Vapor Corp (OTCMKTS:VPCO) has filed its Form-10K, FY2015 report, within the late filing deadline. The company was initially required to make the filing by March 31, but VPCO cited accounting complexities, related to series A warrants and related derivatives, as the reason for not having a completed report. The series A warrants were issued in July 2015, when the company generated net proceeds of $38.7 million, through the public offering.
As per the details of the filing, net wholesales of Vapor Corp decreased by $8.6 million, to $6.5 million, as compared to the preceding year. The company stated the decline in demand for e-cigarettes and the termination of its televised marketing campaign agreement, as the main reason for this decline. Moreover, new competitors at the national level have been emerging, due to which Vapor Corp. is altering its products to tackle the competition. However, net sales for the period increased by $4.1 million. The company highlighted the acquisition of eight retail stores, as part of a merger, as the main reason for the dramatic increase.
The report also highlighted that the company was not cutting back on administrative costs, which rose by $4.6 million. This was despite the fact that the company’s marketing campaigns were decreased during the year. The company stated that $2.5 million of this amount was due to the new retail stores, which helped drive sales.
Although the news helped the company add to its share value, but it was unable to maintain its gains. This was mainly due to the fact that the company had recently performed a reverse split, on March 9, owing mainly due to the warrants issued in July 2015. It should be noted here that the outstanding shares of the company stood at 973 million, before the reverse split. As per the latest reports, that number now stands at 25.1 million.
Vapor Corp (OTCMKTS:VPCO) completed the April 8 trading session, with a decline of 42% in terms of its share value, to reach a close at $0.0029.