$LVVV LiveWire Ergogenics Reports 2021 Financial Performance Milestones 2021 – Outlook 2022
https://www.globenewswire.com/news-release/20...-2022.html
Anaheim, CA, March 29, 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 Annual Report 2021.
A few Thoughts about the Industry and our Business Model
We believe the future of the cannabis business is in what we call the "Weedery" model, remarkably similar to the model to that of the century-old wineries that surround us at Estrella Ranch. This model is why we coined the phrase "Estate Grown Weedery™". We envision thousands of small farms around the country sharing their craft one-on-one with the consumer. The growers will share their passion for the cannabis plant with visitors, explaining the different profiles and the effect of consuming a particular strain. The farmer will establish operations so they can sell directly to the consumer via "weed clubs" after harvest. We will see everything from the small to the elaborate cannabis weddings and events. We envision cannabis eco-tourism, weed and wine tours, and a most pleasant "bud and breakfast" experience.
We see research that will improve lives and changes in the banking system laws essential to help distributors and retailers and support consumers' safety. We expect federal legalization and interstate commerce to be established so the entire country can benefit from the latest innovations and advances in the sector. But most importantly, we see the future directly on course with our vision, and our goal is to be well-positioned when it happens.
Bill Hodson, CEO of LiveWire Ergogenics, states, "2021 has been an exciting and action-packed year for our company. We maneuvered through a complex and costly cannabis application process, overcoming all legal and environmental hurdles that make California special while establishing the largest cannabis market in the country. We have met all requirements, finalized all required buildouts and improvements for the initial cultivation area of our Estate Grown Weedery™ at our Estrella Ranch in Paso Robles, California.
Our affiliate company, Estrella River Farms, located on Estrella Ranch, has delivered the first harvest to our processing partner's facility to integrate further the white-label and private label "Estrella Weedery" for entry into retail distribution, creating a new channel for the sale of our value-added products. We expect to recognize increased revenue based on the relationship to show in Q2 of 2022. These additional steps will establish and increase the value of the Estrella brand and, in combination with our tightly controlled low overhead, will give us a competitive edge and increase revenue and net profits.
2021 Milestones
Land Use Permit by County of San Louis Obispo granted
Grant of State cannabis cultivation license from CalCannabis
Cultivation Agreement with QDG Agriculture
Buildout of acre one concluded
Successful Inspection by County and law enforcement
Delivered first harvest to the processing center
Acquired majority position in Estrella Ranch Partners, LLC
Acquired full equity position in Makana Ola Farms of Humboldt, CA
Launched the San Luis Obispo Cannabis Growers Alliance
Appointed Brand Manager for Consumer-Packaged Good
2021 Financial Results
Sales increased by 47%.
During the year ended December 31, 2021, sales of our products amounted to $851,199, an increase of $270,884 or 47% over 2020. We have not yet recognized revenue related to the first harvest of Estrella River Farms in the fourth quarter of 2022. The current increase in revenue is due to income generated through rental, licensing, and the management of our intellectual and real estate properties.
Gross Profit increased by 58%.
Gross profit increased to $ 851,199 2021in 2020 to from $ 540,315 in, an increase of $310,884m or 58%.
Total Assets increased by 56%. Total assets increased to $4,520,877 in 2021from $2,908,664 in 2020, an increase of $1,612,213 or 56%. The increase is based on additional investments in our subsidiaries and affiliate companies, Estrella Ranch Partners and Estrella River Farms, during 2020. Our assets currently exceed our liabilities by $912,132.
Profit (Loss) from Operations. For the fiscal year ended December 31, 2021, our loss was $3,432,426 compared to a loss of $1,600,899 for the fiscal year ended December 31, 2020 an increase of $1,831,527. The increase in operating loss in its majority is based on an increase in non-cash expenses such as stock-based compensation for consulting services and an increase in professional fees. This increase was offset by a decrease in general and administrative expenses, which decreased from $425,152 to $95,549. As of December 31, 2021, the Company issued 507,184,535 shares of its common stock. The Company did not issue any convertible instruments during 2021.
Bill Hodson, CEO of Livewire Ergogenics, continues, "Now that our Estrella Ranch project is up and running, the expansion process to a total three-acre cultivation area is in an advanced stage, and ERF has delivered the first harvest for processing. We can now enhance the value of the harvest and react dynamically to price fluctuations in the industry. To take advantage of the exceptional quality of 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 that will command a higher value. This will allow ERF to utilize Phire's exceptional manufacturing process and distribution channels to process the harvest into easily consumable retail products. In addition to using ERF's raw materials to produce its connoisseur-craft extracts, Phire will also manufacture ERF's private label product featuring Estate Grown Weedery™ for distribution through its established distribution channels.
2022 Outlook
Expand cultivation area to three acres, over 130,000sf of canopy
Grant of State licenses for two additional acres
Submit plans for 22,000sf of indoor cultivation
Launch Estrella house brands with distribution to hundreds of dispensaries
Develop products for third-party private label products
Joint ventures with manufacturers and distributors
Acquire additional properties that qualify for the LiveWire business model
https://www.globenewswire.com/news-release/20...-2022.html
Anaheim, CA, March 29, 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 Annual Report 2021.
