The challenges surrounding Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) grew more after the company disclosed its fourth-quarter and full-year financial results for the year 2014. The company attempted to highlight the positive side of its results, but the investors gave more weight on the negative. The company attained revenue of $12.1 million in the fourth quarter. The company noted that its GAAP net loss accounted $336.2 million, out of which, $144.4 million worth of charges relate to goodwill impairment of FIN and VAPESTICK business segments.
Financial report
For the full year 2014, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) reported adjusted revenues of $46.9 million and total revenue of $43.5 million as against $3.1 million reported in 2013. The net loss remained $381.6 million for the year ended on December 31, 2014. The company reported cash and cash equivalents of $2.1 million. The company’s CFO, Phil Anderson said that the company’s priorities include restructuring of its balance sheet, securing short and long term working capital and focus on the needs of its customers and employees.
Facing Pressure
Meanwhile, Executive Chairman Dan O’Neill spoke about the company’s efforts in the direction of turning the organization profitable amid the several challenges. Off late, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) has been struggling with the negative outlook set around e-cigarettes, the company’s major product line. Things worsened after the image of e-cigs was marred by reports questioning its impact on the health. Several studies revealed that e-cigs are riskier that the real cigarettes and can impact lung cells and tissues.
Moreover, the federal government too has launched its attack on e-cigs by including it in its anti-smoking campaign. All of a sudden, the future prospects of e-cigs seem to be buried down deep, and there is little hope left. Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) continues to feel the heat since the last several days as it stock tumbled by another 36% to $0.577 yesterday. It recorded total average volume of 1.83 million shares.
