LVWD LiveWorld Inc (PK)

LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended June 30, 2013. Total revenues were $3.7 million for the quarter as compared to the $3.1 million for the quarter ended June 30, 2012. This was an increase of approximately $584,000 or 19% period-over-period. The Company’s revenues for the six months ended June 30, 2013 were approximately $7.6 million, as compared to $5.8 million for the six months ended June 30, 2012. This was an increase of approximately $1.8 million or 31% period-over-period.

The Company reported net income for the first quarter of 2013 of $271,000, or 7% of total revenues. This result was a decrease of $139,000 when compared to the net income of $410,000, or 13% reported for the quarter ended June 30, 2012. The Company’s net income for the six months ended June 30, 2013 was approximately $563,000, as compared to the net income of $684,000 for the six months ended June 30, 2012. This was a decrease of approximately $121,000 period-over-period.

The Company ended the quarter with approximately $3.9 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $3.4 million for the quarter ended June 30, 2013 as compared to the $2.8 million it had for the quarter ended December 31, 2012. The Company anticipates that its cash and cash equivalents will diminish for the remainder of this year as it expands its development, sales, and marketing efforts for the second half of 2013.

“We had a solid financial performance for the second quarter of the year with double digit revenue growth while maintaining profitability. We have been consistent with our strategy of increasing our investment in sales, marketing, and product development which has resulted in the reduced profitability over the first six months of 2013,” said David Houston, Chief Financial Officer of LiveWorld. “We remain positive for 2013 and anticipate overall growth for the full year 2013.”

Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com.

LiveWorld Solutions

LiveWorld, a social content marketing company managing social media for Fortune 1,000 brands through engagement, moderation, and insight. Our social media solutions provide a human touch scaled by technology that creates value out of user content, and provides big cost savings.

LiveWorld is a Facebook ® Preferred Marketing Developer (PMD) in the Pages category.

About LiveWorld

LiveWorld, a social content marketing company, is a trusted partner to the world’s largest brands, including the number-one companies in retail, CPG, pharmaceutical, and financial/travel services. We revolutionize the management of user content through innovative technology, leading-edge services, and deep integration with client marketing and customer support teams. Scaling human review of user content and human touch points, LiveWorld removes obstacles faced by brands, allowing them to engage more deeply in social media. In an innovative approach that encompasses review, management, and analysis of user content, LiveWorld provides 24/7 brand protection through “always on” moderation and engagement across social channels, applications, and sites. The LiveWorld solution offers competitive advantage through management of user content in sheer volume, resulting in amplified brand presence, actionable insight, and increased customer loyalty. LiveWorld is headquartered in California, with offices in San Jose, CA and New York City, NY. For more information, go to www.liveworld.com. Follow us at @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. The balance sheet, operating results, and statements of cash flows for the periods ended June 30, 2012 and 2013 and the period ended December 31, 2012 where neither audited nor reviewed by an independent accounting firm and are subject to change upon such a review or audit being completed. 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)     June 30, December 31, 2013 2012 ASSETS Current assets Cash and cash equivalent $ 3,859 $ 3,382 Accounts receivable, net 3,127 1,415 Prepaid expenses   341   268 Total current assets 7,327 5,065   Property and equipment, net 291 234 Other assets   17   17 Total assets $ 7,635 $ 5,316 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 243 $ 235 Accrued employee expenses 640 504 Other accrued liabilities 33 17 Deferred revenue   3,016   1,478 Total current liabilities   3,933   2,234 Total liabilities 3,933 2,234   Stockholders' equity Common stock: $0.001 par value, 100,000,000 shares authorized 33,257,634 issued and outstanding as of December 31, 2012 and June 30, 2013 respectively 33 33 Additional paid-in capital 141,235 141,178 Accumulated deficit   (137,566)   (138,129) Total stockholders' equity   3,702   3,082 Total liabilities and stockholders' equity $ 7,635 $ 5,316     LIVEWORLD, INC. UNAUDITED CONDENSED STATEMENT OF OPERATIONS (In thousands, except per share data)         Three Months Ended June 30, Six Months Ended June 30, 2013 2012 2013 2012 Total revenues $ 3,733 $ 3,149 $ 7,607 $ 5,789 Cost of revenues   1,185   1,025   2,411   1,851 Gross Margin 2,548 2,124 5,195 3,938 Operating Expense Product development 521 432 1,049 822 Sales and marketing 1,024 751 2,125 1,384 General and administrative 687 511 1,389 1,018 Stock based compensation   32   18   58   37 Total operating expense   2,264   1,712   4,620   3,261 Profit from operations 284 412 575 677 Other income   0   0   0   10 Profit before tax 284 411 575 687 Provision for income taxes   (13)   (1)   (13)   (3) Net income   271   410   563   684   Basic net income per share $ 0.01 $ 0.01 $ 0.02 $ 0.02 Shares used in computing basic net income per share 33,257,634 33,157,634 33,257,634 33,157,634 Diluted net income per share $ 0.01 $ 0.01 $ 0.01 $ 0.02 Shares used in computing diluted income (loss) per share 44,554,809 45,190,256 45,078,946 45,190,256   Departmental allocation of stock-based compensation: Product development $ 12 $ 8 $ 22 $ 17 Sales and marketing 8 5 15 11 General and administrative   13   5   21   9 Total stock-based compensation $ 32 $ 18 $ 58 $ 37     LIVEWORLD, INC. UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS (In thousands)     Three Months Ended June 30,   Six Months Ended June 30, 2013   2012 2013   2012 Cash flows from operating activities: Net income $ 271 $ 410 $ 563 $ 684 Adjustments to reconcile net income (loss) provided by (used in) operating activities: Depreciation of long-lived assets 33 19 60 39 Stock-based compensation 32 18 58 37 Changes in operating assets and liabilities: Accounts receivable 1,149 1,763 (1,712) (1,297) Other assets (106) (44) (73) (8) Accounts payable (132) 49 8 259 Accrued liabilities (2) 48 152 172 Deferred revenue   208   34   1,539   2,049 Net cash provided by (used in) operating activities   1,453   2,297   595   1,935 Cash flows from investing activities: Purchase of property and equipment   (97)   (29)   (117)   (89) Net cash provided by (used in) investing activities   (97)   (29)   (117)   (89) Cash flows from financing activities: Note payable financing   -   (9)   -   (15) Net cash provided by (used for) financing activities - - - - Change in cash and cash equivalent 1,356 2,259 477 1,831 Cash and cash equivalents, beginning of period   2,503   895   3,382   1,323 Cash and cash equivalents, end of period $ 3,859 $ 3,154 $ 3,859 $ 3,154