CAMPBELL, Calif. & NEW YORK–(BUSINESS WIRE)–LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter of 2021. Total revenues were approximately $2.2 million for the first quarter, as compared to the approximately $1.9 million reported for the same period in 2020. This was an increase of approximately $325,000 or 17% when compared to the first quarter of 2020. Healthcare related revenues grew approximately 24% when compared to the first quarter of 2020.
We reported a net income for the quarter of approximately $121,000 or 5% of total revenues. This compares to net loss of approximately $89,000 or 5% of total revenues reported for the first quarter of 2020. This improvement in the net income is a direct result of increased revenues and reduced operating expenses across the board.
We finished the first quarter with approximately $2.2 million in cash and cash equivalents, as compared to the approximately $2.6 million at the end of 2020. This reduction of $340,000 in cash was a result of the increase in our accounts receivable of approximately $1.0 million, and timing of the 2020 contract renewals with clients. The cash from operations was approximately $1.2 million which compares to the $335,000 in cash from operations for the first quarter of 2020. This is an increase of approximately $900,000 or 157%.
“Our first quarter fiscal results marked the fourth consecutive quarter of profitability for the company,” said David Houston, Chief Financial Officer of LiveWorld. “Our recent financial performance has been a function of focusing on growing topline revenues and reducing our operating expenses. We anticipate some expansion in our operating lines as we look to increase our delivery of digital services in 2021. Additionally, we will increase our sales and marketing efforts to continue our growth while still maintaining a profitable bottom line.”
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 and software company specializing in social media solutions that help companies build stronger customer relationships. We provide consulting, strategy, and creative along with human agents, conversation management software, and chatbots for digital campaigns and social media programs. Our solutions empower companies to deepen relationships with customers, professionals, patients and healthcare providers with emotion driven behavior change through conversations and campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, consumer packaged goods, 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)
March 31,
December 31,
2021
2020
ASSETS
Current assets
Cash and cash equivalent
$
2,213
$
2,552
Accounts receivable, net
2,178
1,179
Prepaid expenses
213
96
Total current assets
4,604
3,827
Property and equipment, net
44
43
Other assets
24
25
Total assets
$
4,672
$
3,895
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$
144
$
139
Accrued employee expenses
815
680
Other accrued liabilities
17
68
Loan
1,026
921
Deferred revenue
1,349
897
Total current liabilities
3,351
2,705
Total liabilities
3,351
2,705
Stockholders’ equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of March 31, 2021 and December 31, 2020 respectively
34
34
Additional paid-in capital
143,661
143,651
Accumulated deficit
(142,374
)
(142,495
)
Total stockholders’ equity
1,321
1,190
Total liabilities and stockholders’ equity
$
4,672
$
3,895
LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
Three Months Ended
March 31,
March 31,
2021
2020
Total revenues
$
2,224
$
1,899
Cost of revenues
1,156
943
Gross Margin
1,068
956
Operating Expense
Product development
217
241
Sales and marketing
252
294
General and administrative
474
506
Total operating expense
943
1,041
Income / (loss) from operations
125
(85
)
Income / (loss) before tax
125
(85
)
Other Income / Expense
———–
(2
)
Provision for income taxes
4
2
Net income / (loss)
121
(89
)
Basic income / (loss) per share
$
0.00
$
(0.00
)
Shares used in computing basic loss per share
45,633,442
45,633,442
Diluted net income (loss) per share
$
0.00
$
(0.00
)
Shares used in computing diluted income (loss) per share
65,603,063
45,633,442
Departmental allocation of stock-based compensation:
Cost of revenues
$
3
$
2
Product development
1
3
Sales and marketing
1
3
General and administrative
5
4
Total stock-based compensation
$
10
$
12
LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
Three Months Ended
March 31,
March 31,
2021
2020
Cash flows from operating activities:
Net income (loss)
$
121
$
(89
)
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets
5
3
Stock-based compensation
10
12
Changes in operating assets and liabilities:
Accounts receivable
(999
)
(1,552
)
Other assets
(118
)
57
Accounts payable
5
(57
)
Accrued liabilities
84
(23
)
Deferred revenue
452
836
Net cash provided by (used in) operating activities
(440
)
(813
)
Cash flows from investing activities:
Purchase of property and equipment
(5
)
———–
Net cash provided by (used in) investing activities
(5
)
———-
Loan
106
418
Proceeds from exercise of stock options
———–
———-
Net cash provided by (used for) financing activities
106
418
Change in cash and cash equivalent
(339
)
(395
)
Cash and cash equivalents, beginning of period
2,552
730
Cash and cash equivalents, end of period
$
2,213
$
335
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid
$
4
$
2