Company sees double digit growth in revenues and continued operating profits

  • Q1 total revenues of $2.5 million, up 10% year-over-year
  • Healthcare revenues of $2.1 million, up 12% year-over-year
  • Net income from operations of $122,000 or 5%
  • Current company valuation is approximately 0.77x Q1 annualized revenues

 

CAMPBELL, Calif. & NEW YORK CITY–(BUSINESS WIRE)–LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter of 2022. Total revenues were approximately $2.5 million for the first quarter, as compared to the approximately $2.2 million in total revenues reported for the same period in 2021. This was an increase of approximately $227,000 or 10% when compared to the first quarter of 2021.

We reported a net income for the quarter of approximately $122,000 or 5% of total revenues. This compares to net income of approximately $121,000 or 5% of total revenues reported for the first quarter of 2021.

We finished the first quarter with approximately $2.9 million in cash and cash equivalents, as compared to the approximately $3.6 million at the end of 2021. The first quarter of the year sees slight delays in cash collections as we renew contracts. We expect to see improvements in our cash in the second quarter.

“In the first quarter we saw solid growth in our revenues and continued operating profits from our healthcare initiatives,” said David Houston, Chief Financial Officer of LiveWorld. “Additionally, we materially increased our sales and marketing efforts to see continued revenue growth in 2022 and 2023. We intend to carry on with these increased efforts for the remainder of 2022.”

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 conversations, 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 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)

  
 

March 31,

December 31,

 

2022

2021

ASSETS

 

Current assets

 

Cash and cash equivalent

 

$

2,932

$

3,551

Accounts receivable, net

 

 

2,652

 

1,773

Prepaid expenses

 

 

389

 

156

Total current assets

 

 

5,973

 

5,480

 

 

 

 

 

Property and equipment, net

 

 

44

 

47

Other assets

 

 

25

 

25

Total assets

 

$

6,042

$

5,552

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

Current liabilities

 

Accounts payable

 

$

310

$

231

Accrued employee expenses

 

 

800

 

1,076

Other accrued liabilities

 

 

27

 

14

Deferred revenue

 

 

1,695

 

1,169

Total current liabilities

 

 

2,832

 

2,490

Total liabilities

 

 

2,832

 

2,490

  

Stockholders’ equity

 

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

 

 

34

 

34

Additional paid-in capital

 

 

143,727

 

143,701

Accumulated deficit

 

 

(140,551)

 

(140,673)

Total stockholders’ equity

 

 

3,210

 

3,062

Total liabilities and stockholders’ equity

 

$

6,042

$

5,552

LIVEWORLD, INC.

CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

  
 

Three Months Ended

Three Months Ended

 

March 31,

March 31,

 

2022

2021

Total revenues

 

$

2,451

$

2,224

Cost of revenues

 

 

1,238

 

1,156

Gross Margin

 

 

1,213

 

1,068

Operating Expense

 

Product development

 

 

202

 

217

Sales and marketing

 

 

401

 

252

General and administrative

 

 

483

 

474

Total operating expense

 

 

1,086

 

943

Income from operations

 

 

127

 

125

Income before tax

 

 

127

 

125

Other Income / Expense

 

————

———–

Provision for income taxes

 

 

5

 

4

Net income

 

 

122

 

121

  

Basic income per share

 

$

0.00

$

0.00

Shares used in computing basic loss per share

 

 

45,633,442

 

45,633,442

Diluted net income per share

 

$

0.00

$

0.00

Shares used in computing diluted income per share

 

 

68,916,821

 

65,603,063

  

Departmental allocation of stock-based compensation:

 

Cost of revenues

 

$

9

$

3

Product development

 

 

1

 

1

Sales and marketing

 

 

4

 

1

General and administrative

 

 

12

 

5

Total stock-based compensation

 

$

26

$

10

LIVEWORLD, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

 

Three Months Ended

Three Months Ended

 

March 31,

March 31,

 

2022

 

2021

Cash flows from operating activities:

 

Net income

 

$

122

$

121

Adjustments to reconcile net income provided by operating activities:

 

Depreciation of long-lived assets

 

 

6

 

5

Stock-based compensation

 

 

26

 

10

Changes in operating assets and liabilities:

 

Accounts receivable

 

 

(878)

 

(999)

Other assets

 

 

(232)

 

(118)

Accounts payable

 

 

79

 

5

Accrued liabilities

 

 

(264)

 

84

Deferred revenue

 

 

525

 

452

Net cash provided by (used in) operating activities

 

 

(616)

 

(440)

Cash flows from investing activities:

 

Purchase of property and equipment

 

 

(3)

 

(5)

Net cash provided by (used in) investing activities

 

 

(3)

 

(5)

Loan

 

————

 

106

Proceeds from exercise of stock options

 

————

———–

Net cash provided by (used for) financing activities

 

————

 

106

Change in cash and cash equivalent

 

 

(619)

 

(339)

Cash and cash equivalents, beginning of period

 

 

3,551

 

2,552

Cash and cash equivalents, end of period

 

$

2,932

$

2,213

  

Supplemental disclosure of non-cash financing and investing activities:

 

Income tax paid

 

$

5

$

4

 

Contacts

IR Contact:

David Houston

LiveWorld

dhouston@liveworld.com
(408) 615-8496

PR Contact:
Matthew Hammer
LiveWorld
mhammer@liveworld.com
(737) 212-9739

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