LiveWire Ergogenics Reports 2020 Financial Performance – Increases Revenue by 68%
Anaheim, CA – March 30, 2021 – LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring and managing special purpose real estate properties and the associated operation permits conducive to the production of high-quality, handcrafted and organically grown cannabis products for medical and recreational adult-use in California, announced today its financial results for 2020. The Company generated $580,315 in revenue for the year, an increase of 68% over 2019 and has reduced its net loss by 5%, compared to 2019.
Bill Hodson, CEO of LiveWire Ergogenics states, “2020 has been an exciting year for our company. Going through a complex and time-consuming permit application process, we are now in the final phase of this process and close to finalizing all required buildouts and improvements of our Estate Grown Weedery™ development at our Estrella Ranch in Paso Robles, California. This will bring the facility in compliance with all rules and regulations to operate as a cannabis cultivation facility. To date, LiveWire has successfully navigated the maze of paperwork and regulations with multiple Local and State agencies to be approved as a fully permitted cannabis cultivation operation on one of the most beautiful and historic ranches in the country. The result will be a family style farm, supported by a microclimate perfect for growing absolute exceptional organic and handcrafted-style cannabis.”
Mr. Hodson continues, “To be prepared for the immediate start of cultivation, we have entered an agreement with a well-established and experienced cultivator, QDG Agriculture, with an extensive track record of producing the highest quality organically grown cannabis in California. We believe that the milestones we have completed during 2020, put us in position to begin cultivation in our Weedery™ as soon as we have completed this last phase in the application process, the final approval of the license for our affiliate company Estrella River Farms by the CalCannabis Cultivation Licensing department, which we believe to be imminent. While preparing for the start of cultivation, we continue to generate a modest revenue stream to cover general expenses and maintain disciplined cash stewardship.”
Sales increased by 68%. During the year ended December 31, 2020, sales of our products
amounted to $580,315, an increase of 68% over 2019. While we have not recognized revenue from cultivation yet, the increase is due to income generated through rental, licensing and the management of our intellectual and real estate properties. The increase was also partially due to revenue generated by GHC Ventures that was still recognized in the period, before it was sold in Q2 2020.
Net Loss improved by 5% For the fiscal year ended December 31, 2020, for the third consecutive year, we have decreased our loss by 5% to $1,621,009 compared with 2019. The decrease in operation loss was based on reduced cash and stock based compensation for a range of services. This was offset by an increase in expenses for general and administrative as the Company has added new consultants to its management team to assist with getting the facility ready for cultivation and the expected expansion of operation.
General and Administrative. During the year ended December 31, 2020, general and administrativeexpenses increased by $302,984 in 2020. The increase in general and administrative expenses was due to the associated cost with the company’s ongoing efforts to centralize all operations at its headquarters in Paso Robles and an increased use of consultants, outside contractors, experts and advisors for the involved build-out, preprations for cultivation and permitting process for Estrella Ranch.
Assets The Company’s total assets increased to $1.5 Million from $1.1 Million.
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 turnkey cannabis real estate properties conducive to producing high-quality handcrafted cannabis products for commercial medicinal and recreational use in California and the state-wide distribution of these products. This includes the development, licensing and distribution of legal and high-quality cannabinoid-based products and services and the creation of the high-quality, organic “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
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, 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.