LiveWorld Reports Second Quarter Financial Results

Company see 82% revenue growth in healthcare related revenue

SAN JOSE, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2019. Total revenues were approximately $1.9 million for the second quarter, as compared to the approximately $1.7 million in total revenues reported for the same period in 2018. The $1.9 million revenue compares to $1.3 million for the first quarter of 2018 when excluding Walmart, or a 48% increase in non-Walmart revenue. The Company’s revenues for the six months ended June 30, 2019 were approximately $3.6 million, as compared to the $4.1 million for the six months ended June 30, 2018. The $3.6 million revenue compares to $2.5 million for the six months ended June 30, 2019 when excluding Walmart, or a 46% increase in non-Walmart revenue.

The Company reported a net loss for the quarter of approximately $69,000, or 4% of total revenues. This compares to net loss of approximately $358,000, or 20% of total revenues reported for the second quarter of 2018. This is a reduction of approximately $289,000 or 81% quarter over quarter. This reduction was a result of lower operating costs. The Company had a net loss for the six months ended June 30, 2019 of approximately $413,000, or 11% of total revenues, as compared to the net loss of approximately $490,000, or 11% of total revenues for the six months ended June 30, 2018. This is a reduction of approximately $77,000 or 16% period over period. This reduction was a result of lower operating costs in the second quarter.

The Company finished the second quarter with approximately $1.2 million in cash and cash equivalents, as compared to the approximately $1.2 million at the end of 2018.

“In 2019 we continue to focus on expanding our healthcare related revenues, and make strategic investments in our platform along with sales and marketing,” said David Houston, Chief Financial Officer of LiveWorld, “We saw our total healthcare related revenues for the first six months of 2019 grow by approximately 82%. We do not anticipate the growth rate to remain this high, but do expect it to remain strong for 2019."

Detailed financial information may be downloaded at https://www.liveworld.com/about-us/investor-relations/ (LiveWorld’s Investor Relations page).

About LiveWorld

LiveWorld is a digital agency and software company specializing in social media solutions that help companies build stronger customer relationships. We provide consulting, strategy, and creative along with human agents, conversation management software, and chatbots for digital campaigns and social media programs. Our solutions empower companies to deepen relationships with customers, professionals, patients and healthcare providers with emotion driven behavior change through conversations and campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, consumer packaged goods, 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,
		2019			2018
ASSETS
Current assets
Cash and cash equivalent	$	1,188		$	1,152
Accounts receivable, net		470			362
Prepaid expenses		152			142
Total current assets		1,810			1,656
Property and equipment, net		16			24
Other assets		22			22
Total assets	$	1,848		$	1,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	114		$	83
Accrued employee expenses		399			386
Other accrued liabilities		36			38
Deferred revenue		512			340
Total current liabilities		1,061			847
Total liabilities		1,061			847
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2019 and 33,388,545 outstanding as of December 31, 2018 respectively		34			34
Additional paid-in capital		143,577			143,233
Accumulated deficit		(142,824	)		(142,412	)
Total stockholders' equity		787			855
Total liabilities and stockholders' equity	$	1,848		$	1,702

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
		2019			2018			2019			2018
Total revenues	$	1,902		$	1,716		$	3,608		$	4,138
Cost of revenues		901			786			1,757			1,738
Gross Margin		1,001			930			1,851			2,400
Operating Expense
Product development		303			397			656			928
Sales and marketing		284			243			589			733
General and administrative		478			638			1,011			1,218
Total operating expense		1,065			1,278			2,256			2,879
Income / (loss) from operations		(64	)		(348	)		(405	)		(479	)
Income / (loss) before tax		(64	)		(348	)		(405	)		(479	)
Other Income / Expense		1		--------				1			2
Provision for income taxes		6			10			9			13
Net income / (loss)		(69	)		(358	)		(413	)		(490	)
Basic income / (loss) per share	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Shares used in computing basic loss per share		45,633,442			33,388,545			40,531,401			33,388,545
Diluted net income (loss) per share	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Shares used in computing diluted income (loss) per share		45,633,442			33,388,545			40,531,401			33,388,545
Departmental allocation of stock-based compensation:
Cost of revenues	$	5		$	13		$	11		$	25
Product development		5			9			11			21
Sales and marketing		4			11			10			23
General and administrative		6			47			14			95
Total stock-based compensation	$	20		$	80		$	46		$	164

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
		2019			2018			2019			2018
Cash flows from operating activities:
Net income (loss)	$	(69	)	$	(358	)	$	(413	)	$	(490	)
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		5			7			11			14
Stock-based compensation		20			80			46			164
Changes in operating assets and liabilities:
Accounts receivable		116			1,703			(108	)		(141	)
Other assets		99			74			(10	)		9
Accounts payable		(92	)		(101	)		31			(74	)
Accrued liabilities		31			(8	)		11			(136	)
Deferred revenue		137			(733	)		172			(295	)
Net cash provided by (used in) operating activities		247			664			(260	)		(949	)
Cash flows from investing activities:
Purchase of property and equipment	---------			--------				(4	)		(1	)
Net cash provided by (used in) investing activities	---------			--------				(4	)		(1	)
Cash flows from financing activities:
Capital Investment	---------			--------				300		--------
Proceeds from exercise of stock options	---------			--------			---------			--------
Net cash provided by (used for) financing activities	---------			--------				300		--------
Change in cash and cash equivalent		247			664			36			(950	)
Cash and cash equivalents, beginning of period		941			656			1,152			2,270
Cash and cash equivalents, end of period	$	1,188		$	1,320		$	1,188		$	1,320
Supplemental disclosure of non-cash financing and investing activities:
Income taxes paid	$	6		$	10		$	9		$	13