LiveWorld Reports Third Quarter 2024 Financial Results

LiveWorld Reports Third Quarter 2024 Financial Results

LiveWorld Contacts
IR Contact:
David Houston
LiveWorld
dhouston@liveworld.com
(408) 615-8496

PR Contact:
Matthew Hammer
LiveWorld
mhammer@liveworld.com
(737) 212-9739

LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter 2024.

Q3 2024 Financial and Business Highlights

Total three months revenues of $3.1 million, a 13% growth rate from last year
Healthcare revenues of $2.6 million in Q3 2024, a 17% growth rate from last year
Net income from operations of $291,000 an improvement of $245,000 from last year
Cash increased by $1.5 million to $6.2 million from December 31, 2023

Management Commentary

“In the third quarter we began to see our investment efforts start to pay off, with our total revenues growing from $2.8 million in the third quarter of 2023 to $3.1 million for the same period this year, or 13%. As a result, we saw a material improvement in our bottom line from approximately $46,000 to $291,000 for the period,” remarked David Houston, Chief Financial Officer of LiveWorld. “As we continue to invest for the future, we expect the second half of 2024 to be materially better with approximately 15-20% growth over our revenues in the first six months of the year.”

“While we have seen a year of tightening corporate marketing budgets and typical client attrition, we’ve been able to make up for that, with newly signed clients and growth of existing client revenue,” said Peter Friedman, Chairman and CEO. “We believe our investment for growth strategy with expanded solution sets such as media and influencer marketing is working with initial signs of client interest and purchase. We expect these and our other investments to form a foundation for growth as we move into 2025.”

Financial Review for the Three and Nine Months Ended September 30, 2024

Total revenues were approximately $3.1 million for the three months, as compared to approximately $2.8 million in total revenues reported for the same period in 2023. This was an increase of approximately $371,000 or 13% when compared to the three months of 2023. The company saw its healthcare related revenues grow from approximately $2.4 million for the three-month period ended September 30, 2023, to approximately $2.9 million, or 17%, for the same period in 2024.

Total revenues were approximately $8.5 million for the nine months, as compared to approximately $8.6 million in total revenues reported for the same period in 2023. This was a decrease of approximately $88,000 or 1% when compared to the nine months of 2023. The company anticipates the full year revenues to be approximately the same as the full year for 2023. The healthcare related revenues were relatively flat for the nine-month period in 2023 to 2024 with approximately $7.6 million in 2023 and $7.7 million in 2024.

The company reported a net income for the three months of approximately $291,000 or 9% of total revenues. This compares to net income of approximately $46,000 or 2% of total revenues reported for the three months of 2023.

The company reported a net loss for the nine months of approximately $341,000 or 4% of total revenues. This compares to net income of approximately $344,000 or 4% of total revenues reported for the nine months of 2023.

The company finished the quarter with approximately $6.2 million in cash and cash equivalents, compared to approximately $4.6 million at the end of 2023. The company’s free cash was approximately $4.0 million as of end of the third quarter. The company defines free cash as cash net of media spend for clients and deferred revenue.

Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at https://www.otcmarkets.com/stock/LVWD/overview.

About LiveWorld

LiveWorld is a social-first digital agency that transforms customer relationships by integrating compliance, engagement, and insight solutions. We offer strategic, impactful creative, precise media targeting, responsive social moderation, software automation, and compliance support to drive and accelerate digital programs.

With over 28 years of making connections, we leverage 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)

	September 30,			December 31,
	2024			2023
ASSETS
Current assets
Cash and cash equivalent	$	6,164		$	4,635
Accounts receivable, net		1,630			1,701
Prepaid expenses		267			225
Total current assets		8,061			6,561

Property and equipment, net		37			44
Other assets		26			27
Total assets	$	8,124		$	6,632
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	176		$	238
Accrued employee expenses		1,134			890
Other accrued liabilities		534			343
Deferred revenue		1,659			438
Total current liabilities		3,503			1,909
Total liabilities		3,503			1,909

Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of September 30, 2024, and December 31, 2023, respectively		34			34
Additional paid-in capital		144,370			144,131
Accumulated deficit		(139,783	)		(139,442	)
Total stockholders' equity		4,621			4,723
Total liabilities and stockholders' equity	$	8,124		$	6,632

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
Total revenues	$	3,131	$	2,760	$	8,490		$	8,578
Cost of revenues		1,558		1,453		4,702			4,246
Gross Margin		1,573		1,307		3,788			4,332
Operating Expense
Product development		294		253		811			785
Sales and marketing		301		359		1,271			1,240
General and administrative		687		585		2,028			1,798
Total operating expense		1,282		1,197		4,110			3,823
Income from operations		291		110		(322	)		509
Income before tax		291		110		(322	)		509
Other Income		1		1		4			3
Provision for income taxes		1		65		23			168
Net income from operations		291		46		(341	)		344

Earnings per share analysis from operations:
Basic income per share	$	0.01	$	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	$	0.01	$	0.00	$	(0.01	)	$	0.01
Shares used in computing diluted income (loss) per share		55,116,047		63,042,604		45,633,442			65,033,524


Departmental allocation of stock-based compensation:
Cost of revenues	$	21	$	15	$	58		$	44
Product development		5		4		14			10
Sales and marketing		8		8		25			25
General and administrative		49		35		142			102
Total stock-based compensation	$	83	$	62	$	239		$	181

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Cash flows from operating activities:
Net income (loss)	$	291		$	46		$	(341	)	$	344
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		6			8			19			23
Stock-based compensation		83			62			239			181
Changes in operating assets and liabilities:
Accounts receivable		452			205			72			681
Other assets		(43	)		21			(43	)		(42	)
Accounts payable		(45	)		(135	)		(61	)		(8	)
Accrued liabilities		641			147			436			(7	)
Deferred revenue		13			(339	)		1,220			24
Net cash provided by (used in) operating activities		1,398			15			1,541			1,196
Cash flows from investing activities:
Purchase of property and equipment		(6	)		(6	)		(12	)		(26	)
Net cash provided by (used in) investing activities		(6	)		(6	)		(12	)		(26	)
Cash flows from financing activities:
Proceeds from exercise of stock options	---				---		---				---
Net cash provided by (used for) financing activities	---				---		---				---
Change in cash and cash equivalent		1,392			9			1,529			1,170
Cash and cash equivalents, beginning of period		4,772			4,962			4,635			3,801
Cash and cash equivalents, end of period	$	6,164		$	4,971		$	6,164		$	4,971

Supplemental disclosure of non-cash financing and investing activities:
Income tax paid	$	1		$	65		$	23		$	168