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LiveWorld Reports Third Quarter Financial Results
[November 17, 2020]

LiveWorld Reports Third Quarter Financial Results


LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2020. Total revenues were approximately $2.0 million for the third 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 $104,000 or 5% when compared to the third quarter of 2019. Total revenues for the nine months ended September 30, 2020 were approximately $6.0 million, as compared to the $5.5 million for the nine months ended September 30, 2019. This was an increase of approximately $505,000 or 9% when compared to the nine months ended September 30, 2019. Healthcare related revenues grew 6% when comparing the third quarter of 2020 to 2019, and grew 12% when comparing the nine months ended September 30th.

We reported a net income for the quarter of approximately $136,000 or 7% of total revenues. This compares to net loss of approximately $50,000 or 3% of total revenues reported for the third quarter of 2019. The company had a net income for the nine months ended September 30, 2020 of approximately $75,000, or 1% of total revenues, as compared to the net loss for the nine months ended September 30, 2019 of approximately $463,000 or 8% of total revenues.

We finished the third quarter with approximately $2.3 million in cash and cash equivalents, as compared to the approximately $730,000 at the end of 2019.

"Our ongoing strategy to invest in digital and social media marketing solutions for the healthcare market has driven revenue growth," said David Houston, Chief Financial Officer of LiveWorld. "That growth combined with strong fiscal management has improved operating margins in 2020. This is a trend we expect to continue through the fourth quarter."

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)

(Unaudited)

(Unaudited)

September 30,

December 31,

 

2020

 

 

2019

 

ASSETS

Current assets

Cash and cash equivalent

$

2,316

 

$

730

 

Accounts receivable, net

 

1,770

 

 

843

 

Prepaid expenses

 

81

 

 

154

 

Total current assets

 

4,167

 

 

1,727

 

 

Property and equipment, net

 

22

 

 

15

 

Other assets

 

25

 

 

31

 

Total assets

$

4,214

 

$

1,773

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

97

 

$

190

 

Accrued employee expenses

 

697

 

 

388

 

Other accrued liabilities

 

207

 

 

33

 

Loan

973

---------

Deferred revenue

 

1,352

 

 

383

 

Total current liabilities

 

3,326

 

 

994

 

Total liabilities

 

3,326

 

 

994

 

 

Stockholders' equity

Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of September 30, 2020 and December 31, 2019 respectively

 

34

 

 

34

 

Additional paid-in capital

 

143,640

 

 

143,606

 

Accumulated deficit

 

(142,786

)

 

(142,861

)

Total stockholders' equity

 

888

 

 

779

 

Total liabilities and stockholders' equity

$

4,214

 

$

1,773

 

 

LIVEWORLD, INC.

CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

 

Three Months Ended

Sept 30,

Nine Months Ended

Sept 30,

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Total revenues

$

2,010

 

$

1,906

 

$

6,019

 

$

5,514

 

Cost of revenues

 

942

 

 

897

 

 

2,960

 

 

2,654

 

Gross Margin

 

1,068

 

 

1,009

 

 

3,059

 

 

2,860

 

Operating Expense

Product development

 

188

 

 

293

 

 

652

 

 

950

 

Sales and marketing

 

237

 

 

281

 

 

773

 

 

870

 

General and administrative

 

487

 

 

485

 

 

1,472

 

 

1,495

 

Total operating expense

 

912

 

 

1,059

 

 

2,897

 

 

3,315

 

Income / (loss) from operations

 

156

 

 

(50

)

 

162

 

 

(455

)

Income / (loss) before tax

 

156

 

 

(50

)

 

162

 

 

(455

)

Other Income / Expense

 

(2

)

---------

 

(67

)

 

2

 

Provision for income taxes

 

18

 

---------

 

20

 

 

10

 

Net income / (loss)

 

136

 

 

(50

)

 

75

 

 

(463

)

 

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

 

 

45,633,442

 

Diluted net income (loss) per share

$

0.00

 

$

(0.00

)

$

0.00

 

$

(0.01

)

Shares used in computing diluted income (loss) per share

 

48,084,742

 

 

45,633,442

 

 

48,084,742

 

 

45,633,442

 

 

Departmental allocation of stock-based compensation:

Cost of revenues

$

2

 

$

5

 

$

6

 

$

15

 

Product development

 

3

 

 

3

 

 

9

 

 

14

 

Sales and marketing

 

2

 

 

 

3

 

 

 

8

 

 

 

13

 

General and administrative

 

4

 

 

4

 

 

12

 

 

19

 

Total stock-based compensation

$

11

 

$

15

 

$

35

 

$

61

 

 

LIVEWORLD, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended
Sept 30,

Nine Months Ended
Sept 30,

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Cash flows from operating activities:

Net income (loss)

$

136

 

$

(50

)

$

75

 

$

(463

)

Adjustments to reconcile net income (loss) provided by (used in) operating activities:

Depreciation of long-lived assets

 

3

 

 

3

 

 

8

 

 

15

 

Stock-based compensation

 

11

 

 

15

 

 

35

 

 

61

 

Changes in operating assets and liabilities:

Accounts receivable

 

(282

)

 

(43

)

 

(927

)

 

(151

)

Other assets

 

(4

)

 

12

 

 

77

 

 

2

 

Accounts payable

 

27

 

 

45

 

 

(93

)

 

76

 

Accrued liabilities

 

280

 

 

(35

)

 

484

 

 

(25

)

Deferred revenue

 

174

 

 

(34

)

 

969

 

 

138

 

Net cash provided by (used in) operating activities

 

345

 

 

(87

)

 

628

 

 

(347

)

Cash flows from investing activities:

Purchase of property and equipment

 

(8

)

---------

 

(15

)

 

(4

)

Net cash provided by (used in) investing activities

 

(8

)

---------

 

(15

)

 

(4

)

Cash flows from financing activities:

Capital Investment

 

300

 

Loan

 

(54

)

---------

 

973

 

---------

Proceeds from exercise of stock options

----------

---------

----------

---------

Net cash provided by (used for) financing activities

 

(54

)

---------

 

973

 

 

300

 

Change in cash and cash equivalent

 

283

 

 

(87

)

 

1,586

 

 

(51

)

Cash and cash equivalents, beginning of period

 

2,033

 

 

1,188

 

 

730

 

 

1,152

 

Cash and cash equivalents, end of period

$

2,316

 

$

1,101

 

$

2,316

 

$

1,101

 

Supplemental disclosure of non-cash financing and investing activities:

Income tax paid

$

18

 

 

$

---------

 

$

20

 

 

$

10

 


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