LiveWorld Reports First Quarter Financial Results

CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD) today announced financial results for the first quarter of 2023.

Q12023 Financial and Business Highlights

• Total revenues of $2.7 million, up 12% year-over-year
• Healthcare revenues of $2.4 million, up 14% year-over-year
• Net income from operations of $134,000, or 5% of revenues
• Cash increased by $591,000 to $4.4 million from December 31^st, 2022
• Company received industry recognition with three new creative and social media awards

Management Commentary

“The end of our first quarter of 2023 marked our thirteenth consecutive quarter over quarter revenue growth and our twelfth consecutive quarter of profitability,” remarked David Houston, Chief Financial Officer of LiveWorld. “As a company we remain focused on profitable growth while making strategic investments. We will look to accelerate our investments where we can see an improvement in the growth and delivery of our services. Our expectations are we will continue to see top line revenue growth, while maintaining our profitability, and generating cash from operations in 2023.”

Financial Review for the Three Months Ended March 31, 2023

Total revenues were approximately $2.7 million for the three months, as compared to the approximately $2.5 million in total revenues reported for the same period in 2022. This was an increase of approximately $297,000 or 12% when compared to the three months of 2022.

The company reported net income for the first quarter of approximately $134,000 or 5% of total revenues. This compares to net income of approximately $122,000 or 5% of total revenues reported for the first quarter of 2022.

The company finished the first quarter with approximately $4.4 million in cash and cash equivalents, as compared to approximately $3.8 million at the end of 2022.

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 full-service, digital agency with deep social, creative, and compliance expertise that helps companies spark emotional connections, build stronger customer relationships, and drive behavior change. We operate at the intersection of bold creative rooted in strategy that captivates and resonates, social engagement that activates human interactions, and compliance to streamline processes, enabling innovative programs.

With over 27 years of making connections, we leverage our social media DNA and technology prowess to deliver emotion-driven behavior change through digital campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, healthcare, and financial-travel services. LiveWorld is headquartered in Campbell, 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)
	March 31			December 31,
	2023			2022
ASSETS
Current assets
Cash and cash equivalent	$	4,392		$	3,801
Accounts receivable, net		2,682			2,583
Prepaid expenses		289			180
Total current assets		7,363			6,564
Property and equipment, net		40			43
Other assets		26			26
Total assets	$	7,429		$	6,633
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	248		$	203
Accrued employee expenses		514			791
Other accrued liabilities		88			52
Deferred revenue		2,126			1,326
Total current liabilities		2,976			2,372
Total liabilities		2,976			2,372
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized, 45,633,442 issued and outstanding as of March 31, 2023 and December 31, 2022 respectively		34			34
Additional paid-in capital		143,941			143,883
Accumulated deficit		(139,522	)		(139,656	)
Total stockholders' equity		4,453			4,261
Total liabilities and stockholders' equity	$	7,429		$	6,633

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended March 31,
	2023		2022
Total revenues	$	2,748	$	2,451
Cost of revenues		1,316		1,238
Gross Margin		1,432		1,213
Operating Expense
Product development		259		202
Sales and marketing		430		401
General and administrative		608		483
Total operating expense		1,297		1,086
Income from operations		135		127
Income before tax		135		127
Other Income		1	------------
Provision for income taxes		2		5
Net income from operations		134		122
Basic income per share	$	0.00	$	0.00
Shares used in computing basic loss per share		45,633,442		45,633,442
Diluted net income (loss) per share	$	0.00	$	0.00
Shares used in computing diluted income (loss) per share		62,694,122		68,916,821
Departmental allocation of stock-based compensation:
Cost of revenues	$	15	$	9
Product development		3		1
Sales and marketing		8		4
General and administrative		33		12
Total stock-based compensation	$	59	$	26

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended March 31,
	2023			2022
Cash flows from operating activities:
Net income	$	134		$	122
Adjustments to reconcile net income provided by operating activities:
Depreciation of long-lived assets		7			6
Stock-based compensation		59			26
Changes in operating assets and liabilities:
Accounts receivable		(99	)		(878	)
Other assets		(109	)		(232	)
Accounts payable		46			79
Accrued liabilities		(241	)		(264	)
Deferred revenue		799			525
Net cash provided by operating activities		596			(616	)
Cash flows from investing activities:
Purchase of property and equipment		(5	)		(3	)
Net cash provided by investing activities		(5	)		(3	)
Cash flows from financing activities:
Proceeds from exercise of stock options	-------------			------------
Net cash provided by financing activities	-------------			------------
Change in cash and cash equivalent		591			(619	)
Cash and cash equivalents, beginning of period		3,801			3,551
Cash and cash equivalents, end of period	$	4,392		$	2,932
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid	$	2		$	5