LiveWorld Reports 2020 Financial Results

Increased revenue and improved bottom line

CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the fourth quarter of 2020. Total revenues were approximately $2.5 million for the fourth 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 $681,000 or 37% when compared to the fourth quarter of 2019. Total revenues for the twelve months ended December 31, 2020 were approximately $8.6 million, as compared to the $7.4 million for the twelve months ended December 31, 2019. This was an increase of approximately $1.2 million or 16% when compared to the twelve months ended December 31, 2019. Healthcare related revenues grew 46% when comparing the fourth quarter of 2020 to 2019 and grew 21% when comparing the full year 2020 to 2019.

We reported a net income for the quarter of approximately $291,000 or 11% of total revenues. This compares to net income of approximately $14,000 or 1% of total revenues reported for the fourth quarter of 2019. The company had a net income for the twelve months ended December 31, 2020 of approximately $366,000, or 4% of total revenues, as compared to the net loss for the twelve months ended December 31, 2019 of approximately $449,000 or 6% of total revenues.

We finished the fourth quarter with approximately $2.6 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 $1.5 million, an increase of approximately $806,000 or 110% from the end of 2019.

“The 2020 operating results saw an improvement of almost $900,000 from 2019 to 2020 or approximately 10% of the total 2020 revenues,” said David Houston, Chief Financial Officer of LiveWorld. “In 2020 we were steadfastly focused on growing our revenue in healthcare while managing the bottom line to profitability. We anticipate both revenue and the operating result to see boosts in 2021.”

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)
	December 31,		December 31,
	2020		2019
ASSETS
Current assets
Cash and cash equivalent	$	2,552	$	730
Accounts receivable, net		1,179		843
Prepaid expenses		96		154
Total current assets		3,827		1,727
Property and equipment, net		43		15
Other assets		25		31
Total assets	$	3,895	$	1,773
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	139	$	190
Accrued employee expenses		680		388
Other accrued liabilities		68		33
Loan		921	---------
Deferred revenue		897		383
Total current liabilities		2,705		994
Total liabilities		2,705		994
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of December 31, 2020 and December 31, 2019 respectively		34		34
Additional paid-in capital		143,651		143,606
Accumulated deficit		(142,495)		(142,861)
Total stockholders' equity		1,190		779
Total liabilities and stockholders' equity	$	3,895	$	1,773

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Total revenues	$	2,541	$	1,860	$	8,560	$	7,374
Cost of revenues		1,200		905		4,160		3,559
Gross Margin		1,341		955		4,400		3,815
Operating Expense
Product development		228		279		880		1,228
Sales and marketing		285		229		1,058		1,099
General and administrative		557		455		2,029		1,950
Total operating expense		1,070		963		3,967		4,277
Income / (loss) from operations		271		(8)		433		(462)
Income / (loss) before tax		271		(8)		433		(462)
Other Income / Expense		(1)		1		(68)		2
Provision for income taxes		(21)		(21)		(1)		(11)
Net income / (loss)		291		14		366		(449)
Basic income / (loss) per share	$	0.01	$	0.00	$	0.01	$	(0.01)
Shares used in computing basic loss per share		45,633,442		45,633,442		45,633,442		45,633,442
Diluted net income (loss) per share	$	0.01	$	0.00	$	0.01	$	(0.01)
Shares used in computing diluted income (loss) per share		59,404,153		45,633,442		48,127,547		45,633,442
Departmental allocation of stock-based compensation:
Cost of revenues	$	1	$	3	$	8	$	18
Product development		3		3		11		17
Sales and marketing		2		3		10		16
General and administrative		4		4		16		23
Total stock-based compensation	$	10	$	13	$	45	$	74

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Cash flows from operating activities:
Net income (loss)	$	291	$	14	$	366	$	(449)
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		3		3		11		18
Stock-based compensation		10		13		45		74
Changes in operating assets and liabilities:
Accounts receivable		591		(330)		(336)		(481)
Other assets		(12)		(23)		63		(21)
Accounts payable		42		31		(51)		107
Accrued liabilities		(156)		21		329		(4)
Deferred revenue		(456)		(95)		514		43
Net cash provided by (used in) operating activities		313		(366)		941		(713)
Cash flows from investing activities:
Purchase of property and equipment		(25)		(5)		(40)		(9)
Net cash provided by (used in) investing activities		(25)		(5)		(40)		(9)
Capital Investment	----------		---------		----------			300
Loan		(52)				921
Proceeds from exercise of stock options	----------		---------		----------		---------
Net cash provided by (used for) financing activities		(52)	---------			921		300
Change in cash and cash equivalent		236		(371)		1,822		(422)
Cash and cash equivalents, beginning of period		2,316		1,101		730		1,152
Cash and cash equivalents, end of period	$	2,552	$	730	$	2,552	$	730
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid	$	(21)	$	(21)	$	(1)	$	(11)