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Anaheim, CA, May 17, 2022 (GLOBE NEWSWIRE) -- LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring, managing, and licensing special purpose real estate properties conducive to producing handcrafted and organically grown high-quality cannabis products for medical and recreational adult-use in California; today announced the release of its Financial Report for the first quarter of 2022.
Bill Hodson, CEO of LiveWire Ergogenics, states, "With the action-packed year of 2021 behind us, we are now moving forward with a razor-sharp focus on the continued expansion at Estrella Ranch to three acres for the cultivation of the highest quality sun-grown, organic cannabis in the State. We have concluded the acquisition of a majority equity interest in Estrella Ranch Partners and have acquired a one hundred percent equity interest in Makana Ola Farms in Humboldt, California. We plan to continue carefully expanding our operations, utilizing the intense experience of the last two years to develop Estrella Ranch into the ultimate cannabis cultivation destination in California. We will focus on the success of Estrella River Farms to cultivating the best possible hand-crafted product and not get distracted by the mass production of cannabis. We believe that the increasing customer demand for hand-crafted products versus the mass-produced product supports our narrowly focused, organic-style cultivation business model. We will continue to carefully implement our unique vision following a strict discipline of operating with a low overhead and debt burden to produce substantial revenues and profits moving forward."
Q1 2022 Financial Results
Revenues increased by 392%.
During the quarter ended March 31, 2022, revenues amounted to $408,519, an increase of $325,519 or 392% over the same period in 2021. The increase in revenue is due to higher income in related party revenue, based on rental and licensing fees and the management of our subsidiaries and affiliate companies' intellectual and real estate properties. We expect Livewire's licensing and management fees related to the first harvest of Estrella River Farms to increase revenues further and be recognized in the second quarter of 2022.
Note: On March 10, 2022, an AAA arbitrator in New York awarded the Company a total of $352,493.02, including damages and costs of arbitration against JS Barkats PLLC ("JSB. Livewire petitioned the Federal Court for the Southern District of New York to confirm the AAA award to be paid to LiveWire. The amount will be recognized as income once collected.
Profit from Operations increased by 103%. For the quarter ended March 31, 2022, our net profit was $11,668 compared to a loss of $338,794 for the quarter ended March 31, 2021, an improvement of $350,462 or 103%%. The increase is based on higher licensing and management fees. In contrast, stock-based compensation for consulting services increased slightly, somewhat offset by a decrease in expenses for general and administrative, which decreased from $30,324 to $26,106.
Total Assets Exceed Liabilities by $1,067,818. At the end of March 31, 2022, assets increased to $4,718,650 from $ 4,520,877 in the same period in 2021. Our assets exceed our liabilities by $1,067,818, an improvement of $155,686 versus the period ending December 31, 2021.
Bill Hodson, CEO of Livewire Ergogenics, continues, " As of this writing, our affiliate Estrella River Farms has received approval for the renewal of our annual permit. We expect to receive approval for the next two acres of cultivation area on Estrella Ranch within days. This will expand the outdoor cultivation area to a canopy of 150sqft. We are also in the early planning stages to build out our existing covered arena into 22,000 sqft. of indoor cultivation. This will allow us to balance different pricing between indoor and outdoor cultivation products for a more even revenue generation throughout the entire year. As we have announced before, to take advantage of the exceptional quality of our sun-grown cannabis and generate higher Revenue, ERF partnered with Phire Labs to convert its biomass into connoisseur-craft extract products manufactured and distributed by Phire. This will command a higher value for our products than simply selling raw flower to manufacturers. Using ERF's raw materials to produce its connoisseur-craft extracts, Phire will also manufacture our private label product featuring "Estate Grown Weedery™" for distribution through its established distribution channels. We expect to recognize increased Revenue based on this agreement in Q2 of 2022.
Expand cultivation area to three acres for over 130,000 sq. ft. of canopy
Renewal of first State License for initial acreage
Grant of second State licenses for two additional acres
Submit plans and permit applications for 22,000 sq. ft. of indoor cultivation
Launch "Estrella Weedery" house brands with distribution to hundreds of dispensaries
Develop products for third-party private label products
Enter joint ventures with manufacturers and distributors
Acquire additional properties that qualify for the LiveWire business model
Stay focused on producing exceptional "Weedery" products with no mass production
View full report here: https://www.otcmarkets.com/stock/LVVV/disclosure
About Estrella Ranch Estate Grown Weedery™
Estrella Ranch is a historic ranch property in Paso Robles, California. Through its subsidiary Estrella Ranch Partners, LLC., the company has begun to transform this stunning property into the world's first "Estate Grown Weedery™ developing it into a cultivation facility for high-end organic style cannabis products. Estrella Ranch, the gem of the California Central Coast, has a long-standing history, was once owned by the Hearst family, and is considered among the finest ranches in California. Estrella Ranch is located near Paso Robles and Santa Barbara, halfway between Los Angeles and San Francisco, and is surrounded by hundreds of world-renown vineyards. The Estrella Ranch location is the central hub for all LiveWire operations.
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 statewide distribution of these products in California. This includes developing and licensing high-quality organic cannabinoid-based products and services and creating the "Estrella Grown Weedery™" brand via its affiliate companies Estrella Ranch Partners and Estrella River 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.
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 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.