LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the first quarter of 2014. Total revenues were approximately $3.3 million for the first quarter as compared to the approximately $3.9 million in total revenues reported for 2013.
The Company reported a net loss for the quarter of approximately $307,000, or 9% of total revenues. This compares to net income of approximately $285,000, or 7% of total revenues, reported for the first quarter of 2013. The earnings / (loss) per share on a fully diluted basis were $(0.01) and $0.01 for the first quarters of 2014 and 2013, respectively.
The company finished the first quarter with approximately $4.3 million in cash and cash equivalents as compared to the approximately $2.5 million at the end of the first quarter in 2013. The Company reported a positive working capital balance of approximately $3.6 million as of March 31, 2014 as compared to the approximately $3.8 million as of March 31, 2013.
“Our first quarter results are consistent with our 2014 projections, in particular continuing to transition the business from our legacy revenue in web sites to the general social web and making deeper investments in product development and expansion of sales and marketing.” said David Houston, Chief Financial Officer of LiveWorld. “We are investing in our future, and developing new revenue streams will help diversify and grow our client base.”
Detailed financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com
About LiveWorld
LiveWorld is a social content marketing company. Through a combination of software and services we provide strategy, engagement, moderation, and insight to help brands develop deeper relationships with customers. We bring a human touch scaled by technology that creates value out of user content and provides big cost savings. By providing software and services, LiveWorld delivers a full range of social media solutions to improve relationship marketing, customer support, and market learning. Fortune 500 brands use our solutions to engage their clients in a way that’s social, personal, and direct, yet affordable and sustainable on a large scale. Our proprietary technology empowers people to moderate and respond to user comments at scale and to analyze data in context with human intelligence and sensitivity. LiveWorld is a trusted partner of the world’s largest brands, including the number-one companies in retail, CPG, pharmaceutical, and financial/travel services. For our clients, we develop strategy, create and publish content, engage customers, moderate content, manage crises, and glean insight from social media. LiveWorld is headquartered in California, with offices in New York City and San Jose. 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's 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. | ||||||||
| BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,317 | $ | 4,413 | ||||
| Accounts receivable | 365 | 488 | ||||||
| Prepaid expenses | 336 | 336 | ||||||
| Total current assets | 5,018 | 5,237 | ||||||
| Property and equipment, net | 239 | 257 | ||||||
| Other assets | 17 | 18 | ||||||
| Total assets | $ | 5,274 | $ | 5,512 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 372 | $ | 159 | ||||
| Accrued employee expenses | 596 | 576 | ||||||
| Other accrued liabilities | 59 | 6 | ||||||
| Deferred revenue | 386 | 665 | ||||||
| Total current liabilities | 1,413 | 1,406 | ||||||
| Stockholders' equity | ||||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,321,634 issued and outstanding as of March 31, 2014 and December 31, 2013, | 33 | 33 | ||||||
| Additional paid-in capital | 141,510 | 141,448 | ||||||
| Accumulated deficit | (137,682 | ) | (137,375 | ) | ||||
| Total stockholders' equity | 3,861 | 4,106 | ||||||
| Total liabilities and stockholders' equity | $ | 5,274 | $ | 5,512 | ||||
| LIVEWORLD, INC. | |||||||
| STATEMENTS OF OPERATIONS | |||||||
| (In thousands, except per share data) | |||||||
| Three Months Ended | |||||||
| 2014 | 2013 | ||||||
| Total revenues | $ | 3,311 | $ | 3,874 | |||
| Cost of revenues | 1,411 | 1,362 | |||||
| Gross Margin | 1,900 | 2,512 | |||||
| Operating Expenses | |||||||
| Product development | 900 | 1,021 | |||||
| Sales and marketing | 548 | 498 | |||||
| General and administrative | 748 | 702 | |||||
| Total operating expenses | 2,196 | 2,221 | |||||
| Income / (loss) before tax | (296 | ) | 291 | ||||
| Provision for income taxes | 11 | 6 | |||||
| Net income/ (loss) | (307 | ) | 285 | ||||
| Basic net income/ (loss) per share | $ | (0.01 | ) | $ | 0.01 | ||
| Shares used in computing basic income/ (loss) per share | 33,321,634 | 33,257,634 | |||||
| Diluted income/ (loss) per share | $ | (0.01 | ) | $ | 0.01 | ||
| Shares used in computing diluted income/ (loss) per share | 33,321,634 | 41,707,087 | |||||
| Departmental allocation of stock-based compensation: | |||||||
| Cost of revenues | $ | 11 | $ | 8 | |||
| Product development | 19 | 12 | |||||
| Sales and marketing | 12 | 5 | |||||
| General and administrative | 20 | 8 | |||||
| Total stock-based compensation | $ | 62 | $ | 33 | |||
| LIVEWORLD, INC. | ||||||||
| STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | (307 | ) | $ | 285 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 39 | 29 | ||||||
| Stock-based compensation | 62 | 33 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 123 | (1,030 | ) | |||||
| Other assets | 1 | 33 | ||||||
| Accounts payable | 213 | 140 | ||||||
| Accrued employee expenses and other liabilities | 73 | 154 | ||||||
| Deferred revenue | (279 | ) | (502 | ) | ||||
| Net cash provided by operating activities | (75 | ) | (858 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (21 | ) | (21 | ) | ||||
| Net cash used in investing activities | (21 | ) | (21 | ) | ||||
| Change in cash and cash equivalents | (96 | ) | (879 | ) | ||||
| Cash and cash equivalents, beginning of year | 4,413 | 3,382 | ||||||
| Cash and cash equivalents, end of year | $ | 4,317 | $ | 2,503 | ||||
