LiveWorld Reports Second Quarter Financial Results

CAMPBELL, Calif.--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2020. Total revenues were approximately $2.1 million for the second quarter, as compared to the approximately $1.9 million in total revenues reported for the same period in 2019. This was an increase of approximately $208,000 or 11% when compared to the second quarter of 2019. Total revenues for the six months ended June 30, 2020 were approximately $4.0 million, as compared to the $3.6 million for the six months ended June 30, 2019. This was an increase of approximately $401,000 or 11% when compared to the six months ended June 30, 2019. Healthcare related revenues grew 17% when comparing the second quarter of 2020 to 2019, and grew 16% when comparing the six months ended June 30^th.

We reported a net income for the quarter of approximately $28,000, or 4% of total revenues. This compares to net loss of approximately $69,000, or 3% of total revenues reported for the second quarter of 2020. The company had a net loss for the six months ended June 30, 2020 of approximately $61,000, or 0% of total revenues, as compared to the net loss for the six months ended June 30, 2019 of approximately $413,000, or 11% of total revenues.

We finished the second quarter with approximately $2.0 million in cash and cash equivalents, as compared to the approximately $730,000 at the end of 2019. We received proceeds from a loan of approximately $1.0 million, while cash from operations was approximately $1.0 million, an increase of approximately $277,000 or 38%.

“In the second quarter we saw overall revenues grow, combined with reduced operating expenses, resulting in a positive income from operations,” said David Houston, Chief Financial Officer of LiveWorld. “We anticipate continued improved operating margins for the remainder of 2020, when compared to 2019.”

Detailed financial information may be downloaded at www.liveworld.com/ir (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)
	(Unaudited)
	June 30,		December 31,
	2020		2019
ASSETS
Current assets
Cash and cash equivalent	$	2,033	$	730
Accounts receivable, net		1,488		843
Prepaid expenses		77		154
Total current assets		3,598		1,727
Property and equipment, net		16		15
Other assets		25		31
Total assets	$	3,639	$	1,773
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	70	$	190
Accrued employee expenses		562		388
Other accrued liabilities		60		33
Loan		1,027	---------
Deferred revenue		1,179		383
Total current liabilities		2,898		994
Total liabilities		2,898		994
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2020 and December 31, 2019 respectively		34		34
Additional paid-in capital		143,629		143,606
Accumulated deficit		(142,922)		(142,861)
Total stockholders' equity		741		779
Total liabilities and stockholders' equity	$	3,639	$	1,773

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Total revenues	$	2,110	$	1,902	$	4,009	$	3,608
Cost of revenues		1,075		901		2,018		1,757
Gross Margin		1,035		1,001		1,991		1,851
Operating Expense
Product development		223		303		464		656
Sales and marketing		241		284		535		589
General and administrative		480		478		986		1,011
Total operating expense		944		1,065		1,985		2,256
Income / (loss) from operations		91		(64)		6		(405)
Income / (loss) before tax		91		(64)		6		(405)
Other Income / (expense)		(63)		1		(65)		1
Provision for income taxes	----------			6		2		9
Net income / (loss)		28		(69)		(61)		(413)
Basic income / (loss) per share	$	0.00	$	(0.00)	$	(0.00)	$	(0.01)
Shares used in computing basic loss per share		45,633,442		45,633,442		45,633,442		40,531,401
Diluted net income (loss) per share	$	0.00	$	(0.00)	$	(0.00)	$	(0.01)
Shares used in computing diluted income (loss) per share		45,633,442		45,633,442		45,633,442		40,531,401
Departmental allocation of stock-based compensation:
Cost of revenues	$	2	$	5	$	5	$	11
Product development		3		5		6		11
Sales and marketing		3		4		5		10
General and administrative		4		6		8		14
Total stock-based compensation	$	12	$	20	$	24	$	46

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Cash flows from operating activities:
Net income (loss)	$	28	$	(69)	$	(61)	$	(413)
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		2		5		5		11
Stock-based compensation		12		20		24		46
Changes in operating assets and liabilities:
Accounts receivable		907		116		(645)		(108)
Other assets		25		99		82		(10)
Accounts payable		(63)		(92)		(120)		31
Accrued liabilities		225		31		202		11
Deferred revenue		(40)		137		796		172
Net cash provided by (used in) operating activities		1,096		247		283		(260)
Cash flows from investing activities:
Purchase of property and equipment		(7)	---------			(7)		(4)
Net cash provided by (used in) investing activities		(7)	---------			(7)		(4)
Cash flows from financing activities:
Capital Investment	----------		---------		----------			300
Loan		609	---------			1,027	---------
Proceeds from exercise of stock options	----------		---------		----------		---------
Net cash provided by (used for) financing activities		609	---------			1,027		300
Change in cash and cash equivalent		1,698		247		1,303		36
Cash and cash equivalents, beginning of period		335		941		730		1,152
Cash and cash equivalents, end of period	$	2,033	$	1,188	$	2,033	$	1,188
Supplemental disclosure of non-cash financing and investing activities:
Income taxes paid	----------			6		2		9