MARKET WIRE NEWS

LiveWorld Reports Second Quarter 2025 Financial Results

MWN-AI** Summary

LiveWorld, Inc. (OTC Markets: LVWD) reported its financial results for the second quarter of 2025, indicating total revenues of $2.7 million, representing a 5% decrease from $2.8 million in the same period the previous year. Healthcare revenues, however, remained strong, accounting for $2.4 million of the total. The company experienced a net loss from operations of $92,000, a significant improvement compared to a net loss of $134,000 in Q2 2024, showcasing a 31% reduction year-over-year.

For the first half of 2025, total revenues were approximately $5.2 million, down 2% from $5.4 million in the prior year. The net loss for the six-month period was $368,000, markedly reduced by 42% compared to $632,000 in 2024. LiveWorld's cash and cash equivalents rose to $5.5 million by June 30, 2025, up from $4.8 million at the end of 2024, with net cash available for operations reported at $5.2 million.

Management cited ongoing uncertainties in the business environment as a reason for clients scaling back discretionary spending, anticipating this trend to persist until the market stabilizes. Despite this, the company remained committed to investing in artificial intelligence (AI) to enhance operational efficiencies and drive future growth, as highlighted by Chairman and CEO Peter Friedman.

Additionally, LiveWorld's creative digital marketing efforts for Chiesi Global Rare Diseases were recognized as a finalist in the 2025 MM+M Awards, emphasizing the company's impact in elevating disease awareness and fostering community connections.

Overall, while facing revenue challenges, LiveWorld is strategically positioning itself for long-term growth through innovative investments in AI and a focus on client engagement.

MWN-AI** Analysis

LiveWorld, Inc. (OTC: LVWD) has reported its second-quarter results for 2025, highlighting ongoing challenges and strategic investments that could signal opportunities for investors. Although total revenues decreased 5% year-over-year to $2.7 million, the company experienced a net loss of only $92,000—a notable reduction of 31% compared to the previous year. This improved operational loss suggests enhanced efficiency and cost management, reflecting a proactive approach during a turbulent economic landscape.

A significant portion of LiveWorld's revenues, approximately $2.4 million, stem from healthcare, reinforcing its positioning in the immerging healthcare digital marketing sector. Nonetheless, management acknowledged that client budget constraints are impacting discretionary spending, indicating potential revenue pressures in the near term. Investors should monitor how effectively LiveWorld navigates these market challenges while fostering client relationships and expanding its capabilities.

Despite the revenue dip, the company's increase in net cash to $5.5 million shows a healthy liquidity position, essential for funding ongoing investments in artificial intelligence (AI). With comments from CEO Peter Friedman emphasizing the deployment of AI across operations and product offerings, the focus on innovation hints at future growth avenues. Companies that actively pivot toward AI may position themselves favorably in an increasingly digital marketplace, aligning with broader industry trends.

The acquisition of four new clients in the first half of 2025 further illustrates LiveWorld’s efforts to broaden its client base. This expansion, combined with recognition for its digital marketing efforts in prestigious industry awards, suggests a robust reputation that could benefit future client engagement.

Given these dynamics, prospective investors might consider a cautious approach, weighing the current operational losses against the company's strategic investments and growth potential. It may be prudent to watch for signs of market stabilization and increased client spending before committing significant capital.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: GlobeNewswire

CAMPBELL, Calif. and NEW YORK, Aug. 12, 2025 (GLOBE NEWSWIRE) -- LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for second quarter 2025.

Q2 2025 Financial and Business Highlights

  • Total three months revenues of $2.7 million
  • Healthcare revenues of $2.4 million in Q2 2025
  • Net loss from operations of $92,000 a reduction of 31% when compared to 2024
  • Net Cash increased by $729,000 to $5.5 million from June 30, 2024
  • Acquired four new clients in the first six months of 2025

Management Commentary

“For the three months ended June 30, 2025, we saw a slight dip in total revenues when compared to the same period in 2024. The uncertainty of the current business environment has our clients pulling back on discretionary spending in 2025. We anticipate this to continue for the foreseeable future until we start to see the market stabilize,” commented David Houston, Chief Financial Officer of LiveWorld. “We saw a small loss in the second quarter of $92,000. These losses and any future losses are a result of our continued focused investment in AI in 2025 and 2026.”

