LVWD LiveWorld Inc (PK)

LiveWorld, Inc. (OTC Markets: LVWD), today announced the audited financial results for the full years 2013 and 2012. Total revenues were approximately $14.5 million for 2013 as compared to the approximately $13.6 million in total revenues reported for 2012.

The Company reported net income for 2013 of approximately $0.8 million, or 6% of total revenues. This compares to the net income of approximately $1.8 million, or 13% of total revenues, reported for 2012. The earnings per share on a fully diluted basis were $0.02 and $0.04 for 2013 and 2012, respectively.

The company ended 2013 with approximately $4.4 million in cash and cash equivalents as compared to the approximately $3.4 million as of the end of 2012. The Company reported a positive working capital balance of approximately $3.8 million as of December 31, 2013 as compared to the approximately $2.8 million as of December 31, 2012.

“Our solid financial results came in as planned with strong revenue growth, healthy profits, and meaningful investments in our products, services, and people,” states David Houston, Chief Financial Officer of LiveWorld. “We are committed to the long-term goals of the company which includes bringing compelling products and services to market. In order to achieve our goals we will make material investments in our sales, marketing, and development efforts in 2014.”

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)     December 31, December 31,   2013     2012   ASSETS Current assets Cash and cash equivalents $ 4,413 $ 3,382 Accounts receivable 488 517 Prepaid expenses   336     276   Total current assets 5,237 4,175   Property and equipment, net 257 234 Other assets   18     17   Total assets $ 5,512   $ 4,426   LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 159 $ 235 Accrued employee expenses 576 509 Other accrued liabilities 6 12 Deferred revenue   665     581   Total current liabilities   1,406     1,337       Stockholders' equity Common stock: $0.001 par value, 100,000,000 shares authorized 33,321,634 and 33,257,634 issued and outstanding as of December 31, 2013 and December 31, 2012, respectively 33 33 Additional paid-in capital 141,448 141,243 Accumulated deficit   (137,375 )   (138,187 ) Total stockholders' equity   4,106     3,089     Total liabilities and stockholders' equity $ 5,512   $ 4,426     LIVEWORLD, INC. STATEMENTS OF OPERATIONS (In thousands, except per share data)     Twelve Months Ended

December 31,

2013 2012 Total revenues $ 14,523 $ 13,557 Cost of revenues   5,262   4,691 Gross Margin 9,261 8,866 Operating Expenses Product development 3,725 3,658 Sales and marketing 1,875 1,311 General and administrative   2,840   2,112 Total operating expenses   8,440   7,081 Income from operations 821 1,785 Other income   6   12 Income before tax 827 1,797 Provision for income taxes 15 32 Net income   812   1,765   Basic net income per share $ 0.02 $ 0.05 Shares used in computing basic net income per share 33,259,634 33,207634 Diluted net income per share $ 0.02 $ 0.04 Shares used in computing diluted income per share 41,291,384 40,415,064   Departmental allocation of stock-based compensation: Cost of revenues $ 31 $ 12 Product development 70 51 Sales and marketing 32 29 General and administrative   66   40 Total stock-based compensation $ 199 $ 132   LIVEWORLD, INC. STATEMENTS OF CASH FLOWS (In thousands)   Twelve Months Ended December 31,   2013       2012   Cash flows from operating activities: Net income $ 812 $ 1,765 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 134 87 Stock-based compensation 199 132 Changes in operating assets and liabilities: Accounts receivable 29 (558 ) Prepaid expenses and other assets (61 ) (140 ) Accounts payable (76 ) 223 Accrued employee expenses and other liabilities 61 163 Deferred revenue   84     589   Net cash provided by operating activities   1,182     2,261   Cash flows from investing activities: Purchases of property and equipment   (157 )   (189 ) Net cash used in investing activities   (157 )   (189 ) Cash flows from financing activities: Proceeds from exercise of stock options 6 2 Payment of note payable   ----     (15 ) Net cash provided by (used in) financing activities 6 (13 ) Change in cash and cash equivalents 1,031 2,059 Cash and cash equivalents, beginning of year   3,382     1,323   Cash and cash equivalents, end of year $ 4,413   $ 3,382     Supplemental cash flow information:   Income taxes paid $ 4   $ 7  

IR Contact:LiveWorldDavid Houston, 408-615-8496dhouston@liveworld.comorPR Contact:TallGrass PRKatelyn Rice, 646-559-1329katelyn.rice@tallgrasspr.com