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  <TITLE>Prepared by R.R. Donnelley Financial -- Form 8-K</TITLE>
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   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <HR NOSHADE COLOR="#000000" ALIGN="left"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"
  COLOR="#000000"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>Washington, D.C. 20549 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
  ALIGN="center"><FONT FACE="Times New Roman" SIZE="5" COLOR="#000000"><B>FORM 8-K </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>Current Report Pursuant to
  Section 13 or 15(d) of </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>the Securities Exchange Act of 1934 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Date of Report (Date of earliest event reported): </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT
  FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>August 8, 2002 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"
  COLOR="#000000"><B>LIVEWORLD, INC. </B></FONT></DIV> <HR NOSHADE WIDTH="40%" COLOR="#000000"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Exact name of registrant as specified in its charter) </FONT></DIV> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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  <TD VALIGN="bottom" WIDTH="31%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Delaware</B></FONT></DIV> <HR SIZE="2" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>000-26657</B></FONT></DIV> <HR SIZE="2" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>77-0426524</B></FONT></DIV> <HR SIZE="2" NOSHADE COLOR="#000000"></TD> </TR>
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="31%"> <DIV STYLE="margin-left:2%; text-indent:-2%" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(State or other jurisdiction</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"
  ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">of incorporation)</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="31%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Commission</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">File Number)</FONT></DIV>
  </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="31%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(IRS Employer</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Identification
  No.)</FONT></DIV> </TD> </TR>
   </TABLE> </DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>307 Orchard City Drive, Suite
  110 </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Campbell, CA 95008 </B></FONT></DIV> <HR NOSHADE WIDTH="40%" COLOR="#000000"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"
  COLOR="#000000">(Address of Principal Executive Offices) </FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Zip Code) </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
  <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Registrant&#146;s telephone number, including area code: <B>(408) 871-5200 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
  <HR NOSHADE WIDTH="40%" COLOR="#000000"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Former name or former address, if changed since last report) </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <HR NOSHADE
  COLOR="#000000" ALIGN="left">
  
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   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;Change in Registrant&#146;s Certifying Accountant </B></FONT></DIV>
  <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(a)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Previous Independent Accountants </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(i)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On August 8, 2002 the Company dismissed KPMG, LLP as its independent accountants. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(ii)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The audit reports of KPMG, LLP on the financial statements of LiveWorld, Inc. (the &#147;Company&#148;) as of and for the years ended December 31, 2001 and
  2000, did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principle except as follows: </FONT></DIV> </TD></TR></TABLE> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:13%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">KPMG LLP&#146;s report on the financial statements of the Company as of and for the years ended December 31, 2001 and 2000, contained a
  separate paragraph stating &#147;the Company&#146;s recurring net losses, amounts of cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Management&#146;s plans in
  regard to these matters are also described in note 13. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.&#148; </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(iii)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On August 8, 2002, the decision to appoint a new independent accountant was approved by the Company&#146;s Board of Directors. </FONT></DIV> </TD></TR></TABLE>
  <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(iv)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">In connection with its audits for the two most recent fiscal years and through the date of this Report, the Company has had no disagreements with KPMG, LLP on
  any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to the satisfaction of KPMG, LLP would have caused it to make reference thereto in their report on
  the financial statements of the Company for such years. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(v)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">During the Company&#146;s two most recent fiscal years and through the date of this Report, the Company has had no reportable events (as defined in Item
  304(a)(1)(v) of the Regulation S-K). </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(vi)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The Company has requested that KPMG, LLP furnish it with a letter addressed to the Commission stating whether or not it agrees with the above statements. A copy
  of such letter, dated August 12, 2002 is filed as Exhibit 16 to this Form 8-K. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(b)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">New Independent Accountants </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(i)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The Company engaged Stonefield-Josephson, Inc. as its new independent accountants as of August 8, 2002. During the two most recent fiscal years and through the
  date of this Report, the Company has not consulted with Stonefield-Josephson, Inc. regarding (1) either the application of accounting principles to a specified transaction, either completed or proposed, or the type
   </FONT></DIV> </TD></TR></TABLE>
  
