LiveWorld Reports Full Year and Fourth Quarter Financial Results

CAMPBELL, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the fourth quarter of 2019. Total revenues were approximately $1.9 million for the fourth quarter, as compared to the approximately $2.0 million in total revenues reported for the same period in 2018. The Company’s revenues for the twelve months ended December 31, 2019 were approximately $7.4 million, as compared to the $7.7 million for the twelve months ended December 31, 2018. The $7.4 million revenue compares to $6.0 million for the twelve months ended December 31, 2018 when excluding Walmart, or a 22% increase in non-Walmart revenue.

The Company reported a net income for the quarter of approximately $14,000, or 1% of total revenues. This compares to net income of approximately $41,000, or 2% of total revenues reported for the fourth quarter of 2018. The Company had a net loss for the twelve months ended December 31, 2019 of approximately $449,000, or 6% of total revenues, as compared to the net loss of approximately $637,000, or 8% of total revenues for the twelve months ended December 31, 2018.

The Company finished the fourth quarter with approximately $730,000 in cash and cash equivalents, as compared to the approximately $1.2 million at the end of 2018.

“Our total revenues for 2019 were approximately $7.4 million an increase of approximately $1.4 million or 22% when compared to non-Walmart revenues for 2018. Our total healthcare revenues for 2019 were approximately $5.4 million as compared to the $4.3 million for 2018, or a 32% growth rate,” said David Houston, Chief Financial Officer of LiveWorld. “We will continue to focus our efforts on the healthcare market as a means to grow the company.”

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 digital agency and software company specializing in social media solutions that empower companies to deepen customer relationships with emotion driven behavior change through campaigns with a human touch. The Company provides consulting, strategy, and creative along with human agents for moderation, engagement, customer care, and adverse events management, as well as conversation management software, and chatbots for digital campaigns and social media programs. 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,
		2019			2018
ASSETS
Current assets
Cash and cash equivalent	$	730		$	1,152
Accounts receivable, net		843			362
Prepaid expenses		154			142
Total current assets		1,727			1,656
Property and equipment, net		15			24
Other assets		31			22
Total assets	$	1,773		$	1,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	190		$	83
Accrued employee expenses		388			386
Other accrued liabilities		33			38
Deferred revenue		383			340
Total current liabilities		994			847
Total liabilities		994			847
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of December 31, 2019 and 33,388,545 as of December 31, 2018 respectively		34			34
Additional paid-in capital		143,606			143,233
Accumulated deficit		(142,861	)		(142,412	)
Total stockholders' equity		779			855
Total liabilities and stockholders' equity	$	1,773		$	1,702

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2019			2018			2019			2018
Total revenues	$	1,860		$	2,009		$	7,374		$	7,709
Cost of revenues		905			824			3,559			3,258
Gross Margin		955			1,185			3,815			4,451
Operating Expense
Product development		279			405			1,228			1,703
Sales and marketing		229			282			1,099			1,219
General and administrative		455			462			1,950			2,161
Total operating expense		963			1,149			4,277			5,083
Income / (loss) from operations		(8	)		36			(462	)		(632	)
Income / (loss) before tax		(8	)		36			(462	)		(632	)
Other Income / Expense		1			1			2			4
Provision for income taxes		(21	)		(4	)		(11	)		9
Net income / (loss)		14			41			(449	)		(637	)
Basic income / (loss) per share	$	0.00		$	0.00		$	(0.01	)	$	(0.02	)
Shares used in computing basic loss per share		45,633,442			33,388,545			45,633,442			33,388,545
Diluted net income (loss) per share	$	0.00		$	0.00		$	(0.01	)	$	(0.02	)
Shares used in computing diluted income (loss) per share		45,633,442			33,388,545			45,633,442			33,388,545
Departmental allocation of stock-based compensation:
Cost of revenues	$	3		$	8		$	18		$	40
Product development		3			6			17			36
Sales and marketing		3			6			16			39
General and administrative		4			22			23			149
Total stock-based compensation	$	13		$	42		$	74		$	264

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended December 31,						Twelve Months Ended December 31,
		2019			2018			2019			2018
Cash flows from operating activities:
Net income (loss)	$	14		$	41		$	(449	)	$	(637	)
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		3			7			18			28
Stock-based compensation		13			42			74			264
Changes in operating assets and liabilities:
Accounts receivable		(330	)		132			(481	)		(58	)
Other assets		(23	)		18			(21	)		2
Accounts payable		31			(71	)		107			(107	)
Accrued liabilities		21			(129	)		(4	)		(296	)
Deferred revenue		(95	)		(367	)		43			(310	)
Net cash provided by (used in) operating activities		(366	)		(327	)		(713	)		(1,114	)
Cash flows from investing activities:
Purchase of property and equipment		(5	)		(3	)		(9	)		(4	)
Net cash provided by (used in) investing activities		(5	)		(3	)		(9	)		(4	)
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		(371	)		(330	)		(422	)		(1,118	)
Cash and cash equivalents, beginning of period		1,101			1,482			1,152			2,270
Cash and cash equivalents, end of period	$	730		$	1,152		$	730		$	1,152
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid	$	(21	)		(4	)	$	(11	)	$	9