LiveWorld Reports Third Quarter Financial Results

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2022, ended September 30.

Q3 2022 Financial and Business Highlights

  • Q3 total revenues of $2.8 million, up 3% year-over-year
  • Nine months total revenues of $8.0 million, up 8% year-over-year
  • Q3 Healthcare revenues of $2.4 million, up 3% year-over-year
  • Net income from operations of $253,000 or 9% of revenues
  • Cash was $3.5 million at end of quarter

Management Commentary

“The third quarter was the tenth consecutive quarter of profitability and we saw continued growth in our revenues,” said David Houston, Chief Financial Officer of LiveWorld. “Over the past few months, we closed new clients in agency creative services, moderation, and technology. This will have a positive impact to both the top and bottom lines for the fourth quarter of 2022 and into 2023.”

“Our current client relationships remain solid as we look to expand our offerings to them, even in this uncertain overall economy,” said David Houston. “Given the recent new client wins and growth of current clients, our expectations for the fourth quarter are for a material improvement in the revenues, which should provide for a higher level of profitability.”

Financial Review for Q3 and Nine Months Ended September 30th

Total revenues were approximately $2.8 million for the third quarter, as compared to the approximately $2.7 million in total revenues reported for the same period in 2021. This was an increase of approximately $91,000 or 3% when compared to the third quarter of 2021. Total revenues for the nine months ended September 30, 2022 were approximately $8.0 million, as compared to the $7.4 million for the nine months ended September 30, 2021. This was an increase of approximately $544,000 or 8% when compared to the nine months ended September 30, 2021.

The company reported net income for the quarter of approximately $253,000 or 9% of total revenues. This compares to net income of approximately $263,000 or 10% of total revenues reported for the third quarter of 2021. The company recorded net income for the nine months period ended September 30, 2022, of approximately $514,000, or 6% of total revenues, as compared to the net income for the nine months ended September 30, 2021, of approximately $514,000, or 7% of total revenues.

The company finished the third quarter with approximately $3.5 million in cash and cash equivalents, and approximately $3.6 million compared to the end of 2021.

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 specializing in social media and technology solutions that help companies spark emotional connections, build stronger customer relationships, and drive behavior change. We live at the intersection of bold creative rooted in strategy that inspires, moderation that activates human interactions, and technology that enriches and scales customer experiences.

With over 25 years of making connections, our integrated team leverages 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)

 

September 30,

December 31,

2022

2021

ASSETS

Current assets

Cash and cash equivalent

$

3,547

 

$

3,551

 

Accounts receivable, net

 

2,225

 

 

1,773

 

Prepaid expenses

 

209

 

 

156

 

Total current assets

 

5,981

 

 

5,480

 

 

Property and equipment, net

 

42

 

 

47

 

Other assets

 

25

 

 

25

 

Total assets

$

6,048

 

$

5,552

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

149

 

$

231

 

Accrued employee expenses

 

711

 

 

1,076

 

Other accrued liabilities

 

55

 

 

14

 

Deferred revenue

 

1,432

 

 

1,169

 

Total current liabilities

 

2,347

 

 

2,490

 

Total liabilities

 

2,347

 

 

2,490

 

 

Stockholders' equity

Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of September 30, 2022 and December 31, 2021 respectively

 

34

 

 

34

 

Additional paid-in capital

 

143,826

 

 

143,701

 

Accumulated deficit

 

(140,159

)

 

(140,673

)

Total stockholders' equity

 

3,701

 

 

3,062

 

Total liabilities and stockholders' equity

$

6,048

 

$

5,552

 

LIVEWORLD, INC.

CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

Three Months Ended Sept 30,

 

Nine Months Ended Sept 30,

2022

 

2021

 

2022

 

2021

Total revenues

$

2,777

$

2,686

$

7,953

$

7,409

Cost of revenues

 

1,374

 

1,193

 

3,906

 

3,695

Gross Margin

 

1,403

 

1,493

 

4,047

 

3,714

Operating Expense

Product development

 

252

 

208

 

697

 

643

Sales and marketing

 

268

 

409

 

1,060

 

967

General and administrative

 

619

 

608

 

1,712

 

1,567

Total operating expense

 

1,139

 

1,225

 

3,469

 

3,177

Income / (loss) from operations

 

264

 

268

 

578

 

537

Income / (loss) before tax

 

264

 

268

 

578

 

537

Other Income / Expense

------------

-----------

 

1

-----------

Provision for income taxes

 

11

 

5

 

65

 

23

Net income / (loss)

 

253

 

263

 

514

 

514

 

Basic income / (loss) per share

$

0.01

$

0.01

$

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

$

0.01

Shares used in computing diluted income (loss) per share

 

62,916,831

 

62,730,038

 

62,566,831

 

62,730,038

 

Departmental allocation of stock-based compensation:

Cost of revenues

$

12

$

4

$

34

$

8

Product development

 

3

 

1

 

7

 

4

Sales and marketing

 

8

 

 

1

 

 

18

 

 

4

General and administrative

 

30

 

7

 

66

 

19

Total stock-based compensation

$

53

$

13

$

125

$

35

LIVEWORLD, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months

Ended Sept 30,

 

Nine Months Ended

Sept 30,

2022

 

2021

 

2022

 

2021

Cash flows from operating activities:

Net income (loss)

$

253

 

$

263

 

$

514

 

$

514

 

Adjustments to reconcile net income (loss) provided by

(used in) operating activities:

Depreciation of long-lived assets

 

7

 

 

5

 

 

19

 

 

14

 

Stock-based compensation

 

53

 

 

13

 

 

125

 

 

35

 

Changes in operating assets and liabilities:

Accounts receivable

 

252

 

 

703

 

 

(451

)

 

(362

)

Other assets

 

29

 

 

22

 

 

(53

)

 

(55

)

Accounts payable

 

(399

)

 

27

 

 

(83

)

 

36

 

Accrued liabilities

 

38

 

 

49

 

 

(324

)

 

507

 

Deferred revenue

 

(232

)

 

(270

)

 

263

 

 

747

 

Net cash provided by (used in) operating activities

 

1

 

 

812

 

 

10

 

 

1,436

 

Cash flows from investing activities:

Purchase of property and equipment

 

(2

)

 

(3

)

 

(14

)

 

(12

)

Net cash provided by (used in) investing activities

 

(2

)

 

(3

)

 

(14

)

 

(12

)

Cash flows from financing activities:

Loan

------------

-----------

------------

 

106

 

Proceeds from exercise of stock options

------------

-----------

------------

-----------

Net cash provided by (used for) financing activities

------------

-----------

------------

 

106

 

Change in cash and cash equivalent

 

(1

)

 

809

 

 

(4

)

 

1,530

 

Cash and cash equivalents, beginning of period

 

3,548

 

 

3,273

 

 

3,551

 

 

2,552

 

Cash and cash equivalents, end of period

$

3,547

 

$

4,082

 

$

3,547

 

$

4,082

 

 

Supplemental disclosure of non-cash financing and investing activities:

Income taxes paid

$

11

 

$

5

 

$

65

 

$

23

 

 

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