SAN JOSE, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter of 2018. The Company’s revenues for the first quarter were approximately $2.4 million, as compared to the $2.4 million for the first quarter in 2017.
The Company had a net loss for the quarter of approximately $132,000, or 5% of total revenues, as compared to the net loss of approximately $320,000, or 13% of total revenues for the first quarter of 2017.
The Company finished the first quarter with approximately $656,000 in cash and cash equivalents, as compared to the approximately $2.3 million at the end of 2017. Accounts receivable was approximately $2.1 million as of March 31, 2018 which was an increase of approximately $1.8 million, or 607% from the accounts receivable balance of approximately $304,000 as of December 31, 2017. This change in the cash and accounts receivable is a result of the renewal process and timing of payments with some clients. The cash position as of May 15, 2018 is approximately $1.9 million.
“In the first quarter of 2018 we cut our operating loss by almost 60% or approximately $188,000,” said David Houston, Chief Financial Officer of LiveWorld. “We feel it is critical we make more strategic investments in our sales, marketing and product development efforts.”
Detailed financial information may be downloaded at http://www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at http://www.otcmarkets.com.
About LiveWorld
LiveWorld provides enterprise-class software and services for managing customer conversations in social media and messaging apps, on the web and mobile devices. By blending human engagement and automation, we help companies get closer to their customers to bolster relationships, loyalty, and lifetime value. Our clients include Bank of America, Pfizer, Wells Fargo, and Zoetis, among others. Visit www.liveworld.com to learn more or contact us at @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) | ||||||||
| March 31, | December 31, | |||||||
| 2018 | 2017 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalent | $ | 656 | $ | 2,270 | ||||
| Accounts receivable, net | 2,149 | 304 | ||||||
| Prepaid expenses | 210 | 148 | ||||||
| Total current assets | 3,015 | 2,722 | ||||||
| Property and equipment, net | 42 | 48 | ||||||
| Other assets | 21 | 19 | ||||||
| Total assets | $ | 3,078 | $ | 2,789 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 217 | $ | 190 | ||||
| Accrued employee expenses | 399 | 516 | ||||||
| Other accrued liabilities | 193 | 205 | ||||||
| Deferred revenue | 1,089 | 651 | ||||||
| Total current liabilities | 1,898 | 1,562 | ||||||
| Total liabilities | 1,898 | 1,562 | ||||||
| Stockholders' equity | ||||||||
|
Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of March 31, 2018 and December 31, 2017 respectively |
34 | 34 | ||||||
| Additional paid-in capital | 143,052 | 142,968 | ||||||
| Accumulated deficit | (141,906 | ) | (141,775 | ) | ||||
|
Total stockholders' equity |
1,180 | 1,227 | ||||||
| Total liabilities and stockholders' equity | $ | 3,078 | $ | 2,789 | ||||
| LIVEWORLD, INC. | ||||||||
| CONDENSED STATEMENT OF OPERATIONS | ||||||||
| (In thousands, except per share data) | ||||||||
|
Three Months Ended |
||||||||
|
2018 |
2017 |
|||||||
| Total revenues | $ | 2,422 | $ | 2,419 | ||||
| Cost of revenues | 952 | 990 | ||||||
| Gross Margin | 1,470 | 1,429 | ||||||
| Operating Expense | ||||||||
| Product development | 531 | 609 | ||||||
| Sales and marketing | 491 | 493 | ||||||
| General and administrative | 580 | 647 | ||||||
| Total operating expense | 1,602 | 1,749 | ||||||
| Income / (loss) from operations | (132 | ) | (320 | ) | ||||
| Income / (loss) before tax | (132 | ) | (320 | ) | ||||
| Other Income / Expense | 3 | 10 | ||||||
| Provision for income taxes | 3 | 4 | ||||||
| Net income / (loss) | (132 | ) | (314 | ) | ||||
| Basic income / (loss) per share | $ | (0.00 | ) | $ | (0.01 | ) | ||
| Shares used in computing basic loss per share | 33,388,545 | 33,388,545 | ||||||
| Diluted net income (loss) per share | $ | (0.00 | ) | $ | (0.01 | ) | ||
| Shares used in computing diluted income (loss) per share | 33,388,545 | 33,388,545 | ||||||
| Departmental allocation of stock-based compensation: | ||||||||
| Cost of revenues | $ | 13 | $ | 15 | ||||
| Product development | 12 | 25 | ||||||
| Sales and marketing | 12 | 6 | ||||||
| General and administrative | 47 | 49 | ||||||
| Total stock-based compensation | $ | 84 | $ | 95 | ||||
| LIVEWORLD, INC. | ||||||||
| CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
|
Three Months Ended |
||||||||
| 2018 | 2017 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (132 | ) | $ | (314 | ) | ||
| Adjustments to reconcile net income (loss) provided by (used in) operating activities: | ||||||||
| Depreciation of long-lived assets | 7 | 9 | ||||||
| Stock-based compensation | 84 | 95 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,844 | ) | (818 | ) | ||||
| Other assets | (64 | ) | (169 | ) | ||||
| Accounts payable | 27 | 64 | ||||||
| Accrued liabilities | (129 | ) | 39 | |||||
| Deferred revenue | 438 | 405 | ||||||
| Net cash provided by (used in) operating activities | (1,613 | ) | (689 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (1 | ) | (4 | ) | ||||
| Net cash provided by (used in) investing activities | (1 | ) | (4 | ) | ||||
| 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 | (1,614 | ) | (693 | ) | ||||
| Cash and cash equivalents, beginning of period | 2,270 | 2,555 | ||||||
| Cash and cash equivalents, end of period | $ | 656 | $ | 1,862 | ||||
| Supplemental disclosure of non-cash financing and investing activities: | ||||||||
| Income taxes paid | $ | 3 | $ | 4 | ||||
