LiveWire Ergogenics Reports 2021 Financial Performance Milestones 2021 – Outlook 2022

Rhea-AI Summary

LiveWire Ergogenics Inc. (OTC: LVVV) announced its 2021 Annual Report, highlighting a 47% sales increase to $851,199 and a 58% rise in gross profit to $851,199. The company's total assets grew by 56% to $4,520,877, yet it faced an operational loss of $3,432,426, up from $1,600,899 the previous year. LiveWire aims to capitalize on the 'Weedery' model, targeting cannabis eco-tourism and direct consumer sales. The company also completed significant milestones, including securing state cultivation licenses and delivering its first harvest.

Positive

• Sales increased by 47% to $851,199.
• Gross profit rose by 58% to $851,199.
• Total assets grew by 56% to $4,520,877.
• Successful delivery of the first harvest to the processing facility.
• Completed necessary buildouts for the cultivation area.

Negative

• Operational loss increased to $3,432,426 from $1,600,899.

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

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 developed into 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 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.

LIVEWIRE ERGOGENICS, INC 1600 North Kraemer Blvd. Anaheim, CA 92806 714-740-5144 www.livewireergogenics.com info@livewireergogenics.com

MARKET AWARENESS Stockwatchindex, LLC 442-287-8059 www.stockwatchindex.com info@stockwatchindex.com

LIVEWIRE INVESTOR RELATIONS Tristan Cavato (805) 835-2415 ir@livewireergogenics.com info@livewireergogenics.com

FAQ

What were LiveWire Ergogenics' sales figures for 2021?

LiveWire Ergogenics reported sales of $851,199 for 2021, marking a 47% increase.

How much did LiveWire Ergogenics' total assets increase in 2021?

Total assets increased by 56% to $4,520,877 in 2021.

What was the operational loss for LiveWire Ergogenics in 2021?

The operational loss for 2021 was $3,432,426, up from $1,600,899 in 2020.

What is the 'Weedery' model announced by LiveWire Ergogenics?

The 'Weedery' model focuses on small farms directly selling cannabis to consumers, similar to boutique wineries.

What significant milestones did LiveWire Ergogenics achieve in 2021?

Milestones included obtaining state cultivation licenses and delivering the first harvest to their processing partner.