Vapor Group Inc (OTCMKTS:VPOR) released a letter to shareholders from its CEO and President, Dror Svorai. He started the letter by highlighting the company’s performance in FY2014. He said that the company generated almost $4.481 million in revenues, an increase of about $2.5 million over FY2013 sales of approximately $2 million.
The 1Q2015 preliminary revenue results reflect the company has done well compared to the same quarter, a year ago. The final report will be released before mid-May. The financial results of 1Q also cover revenues from the continued expansion of distribution activities in Colorado and other regions for the company’s e-liquid, e-cigarette and particularly the vaporizer product lines.
Svorai stated that Vapor Group Inc (OTCMKTS:VPOR) entered into a deal with an e-cigarette manufacturer in China to whom the company will supply with the “Made in the USA” e-liquids on continuous basis. The company was chosen for its high quality of e-liquids products and the excellent taste and flavors associated with them. In fact, the export process of bulk shipments of e-liquid has been already started. The deal is expected to generate significant export revenues for Vapor and further boost the growth of its e-liquid business.
Svorai further added that Vapor Group will continue to mitigate its overall debt burden. In its last 10-K the company stated that it reduced the debt by approximately $2 million through prepayments and debt conversions in the first quarter of 2015. The remaining outstanding balance of “Accrued Interest” and “Convertible notes payable” on the company’s Consolidated Balance Sheet has been reduced to $1.441 million from $3.399 million which is what it was recorded as on December 31, 2014. It implies total debt reduction of 58%. The plans are to pay off all such debt by the end of June.
In last trading session, the stock price of Vapor made a high of $0.0017 and then closed in red at $0.0015 on share volume of 128.45 million.