Anaheim, CA – April 15, 2020 – LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring special purpose real estate properties conducive to producing high-quality handcrafted cannabis products for commercial medicinal and adult-use in California, today announced its financial results for 2019. The Company generated $1.35 Million in Revenue for the year, an increase of 3,695% compared to 2018.
Bill Hodson, CEO of LiveWire Ergogenics states, “The acquisition of Estrella Ranch in Paso Robles California in 2019, has successfully positioned LiveWire with an operation on one of the most beautiful, and historic locations in the country, with a micro climate perfect for growing exceptional handcrafted-style cannabis. Our goal is for our operators on the Ranch to produce a product unique to the environment, establish high quality recognized brands, and to have the ability to dynamically scale the business on our vast acreage as required by customer demand.
“More than at any other time before, 2019 was truly a transformative year for us. We have been absolutely focused on diligently executing our mission statement of ‘Doing it Right’, meaning operating with a strict focus on obtaining all necessary permits and licenses and providing the tools for our operators to succeed. In other words, staying focused on what we do best. This is a principle that is now increasingly supported by many industry experts and accelerated by the recently reawakened momentum for the industry, which according to some experts, will surpass $8 billion in sales in California by 2024.
“Our consistently improving operational and financial performance along with the continued public acceptance of cannabis, has reinforced our vision to develop the world’s first ‘Estate Grown Weedery’. We see the cannabis industry to take on similar and widely established and appreciated traits as the high-end wine and craft brew industries. We are confident that consumers will appreciate the family-farm style of our locally produced artisanal cannabis products on our Ranch under environmentally perfect climate conditions. Therefore, we also support and will join the recently proposed appellation model by CalCannabis to establish designations-of-origin, similar to the wine industry, as our strategy to create a unique, profitable and sustainable business continues.
“As we announced earlier, our partner, QDG Agriculture has continued the build-out of the Ranch operation in anticipation of local and state approvals of our application that has been submitted and accepted as complete. We consistently improve our asset base, keep our overhead low and continue to consolidate all company and subsidiary operations in Paso Robles, while maintaining a laser sharp focus on revenues, profits and return of investment for our family of investors,” Hodson concludes.
RESULTS FOR THE FULL YEAR 2019
Revenue increases by 3,695%
During 2019 sales of our products amounted to $1,355,072, an increase of $1,319,363 or 3,695% over 2018. The increase in sales is partially due to the Company’s grant of a state-wide cannabis distribution license by the California Bureau of Cannabis Control and the increased activity in this sector for the year.
Gross Profit turns from negative to positive
Gross profit for 2019 increased to $460,368 compared to a negative gross profit of ($24,333) for 2018. The increase in gross profit is due to an increase in distribution margins and asset rentals.
Total Operating Expenses reduced significantly
Operating Expenses were reduced by $6,352,916 to $1,687,901, mainly based on the reduction in stock based compensation, offset by a slight increase in General and Administrative.
Net Loss improves by 84.6%
Our loss for 2019 was significantly reduced to $1,775,629 compared to a loss of $11,592,864 for the fiscal year ended December 31, 2018, an improvement of $9,817,235 or 84.6%. The
improvement is attributed to increasing revenue from distribution, rental income, a reduction in operating expenses and stock based expenses.
The Company’s total assets increased from 1.75 Million to $2.16 Million
The Company has operated under a state-wide distribution license issued to its subsidiary from the California Bureau of Cannabis Control. It has conducted the environmental and legal research for its initial cultivation license at the Paso Robles Weedery, has completed all necessary compliance requirements and its application has been deemed complete by the County. We will keep you updated on all crucial developments over the next few weeks and months as we continue through the process.
About LiveWire Ergogenics Inc.
LiveWire Ergogenics, Inc. (LVVV) specializes in identifying and monetizing current and future trends in the human and veterinary health and wellness industry. The Company is focused on acquiring, managing and licensing specialized “closed loop” turnkey cannabis real estate locations of fully compliant and permitted turnkey facilities to produce cannabis-based products and services in California and the state-wide distribution of these products. This includes verification of zero pesticide products for quality brands via its “7X Pure” Cannabis Verification System, the development, licensing and distribution of legal and high-quality cannabinoid-based products and services and the creation of the high-quality “Estrella Weedery” brand. LiveWire Ergogenics does not produce, sell or distribute products that are in violation of the United States Controlled Substance Act. For more information, please visit: LiveWireErgogenics.com
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, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. 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 review carefully 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.
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