Vape Holdings Inc. (fka VAPE)

[Entendance]

Vape Holdings Reports Fiscal Third Quarter 2015 Results
New Revenue Streams Expected to Increase Consistency; New Ceramic Products to be Released by End of 2015
CHATSWORTH, CA / ACCESSWIRE / August 17, 2015 / VAPE Holdings, Inc. (OTCQB: VAPE) (the "Company" or "VAPE"), a holding company focused on providing healthy, efficient, and sustainable vaporization products, today announced the filing of its 10Q quarterly report and quarterly results for its fiscal third quarter ended June 30, 2015. The full 10Q filing is available in its entirety on the SEC's website at http://edgar.sec.gov. At August 14, 2015, there were approximately 11.97 million shares issued and outstanding.

Recent Business Highlights:
- HIVE Supply and HIVE Glass contributed quarterly revenue for the first time
- New HIVE Ceramic products on schedule to be released by end of 2015

For the three months ended June 30, 2015 and 2014, revenue was $282,331 and $361,781, respectively. Revenue was greater in 2014 as it was HIVE Ceramics' first full revenue-generating quarter following the launch of its full product line. However, in 2015, the Company now derives its revenue from the sale of ceramics, supplies, glass, merchandise, and services. Its new revenue streams are in its infant stages and are expected to produce at least consistent revenue. Ceramics revenue is expected to return to 2014 levels as new products are released in the first quarter of fiscal 2016. For the three months ended June 30, 2015 and 2014, gross profit was $125,191 or 44% and $5,615 or 2%, respectively. Gross profit increased due to normalization of inventory and the Company becoming fully operational over multiple revenue streams. The Company has subsequently taken steps to reduce outside sales expense to a minimal level and trade show expenses by at least 25%. Operating loss for the quarter ended June 30, 2015 was $644,142, and included $143,525 of stock-based compensation expense. For the three months ended June 30, 2015 and 2014, net loss was $436,052 and $1,358,587, respectively.

For the nine months ended June 30, 2015 and 2014, revenue was $1,084,233 and $392,540, respectively. For the nine months ended June 30, 2015 and 2014, gross profit was $479,565 or 44% and $26,753 or 7%, respectively. Operating loss for the nine months ended June 30, 2015 was $2,080,209, and included $681,374 of stock-based compensation expense. For the nine months ended June 30, 2015 and 2014, net income and loss was $232,002 and ($31,163,151), respectively.

HIVE Ceramics ("HIVE") is the premier brand under the VAPE umbrella. HIVE manufactures and distributes a proprietarily blended ceramic vaporization element for torched, electronic and portable vaporizers with countless design and product crossover capabilities in existing and emerging markets. HIVE is dedicated to bringing the healthiest and cleanest vaporization experience possible to the market. The HIVE product line currently consists of over 15 distinct ceramic elements, including the 2 piece domeless, domeless direct inject, and HIVE's signature domeless elements covering 10mm, 14mm and 18mm applications as well as regular elements, the HIVE Flower Cup, the HIVE Carb Cap, HIVE Stinger Dabber, the 14mm HIVE x Quave - Club Banger, and the HIVE x D-Nail 16mm and 20mm attachments.

The Company has recently launched "HIVE Glass." HIVE Glass is VAPE's newest line of products under the HIVE brand name. The HIVE GLASS line is precision made using state of the art manufacturing processes and techniques, and exclusively uses German Schott glass caliber and fittings through all production phases. The aim with HIVE Glass is to create an affordable, high quality glass product that is both aesthetically pleasing and a highly functional vaporization product. VAPE's existing customer base and distribution network will be the catalyst for expansion of this new HIVE product line.Under HIVE Glass, the Company also buys and sells high-end collector pieces.

VAPE has also recently launched "HIVE Supply." HIVE Supply is a packaging and sourcing division of VAPE designed to serve as a competitively priced, comprehensive "one-stop shop" for all medical and recreational marijuana packaging needs. As with all of VAPE's products, HIVE Supply will operate in full compliance with all federal laws and the laws of each individual state in which it does business. HIVE Supply will focus on providing much-needed support to legal cannabis businesses in regards to sourcing consumer products, brand management and marketing services.HIVE Supply is currently operated out of three (3) locations: HIVE Supply in Southern California, HIVE Supply Washington in Spokane and HIVE Supply Oregon in Portland.Under HIVE Supply, the Company also buys and sells high-end manufacturing machines.

In connection with its launch of HIVE Supply and HIVE Glass, the Company opened 'THE HIVE' retail store and gallery in Los Angeles, an end-user experience to showcase the complete line of HIVE Ceramics and HIVE Glass products,while introducing HIVE Supply and all the new products being tested and developed through each vertical.

The Company has expanded its distribution network to include several distributors throughout the United States, Canada, Europe and South America to pair with its existing e-commerce website at http://www.hiveceramics.com and its wholesale authorized dealer network of over 1,100 authorized shops.

The Company's authorized dealer network has grown to over 1,100 authorized shops for the Company's wholesale distribution platform. The Company and its principals have relied on their industry reputation and contacts to rapidly expand this vast wholesale distribution network in a matter of months. The Company has already funneled the HIVE Ceramics product line through these channels and anticipates parlaying this expansive network into the success of future product lines and related ventures.

GOTVAPE.COM is an Orange County, California based online distributor that boasts the top online vaporizer retail site in the world and sells a full range of vaporization products for shipment nationwide. The Company has partnered with GotVAPE.com for the U.S. distribution of its HIVE Ceramics product line through its expansive nationwide distribution chain.

DNA GENETICS is a world-renowned name in cannabis genetics with a global reach and trusted brand poised to assist the Company with its expansion into the emerging European markets. DNA Genetics will serve as the Company's European distributor assisting the Company in reaching the European market from its base in Amsterdam.

PURE DNA is DNA Genetics' South American distributor based in Chile which will partner with the Company to distribute HIVE products throughout the South American Market. Pure DNA is backed by DNA Genetics' brand which can be found throughout the world.

PUFF PIPES is a Vancouver, B.C. Canada based distributor and one of two Canadian distributors partnering with the Company to blanket the Canadian market. Puff Pipes is one of Canada's leading suppliers of high quality glass works for over 20 years and a trusted name in the vaporizer industry.

WEST COAST GIFTS is also based in Vancouver, B.C. Canada and is known for having an excellent reputation asone of the longest-runningdistributors of nationally recognized brands of vaporizers and related accessories in Canada.

About Vape Holdings, Inc.

VAPE Holdings, Inc. focuses on designing, marketing, and distributing various vaporization products and provides management, consulting, branding, real estate and compliant packaging cannabis solutions. The company offers medical and food grade ceramic products primarily under the HIVE Ceramics brand throughout North America, Europe and South America. HIVE offers a nonporous, non-corrosive, chemically inert ceramic vaporization element, which can be used for a range of applications, including stand-alone vaporization products and electronic cigarettes. The company is based in Chatsworth, California.

For more information on HIVE Ceramics and to visit our e-commerce site, please visit: http://www.hiveceramics.com

From time to time, VAPE Holdings will provide market updates and news via its website http://www.vapeholdings.com/ or the Company's Facebook page at http://on.fb.me/1d5c7iO.


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