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  of audit opinion that might be rendered on the Company&#146;s financial statements, and either a written report was provided to the Company or oral advice was provided that Stonefield-Josephson,
  Inc. concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (2) any matter that was either the subject of disagreement, as that term is defined in Item
  304(a)(1)(iv) of Regulation S-K and the related instruction of Item 304 of Regulation S-K, or a reportable event, as that term is defined in Item 304(a)(1)(v) of Regulation S-K. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT
  SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;Other Events </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2"
  COLOR="#000000"><B>LiveWorld reports additional expense reduction July 2002 and August 2002 actions including downsizing of its Board of Directors and change in Audit firm, as part of its strategy to aggressively manage expenses, cash position and
  cash runway. </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>1)</B></FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B></B><B>Expense Reduction:</B>&nbsp;&nbsp;&nbsp;&nbsp;Continuing its strategy of aggressive management of expenses and cash position, LiveWorld&#146;s
  management team and Board of Directors is undertaking further reduction of expenses it deems not to be directly adding value to the business. Specifically the Company has decided to reduce expenses associated with maintaining a multi-person board of
  directors, including not renewing the Company&#146;s D&amp;O insurance. <B></B> </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>2)</B></FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Downsizing of Board of Directors and Associated Resignations By Three Board Members:</B>&nbsp;&nbsp;&nbsp;&nbsp;For the sole reason of supporting these
  expense reductions, the Board voted to reduce the size of the Board to 1 position, and subsequently, three board member (Barry Weinman, David Watkins, and Stephen Lake) resigned their positions, leaving Chairman and CEO Peter Friedman to fill the
  one remaining position on the Board. Mr Friedman was reelected to the Board during Q2 2002, by a significant majority of the votes cast.<B></B> </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>3)</B></FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Change in Auditor:</B>&nbsp;&nbsp;&nbsp;&nbsp;See Item 4 for a description of a change in the Company&#146;s independent accountants. Given the need for time
  to effect a transition, the Company currently expects to file for an extension for filing its Quarterly Report on Form 10-Q for its fiscal quarter ended June 30, 2002. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>4)</B></FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Financial Impact of Changes:</B>&nbsp;&nbsp;&nbsp;&nbsp;The Company current expects the financial impact of the above changes to be consistent with the
  changes reported in the Company&#146;s Current Report on Form 8-K filed July 10, 2002. </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Item
  7.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits. </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
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  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(c)</FONT></DIV></TD>
  <TD WIDTH="1%" VALIGN="top"><DIV><FONT SIZE="1">&nbsp;</FONT></DIV></TD>
  <TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Exhibits </FONT></DIV> </TD></TR></TABLE> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:8%"><FONT FACE="Times New Roman" SIZE="2"
  COLOR="#000000">16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Letter from KPMG, LLP to the Securities &amp; Exchange Commission </FONT></DIV>
  
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   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>SIGNATURES </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
  STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV>
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  <TD VALIGN="top" COLSPAN="3" WIDTH="67%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">LIVEWORLD, INC.</FONT></DIV> </TD> </TR>
  <TR>
  <TD HEIGHT="16"> </TD> </TR>
  <TR>
  <TD VALIGN="top" WIDTH="47%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Date: August 12, 2002</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="3%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="67%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">/s/&nbsp;&nbsp;&nbsp;&nbsp;P<SMALL>ETER</SMALL> H. F<SMALL>RIEDMAN</SMALL></FONT></DIV> <HR SIZE="2" NOSHADE ALIGN="left" COLOR="#000000"></TD> </TR>
  <TR>
  <TD> <FONT SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD> <FONT SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="67%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Peter H. Friedman</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"
  COLOR="#000000">Chairman and Chief Executive Officer</FONT></DIV> </TD> </TR>
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   <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>EXHIBIT INDEX </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
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  <TD VALIGN="bottom" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>Exhibit&nbsp;No.</B></FONT></DIV> <HR SIZE="2" NOSHADE WIDTH="62" COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="100%"> <DIV><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>Description</B></FONT></DIV> <HR SIZE="2" NOSHADE WIDTH="65" ALIGN="left" COLOR="#000000"></TD> </TR>
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  <TD HEIGHT="5"> </TD> </TR>
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="10%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">16.</FONT></DIV> </TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="100%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Letter from KPMG, LLP to the Securities &amp; Exchange Commission</FONT></DIV> </TD> </TR>
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metadata_filer: {"company-data": {"conformed-name": "LIVEWORLD INC", "cik": "0001080088", "assigned-sic": "7389", "irs-number": "770426524", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26657", "film-number": "02729812"}, "business-address": {"street1": "307 ORCHARD CITY DRIVE", "street2": "STE 110", "city": "CAMPBELL", "state": "CA", "zip": "95008", "phone": "4088715200"}, "mail-address": {"street1": "307 ORCHARD CITY DRIVE", "street2": "STE 110", "city": "CAMPBELL", "state": "CA", "zip": "95008"}, "former-company": {"former-conformed-name": "TALK CITY INC", "date-changed": "19990218"}}
text: Prepared by R.R. Donnelley Financial -- Form 8-K
  SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549
  FORM 8-K
  Current Report Pursuant to
  Section 13 or 15(d) of
  the Securities Exchange Act of 1934
  Date of Report (Date of earliest event reported):
  August 8, 2002
  LIVEWORLD, INC.
