$vpor
Vapor Group, Inc., VPOR, Releases Letter to Shareholders
15/04/15 2:00 PM
DAVIE, FL -- (Marketwired) -- 04/15/15 -- Vapor Group, Inc. (OTCQB: VPOR), (the "Company" or "Vapor Group"), today released the following letter to shareholders from its President and CEO, Dror Svorai.
Dear Shareholders:
First, for the full year 2014, Vapor Group did about $4 1/2 million in revenues (actual $4,481,839), an increase of about $2.5 million (actual $2,490,816), or 125% over calendar 2013 sales of $2 million (actual $1,991,023).
For the first quarter of 2015 preliminary revenue results show us well ahead of the same quarter of last year. Final results will be released in our forthcoming quarterly report to be filed before mid-May.
The results of the first quarter also include revenues from our continued expansion of distribution in Colorado and throughout the country for our e-cigarette, e-liquid and particularly our vaporizer product lines.
Important, we have also entered into an agreement with a major e-cigarette manufacturer in China who we will supply continuously with our proprietary "Made in the USA" e-liquids. in a complete range of flavors for resale internationally. We were chosen by them because of the high quality of our e-liquids, their excellent taste and range of flavors. (No one can offer anything similar.) In fact, we have already begun to export bulk shipments of e-liquid to China. We believe over time that this agreement will generate significant export revenues for us and further drive the growth of our e-liquid business.
Lastly, we continue to reduce our overall debt burden. As we stated in our 10-K of March 31, 2015 for the period ended December 31, 2014, we have reduced our debt by almost $2 million ($1,958,229) through prepayments and debt conversions to equity in the first quarter of 2015. As a result, the remaining outstanding balance of "Convertible notes payable" and "Accrued Interest" on our Consolidated Balance Sheet would be reduced to $1,441,314 from $3,399,543 which is what it was on December 31, 2014, that is a reduction of 58%. That said, we remain determined to eliminate all such debt by the end of June.
Please remember that 2014 was our first year as a public company and one in which we needed to invest in inventory heavily, drive sales, establish national branding and distribution, and demonstrate that we are here for the long term. We believe that in 2014 we demonstrated significant achievement in all these areas. For 2015, we are committed to continue to grow revenues in order to drive shareholder value.
In the coming months I look forward to providing you with further updates on the progress that we is making.
Very truly yours,
Dror Svorai
President and CEO
Vapor Group, Inc.
