CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter 2024.
Q2 2024 Financial and Business Highlights
- Total three months revenues of $2.8 million
- Healthcare revenues of $2.4 million in Q2 2024
- Net loss from operations of ($134,000)
- Cash increased by $136,000 to $4.8 million from December 31, 2023
Management Commentary
“In the first six months of 2024 we have seen net losses as a result of reduced revenues and our planned investment for 2024,” remarked David Houston, Chief Financial Officer of LiveWorld. “During this period we signed new clients and increased programs with some current clients. But we also found some corporate budgets tighten which we believe is a short-term condition. This combined with the usual client program attrition, indicate the full year 2024 revenues will be relatively flat when compared to 2023. Long term we believe our market segments and product lines are poised for growth.”
“2024 and 2025 are investment years for LiveWorld,” said Peter Friedman, Chairman & CEO. “Our new solutions in managing advertising media and in providing compliance support for pharma digital and social media marketing, along with our existing award-winning creative advertising programs and best in class moderation, are being well received. We expect these and our entry into new segments in the healthcare market to form a foundation for growth in future years.”
Financial Review for the Three and Six Months Ended June 30, 2024
Total revenues were approximately $2.8 million for the three months, as compared to approximately $3.1 million in total revenues reported for the same period in 2023. This was a decrease of approximately $284,000 or 9% when compared to the three months of 2023.
Total revenues were approximately $5.4 million for the six months, as compared to approximately $5.8 million in total revenues reported for the same period in 2023. This was a decrease of approximately $459,000 or 8% when compared to the three months of 2023.
The company reported a net loss for the three months of approximately $134,000 or 5% of total revenues. This compares to net income of approximately $164,000 or 5% of total revenues reported for the three months of 2023.
The company reported a net loss for the six months of approximately $632,000 or 12% of total revenues. This compares to net income of approximately $298,000 or 5% of total revenues reported for the six months of 2023.
The company finished the quarter with approximately $4.8 million in cash and cash equivalents, compared to approximately $4.6 million at the end of 2023.
Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at https://www.otcmarkets.com/stock/LVWD/overview.
About LiveWorld
LiveWorld is a social-first digital agency that unlocks the full potential of social media to transform customer relationships through integrated compliance, engagement, and insight solutions. We provide brand marketers bold creative rooted in strategy that captivates and resonates, social moderation and engagement that activates interactions, software that enriches customer experiences, and compliance that enables and accelerates digital programs.
With over 28 years of making connections, we leverage our social media DNA 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) |
||||||||
June 30, |
December 31, |
|||||||
2024 |
2023 |
|||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalent |
$ |
4,772 |
|
$ |
4,635 |
|
||
Accounts receivable, net |
|
2,082 |
|
|
1,701 |
|
||
Prepaid expenses |
|
226 |
|
|
225 |
|
||
Total current assets |
|
7,080 |
|
|
6,561 |
|
||
Property and equipment, net |
|
38 |
|
|
44 |
|
||
Other assets |
|
26 |
|
|
27 |
|
||
Total assets |
$ |
7,144 |
|
$ |
6,632 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ |
222 |
|
$ |
238 |
|
||
Accrued employee expenses |
|
768 |
|
|
890 |
|
||
Other accrued liabilities |
|
260 |
|
|
343 |
|
||
Deferred revenue |
|
1,646 |
|
|
438 |
|
||
Total current liabilities |
|
2,896 |
|
|
1,909 |
|
||
Total liabilities |
|
2,896 |
|
|
1,909 |
|
||
Stockholders' equity |
||||||||