  (Exact name of registrant as specified in its charter)
  Delaware
  000-26657
  77-0426524
  (State or other jurisdiction
  of incorporation)
  (Commission
  File Number)
  (IRS Employer
  Identification
  No.)
  307 Orchard City Drive, Suite
  110
  Campbell, CA 95008
  (Address of Principal Executive Offices)
  (Zip Code)
  Registrant's telephone number, including area code:
  (408) 871-5200
  (Former name or former address, if changed since last report)
  Item 4.    Change in Registrant's Certifying Accountant
  (a)
  Previous Independent Accountants
  (i)
  On August 8, 2002 the Company dismissed KPMG, LLP as its independent accountants.
  (ii)
  The audit reports of KPMG, LLP on the financial statements of LiveWorld, Inc. (the "Company") as of and for the years ended December 31, 2001 and
  2000, did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principle except as follows:
  KPMG LLP's report on the financial statements of the Company as of and for the years ended December 31, 2001 and 2000, contained a
  separate paragraph stating "the Company's recurring net losses, amounts of cash used in operating activities and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Management's plans in
  regard to these matters are also described in note 13. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."
  (iii)
  On August 8, 2002, the decision to appoint a new independent accountant was approved by the Company's Board of Directors.
  (iv)
  In connection with its audits for the two most recent fiscal years and through the date of this Report, the Company has had no disagreements with KPMG, LLP on
  any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to the satisfaction of KPMG, LLP would have caused it to make reference thereto in their report on
  the financial statements of the Company for such years.
  (v)
  During the Company's two most recent fiscal years and through the date of this Report, the Company has had no reportable events (as defined in Item
  304(a)(1)(v) of the Regulation S-K).
  (vi)
  The Company has requested that KPMG, LLP furnish it with a letter addressed to the Commission stating whether or not it agrees with the above statements. A copy
  of such letter, dated August 12, 2002 is filed as Exhibit 16 to this Form 8-K.
  (b)
  New Independent Accountants
  (i)
  The Company engaged Stonefield-Josephson, Inc. as its new independent accountants as of August 8, 2002. During the two most recent fiscal years and through the
  date of this Report, the Company has not consulted with Stonefield-Josephson, Inc. regarding (1) either the application of accounting principles to a specified transaction, either completed or proposed, or the type
  of audit opinion that might be rendered on the Company's financial statements, and either a written report was provided to the Company or oral advice was provided that Stonefield-Josephson,
  Inc. concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (2) any matter that was either the subject of disagreement, as that term is defined in Item
  304(a)(1)(iv) of Regulation S-K and the related instruction of Item 304 of Regulation S-K, or a reportable event, as that term is defined in Item 304(a)(1)(v) of Regulation S-K.
  Item 5.    Other Events
  LiveWorld reports additional expense reduction July 2002 and August 2002 actions including downsizing of its Board of Directors and change in Audit firm, as part of its strategy to aggressively manage expenses, cash position and
  cash runway.
  1)
  Expense Reduction:
  Continuing its strategy of aggressive management of expenses and cash position, LiveWorld's
  management team and Board of Directors is undertaking further reduction of expenses it deems not to be directly adding value to the business. Specifically the Company has decided to reduce expenses associated with maintaining a multi-person board of
  directors, including not renewing the Company's D&O insurance.
  2)
  Downsizing of Board of Directors and Associated Resignations By Three Board Members:
  For the sole reason of supporting these
  expense reductions, the Board voted to reduce the size of the Board to 1 position, and subsequently, three board member (Barry Weinman, David Watkins, and Stephen Lake) resigned their positions, leaving Chairman and CEO Peter Friedman to fill the
  one remaining position on the Board. Mr Friedman was reelected to the Board during Q2 2002, by a significant majority of the votes cast.
  3)
  Change in Auditor:
  See Item 4 for a description of a change in the Company's independent accountants. Given the need for time
  to effect a transition, the Company currently expects to file for an extension for filing its Quarterly Report on Form 10-Q for its fiscal quarter ended June 30, 2002.
  4)
  Financial Impact of Changes:
  The Company current expects the financial impact of the above changes to be consistent with the
  changes reported in the Company's Current Report on Form 8-K filed July 10, 2002.
  Item
  7.    Financial Statements and Exhibits.
  (c)
  Exhibits
  16        Letter from KPMG, LLP to the Securities & Exchange Commission
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.
  LIVEWORLD, INC.
  Date: August 12, 2002
  By:
  /s/    P
  ETER
  H. F
  RIEDMAN
  Peter H. Friedman
  Chairman and Chief Executive Officer
  EXHIBIT INDEX
  Exhibit No.
  Description
  16.
  Letter from KPMG, LLP to the Securities & Exchange Commission