“We continue to invest in AI in three ways: how we operate our business, across all of the solutions we offer our clients, and in next generation AI software-based products,” said Peter Friedman, Chairman and CEO of LiveWorld. “Our intent is to not only improve the efficiency and value of our current offerings but to introduce entirely new AI-based products and revenue streams for future growth.”

The company also announced that its creative digital marketing campaign for Chiesi Global Rare Diseases has been named a finalist in the 2025 MM+M Awards in the Organic Social Media category for disease awareness elevating Chiesi GRD positioning, strengthening patient ties, and building community connections.

Financial Review for the Three and Six Months Ended June 30, 2025

Total revenues for the three months ended June 30, 2025, were approximately $2.7 million, as compared to approximately $2.8 million for the three months ended June 30, 2024. This was a decrease of approximately $129,000 or 5% period-over-period.

Total revenues for the six months ended June 30, 2025, were approximately $5.2 million, as compared to approximately $5.4 million for the six months ended June 30, 2024. This was a decrease of approximately $127,000 or 2% period-over-period.

The company reported a net loss for the three months of approximately $92,000 or 3% of total revenues. This compares to net loss of approximately $134,000 or 5% of total revenues reported for the three months of 2024. This was a reduction of approximately 31% when comparing the two periods.

The company reported a net loss for the six months of approximately $368,000 or 7% of total revenues. This compares to net loss of approximately $632,000 or 12% of total revenues reported for the six months of 2024. This was a reduction of approximately 42% when comparing the two periods.

The company finished the quarter with approximately $5.5 million in cash and cash equivalents, compared to approximately $6.6 million at the end of 2024. The net cash available for operations was approximately $5.2 million at the end of June 30, 2025, compared to the $6.2 million at the end of 2024. The company defines net cash available for operations as cash, less media expenditure commitments.

Detailed financial information may be downloaded at www.liveworld.com/ir or at https://www.otcmarkets.com/stock/LVWD/overview .

About LiveWorld

LiveWorld is a social-first digital agency and software company that unlocks the full potential of social media to transform customer relationships through integrated compliance, engagement, and insight solutions. We provide brand marketers bold creative rooted in strategy that captivates and resonates, social moderation and engagement that activates interactions, software and AI that enriches and scales customer experiences, and compliance that enables and accelerates digital programs.

With over 29 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 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.
UNAUDITED CONDENSED BALANCE SHEETS
(In thousands, except share data)
June 30, December 31,
2025 2024
ASSETS
Current assets
Cash and cash equivalent $ 5,538 $ 6,603
Accounts receivable, net 3,879 682
Prepaid expenses 325 290
Total current assets 9,742 7,575
Property and equipment, net 26 33
Other assets 27 27
Total assets $ 9,795 $ 7,635
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 217 $ 182
Accrued employee expenses 543 1,068
Other accrued liabilities 1,746 413
Deferred revenue 2,384 860
Total current liabilities 4,890 2,523
Total liabilities 4,890 2,523
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2025, and December 31, 2024, respectively 34 34
Additional paid-in capital 144,611 144,451
Accumulated deficit (139,740 ) (139,373 )
Total stockholders' equity 4,905 5,112
Total liabilities and stockholders' equity $ 9,795 $ 7,635


LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025 2024 2025 2024
Total revenues $ 2,657 $ 2,786 $ 5,232 $ 5,359
Cost of revenues 1,322 1,567 2,837 3,144
Gross Margin 1,335 1,219 2,395 2,215
Operating Expense
Product development 362 245 637 517
Sales and marketing 455 460 895 970
General and administrative 609 629 1,249 1,340
Total operating expense 1,426 1,334 2,781 2,827
Income from operations (91 ) (115 ) (386 ) (612 )
Income before tax (91 ) (115 ) (386 ) (612 )
Other Income 20 1 37 2
Provision for income taxes 19 20 19 22
Net income from operations (92 ) (134 ) (368 ) (632 )
Earnings per share analysis from operations:
Basic income per share $ (0.00 ) $ (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 $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 )
Shares used in computing diluted income (loss) per share 45,633,442 45,633,442 45,633,442 45,633,442
Departmental allocation of stock-based compensation:
Cost of revenues $ 21 $ 19 $ 41 $ 38
Product development 5 5 10 9
Sales and marketing 8 8 16 16
General and administrative 47 48 93 93
Total stock-based compensation $ 81 $ 80 $ 160 $ 156


LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025 2024 2025 2024
Cash flows from operating activities:
Net income (loss) $ (92 ) $ (134 ) $ (368 ) $ (632 )
Adjustments to reconcile net income (loss)
provided by (used in) operating activities:
Depreciation of long-lived assets 5 6 11 13
Stock-based compensation 81 80 160 156
Changes in operating assets and liabilities:
Accounts receivable (1,537 ) 181 (3,197 ) (381 )
Other assets 137 125 (32 ) ----
Accounts payable 5 (14 ) 35 (16 )
Accrued liabilities 1,370 10 807 (204 )
Deferred revenue 524 203 1,523 1,207
Net cash provided by (used in) operating activities 493 457 (1,061 ) 143
Cash flows from investing activities:
Purchase of property and equipment ----- (1 ) (4 ) (6 )
Net cash provided by (used in) investing activities ----- (1 ) (4 ) (6 )
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 493 456 (1,065 ) 137
Cash and cash equivalents, beginning of period 5,045 4,316 6,603 4,635
Cash and cash equivalents, end of period $ 5,538 $ 4,772 $ 5,538 $ 4,772
Supplemental disclosure of non-cash financing and
investing activities:
Income tax paid $ 19 $ 20 $ 19 $ 22

FAQ**

How does LiveWorld, Inc. (LVWD) plan to navigate the uncertainty in the business environment that has led to clients reducing discretionary spending, as mentioned in the recent financial report from August 12, 2025?

LiveWorld, Inc. (LVWD) aims to navigate the uncertain business environment by focusing on enhancing operational efficiency, diversifying its service offerings, and fostering strong client relationships to retain customers despite reduced discretionary spending.

What specific AI investments is LiveWorld, Inc. (LVWD) prioritizing to enhance operational efficiency and introduce new products, and how do they plan to generate future revenue from these initiatives?

LiveWorld, Inc. (LVWD) is prioritizing investments in AI-driven community engagement tools and automated social media moderation to enhance operational efficiency, with plans to generate future revenue through subscription models and licensing of their AI technology to other businesses.

Considering LiveWorld, Inc. (LVWD) reported a decrease in total revenues for the second quarter of 2025 compared to 2024, what strategies does the management have in place to reverse this trend in the upcoming quarters?

LiveWorld, Inc. (LVWD) plans to implement strategies such as enhancing product offerings, expanding market reach through targeted marketing campaigns, and focusing on customer engagement to reverse the revenue decline experienced in the second quarter of 2025.

How does the recognition of LiveWorld, Inc. (LVWD)’s creative digital marketing campaign for Chiesi Global Rare Diseases impact the company's brand image and client acquisition strategy moving forward?

The recognition of LiveWorld, Inc.'s creative digital marketing campaign for Chiesi Global Rare Diseases enhances its brand image by showcasing its innovative capabilities, thereby strengthening client acquisition strategies through increased visibility and credibility within the healthcare sector.

**MWN-AI FAQ is based on asking OpenAI questions about Liveworld, Inc. (OTC: LVWD).

Liveworld, Inc.

NASDAQ: LVWD

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