Replies to post #3505 on Livewire Ergogenics Inc (LVVV)

[searay2701]

hometownJOE, look at the financials comparison between 2011 & 2012, the expenses are rising and little revenue coming in plus establishing all these new contacts are going to costs the company before and if they see some real revenus come in. That if, could be the ball game here. They are going to have to bring in millions in sales this year to ever get LVVV up to any speed, and that remains to be seen if Mr. Hodson can move the company fast enough before needing to borrow more money which in turn will just dilute any assets the company may have along the way. This all, as we know, needs to be watched very closely before any debt could run away from us. IMO

[catsrevenge]

I posted this on 2/7/13 post #3339, about LVVV financials. If you missed it read it now. The Link to the whole report is at the bottom of my post.



Discussion of LVVV Financials. LVVV LOST MONEY IN 2012 AND ADMITS THAT THERE ARE RISKS MOVING FORWARD.

Unaudited Balance Sheet as of 9/30/12
Current
Assets
$94,000 consisting primarily of $79,000 in inventory and $9,000 in accounts receivable.
Current
Liabilities
$588,000 including $282,000 in accounts payable – related party and $141,000 in notes payable.
Working
Capital
A working capital deficit of $495,000 as of 9/30/12 compared to a deficit of $790,000 as of
12/31/11, driven by a $455,000 decrease in accounts payable – related party.
Total Assets $110,000 including $16,000 in property and equipment, net.
Total
Liabilities
With no long-term liabilities, total liabilities were $588,000.
Shareholders
Equity
A total stockholder’s deficit of $478,000, with additional paid-in-capital of $1.5 million and an
accumulated deficit of $1.9 million.
Unaudited Statement of Operations for the Period Ended 9/30/12
Revenues
$27,000 for the quarter compared to $32,000 in Q2 11. Year to date sales of $136,000 decreased
66% relative to 2011.
Gross
Profit
$4,000 for the quarter compared to $127,000 in 2011. Year to date gross profit was $35,000
compared to $171,000 in 2011. Gross margin for the quarter was 15%. Gross margin year to date
was 26% compared to 42% in 2011.
Expenses
$168,000 for the quarter compared to $167,000 in 2011. Total expenses year to date were $949,000
compared to $267,000 in 2011.
Net Loss
A net loss of $165,000 for the quarter compared to a net loss of $167,000 in 2011. Net loss for the
year was $916,000 compared to a net loss of $97,000 for 2011.
Liquidity
$438,000 in net cash used in operating activities was funded primarily by $424,000 in net cash
provided by financing activities In total, $637,000 in shares were issued for accounts payable /
accounts payable – related parties, accrued salaries, and notes payable. The ability of LVVV to
continue as a going concern is dependent upon obtaining adequate capital to fund operating losses
until it becomes profitable.

Here is the link to the entire Murphy independent report on LVVV

Of particular interest see pages 13 and 19 mentioning financial losses in 2012 and LVVV concern for raising capital in 2013 moving forward.

http://www.murphyanalytics.com/uploads/LVVV_Initiation.pdf