LiveWire Ergogenics Reports Q3 2021 Financial Results Announces Acquisition of Estrella Ranch Partners
Anaheim, CA, Nov. 15, 2021 (GLOBE NEWSWIRE) -- LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring, managing, and licensing special purpose real estate properties conducive to producing high-quality, handcrafted, and organic sun-grown cannabis products for medical and recreational adult-use in California; today files its financial report for Q3, 2021 and announces the acquisition of a majority equity position in Estrella Ranch Partners, LLC.
Bill Hodson, CEO of Livewire Ergogenics, Inc., states, “With the end of the third quarter of 2021 behind us, we are now solidly positioned in the starting blocks ready to take off with expanding operations into 2022. We have spent most of the last two years maneuvering through an increasingly complex cannabis legal environment and concluding the cultivation compliance and permitting process. We have finalized all required buildouts on Estrella Ranch in its first phase and continue building out the entire 130,000+ sqft of a legal, environmentally compliant, and fully operational cannabis cultivation available under the current land use permit on Estrella Ranch. We will apply for additional permits to expand the current cultivation area once this phase has been successfully concluded. The propriety cultivation process led by our affiliate Estrella River Farms follows strict organic growing guidelines and has produced exceptional results. The Farm has delivered the first harvest to the distributor for processing and delivery to the market. While this achievement is not yet reflected in our Q3, 2021 financial performance, meeting those milestones creates a solid basis to improve our financial performance for Q4 of 2021, the entire year of 2022, and the years ahead.”
Hodson continues, “Reaching this crucial milestone and having clarified some of the legal complexities, we are now in a position to proudly announce the acquisition of a majority equity position in Estrella Ranch Partners. We consider cannabis real estate property ownership one of the most crucial elements for success in the sector. This acquisition will allow us to consolidate financials and provide shareholders with a level of predictability of increasing revenue generation and, most importantly, profitability.”
The Company is in the process of further solidifying its affiliate and subsidiary relationships. Subject to the clarification of the still lingering discrepancies between Federal, State laws, local ordinances, and other specific legal, licensing, and financial conditions, it has acquired a minority equity position in Makana Ola Farms with an option for a majority position at its sole discretion. The Company has also entered a marketing, consulting, licensing, and property lease agreement with Estrella River Farms with an option for a majority equity position at its sole discretion. In addition, to execute an option to acquire a majority ownership in Estrella Ranch Partners, LLC, LiveWire has entered an agreement with Estrella Ranch Partners for general business consulting services.
These agreements allow us to establish additional and separate income streams on the Ranch, acquire carefully researched and selected additional properties, and expand our portfolio of real estate properties and subsidiaries.
Comparison of the Results of Operations for the quarter ended September 30, 2021, and 2020.
During the quarter ended September 30, 2021, and 2020, sales amounted to $250,180 and $129,000, respectively, an increase of $121,180. The increased revenue in the third quarter of 2021 was generated through leasing, marketing, and real estate management fees.
Profit (Loss) from Operations. For the quarter ended September 30, 2021, our loss was $2,403,318 compared to a net loss of $50,069 for the same period in 2020. The increased loss is mainly based on an increase of non-cash expenses such as stock-based compensation for services and professional fees in the amount of $2,142,5699, for which stock was issued instead of cash compensation. All shares issued for compensation are restricted for a minimum of 12 months. The balance of the increase is due to the continuation of the buildout and increase of cultivation area for Estrella Ranch and an increase in administrative expenses. Funds required for this stage of our development were raised via our SEC-approved Reg A Offering Circular, the details of which were filed with our Q1 2021 Financial Report on OTC Markets.
Livewire filed a second Reg A, Tier 1 offering circulation under Form 1-A with the U.S. Securities and Exchange Commission on September 10, 2021, as amended and deemed “Qualified” on September 23, 2021, relating to the offering of up to 125,000,000 shares of the common capital stock of the Company, no par value, to be sold at a fixed price of $0.016. As of November 15, 2021, the Company issued 7,500,000 shares of common stock at $0.016 under the Offering Circular.
General and Administrative. During the period ended September 30, 2021, general and administrative expenses amounted to $31,445 compared to $ 25,848 in the same period in 2020, an increase of $5,595. The slight increase is due to the Company’s additions to its management team, accomodating the ongoing expansion efforts and centralizing all operations at its headquarters in Paso Robles.
Assets and Liabilites. During the period ended September 30, 2021 total assets increased to $4,167,537compared to $2,908,664 for the period ending on December 31,2020 an increase of $1,258,873. Total Libailities decreased from $3,986,319 to $3,461,547a decrease of $524,772. Our current assest exceed our liabilities by $705,990.
Stockholder Equity. Stockholder equity increased to $705,990 for the period ended September 2021 compared to a deficit of $1,077,655 for the period ending December 31, 2020.
Mr. Hodson continues, ” We recognize that we have gone through a lengthy startup period for the Estrella Ranch operation that required ample patience from our shareholders. We are confident our business model will generate a stable and sustainable financial performance that is less vulnerable to the ups and downs of cannabis product pricing and public companies’ share prices. Nevertheless, we would like to express our appreciation for the support and understanding from our shareholders, who continue to support us every day, especially our new investment partners. We are confident that the Livewire business model of owning, managing, leasing, and licensing cannabis real estate properties to qualified professionals is on the right track. We expect or model to be less vulnerable to the general cannabis market fluctuations and provide a clear path to improving and maintaining solid and more predictable financial performance for years to come. We believe that our model sets us apart from the competition and will produce a solid return of investment for our shareholder base that has increased to over 6,650 shareholders.”
During the three months ended September 30, 2021, together with the expert team of our affiliate Estrella River Farms, we focused most efforts on finalizing all buildouts on Estrella Ranch and preparing for cultivation. This included establishing acres of proprietary soil, building hoop houses, complete watering, power, and security systems, and finalizing the preparation of our initial first acre of cultivation area and delivering to market the first handcrafted, sun-grown crop. We have also passed several intense follow-up inspections by the County, State, and local authorities with excellence. The harvest has now been delivered, and our Q4 2021 Financial Report will reflect the progress. We have already begun the buildout of the next two acres of cultivation area and expect 2022 to produce further increasing revenue, subject to the timely execution of new projects, the availability of sufficient working capital, and the awarding of additional permits for the expansion of our cultivation area at Estrella Ranch to total capacity and adding to our roster of new facilities.
About Estrella Ranch “Estate Grown Weedery™,” Estrella Ranch is a large historic ranch property in Paso Robles, in the center of the world-renowned California wine country. Estrella Ranch has a long-standing history, was once owned by the King of Morocco and subsequently George Hearst, and is considered among the finest Ranches in California and the gem of the California Central Coast. Estrella Ranch is located in San Luis Obispo County, halfway between Los Angeles and San Francisco, and is surrounded by hundreds of world-renown vineyards. In cooperation with its affiliates Estrella Ranch Partners, LLC, and Estrella River Farms, LLC, the Company has begun to transform this stunning property into the world’s first “Estate Grown Weedery™,” developing it into an exceptional facility to cultivate high-end organic cannabis products and establish it as 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 services for the state-wide distribution of these products in California. This process includes developing and licensing high-quality organic cannabinoid-based products and services and creating the high-quality “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.
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 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.
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