Live Verdure : LV1 March 2022 Quarterly Business Review & Appendix 4C

ASX Release 29 April 2022

LV1 March 2022 Quarterly Review & Appendix 4C

Live Verdure Ltd (ASX: LV1) ("LV1", "Live Verdure" or the "Company") is pleased to release our quarterly activities report and Appendix 4C for the three months ended 31 March 2022.

Record Sales Highlights

• ▪ Online Sales increased by ~9% to a record of ~$553,000

• ▪ Cash Receipts increased by ~7% on the previous quarter to a record of ~$553,000

• ▪ Sales through the Amazon US channel begin to scale - increasing ~67% relative to the December 2021 Quarter

• ▪ Record number of orders processed during the quarter

• ▪ Strong growth continued across several important Direct to Consumer (DtoC) metrics

Record Online Sales and Cash Receipts

The Company is pleased to advise we have delivered unaudited sales for the quarter of ~$558,000. This figure shows an increase of ~285% from the same quarter in 2021 and an increase of ~8% from the December 2021 quarter.

Live Verdure also advises that we recorded the strongest cash receipts in the Company's history during this quarter, with ~$553,000 received from customers.

Online Sales (~$553,000) made up ~99% of total sales for the quarter, an increase from 98% from the previous quarter. This achievement marks the 6th consecutive quarter of online revenue growth since listing on the ASX in December 2020 and continues to prove the merit of Live Verdure's DtoC business strategy.

LV1's total number of orders for the March 2022 quarter was again the highest on record to date.

Live Verdure continued to focus on our fast-selling high-margin products such as Therajoint+, TheraNight+ and Hemp Seed Oil capsules with positive results. We are proud to share that this quarter, a jar of capsules was sold once approximately every 7 minutes.

These results are especially pleasing given Q3 is generally a softer quarter for online sales due to reduced discretionary consumer spending post-Christmas.

Live Verdure Ltd ACN: 614 347 269 Level 21, 459 Collins Street, Melbourne, Victoria 3000 W: liveverdure.com.au | T: [phone] | E:[e-mail]

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Graph 1: Quarterly Online Sales Since IPO

Inventory Management

Company management remains cognisant of global supply chain issues impacting all aspects of business, including but not limited to raw ingredient and packaging availability. Considering our accelerated forecast growth trajectory and LV1's commitment to maintaining this momentum, we further increased investment in inventory during the quarter, including raw materials for our hero products TheraJoint+ and recently launched TheraNight+.

This increased investment in inventory ensures the Company is best placed to navigate possible disruptions due to the aforementioned global supply chain issues and is reflected in the product manufacturing and operating costs.

Strategic Advertising and Marketing Initiatives Implemented

LV1 continued to invest in existing marketing initiatives, such as improving our presence on Instagram and TikTok, whilst exploring new channels. We expect this to drive an improved return on investment on our digital spend.

LV1 has built strong digital capability in acquiring paying customers, driving repeat customers, and increasing AOV. The Company continues to assess and monitor our Customer Acquisition Cost ("CAC") and, in the medium term, is exploring opportunities to optimise customer lifetime value. We plan to do this by focusing on acquiring high-value new customers who are more likely to become repeat customers and subsequently drive the company towards profitability.

The like for like advertising and marketing expenditure for the March 2022 quarter was in line with the December 2021 Quarter. The Company continues to optimise its cost base and has implemented several strategic initiatives, including:

• ▪ Bringing the media buying function in-house. As the company continues to scale, it has now reached the appropriate inflection point to bring this expertise in-house. This move ensures reduced costs and improved quality.

• ▪ Integration of content creation within the media buying function, ensuring a more cohesive and streamlined process.

• ▪ Realise synergies within the marketing team to improve efficiency.

The above initiatives have already positively impacted Live Verdure's operations and performance. Some examples are;

• ▪ Optimising continued revenue growth across all channels - including Amazon.

• ▪ Reduction in advertising and marketing expenditure attributable to consultants of at least $150,000 per quarter.

• ▪ Optimised media buying activity to significantly improve return on advertising spend (ROAS).

