LiveWire Ergogenics Announces Increased Revenue and Net Profit for the Second Quarter of 2022 and Provides Outlook Through 2023

Anaheim, CA, Aug. 15, 2022 (GLOBE NEWSWIRE) -- LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring, leasing, licensing, and managing special purpose real estate properties conducive to producing high-quality, handcrafted, and sun-grown cannabis products for medical and recreational adult-use in California reports financial results for the second quarter 2022. 

Bill Hodson, CEO of LiveWire Ergogenics, states, "The past several months have been trying times for the cannabis industry. We have seen cannabis cultivators abandoning their licenses, overextended retailers, distributors and delivery businesses shutting down, and manufacturing facilities putting up 'For Sale’ signs. Several factors are in play, from post-pandemic oversupply to an extremely painful tax hierarchy, further complicated by a burdensome compliance system. Despite all of this, or maybe even because of this, we see tremendous opportunity in these turbulent times.”

“We have used the terms 'staying in our lane' and ‘running a lean operation’ on multiple occasions and will continue to follow that business strategy moving forward. Based on what we have achieved over the last year, we are convinced LiveWire will continue to get stronger while the rest of the industry softens. Our strategy of cannabis real estate ownership, management, licensing operations, and marketing the products while running a tight organization will prove to be successful. We operate on low overhead and strict economic principles. We have engaged a passionate team of qualified, seasoned individuals to produce a superior product worthy of our "Estate Grown Weedery" branding and marketing. We believe this focus will be the right direction in the months and years to come."

“We continue to expand our operations aggressively yet cautiously to the maximum capacity allowed by the County and the State at Estrella Ranch. We utilize our passionate team's intense experience from our Humboldt facility, along with Central Coast legacy farmers, which has established and managed the operation at Estrella Ranch to cultivate the best possible handcrafted and sungrown product in California. We believe the increasing number of consumers will soon understand it’s not just about THC content but also the terpenes, flavonoids, and cannabinoids that produce an enhanced entourage effect that only sungrown cannabis can naturally produce. This demand for high-quality handcrafted products supports our narrowly focused, organic style "Estate Grown Weedery" business model on Estrella Ranch and Makana Ola Farms. We will continue to implement our unique vision carefully, following a strict discipline of operating with low overhead and diminishing debt burden without sacrificing quality. Over the next two years, while cautiously exploring the large number of currently existing value acquisition opportunities, we expect to increase revenues and profits substantially. This is supported by our actions to reach the total capacity of our business model as quickly as possible and the inevitable balancing of the price imparity between illicit and legal sales in the industry. We expect to produce solid and sustainable ROIs for our shareholders for years to come."

Q2 2022 Financial Results

Revenues increased by 323%.

During the quarter ended June 30, 2022, we generated revenues of $463,313, an increase of $353,813 or 323% compared to the same period in 2021. During the six months ending June 30, 2022, revenues amounted to $871,832, an increase of $679.332 or 352% compared to the same period in 2021. The increase in revenue is due to higher income in rental and licensing fees and the continued optimization of the management of our subsidiaries and affiliate companies' intellectual and real estate properties. We expect this trend to increase throughout the rest of 2022

Profit from Operations increased. 

For the quarter ended June 30, 2022, our net profit was $183,122 compared to a loss of $579,796 for the quarter ended June 30, 2021, an improvement of $762,918. The increase in net profit is based on an increase in licensing and management fees. Stock-based compensation for consulting services amounted to $37,732, compared to $13,900 in 2021. The higher profit was compounded by a slight decrease in expenses for general and administrative, which decreased from $24,577 to $23,698 in the quarter ended June 30, 2022. For the six months ended June 30, 2022, our net profit was $194,790 compared to a loss of $918,590 for the six months ended June 30, 2021, an improvement of $1,113,380. For the quarter ending June 30, 2022, the Company issued 6,250,000 shares of its Reg A common stock to fulfill commitments to investment partners.

Total Assets Exceed Liabilities by $1,307,628. 

At the end of June 30, 2022, assets increased to $5,239,278, an increase of $718,401 compared to December 30, 2021. Our assets exceeded our liabilities by $1,307,628, an improvement of $395,496 over the period ending December 31, 2021.

Bill Hodson, CEO of Livewire Ergogenics, continues, " As of this writing, our affiliate company Estrella River Farms has passed all quarterly inspections by the County and State and received approval for the renewal of its annual permit. In addition, the State approved nine new applications for the next two acres of cultivation area on Estrella Ranch for a total of three acres. This will expand the outdoor cultivation area to a canopy of over 130,000 sqft. We are also considering utilizing our existing 22,000 sqft covered arena building for high-quality indoor cultivation. This will allow balancing the different pricing scales between indoor and outdoor cultivation products with non-seasonal revenue generation throughout the year.”

“Estrella River Farms, ‘Estate Grown Weedery^™’ licensed products are currently being prepared for distribution through established distribution channels. Accordingly, based on our continuing expansion, we expect to recognize increased Revenue in Q3 and Q4 of 2022 and significant increases for 2023,” Hodson concludes.

2022 Milestones (First Half)

• ERF successfully passed three inspections by the Country, and the State
• Received renewal of annual State License for initial acreage on Estrella Ranch
• Granted approval of nine new licenses for two additional acres on Estrella Ranch
  

Goals for Q3 and Q4 2022

• Complete plans for 22,000 sqft. of indoor cultivation on Estrella Ranch
• Enter licensing agreements with third-party private label products
• Launch "Estate Grown Weedery^™," house of brands with established distribution
• Launch nationwide "Estate Grown Weedery™" Branding campaigns
• Evaluate and potentially execute additional acquisitions
  

The Livewire Estate Grown Weedery^™Project

Estrella Ranch is a historic ranch property in Paso Robles, the center of California wine country. Through its subsidiary Estrella Ranch Partners, the Company has begun transforming this stunning property into the world's first "Estate Grown Weedery," developing it into a facility to cultivate high-end organic sun-grown cannabis products and eventually the ultimate Cannabis destination. Estrella Ranch is considered the gem of the California Central Coast, located near Paso Robles and Santa Barbara, halfway between Los Angeles and San Francisco, and surrounded by hundreds of world-renown wine yards. The Estrella Ranch location is the central hub for all Livewire operations in California. Livewire runs an economically prudent cannabis operation with an advantageous operational structure, sharing resources as needed between its subsidiaries and affiliate companies at its locations at Estrella Ranch in Paso Robles, Humboldt, and Santa Cruz. Livewire continues to expand its operations focused on the cost-effective production of the best quality cannabis in California while generating the smallest possible carbon footprint and using as few of California's energy resources as possible.

About LiveWire Ergogenics Inc.
The Company focuses on acquiring, managing, and licensing well-qualified cannabis real estate locations to establish fully compliant and permitted facilities to produce cannabis-based products and establish relationships for the state-wide distribution of these products in California. This includes developing and licensing high-quality organic cannabinoid-based products and services and creating the high-quality "Estrella Grown Weedery^™" brand via its subsidiary/affiliate companies Estrella Ranch Partners, Estrella River Farms, Makana Ola, and CaliCruz Farms. LiveWire Ergogenics does not produce, sell, or distribute products that violate the United States Controlled Substances Act. For more information about LiveWire Ergogenics, visit www.livewireergogenics.com. For non-material updates, follow LiveWire Ergogenics on Twitter @livewireLVVV, or go to www.stockwatchindex.com/livewire-ergogenics.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or the Company's future performance. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should carefully review various risks and uncertainties identified in this release, the Company's Social Media postings, and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.