LVWD LiveWorld Inc (PK)

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 EndedMarch 31,

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    

LiveWorld ContactsIR:LiveWorldDavid Houston, 408-615-8496dhouston@liveworld.comorPR:Katelyn Rice, 646-559-1329katelyn.rice@tallgrasspr.com