Whilst the full impact of these initiatives will be reflected in the June 2022 Quarterly Review, we are pleased to report that these initiatives have already delivered a ~3% improvement in return on advertising spend for the March quarter.

Key Direct to Consumer Metrics

In addition to the increase in online sales, LV1 has continued to show significant increases across several key categories since listing on the ASX in December 2020. These are outlined in the table and discussed in further detail below.

For the 3 months ended:
Dec 2020	Mar 2021	June 2021	Sept 2021	Dec 2021	Mar 2022
Online Sales	~$130,000	~$133,000	~$164,000	~$323,000	~$509,000	~553,000
First Time Customer Average Order Value ("AOV")	~$89	~$82	~$79	~$94	~$95	~$97
Repeat Customer Average Order Value ("AOV")	~$102	~$102	~$93	~$114	~$116	~$117
Repeat Customer Rate	45.6%	36.3%	40.1%	28.4%	23.7%	27.2%

First-Time vs Returning Customers

During the March 2022 quarter, Live Verdure continued to attract a significant number of new customers. Relative to the previous quarter, we also increased the number of repeat customers, now representing ~27% of customers. We find this particularly positive as existing customers have a higher AOV (~$117) than new customers and are more likely to promote our products to their family and friends.

Graph 2: First-Time and Returning Customers - March 2020 to March 2022

[Note: the % return is different to the table above as some customers return more than once]

LV1 continues to scale our marketing and customer acquisition efforts and will continue to focus on social media and email campaigns to maintain high levels of engagement and reduce CAC. Customer engagement has been proven to increase customer retention and encourage repeat spending - which will ultimately become our main profitability driver.

Repeat customers continue to be significantly more valuable than first-time customers because:

• 1. Repeat customers have a higher AOV than first-time customers;

• 2. Repeat customers are easier to sell to;

• 3. Repeat customers promote the products; and

• 4. New customers cost more to acquire.

AOV for First-Time and Repeat Customers

At $97, the AOV for first-time customers has consolidated relative to the September 2021 and December 2021 quarters. Our approach includes marketing higher value items and bundles of products sold together - now including TheraNight+.

Graph 3: AOV for First Time Customers and AOV for Repeat Customers

During this quarter, the AOV for repeat customers was ~$117, which remains exceptional.

LV1's AOV over the period continues to provide the foundation for continued revenue growth and illustrates how much our customers love our products and their strong support of the 13 Seeds brand.

Continued DtoC Focused Business Model

Live Verdure remains confident in our DtoC business model. We look forward to further increasing online sales in future quarters by:

• ▪ Launching additional products;

• ▪ Continuing to scale product promotion campaigns on multiple social media platforms;

• ▪ Continuing to leverage our customer database to drive high return sales; and

• ▪ Scaling sales on the Amazon US and AU global marketplaces.

The financial year 2021 Research and Development return is in the process of being prepared and is expected to be lodged over the coming quarter.

During the March 2022 quarter, Live Verdure's expenditure included ~$100,000 on employee benefits, ~$837,000 on advertising and marketing expenses, ~$87,000 on research and development expenses, and ~$380,000 on product manufacturing and operating costs. This expenditure is in line with budget expectations.

Operational Highlights

• ▪ "8 Seeds" Skincare Update

• ▪ LV1 continues US ecommerce expansion with the launch of 13 Seeds on Walmart.com

8 Seeds Skincare Update

During the quarter (ASX Announcement 10 March 2022), Live Verdure Ltd announced an update regarding our skincare brand, 8 Seeds. Under the guidance of our GM of Skincare, former Managing Director of Loreal, Mark Tucker (ASX Announcement 17 August 2021), 8 Seeds has made significant progress in bringing our innovative range of skincare products to market.

Australian Launch Update

Manufacturer

In conjunction with our Australian-based 3rd party manufacturer, who has extensive experience in Australian natural ingredients and a reputation for high-quality products, we have completed stability and compatibility research with testing currently in progress. A pre-production run on four initial premium hemp-based skincare products is also underway.