Q1 Revenue of $386,643; New Business Initiatives and Products Progressing; Recently Closed $1.8 Million Funding
Chatsworth, CA / ACCESSWIRE / February 17, 2015 / Vape Holdings, Inc. (VAPE) (the "Company" or "Vape"), a holding company focused on providing healthy, efficient, and sustainable vaporization products and management, consulting, branding, real estate and compliant packaging solutions to lawfully operating participants in the legal cannabis industry, is pleased to announce the filing of its 10Q quarterly report and record quarterly results for its first quarter ended December 31, 2014. The full 10Q filing is available in its entirety on the SEC's website at http://edgar.sec.gov. At February 13, 2015, there were approximately 11.5 million shares issued and outstanding.
For its fiscal first quarter ended December 31, 2014, Vape generated quarterly revenues of $386,643. Gross margins of 61.2% generated gross profit of $236,757. Operating loss for the quarter ended December 31, 2014 was $859,083, and included $612,549 of stock based compensation expense. Excluding stock based compensation, "adjusted" operating loss was $246,534. Net income and EPS was $582,910 and $0.05 per share, and included a $1,409,825 non-cash change in derivative liability. These results have no year-over-year comparison, as Vape had nominal business operations in 2013.
Recent Business Highlights:
- Secured a $1,800,000 investment from a new institutional accredited investor
- Created Offset, LLC for branding, marketing and merchandising services
- Positioned to offer additional services and solutions in the legal cannabis industry
- Executed agreement with One Source for additional distribution in the U.S.
- HIVE glass introductions at recent tradeshows received rave reviews
- New product line collaborations planned for mid-2015
- The "Mothership" collaboration expected by end of June
- The "Omni Nail" collaboration expected by the end of September
"We are very pleased with our business progress to-date, as it has met our internal expectations," stated Kyle Tracey, CEO of VAPE Holdings. "Several of our exciting initiatives planned for 2015 have progressed as expected. As many of these initiatives ready for commercialization, our recently closed $1.8 million financing gives us the capital needed to realize our exciting growth plans, including our HIVE retail grand opening in early April." Mr. Tracey continued, "Management here at VAPE gave strong consideration to several different financing options and ultimately chose an installment-based structure. We were extremely mindful of the potential impact a lump-sum financing would have had on shareholder value and felt that this structure lessened any future impact on the Company's stock moving forward."
In January, Vape created a new wholly-owned subsidiary, Offset, LLC to focus on the business of branding, marketing and merchandising services. Offset will serve as Vape's creative marketing, branding and merchandising vehicle working synergistically with Vape's existing product lines, sales and distribution channels and HIVE Supply retail development, while expanding into unique branding, marketing and merchandising avenues both inside and outside of the legal cannabis industry. Offset is expected to fit closely with existing Vape businesses and products and to provide new revenue-generating opportunities.
Vape has positioned itself to provide management, consulting, branding, real estate and compliant packaging solutions to lawfully operating participants in the legal cannabis industry. A number of states, including Oregon, Washington and Colorado have enacted laws and regulations which allow the use, cultivation and production of medical and recreational marijuana. Vape plans to work with these legally compliant cultivation and extraction facilities that are in compliance with applicable state and local laws, rules and regulations. Specifically, Vape plans to purchase real estate capable of large-scale cultivation and extraction of cannabis concentrates, provide full-scale infrastructure build-outs and lease the real estate, equipment and infrastructure to compliant cannabis participants. Given management's vast experience in the legal cannabis concentrate industry, the Company plans to provide additional guidance and expertise to assist in the development of standardized labs, processes and packaging. Vape plans to forge strategic relationships in the legal concentrate industry, develop intellectual property and standardize the build-out and process of concentrate manufacturing facilities.
Recently attended and upcoming tradeshows include:
American Glass Expo - Las Vegas, NV
Champs Trade Show - Las Vegas, NV
High Times Cannabis Cup - Los Angeles, CA
Spannabis - Barcelona, Spain
BIG Galleria - Denver, CO
Cannabis Cup - Denver, CO
American Glass Expo - Denver, CO
American Glass Expo - Atlantic City, NJ
June- Cannabis Cup - San Francisco, CA
Champs Trade Show - Las Vegas, NV
Cannabis Cup - Portland, OR
Cannabis Cup - Clio, MI
Cannabis Cup - Seattle, WA
American Glass Expo - Baltimore, MD
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 solutions to lawfully operating participants in the legal cannabis industry. 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
Cautionary Language Concerning Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Vape Holdings' products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in Vape Holdings' filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include statements regarding future sales, costs and market acceptance of products as well as regulatory actions at the State or Federal level. For a more detailed description of the risk factors and uncertainties affecting Vape Holdings please refer to the Company's Securities and Exchange Commission filings, which are available at www.sec.gov. Vape Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Vape Holdings, Inc.