LVWD LiveWorld Inc (PK)

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2014. Total revenues were approximately $3.3 million for the quarter, as compared to the approximately $3.3 million in total revenues reported for the same period in 2013. The Company’s revenues for the nine months ended September 30, 2014 were approximately $9.9 million, as compared to the $10.9 million for the same period in 2013.

The Company reported a net gain for the quarter of approximately $5,000. This compares to net income of approximately $123,000, or 3% of total revenues reported for the third quarter of 2013. The Company had a net loss for the nine months ended September 30, 2014 of approximately $424,000, or 3% of total revenues, as compared to the net income of approximately $661,000, or 6% of total revenues for same period in 2013.

The company finished the third quarter with approximately $4.6 million in cash and cash equivalents, as compared to the approximately $4.4 million at the end of 2013.

“Our third quarter results demonstrate the strength in our fundamental business drivers and long-term prospects,” said David Houston, Chief Financial Officer of LiveWorld. “We have continued to invest in developing innovative social media services and software that help brands deepen customer relationships.”

Detailed financial information may be downloaded at www.liveworld.com (Investor Relations) or at www.otcmarkets.com.

About LiveWorld

LiveWorld is a social media solutions company that provides services and software for human engagement at scale to help brands develop deeper relationships with customers. 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 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. CONDENSED BALANCE SHEETS (In thousands, except share data)     September 30, December 31, 2014 2013 ASSETS Current assets Cash and cash equivalents $ 4,609 $ 4,413 Accounts receivable 639 488 Prepaid expenses   521     336   Total current assets 5,769 5,237   Property and equipment, net 177 257 Other assets   17     18   Total assets $ 5,963   $ 5,512   LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 184 $ 159 Accrued employee expenses 557 576 Other accrued liabilities 7 6 Deferred revenue   1,329     665   Total current liabilities   2,077     1,406       Stockholders' equity Common stock: $0.001 par value, 100,000,000 shares authorized 33,321,634 issued and outstanding as of December 31, 2013, and 33,388,545 as of September 30, 2014 33 33 Additional paid-in capital 141,652 141,448 Accumulated deficit   (137,799 )   (137,375 ) Total stockholders' equity   3,886     4,106   Total liabilities and stockholders' equity $ 5,963   $ 5,512       LIVEWORLD, INC. CONDENSED STATEMENTS OF OPERATIONS (In thousands, except share andper share data)        

Three MonthsEnded September 30,

Nine MonthsEnded September 30,

2014 2013 2014   2013 Total revenues $ 3,337 $ 3,319 $ 9,898 $ 10,926 Cost of revenues   1,349   1,153   4,101     3,859 Gross Margin 1,988 2,166 5,797 7,067 Operating Expense Product development 809 826 2,509 2,858 Sales and marketing 467 454 1,518 1,384 General and administrative   704   758   2,176     2,140 Total operating expense   1,980   2,038   6,203     6,382 Income / (loss) from operations   8   128   (406 )   685 Income / (loss) before tax 8 128 (406 ) 685 Provision for income taxes   3   5   18     24 Net income / (loss)   5   123   (424 )   661   Basic income / (loss) per share $ 0.00 $ 0.00 $ (0.01 ) $ 0.02 Shares used in computing basic income/ (loss) per share 33,375,051 33,257,634 33,357,558 33,257,634 Diluted income (loss) per share $ 0.00 $ 0.00 $ (0.01 ) $ 0.02 Shares used in computing diluted income (loss) per share 36,766,596 37,773,917 33,357,558 39,729,729   Departmental allocation of stock-based compensation: Cost of revenues $ 17 $ 6 $ 40 $ 20 Product development 18 19 57 51 Sales and marketing 14 11 39 22 General and administrative   21   21   63     46 Total stock-based compensation $ 70 $ 57 $ 199   $ 139     LIVEWORLD, INC. CONDENSED STATEMENTS OF CASH FLOWS (In thousands)  

Three MonthsEnded September 30,

 

Nine MonthsEnded September 30,

2014   2013 2014   2013 Cash flows from operating activities: Net income (loss) $ 5 $ 123 $ (424 ) $ 661

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

Depreciation of long-lived assets 41 36 121 96 Stock-based compensation 70 57 199 139 Changes in operating assets and liabilities: Accounts receivable (219 ) 233 (151 ) 1 Other assets (84 ) 45

(184

) (27 ) Accounts payable 9 129 25 137 Accrued liabilities 18 (53 ) (18 ) 99 Deferred revenue   579     404     664     462   Net cash provided by (used in) operating activities   419     974     232     1,568   Cash flows from investing activities: Purchase of property and equipment   (4 )   (8 )   (41 )   (125 ) Net cash (used in) investing activities   (4 )   (8 )   (41 )   (125 ) Cash flows from financing activities: Proceeds from exercise of stock options   3     -     5     -   Net cash provided by financing activities   3     -     5     -   Change in cash and cash equivalents 418 966 196 1,443 Cash and cash equivalents, beginning of period   4,191     3,859     4,413     3,382   Cash and cash equivalents, end of period $ 4,609   $ 4,825   $ 4,609   $ 4,825     Supplemental disclosure of non-cash financing and investing activities: Income tax paid $ 3   $ 5   $ 18   $ 24  

LiveWorld, Inc.IR Contact:David Houston, 408-615-8496dhouston@liveworld.comPR Contact:Erica Rutan Diverio, 908-229-0724Erica.Rutan@tallgrasspr.com