Vapor Group Inc (VPOR)

[CashBowski]

Under terms of an exclusive worldwide distribution contract with EZ Grinder, Inc., a privately held company holding all intellectual property rights to Easy Grinder™, Total Vapor, Inc. a subsidiary of the Company, is the sole worldwide distributor of Easy Grinder™. It will remain so for the foreseeable future. Under terms of the contract, we hold the sole rights to manufacture and distribute Easy Grinder™.

Here's a simple question... why is VPOR incurring manufacturing costs for a product that they don't own and are only distributing?

Who in their right mind would sign a contract with those terms when you have no rights to ownership?? That's a HUGE investment in something that you don't own and are also likely paying handsome royalties.

Who knows what the term limit on that contract is, when Dror has affectively resigned and could walk away with E.G. In hand at anytime once the term expires. Meanwhile shareholders take the hit because of "higher manufacturing costs"?

Yaniv flew to China and set-up shop on VPOR's dime and continues to incur high manufacturing costs, yet Dror owns all the rights and bears no responsibility in cost sharing? Is this a joke?

However, we encountered serious limitations on what we were able to ship against distributor commitments due to the pre-production need to redesign critical components of the grinder, which delayed the start of initial production and slowed factory output. This in turn, forced higher manufacturing costs and resultant increases in wholesale and retail pricing. Consequently, several distributors reduced the size of their orders, backed off on commitments, or decided to delay acceptance of shipments of the higher priced product until we could prove market acceptance of Easy Grinder™