Press release

LiveWorld Reports First Quarter Financial Results

Sponsored by Businesswire

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results
for the first quarter of 2019. The Company’s revenues for the first
quarter were approximately $1.7 million, as compared to the $2.4 million
for the first quarter in 2018. The $1.7 million revenue compares to $1.2
million in Q1 2018 revenue excluding Walmart, or a 43% increase in
non-Walmart revenues. In 2018 Walmart ended its multi-year engagement
with the Company. It represented approximately 51% of total revenues in
the first quarter of 2018 and 0% in 2019.

The Company had a net loss for the quarter of approximately $343,000, or
20% of total revenues, as compared to the net loss of approximately
$132,000, or 5% of total revenues for the first quarter of 2018. This
loss was a result of the reduction in total revenues, typical seasonal
revenue patterns, other costs, and one-time restructuring charges to
better align expenses with current levels of revenues.

The Company finished the first quarter with approximately $941,000 in
cash and cash equivalents, as compared to the approximately $1.2 million
at the end of 2018. This reduction in our cash was a result of operating
losses and the timing of our contract renewals for 2019.

“Over the past year we made investments to grow our healthcare related
revenue streams. In the first quarter we saw these revenues grow by 65%
when compared to the first quarter of 2018,” said David Houston, Chief
Financial Officer of LiveWorld, “Additionally, we have taken the
necessary steps to reduce our expenses which will result in improved
operating margins for remainder of 2019.”

Detailed financial information may be downloaded at
(LiveWorld’s Investor Relations page).

About LiveWorld

At LiveWorld, we provide consulting, creative services, online agent
workforce services, and conversation management software. These empower
companies to manage conversations in messaging apps and social media to
develop deeper relationships with customers, patients, and healthcare
providers. We specialize in handling the speed and scale requirements of
brands to engage customers 1-on-1 in real-time and deliver personalized
interactions with a human touch. Our conversation-centric software is
designed to track and manage dialogue, engage customers, and integrate
chatbots and human agents with enterprise systems. Companies are able to
quickly solve the scale, security, automation, and multi-social channel
challenges associated with marketing and customer service
programs. LiveWorld services include strategy, creative services,
campaigns, adverse events management, content moderation, engagement,
customer service, and social analytics. Our team of marketing
strategists, creatives, conversation specialists, chatbot experts,
social data analysts, online agents, and software developers collaborate
to deliver marketing and customer service solutions that seamlessly
integrate software and human teams. LiveWorld clients include the number
one brands in pharmaceuticals, consumer packaged goods, and
financial-travel services. LiveWorld is headquartered in San Jose,
California, with an additional office in New York City. Learn more at 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

(In thousands, except share data)
March 31, December 31,
  2019     2018  
Current assets
Cash and cash equivalent $ 941 $ 1,152
Accounts receivable, net 586 362
Prepaid expenses   252     142  
Total current assets 1,779 1,656
Property and equipment, net 21 24
Other assets   22     22  
Total assets $ 1,822   $ 1,702  
Current liabilities
Accounts payable $ 205 $ 83
Accrued employee expenses 370 386
Other accrued liabilities 34 38
Deferred revenue   376     340  
Total current liabilities   985     847  
Total liabilities 985 847
Stockholders’ equity
Common stock: $0.001 par value, 100,000,000 shares authorized
33,388,545 issued and outstanding as of March 31, 2019 and December
31, 2018 respectively.
34 34
Additional paid-in capital 143,558 143,233
Accumulated deficit   (142,755 )   (142,412 )
Total stockholders’ equity   837     855  
Total liabilities and stockholders’ equity $ 1,822   $ 1,702  
(In thousands, except per share data)
Three Months Ended

March 31,

  2019       2018  
Total revenues $ 1,706 $ 2,422
Cost of revenues   857     952  
Gross Margin 849 1,470
Operating Expense
Product development 354 531
Sales and marketing 305 491
General and administrative   531     580  
Total operating expense   1,190     1,602  
Income / (loss) from operations   (341 )   (132 )
Income / (loss) before tax (341 ) (132 )
Other Income / Expense 1 3
Provision for income taxes   3     3  
Net income / (loss)   (343 )   (132 )
Basic income / (loss) per share $ (0.01 ) $ (0.00 )
Shares used in computing basic loss per share 33,388,545 33,388,545
Diluted net income (loss) per share $ (0.01 ) $ (0.00 )
Shares used in computing diluted income (loss) per share 33,388,545 33,388,545
Departmental allocation of stock-based compensation:
Cost of revenues $ 6 $ 13
Product development 6 12
Sales and marketing 6 12
General and administrative   8     47  
Total stock-based compensation $ 26   $ 84  
(In thousands)
  Three Months Ended

March 31,

  2019       2018  
Cash flows from operating activities:
Net income (loss) $ (343 ) $ (132 )
Adjustments to reconcile net income (loss) provided by (used in)
operating activities:
Depreciation of long-lived assets 6 7
Stock-based compensation 26 84
Changes in operating assets and liabilities:
Accounts receivable (224 ) (1,844 )
Other assets (110 ) (64 )
Accounts payable 123 27
Accrued liabilities (20 ) (129 )
Deferred revenue   35     438  
Net cash provided by (used in) operating activities   (507 )   (1,613 )
Cash flows from investing activities:
Purchase of property and equipment   (4 )   (1 )
Net cash provided by (used in) investing activities   (4 )   (1 )
Cash flows from financing activities:
Proceeds from exercise of stock options ——- ——–
Capital Investment   300     ——–  
Net cash provided by (used for) financing activities 300 ——–
Change in cash and cash equivalent (211 ) (1,614 )
Cash and cash equivalents, beginning of period   1,152     2,270  
Cash and cash equivalents, end of period $ 941   $ 656  
Supplemental disclosure of non-cash financing and investing
Income taxes paid $ 3   $ 3