LiveWorld Reports Third Quarter Financial Results

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2016. Total revenues were approximately $2.4 million for the third quarter, as compared to the approximately $2.4 million in total revenues reported for the same period in 2015. The Company's revenues for the nine months ended September 30, 2016 were approximately $7.0 million, as compared to the $7.3 million for the nine months ended September 30, 2015.

The Company reported a net loss for the quarter of approximately $429,000, or 18% of total revenues. This compares to net loss of approximately $149,000, or 6% of total revenues reported for the third quarter of 2015. The Company had a net loss for the nine months ended September 30, 2016 of approximately $1.1 million, or 16% of total revenues, as compared to the net loss of approximately $1.7 million, or 23% of total revenues for the nine months ended September 30, 2015.

The Company finished the third quarter with approximately $2.8 million in cash and cash equivalents, as compared to the approximately $3.5 million at the end of 2015.

"We are advancing our business by adding a suite of solutions that make it easier for large brands to start or better integrate Facebook Messenger programs with marketing and customer services initiatives," said David Houston, Chief Financial Officer of LiveWorld. "We will continue to make strategic investments in our platform to capitalize on this shift to messaging apps and chatbots as we believe it will create new revenue opportunities and lasting relationships with our clients."

Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld's Investor Relations page) or at www.otcmarkets.com.

About LiveWorld

At LiveWorld, we provide conversation management software, consulting, and online agent workforce services. These empower companies to manage conversations in messaging apps and social media to develop deeper relationships with customers. We specialize in handling the speed and scale requirements of brands to engage customers 1-on-1 in real-time and deliver personalized interactions with a human touch. Our conversation-centric software is designed to track and manage dialogue, engage customers, and integrate chatbots and human agents with enterprise systems. Companies are able to quickly solve the scale, security, automation, and multi-social channel challenges associated with marketing and customer service programs. LiveWorld services include strategy, campaign management, content moderation, engagement, customer service, and social analytics. Our team of marketing strategists, conversation specialists, chatbot experts, social data analysts, online agents, and software developers collaborate to deliver marketing and customer service solutions that seamlessly integrate software and human teams. LiveWorld clients include the number one brands in consumer packaged goods, retail, pharmaceutical, and financial-travel services. LiveWorld is headquartered in San Jose, California, with an additional office in New York City. Learn more at http://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)
       
September 30, December 31,
2016 2015
ASSETS
Current assets
Cash and cash equivalent $ 2,818 $ 3,538
Accounts receivable, net 395 427
Prepaid expenses   150     106  
Total current assets 3,363 4,071
 
Property and equipment, net 55 38
Other assets   17     17  
Total assets $ 3,435   $ 4,126  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 308 $ 89
Accrued employee expenses 442 474
Other accrued liabilities 117 23
Deferred revenue   298     472  
Total liabilities 1,165 1,058
 
Stockholders' equity

Common stock: $0.001 par value, 100,000,000 shares authorized 33,388,545 issued and outstanding as of September 30, 2016 and December 31, 2015 respectively
34 34
Additional paid-in capital 142,508 142,200
Accumulated deficit   (140,272 )   (139,166 )
Total stockholders' equity   2,270     3,068  
Total liabilities and stockholders' equity $ 3,435   $ 4,126  
 
 
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
               
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
2016 2015 2016 2015
Total revenues $ 2,390 $ 2,393 $ 6,960 $ 7,272
Cost of revenues   947     907     2,782     3,342  
Gross Margin 1,443 1,486 4,178 3,930
Operating Expense
Product development 653 531 1,841 2,077
Sales and marketing 591 457 1,586 1,421
General and administrative   628     643     1,871     2,059  
Total operating expense   1,872     1,631     5,298     5,557  
Loss from operations   (429 )   (145 )   (1,120 )   (1,627 )
Loss before tax (429 ) (145 ) (1,120 ) (1,627 )
Other Income / Expense   ------     -----     12     (25 )
Provision for income taxes   ------     4     (1 )   10  
Net loss   (429 )   (149 )   (1,107 )   (1,662 )
 
Basic income / (loss) per share $ (0.01 ) $ (0.00 ) $ (0.03 ) $ (0.05 )
Shares used in computing basic loss per share 33,388,545 33,388,545 33,388,545 33,388,545
Diluted net income (loss) per share $ (0.01 ) $ (0.00 ) $ (0.03 ) $ (0.05 )
Shares used in computing diluted income (loss) per share 33,388,545 33,388,545 33,388,545 33,388,545
 
Departmental allocation of stock-based compensation:
Cost of revenues $ 15 $ 21 $ 54 $ 61
Product development 25 20 78 62
Sales and marketing 5 18 21 52
General and administrative   49     65     155     168  
Total stock-based compensation $ 94   $ 124   $ 308   $ 343  
 
   
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months     Nine Months
Ended Sept 30, Ended Sept 30,
2016     2015 2016     2015
Cash flows from operating activities:
Net loss $ (429 ) $ (149 ) $ (1,107 ) $ (1,662 )

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

 
Depreciation of long-lived assets 11 12 30 66
Stock-based compensation 94 124 308 343
Gain on sale of assets ------ 1 ------ 37
Changes in operating assets and liabilities:
Accounts receivable (25 ) 444 32 139
Other assets (34 ) 87 (43 ) 263
Accounts payable 46 74 219 133
Accrued liabilities 59 2 62 (123 )
Deferred revenue   (91 )   729     (174 )   15  
Net cash provided by (used in) operating activities   (369 )   1,324     (673 )   (789 )
Cash flows from investing activities:
Purchase of property and equipment   (3 )   (3 )   (47 )   (5 )
Net cash used in investing activities   (3 )   (3 )   (47 )   (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 (372 ) 1,321 (720 ) (794 )
Cash and cash equivalents, beginning of period   3,190     2,271     3,538     4,386  
Cash and cash equivalents, end of period $ 2,818   $ 3,592   $ 2,818   $ 3,592  
 
Income tax paid $ ------   $ 4   $ 1   $ 10  

View source version on businesswire.com: http://www.businesswire.com/news/home/20161110006244/en/

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