LiveWorld Reports Second Quarter Financial Results

Healthcare Revenues Grow 26% For the Quarter

CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2021. Total revenues were approximately $2.5 million for the second quarter, as compared to the approximately $2.1 million in total revenues reported for the same period in 2020. This was an increase of approximately $389,000 or 18% when compared to the second quarter of 2020. Total revenues for the six months ended June 30, 2021 were approximately $4.7 million, as compared to the $4.0 million for the six months ended June 30, 2020. This was an increase of approximately $714,000 or 18% when compared to the six months ended June 30, 2020. Healthcare related revenues grew approximately 26% when compared to the second quarter of 2020.

We reported a net income for the quarter of approximately $130,000 or 5% of total revenues. This compares to net income of approximately $28,000 or 1% of total revenues reported for the second quarter of 2020. The company had a net income for the six months ended June 30, 2021 of approximately $251,000, or 5% of total revenues, as compared to the net loss for the six months ended June 30, 2020 of approximately $61,000, or 2% of total revenues.

We finished the second quarter with approximately $3.3 million in cash and cash equivalents, as compared to the approximately $2.6 million at the end of 2020.

“The second quarter saw our healthcare related revenues grow over 26%, or $454,000, resulting in the much-improved operating income for the company,” said David Houston, Chief Financial Officer of LiveWorld. “The second half of 2021 looks positive for both revenue growth and continued profitability.”

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 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,
		2021			2020
ASSETS
Current assets
Cash and cash equivalent	$	3,273		$	2,552
Accounts receivable, net		2,244			1,179
Prepaid expenses		170			96
Total current assets		5,687			3,827
Property and equipment, net		43			43
Other assets		25			25
Total assets	$	5,755		$	3,895
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	148		$	139
Accrued employee expenses		1,179			680
Other accrued liabilities		27			68
Loan		1,026			921
Deferred revenue		1,913			897
Total current liabilities		4,293			2,705
Total liabilities		4,293			2,705
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2021 and December 31, 2020 respectively		34			34
Additional paid-in capital		143,672			143,651
Accumulated deficit		(142,244	)		(142,495	)
Total stockholders' equity		1,462			1,190
Total liabilities and stockholders' equity	$	5,755		$	3,895

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended June 30,					Six Months Ended June 30,
		2021		2020			2021		2020
Total revenues	$	2,499	$	2,110		$	4,723	$	4,009
Cost of revenues		1,346		1,075			2,502		2,018
Gross Margin		1,153		1,035			2,221		1,991
Operating Expense
Product development		218		223			435		464
Sales and marketing		306		241			559		535
General and administrative		484		480			958		986
Total operating expense		1,008		944			1,952		1,985
Income / (loss) from operations		145		91			269		6
Income / (loss) before tax		145		91			269		6
Other Income / Expense	-----------			(63	)	-----------			(65	)
Provision for income taxes		15	----------				18		2
Net income / (loss)		130		28			251		(61	)
Basic income / (loss) per share	$	0.00	$	0.00		$	0.01	$	(0.00	)
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	$	0.00	$	0.00		$	0.01	$	(0.00	)
Shares used in computing diluted income (loss) per share		65,585,134		48,062,936			65,585,134		45,633,442
Departmental allocation of stock-based compensation:
Cost of revenues	$	3	$	2		$	4	$	5
Product development		1		3			3		6
Sales and marketing		1		3			3		5
General and administrative		7		4			12		8
Total stock-based compensation	$	12	$	12		$	22	$	24

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020
Cash flows from operating activities:
Net income (loss)	$	130		$	28		$	251		$	(61	)
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		5			2			9			5
Stock-based compensation		12			12			22			24
Changes in operating assets and liabilities:
Accounts receivable		(66	)		907			(1,065	)		(645	)
Other assets		40			25			(77	)		82
Accounts payable		4			(63	)		9			(120	)
Accrued liabilities		375			225			458			202
Deferred revenue		565			(40	)		1,017			796
Net cash provided by (used in) operating activities		1,065			1,096			624			283
Cash flows from investing activities:
Purchase of property and equipment		(4	)		(7	)		(9	)		(7	)
Net cash provided by (used in) investing activities		(4	)		(7	)		(9	)		(7	)
Cash flows from financing activities:
Loan	-----------				609			106			1,027
Proceeds from exercise of stock options	-----------			----------			-----------			----------
Net cash provided by (used for) financing activities	-----------				609			106			1,027
Change in cash and cash equivalent		1,061			1,698			721			1,303
Cash and cash equivalents, beginning of period		2,212			335			2,552			730
Cash and cash equivalents, end of period	$	3,273		$	2,033		$	3,273		$	2,033
Supplemental disclosure of non-cash financing and investing activities:
Income taxes paid	$	15		$ ----------			$	18		$	2