LiveWire Ergogenics Announces Q3 2022 Financial Results and Reports Third Consecutive Profitable Quarter in 2022

Anaheim, CA, Nov. 16, 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 specialty cannabis products for medical and recreational adult-use in California reports financial results for the third quarter 2022. 

Bill Hodson, CEO of LiveWire Ergogenics, states, "At LiveWire, we continue to implement our business model of licensing, marketing, and managing the cultivation of high-quality handcrafted specialty cannabis products produced on our property Estrella Ranch in Paso Robles and Makana Ola in Humboldt that address increasing customer demand and command higher prices and profit margins. The past several months have been trying times for the cannabis industry, but we now seem to see early signs of a turn-round, at least for well-structured companies in the sector reflected in stabilizing share prices. Our financial results for Q3 2022 do not reflect the impact of our Estrella Ranch and Makana Ola harvests yet. The products resulting from this harvest are currently being converted into our “Estrella Weedery” ^™ branded products and other brands for distribution through direct-to-consumer distributors and third-party private-label partners. Our nine months’ performance results are clearly establishing a trend, having generated the third consecutive profitable quarter for 2022, and we expect to generate a substantial increase in performance for Q4 2022 and the entire year. We project 2023 as our breakout year with significant increases in revenue and profits.”

Generated Three Profitable Quarters during 2022
Third Quarter Revenue in 2022 Increased by 51%
Nine Months Revenue in 2022 Increased by 183%
Nine Months Net Profit Increased by 107%

Mr. Hodson continues, “We will stay focused on the management and continued development of Estrella Ranch and the support of our subsidiaries and affiliates involved in the cultivation of handcrafted organic style Estate Grown Weedery products at the 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 or new product development. Beginning in Q4 of this year and accelerating over the next two years, we expect to substantially increase revenues and profits based on our proven model while cautiously exploring many currently existing value acquisition opportunities. We believe this approach is further supported by the inevitable balancing of the industry's price imparity between illicit and legal sales, while legalization and accounting parity will continue in California and throughout the country. We expect to produce a solid and sustainable ROI for our shareholders for years to come."

Q3 2022 Financial Results

Comparison of the Results of Operations for the quarter and the Nine Months that ended September 30, 2022, and 2021. During the quarter that ended September 30, 2022, we generated revenues of $378,519, an increase of $128,339 or 51% compared to the same period in 2021. During the nine months that ended September 30, 2022, revenues amounted to $1,250,351, an increase of $805,671 or 182% compared to the same period in 2021. This increase in revenue is due to higher income in rental and licensing fees, distribution licensing, and the continued optimization of the management of our subsidiaries and affiliate companies' intellectual and real estate properties. We expect this trend to increase for Q4 of 2022 and even further during 2023.

Profit (Loss) from Operations. For the quarter that ended September 30, 2022, our net profit was $51,121, compared to a loss of $2,404,318 for the quarter that ended September 30, 2021, an improvement of $2,455,439. The increase in net profit is based on an increase in licensing, rental, and management fees. It is compounded by decreased expenses for general, administrative, and professional fees. For the nine months ended September 30, 2022, net profit was $245,911 compared to a loss of $3,322,908 for the nine months ended June 30, 2021, an improvement of $3,568,819. General and administrative for the three months ended September 30, 2022, has decreased to $53,577 from $2,173,945 in the same period in 2021, a decrease of $2,120,368. General and administrative for the nine months that ended September 30, 2022, decreased to $207,741 from $2,253,546 during the same period in 2021, a decrease of $2,045,805. Stock-based compensation decreased to $35,927 for the nine months that ended September 30, 2022, compared to $ 2,167,200 in the same period of 2021, a decrease of $2,131,273. Net profit was offset by professional fees increasing to $230,460 in the third quarter ending September 30, 2022, compared to $147,425 for the same period in 2021, an increase of $83,035. For the nine months that ended September 30, 2022, professional fees increased to $ 731,592 from $478,817 in 2021, an increase of $252,775 for the same period in 2021.

Total Assets Exceed Liabilities.
At the end of September 30, 2022, assets increased to $5,672,255, an increase of $1,151,378 compared to December 30, 2021. Our assets exceeded our liabilities by $1,512,470.

Mr. Hodson continues, “Since we began our “Estate Grown Weedery^™” cannabis cultivation project at Estrella Ranch in Paso Robles, our shareholders have patiently stuck with us to see the results and reap the benefits of the operation. It has been a challenging and lengthy process. Estrella River Farms has diligently secured all required legal and environmental permits for continuing operations and has passed all legal requirements and county inspections. Estrella Ranch is now a fully permitted large but manageable project that will provide us with reasonably predictable income for years to come. We have facilitated distribution agreements with well-established companies to manufacture and distribute Estrella’s high-quality specialty products, business to business (private label) and directly to the consumer. We expect 2023 to be our breakout year.”

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 rely 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 results to differ materially from those indicated in the forward-looking statements.