1. How are the APRU and RSHN going to be integrated into LVVV?
a. We have acquired 77% of APRU and plan to operate it as a majority owned subsidiary. More information will be coming in the near future.
2. Can you address conflicting statements about equipment ownership?
a. Bill Hodson owns the chew machine personally. LiveWire uses the machine at cost, which is basically the cost to manufacture the chew.
3. What is the relationship with the CEO of IDGC and his purchase of APRU shares after the announcement of LVVV acquiring APRU?
a. ID Global Corp is led by Sebastian DuFort. We don’t have any relationship with him and never have. Our understanding after one discussion with him is that he took shares he personally owned for a long period of time and transferred them to his holding company to increase his holding companies value.
4. Do you have an update on all of the “thousands” of retail outlets added last fall including “top line” distributors that added LVVV to their lines?
a. We have two salespeople who call on retail outlets every single day. We have people on the road visiting them and we are currently expanding the number of stores. We spend a lot of time and money servicing accounts and believe that growth will be shown in the coming quarters. We don’t have the data to release same store type sales like large retailers but I would like to see us get to that point at some time.
5. What is the status of LiveWire Probiotics?
a. We are in the middle of a production run of both stick packs and the chews. We just received new packaging and are planning to re-launch during the 2nd quarter. There has been a backorder on some of our bacteria ingredients due to the demand for probiotics.
6. We expected them to be released in Q1 but haven’t heard any details since December. Can your tell us the flavors?
a. The stick packs will be Raspberry Lemonade Slim, Berry, and Orange Mango. The chews will be Berry and Lemon Lime.
7. Will you be doing energy probiotics with caffeine?
a. After some discussions with our retail customers we have determined that probiotics is a natural food stores business and adding caffeine would complicate our sales efforts at those locations.
8. What is the current standing of Adia Probiotics?
a. We’ve invested into production, we have a sales team ready to market and are working on production scheduling.
9. We understand you have taken over as CEO. What happened with the plan to acquire Adia?
a. Adia will not become private and we hope to run it as a public subsidiary that will consolidate into LiveWire. LiveWire Ergogenics will manufacture and sell through its channels and Adia will continue to focus on its relationships at Whole Foods, Mothers, and Albertsons.
10. There are many shares unaccounted for in the 10k. Can you explain the 45 million shares issued over the last 6 months?
a. We raised capital for operations and working capital. We are always prudent in the issuance of shares and always look at the best interest of our shareholders. 131,000,000 outstanding and 58,000,000 in the float.
11. LVVV has been growing very quickly over the last few months. We are excited by the growth we have seen. What are your expectations for Revenues and Profits during the remainder of 2014.
a. We don’t release projections, however, if your review the 10k you will see our revenues for the year were about $145,000 yet our Hempwire order was for 1.1 million in product. We think our relationships in the CBD space are valuable and are excited about our prospects.
12. What will you be doing to protect shareholder value moving forward?
a. To protect shareholder value, we have cut expenses to the bone with our highest paid employee earning $13/hr and our sales staff being paid straight commission. We can grow with minimal additional expenditure.
13. How do you maintain costs while growing rapidly?
a. Growth is about operating leverage and we plan on leveraging our manufacturing capabilities that won’t include adding equipment and other hard costs. Leveraging equipment usage adds profitability to the operations.
14. What royalty will Adia get from LVVV for manufacturing and distributing their products?
a. We will issue a press release at the proper time with the details.
15. What is the current share structure and has the claw back been completed?
a. The clawback for LVVV? The share structure is in the 10k.
16. Will Adia products be used in APRU products?
a. It is very unlikely.
17. When will we get a press release relating to the relationship between Adia and LVVV?
a. As soon as we finish production of the product and it is ready for distribution.
18. Why does LiveWire have an office in Anaheim and a 60,000 square foot manufacturing space in Yorba Linda?
a. Chief Operating Officer, Brad Nichols, works full time at the Anaheim location. This location is 2,400 square feet of office space and is the Company’s headquarters for business operations, accounting and design. This space is shared with LiveWire Corp Communications, Inc. who operates a full time creative production shift during the overnight hours. This is our primary means for developing package, point of purchase displays (“POP”), and sales material designs. This facility does not have the necessary warehouse capabilities to store inventory or provide order fulfillment.
b. LiveWire shares a 60,000 square foot manufacturing facility and has access to all the manufacturing capabilities. This is an exceptionally efficient use of our resources and gives us tremendous operating leverage as we grow.
19. Does LVVV benefit from using LiveWire Creative Services and does it allow Brad to leverage the resources of his graphics & communications company. Or is it a distraction. Is his time focused on LVVV or his multimillion-dollar graphics business? Is he using LVVV resources for his other business?
a. This is a phenomenal deal for LiveWire. Brad receives no compensation other than what he got when he founded the company. When we need new art for a project, like Kannakick, Brad turns the designs around in 12 hours. And we don’t have to pay him. We are very pleased with Brad and we think his designs are a key component of our success.
20. What about Paypal integration on the website?
a. This is in process.
21. Can we get new accounts added to the store locator in a timely manner?
a. We are working on this with our web developers to make it easier to update.
22. The free chew giveaway wasn’t executed well with many shipping issues. How are you addressing this moving forward?
a. The Free Chew promotion was not handled well. We dropped the ball on this and we apologize. I understand the frustration about it, and while I can make an excuse, I’m not going to. We made a mistake. We’ve revamped the shipping department and I will promise you this, we will make mistakes, but we will also act quickly to fix them and never make them again.
23. Will there be a supply of swag for customers and distributors moving forward?
a. We just purchased a heat-press machine and we heat press our own shirts and hats. As far as I know, we have shirts and hats out to everyone who wants them. If you know of a distributor who needs some, please let me know immediately, and I’ll take care of it.
24. What do you plan to do to make sure that you are Not wasting your most valuable resource... Shareholders willing to Market for free?
a. We would love to engage shareholders with our product. A year ago, we sent all registered shareholders free product. We sent out close to 3,000 packages, which cost us close to $6,000. This is something we would be interested in doing again.
25. What is the structure of Hempwire and of APRU and RSHN being used within that structure?
a. Here’s how this works. LiveWire owns 50% of HempWire. Medical Marijuana, Inc. owns the other 50%. Apple Rush and Rushnet are shells that are in the process of due diligence. If they can be cleaned up and managed, then we will integrate them into our company. If not, then we won’t.
b. We are working on cleaning up APRU and RSHN and when finished we will make a statement. That is all we can legally say.
26. When will we see retail versions of CBD and when can our network of distributors begin selling them.
a. We are in the process of finalizing packaging and the distributors can sell them now.
27. Are you working to improve the after taste of the product and add flavors?
a. We are constantly refining our product and will only announce new flavors once fully developed and ready for market.