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2024, and December 31, 2023, respectively |
|
34 |
|
|
34 |
|
||
Additional paid-in capital |
|
144,287 |
|
|
144,131 |
|
||
Accumulated deficit |
|
(140,073 |
) |
|
(139,442 |
) |
||
Total stockholders' equity |
|
4,248 |
|
|
4,723 |
|
||
Total liabilities and stockholders' equity |
$ |
7,144 |
|
$ |
6,632 |
|
||
LIVEWORLD, INC. |
||||||||||||||
CONDENSED STATEMENT OF OPERATIONS |
||||||||||||||
(In thousands, except per share data) |
||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
2024 |
2023 |
|
2024 |
2023 |
||||||||||
Total revenues |
$ |
2,786 |
|
$ |
3,070 |
$ |
5,359 |
|
$ |
5,818 |
||||
Cost of revenues |
|
1,567 |
|
|
1,477 |
|
|
3,144 |
|
|
2,793 |
|||
Gross Margin |
|
1,219 |
|
|
1,593 |
|
2,215 |
|
|
3,025 |
||||
Operating Expense |
||||||||||||||
Product development |
|
245 |
|
|
272 |
|
517 |
|
|
531 |
||||
Sales and marketing |
|
460 |
|
|
451 |
|
970 |
|
|
881 |
||||
General and administrative |
|
629 |
|
|
606 |
|
1,340 |
|
|
1,213 |
||||
Total operating expense |
|
1,334 |
|
|
1,329 |
|
|
2,827 |
|
|
2,625 |
|||
Income from operations |
|
(115 |
) |
|
264 |
|
|
(612 |
) |
|
400 |
|||
Income before tax |
|
(115 |
) |
|
264 |
|
(612 |
) |
|
400 |
||||
Other Income |
|
1 |
|
|
1 |
|
2 |
|
|
2 |
||||
Provision for income taxes |
|
20 |
|
|
101 |
|
22 |
|
|
104 |
||||
Net income from operations |
|
(134 |
) |
|
164 |
|
|
(632 |
) |
|
298 |
|||
Earnings per share analysis from operations: |
||||||||||||||
Basic income per share |
$ |
(0.00 |
) |
$ |
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 |
$ |
(0.00 |
) |
$ |
0.00 |
|
$ |
(0.01 |
) |
$ |
0.00 |
|||
Shares used in computing diluted income (loss) per share |
|
45,633,442 |
|
|
64,547,778 |
|
45,633,442 |
|
|
64,547,778 |
||||
Departmental allocation of stock-based compensation: |
||||||||||||||
Cost of revenues |
$ |
19 |
|
$ |
15 |
$ |
38 |
|
$ |
29 |
||||
Product development |
|
5 |
|
|
|
3 |
|
|
9 |
|
|
|
7 |
|
Sales and marketing |
|
8 |
|
|
8 |
|
16 |
|
|
16 |
||||
General and administrative |
|
48 |
|
|
34 |
|
|
93 |
|
|
67 |
|||
Total stock-based compensation |
$ |
80 |
|
$ |
60 |
|
$ |
156 |
|
$ |
119 |
|||
LIVEWORLD, INC. |
||||||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(In thousands) |
||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income (loss) |
$ |
(134 |
) |
$ |
164 |
|
$ |
(632 |
) |
$ |
298 |
|
||||
Adjustments to reconcile net income (loss) provided by (used in) operating activities: |
||||||||||||||||
Depreciation of long-lived assets |
|
6 |
|
|
8 |
|
|
13 |
|
|
15 |
|
||||
Stock-based compensation |
|
80 |
|
|
60 |
|
|
156 |
|
|
119 |
|
||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable |
|
181 |
|
|
575 |
|
|
(381 |
) |
|
476 |
|
||||
Other assets |
|
125 |
|
|
46 |
|
---- |
|
(64 |
) |
||||||
Accounts payable |
|
(14 |
) |
|
82 |
|
|
(16 |
) |
|
127 |
|
||||
Accrued liabilities |
|
10 |
|
|
87 |
|
|
(204 |
) |
|
(154 |
) |
||||
Deferred revenue |
|
203 |
|
|
(436 |
) |
|
1,207 |
|
|
364 |
|
||||
Net cash provided by (used in) operating activities |
|
457 |
|
|
586 |
|
|
143 |
|
|
1,181 |
|
||||
Cash flows from investing activities: |
||||||||||||||||
Purchase of property and equipment |
|
(1 |
) |
|
(16 |
) |
|
(6 |
) |
|
(20 |
) |
||||
Net cash provided by (used in) investing activities |
|
(1 |
) |
|
(16 |
) |
|
(6 |
) |
|
(20 |
) |
||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from exercise of stock options |
---- |
|
--- |
|
---- |
|
--- |
|
||||||||
Net cash provided by (used for) financing activities |
---- |
|
--- |
|
---- |
|
--- |
|
||||||||
Change in cash and cash equivalent |
|
456 |
|
|
570 |
|
|
137 |
|
|
1,161 |
|
||||
Cash and cash equivalents, beginning of period |
|
4,316 |
|
|
4,392 |
|
|
4,635 |
|
|
3,801 |
|
||||
Cash and cash equivalents, end of period |
$ |
4,772 |
|
$ |
4,962 |
|
$ |
4,772 |
|
$ |
4,962 |
|
||||
Supplemental disclosure of non-cash financing and investing activities: |
||||||||||||||||
Income tax paid |
$ |
20 |
|
$ |
101 |
|
$ |
22 |
|
$ |
104 |
|
||||
