LiveWorld Reports Second Quarter 2022 Financial Results

Ninth consecutive profitable quarter for Company –

CAMPBELL, Calif. & NEW YORK–(BUSINESS WIRE)–$LVWD #earnings–LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter of 2022.

Q2 2022 Financial and Business Highlights

  • Q2 total revenues of $2.7 million, up 9% year-over-year
  • Six months total revenues of $5.2 million, up 10% year-over-year
  • Q2 Healthcare revenues of $2.4 million, up 10% year-over-year
  • Net income from operations of $139,000 or 5%
  • Cash increased to $3.5 million, or 21% from the first quarter of 2022
  • The company continues to operate using no debt

Management Commentary

“Our second quarter was the ninth consecutive quarter of profitability combined with double digit growth in our healthcare related revenues,” said David Houston, Chief Financial Officer of LiveWorld. “Our focus on running the business profitably while expanding our efforts in the healthcare sector are paying off in 2022. We expect to see continued profitability for the rest of the fiscal year, even as we invest in our sales and marketing to grow our revenues.”

“We are in a very solid financial position with a history of proven profitability, our improved cash and current asset position, and doing it without incurring any debt. Given our ability to generate cash from operations and our profits we do not see a need to use any debt in the future,” said David Houston. “Given the current economic climate our client relationships are stable as we have increased current client revenues by providing new and additional services to our client base.”

Financial Review for Q2 and Six Months Ended June 30th

Total revenues were approximately $2.7 million for the second quarter, as compared to the approximately $2.5 million in total revenues reported for the same period in 2021. This was an increase of approximately $226,000 or 9% when compared to the second quarter of 2021. Total revenues for the six months ended June 30, 2022 were approximately $5.2 million, as compared to the $4.7 million for the six months ended June 30, 2021. This was an increase of approximately $453,000 or 10% when compared to the six months ended June 30, 2021. The healthcare related revenues grew 10% when compared to the second quarter of 2021.

The company reported net income for the quarter of approximately $139,000 or 5% of total revenues. This compares to net income of approximately $130,000 or 5% of total revenues reported for the second quarter of 2021. The company recorded net income for the six months period ended June 30, 2022, of approximately $261,000, or 5% of total revenues, as compared to the net income for the six months ended June 30, 2021, of approximately $251,000, or 5% of total revenues.

The company finished the second quarter with approximately $3.5 million in cash and cash equivalents, an increase of approximately $600,000 or 21% from the end of Q1 of 2022 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 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 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)

 

June 30,

December 31,

 

2022

 

 

2021

 

ASSETS

Current assets

Cash and cash equivalent

$

3,548

 

$

3,551

 

Accounts receivable, net

 

2,476

 

 

1,773

 

Prepaid expenses

 

238

 

 

156

 

Total current assets

 

6,262

 

 

5,480

 

 

Property and equipment, net

 

48

 

 

47

 

Other assets

 

24

 

 

25

 

Total assets

$

6,334

 

$

5,552

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

547

 

$

231

 

Accrued employee expenses

 

694

 

 

1,076

 

Other accrued liabilities

 

34

 

 

14

 

Deferred revenue

 

1,664

 

 

1,169

 

Total current liabilities

 

2,939

 

 

2,490

 

Total liabilities

 

2,939

 

 

2,490

 

 

Stockholders’ equity

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

 

34

 

 

34

 

Additional paid-in capital

 

143,772

 

 

143,701

 

Accumulated deficit

 

(140,411

)

 

(140,673

)

Total stockholders’ equity

 

3,395

 

 

3,062

 

Total liabilities and stockholders’ equity

$

6,334

 

$

5,552

 

LIVEWORLD, INC.

CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2022

 

2021

 

2022

 

2021

Total revenues

$

2,725

$

2,499

$

5,176

$

4,723

Cost of revenues

 

1,294

 

1,346

 

2,532

 

2,502

Gross Margin

 

1,431

 

1,153

 

2,644

 

2,221

Operating Expense

Product development

 

243

 

218

 

445

 

435

Sales and marketing

 

391

 

306

 

792

 

559

General and administrative

 

609

 

484

 

1,091

 

958

Total operating expense

 

1,243

 

1,008

 

2,328

 

1,952

Income / (loss) from operations

 

188

 

145

 

316

 

269

Income / (loss) before tax

 

188

 

145

 

316

 

269

Other Income / Expense

————

———–

————

———–

Provision for income taxes

 

49

 

15

 

55

 

18

Net income / (loss)

 

139

 

130

 

261

 

251

 

Basic income / (loss) per share

$

0.00

$

0.00

$

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

$

0.00

Shares used in computing diluted income (loss) per share

 

45,633,442

 

65,585,134

 

45,633,442

 

65,585,134

 

Departmental allocation of stock-based compensation:

Cost of revenues

$

12

$

3

$

21

$

4

Product development

 

3

 

1

 

4

 

3

Sales and marketing

 

7

 

 

1

 

 

11

 

 

3

General and administrative

 

24

 

7

 

36

 

12

Total stock-based compensation

$

46

$

12

$

72

$

22

LIVEWORLD, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cash flows from operating activities:

Net income (loss)

$

139

 

$

130

 

$

261

 

$

251

 

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

Depreciation of long-lived assets

 

6

 

 

5

 

 

12

 

 

9

 

Stock-based compensation

 

46

 

 

12

 

 

72

 

 

22

 

Changes in operating assets and liabilities:

Accounts receivable

 

175

 

 

(66

)

 

(703

)

 

(1,065

)

Other assets

 

153

 

 

40

 

 

(80

)

 

(77

)

Accounts payable

 

237

 

 

4

 

 

316

 

 

9

 

Accrued liabilities

 

(99

)

 

375

 

 

(363

)

 

458

 

Deferred revenue

 

(31

)

 

565

 

 

494

 

 

1,017

 

Net cash provided by (used in) operating activities

 

626

 

 

1,065

 

 

9

 

 

624

 

Cash flows from investing activities:

Purchase of property and equipment

 

(10

)

 

(4

)

 

(12

)

 

(9

)

Net cash provided by (used in) investing activities

 

(10

)

 

(4

)

 

(12

)

 

(9

)

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

 

616

 

 

1,061

 

 

(3

)

 

721

 

Cash and cash equivalents, beginning of period

 

2,932

 

 

2,212

 

 

3,551

 

 

2,552

 

Cash and cash equivalents, end of period

$

3,548

 

$

3,273

 

$

3,548

 

$

3,273

 

 

Supplemental disclosure of non-cash financing and investing activities:

Income taxes paid

$

49

 

$

15

 

$

55

 

$

18

 

 

Contacts

LiveWorld 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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