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LiveWorld Reports First Quarter 2024 Financial Results
[May 15, 2024]

LiveWorld Reports First Quarter 2024 Financial Results


LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter 2024.

Three Months 2024 Financial and Business Highlights

  • Total three months revenues of $2.6 million
  • Healthcare revenues of $2.3 million in Q1 2024
  • Net loss from operations of ($498,000)
  • Cash decreased by $320,000 to $4.3 million from December 31, 2023
  • Added pharma executives to the board of directors, Helen Chang and Jennifer Sherak
  • LiveWorld Business Report published detailing business model and growth strategy

Management Commentary

"In the first quarter of 2024 we had controlled losses as we invested in new market segments and new solution sets for our current and new clients in 2024 and 2025," remarked David Houston, Chief Financial Officer, LiveWorld. "We anticipate the losses to diminish as we see increased revenue for the rest of the 2024."

LiveWorld is publishing concurrent with this quarterly financial report a business review which covers its vision, business model, solutions, and investment growth strategies. The report is available for download here.

"We are looking to set a foundation for improved growth by unlocking the true power of social media for our clients with an integrated set of solutions across proactive compliance, dynamic engagement, and strategic insight," added Peter Friedman, Chairman & CEO, LiveWorld. "As we look to expand our core business in the pharma market, we are excited to expand our board of directors with the knowledge and expertise of seasoned industry executives Helen Chang and Jennifer Sherak."

Financial Review for the Three Months Ended March 31, 2024

Total revenues were approximately $2.6 million for the three months, as compared to approximately $2.7 million in total revenues reported for the same period in 2023. This was a decrease of approximately $176,000 or 6% when compared to the three months of 2023. A portion of the reduced revenues was as a result of delays in obtaining completed contracts and purchase orders from clients, and we expect to see an increase in revenues in the second quarter as a result.

Including the investment based controlled losses, the company reported a net loss for the three months of approximately $498,000 or 20% of total revenues. This compares to net income of approximately $134,000 or 5% of total revenues reported for the three months of 2023.

The company finished the quarter with approximately $4.3 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)

   
 

March 31,

December 31,

 

2024

2023

ASSETS

 

Current assets

 

Cash and cash equivalent

 

$

4,316

$

4,635

Accounts receivable, net

 

 

2,263

 

1,701

Prepaid expenses

 

 

349

 

225

Total current assets

 

 

6,928

 

6,561

   

Property and equipment, net

 

 

43

 

44

Other assets

 

 

26

 

27

Total assets

 

$

6,997

$

6,632

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities

 

Accounts payable

 

$

235

$

238

Accrued employee expenses

 

 

661

 

890

Other accrued liabilities

 

 

357

 

343

Deferred revenue

 

 

1,443

 

438

Total current liabilities

 

 

2,696

 

1,909

Total liabilities

 

 

2,696

 

1,909

   

Stockholders' equity

 

Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of March 31, 2024, and December 31, 2023 respectively

 

 

34

 

34

Additional paid-in capital

 

 

144,207

 

144,131

Accumulated deficit

 

 

(139,940)

 

(139,442)

Total stockholders' equity

 

 

4,301

 

4,723

Total liabilities and stockholders' equity

 

$

6,997

$

6,632


LIVEWORLD, INC.

CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

   
 

Three Months Ended March 31,

 

2024

2023

Total revenues

 

$

2,572

$

2,748

Cost of revenues

 

 

1,577

 

1,316

Gross Margin

 

 

995

 

1,432

Operating Expense

 

Product development

 

 

272

 

259

Sales and marketing

 

 

510

 

430

General and administrative

 

 

711

 

608

Total operating expense

 

 

1,493

 

1,297

Income from operations

 

 

(498)

 

135

Income before tax

 

 

(498)

 

135

Other Income

 

 

1

 

1

Provision for income taxes

 

 

1

 

2

Net income from operations

 

 

(498)

 

134

   

Earnings per share analysis from operations:

 

Basic income per share

 

$

(0.01)

$

0.00

Shares used in computing basic loss per share

 

 

45,633,442

 

45,633,442

Diluted net income (loss) per share

 

$

(0.01)

$

0.00

Shares used in computing diluted income (loss) per share

 

 

45,633,442

 

62,694,122

   
   

Departmental allocation of stock-based compensation:

 

Cost of revenues

 

$

18

$

15

Product development

 

 

5

 

 

3

Sales and marketing

 

 

8

 

8

General and administrative

 

 

45

 

33

Total stock-based compensation

 

$

76

 

$

59

LIVEWORLD, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

 

Three Months Ended March 31,

 

2024

2023

Cash flows from operating activities:

 

Net income (loss)

 

$

(498)

$

134

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

Depreciation of long-lived assets

 

 

6

 

7

Stock-based compensation

 

 

76

 

59

Changes in operating assets and liabilities:

 

Accounts receivable

 

 

(562)

 

(99)

Other assets

 

 

(124)

 

(109)

Accounts payable

 

 

(2)

 

46

Accrued liabilities

 

 

(214)

 

(241)

Deferred revenue

 

 

1,004

 

799

Net cash provided by (used in) operating activities

 

 

(314)

 

596

Cash flows from investing activities:

 

Purchase of property and equipment

 

 

(5)

 

(5)

Net cash provided by (used in) investing activities

 

 

(5)

 

(5)

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

 

 

(319)

 

591

Cash and cash equivalents, beginning of period

 

 

4,635

 

3,801

Cash and cash equivalents, end of period

 

$

4,316

$

4,392

   

Supplemental disclosure of non-cash financing and investing activities:

Income tax paid

 

$

1

$

2

 


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