A few Thoughts about the Industry and our Business Model
We believe the future of the cannabis business is in what we call the "Weedery" model, remarkably similar to the model to that of the century-old wineries that surround us at Estrella Ranch. This model is why we coined the phrase "Estate Grown Weedery™". We envision thousands of small farms around the country sharing their craft one-on-one with the consumer. The growers will share their passion for the cannabis plant with visitors, explaining the different profiles and the effect of consuming a particular strain. The farmer will establish operations so they can sell directly to the consumer via "weed clubs" after harvest. We will see everything from the small to the elaborate cannabis weddings and events. We envision cannabis eco-tourism, weed and wine tours, and a most pleasant "bud and breakfast" experience.
We see research that will improve lives and changes in the banking system laws essential to help distributors and retailers and support consumers' safety. We expect federal legalization and interstate commerce to be established so the entire country can benefit from the latest innovations and advances in the sector. But most importantly, we see the future directly on course with our vision, and our goal is to be well-positioned when it happens.
Bill Hodson, CEO of LiveWire Ergogenics, states, "2021 has been an exciting and action-packed year for our company. We maneuvered through a complex and costly cannabis application process, overcoming all legal and environmental hurdles that make California special while establishing the largest cannabis market in the country. We have met all requirements, finalized all required buildouts and improvements for the initial cultivation area of our Estate Grown Weedery™ at our Estrella Ranch in Paso Robles, California.
Our affiliate company, Estrella River Farms, located on Estrella Ranch, has delivered the first harvest to our processing partner's facility to integrate further the white-label and private label "Estrella Weedery" for entry into retail distribution, creating a new channel for the sale of our value-added products. We expect to recognize increased revenue based on the relationship to show in Q2 of 2022. These additional steps will establish and increase the value of the Estrella brand and, in combination with our tightly controlled low overhead, will give us a competitive edge and increase revenue and net profits.
2021 Milestones
Land Use Permit by County of San Louis Obispo granted
Grant of State cannabis cultivation license from CalCannabis
Cultivation Agreement with QDG Agriculture
Buildout of acre one concluded
Successful Inspection by County and law enforcement
Delivered first harvest to the processing center
Acquired majority position in Estrella Ranch Partners, LLC
Acquired full equity position in Makana Ola Farms of Humboldt, CA
Launched the San Luis Obispo Cannabis Growers Alliance
Appointed Brand Manager for Consumer-Packaged Good
2021 Financial Results
Sales increased by 47%.
During the year ended December 31, 2021, sales of our products amounted to $851,199, an increase of $270,884 or 47% over 2020. We have not yet recognized revenue related to the first harvest of Estrella River Farms in the fourth quarter of 2022. The current increase in revenue is due to income generated through rental, licensing, and the management of our intellectual and real estate properties.
Gross Profit increased by 58%.
Gross profit increased to $ 851,199 2021in 2020 to from $ 540,315 in, an increase of $310,884m or 58%.
Total Assets increased by 56%. Total assets increased to $4,520,877 in 2021from $2,908,664 in 2020, an increase of $1,612,213 or 56%. The increase is based on additional investments in our subsidiaries and affiliate companies, Estrella Ranch Partners and Estrella River Farms, during 2020. Our assets currently exceed our liabilities by $912,132.
Profit (Loss) from Operations. For the fiscal year ended December 31, 2021, our loss was $3,432,426 compared to a loss of $1,600,899 for the fiscal year ended December 31, 2020 an increase of $1,831,527. The increase in operating loss in its majority is based on an increase in non-cash expenses such as stock-based compensation for consulting services and an increase in professional fees. This increase was offset by a decrease in general and administrative expenses, which decreased from $425,152 to $95,549. As of December 31, 2021, the Company issued 507,184,535 shares of its common stock. The Company did not issue any convertible instruments during 2021.
Bill Hodson, CEO of Livewire Ergogenics, continues, "Now that our Estrella Ranch project is up and running, the expansion process to a total three-acre cultivation area is in an advanced stage, and ERF has delivered the first harvest for processing. We can now enhance the value of the harvest and react dynamically to price fluctuations in the industry. To take advantage of the exceptional quality of 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 that will command a higher value. This will allow ERF to utilize Phire's exceptional manufacturing process and distribution channels to process the harvest into easily consumable retail products. In addition to using ERF's raw materials to produce its connoisseur-craft extracts, Phire will also manufacture ERF's private label product featuring Estate Grown Weedery™ for distribution through its established distribution channels.
2022 Outlook
Expand cultivation area to three acres, over 130,000sf of canopy
Grant of State licenses for two additional acres
Submit plans for 22,000sf of indoor cultivation
Launch Estrella house brands with distribution to hundreds of dispensaries
Develop products for third-party private label products
Joint ventures with manufacturers and distributors
Acquire additional properties that qualify for the LiveWire business model
