | 3,071 | $ | 3,538 | |||||
| Accounts receivable, net | 719 | 427 | |||||||
| Prepaid expenses | 168 | 106 | |||||||
| Total current assets | 3,958 | 4,071 | |||||||
| Property and equipment, net | 53 | 38 | |||||||
| Other assets | 18 | 17 | |||||||
| Total assets | $ | 4,029 | $ | 4,126 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 211 | $ | 89 | |||||
| Accrued employee expenses | 423 | 474 | |||||||
| Other accrued liabilities | 55 | 23 | |||||||
| Deferred revenue | 397 | 472 | |||||||
| Total current liabilities | 1,086 | 1,058 | |||||||
| Total liabilities | 1,086 | 1,058 | |||||||
| Stockholders' equity | |||||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of March 31, 2016 and December 31, 2015 respectively. | 34 | 34 | |||||||
| Additional paid-in capital | 142,310 | 142,200 | |||||||
| Accumulated deficit | (139,401) | (139,166) | |||||||
| Total stockholders' equity | 2,943 | 3,068 | |||||||
| Total liabilities and stockholders' equity | $ | 4,029 | $ | 4,126 | |||||
| LIVEWORLD, INC. | ||||||||||
| UNAUDITED CONDENSED STATEMENT OF OPERATIONS | ||||||||||
| (In thousands, except per share data) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2016 | 2015 | |||||||||
| Total revenues | $ | 2,243 | $ | 2,635 | ||||||
| Cost of revenues | 926 | 1,346 | ||||||||
| Gross Margin | 1,317 | 1,289 | ||||||||
| Operating Expense | ||||||||||
| Product development | 554 | 868 | ||||||||
| Sales and marketing | 395 | 522 | ||||||||
| General and administrative | 603 | 740 | ||||||||
|
Total operating expense |
1,552 | 2,130 | ||||||||
| Loss from operations | (235) | (841) | ||||||||
| Loss before tax | (235) | (841) | ||||||||
| Provision for income taxes | 1 | 3 | ||||||||
| Net loss | (236) | (844) | ||||||||
| Basic loss per share | $ | (0.01) | $ | (0.03) | ||||||
| Shares used in computing basic loss per share | 33,388,545 | 33,388,545 | ||||||||
| Diluted net loss per share | $ | (0.01) | $ | (0.03) | ||||||
| Shares used in computing diluted loss per share | 33,388,545 | 33,388,545 | ||||||||
| Departmental allocation of stock-based compensation: | ||||||||||
| Cost of revenues | $ | 20 | $ | 19 | ||||||
| Product development | 27 | 21 | ||||||||
| Sales and marketing | 9 | 16 | ||||||||
| General and administrative | 55 | 49 | ||||||||
| Total stock-based compensation | $ | 111 | $ | 105 | ||||||
| LIVEWORLD, INC. | |||||||||
| UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | |||||||||
| (In thousands) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2016 | 2015 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net loss | $ | (236) | $ | (844) | |||||
| Adjustments to reconcile net income (loss) provided by (used in) operating activities: | |||||||||
| Depreciation of long-lived assets | 9 | 31 | |||||||
| Stock-based compensation | 111 | 105 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (292) | (7) | |||||||
| Other assets | (63) | 33 | |||||||
| Accounts payable | 122 | 261 | |||||||
| Accrued liabilities | (19) | 2 | |||||||
| Deferred revenue | (75) | (1,197) | |||||||
| Net cash provided by (used in) operating activities | (443) | (1,616) | |||||||
| Cash flows from investing activities: | |||||||||
| Purchase of property and equipment | (24) | (2) | |||||||
| Net cash provided by (used in) investing activities | (24) | (2) | |||||||
| 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 | (467) | (1,618) | |||||||
| Cash and cash equivalents, beginning of period | 3,538 | 4,386 | |||||||
| Cash and cash equivalents, end of period | $ | 3,071 | $ | 2,768 | |||||
| Supplemental disclosure of non-cash financing and investing activities: | |||||||||
| Income taxes paid | $ | 1 | $ | 2 | |||||