Q4 Operating Income of $180,000
Q4 Operating Margins of 40%
Chatsworth, CA / ACCESSWIRE / December 30, 2014 / 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 10K annual report and record quarterly and annual results for its fiscal year ended September 30, 2014. The full 10K filing is available in its entirety on the SEC's website at http://edgar.sec.gov. At December 26, 2014, there were 10,849,789 shares issued and outstanding.
*Of note, Vape business operations started in 2014
For its fiscal year end September 30, 2014, Vape generated revenues of $841,724, which represents the Company's first revenue-generating year. Gross margins of 45.5% generated gross profit of $383,337. Operating loss for the year ended September 30, 2014 was $1,198,021, and included $450,501 of stock based compensation expense. Net loss and EPS was $25,063,658 and ($3.20) per share, and included a $23,404,058 non-cash loss on settlement of warrants.
For its fiscal fourth quarter ended September 30, 2014, Vape generated record quarterly revenues of $449,184. Gross margins of 79.4% generated gross profit of $356,584. Operating income for the quarter ended September 30, 2014 was $180,364, and included $13,189 of stock based compensation expense. Net income and EPS was $6,100,293 and $1.21 per share, and included a $6,124,785 non-cash gain on settlement of warrants.
Recent Business Highlights:
- Secured a $500,000 investment from a single institutional accredited investor
- Launch of HIVE Glass
- Introduced HIVE Supply
- Announced HIVE Retail store concept
- Expanded to over 1,100 authorized dealers
- Hired creative marketing director
- Moved into new corporate headquarters
"We are very pleased with our business progress to-date and our revenue and profitability in our first full quarter of commercialization," stated Kyle Tracey, CEO of VAPE Holdings. "We have a lot of exciting initiatives in place and planned for calendar 2015 as we look to continue to expand our distribution and grow our business."
Vape also plans to leverage its management team's vast experience in the legal cannabis concentrate industry to provide management, consulting, branding, real estate and compliant packaging solutions to lawfully operating participants in the legal cannabis industry. Although the Company plans to provide services to the industry, it does not grow, transport, harvest, or sell cannabis. Furthermore, it does not currently maintain an ownership interest in any extraction laboratories or concentrate facilities. As for its real estate services, the Company plans to hold properties in strategic locations deemed to be susceptible for large scale manufacturing and extraction of concentrates. The company plans to provide property management and leasing services to legally compliant legal cannabis facilities. Vape management has extensive experience operating in the legal cannabis concentrate industry and knowledge of the ever-changing legal hurdles that legal concentrate manufacturers face. The Company plans to provide guidance and expertise to assist in the development of standardized labs, processes and packaging. To that end, the Company plans to work closely with the leaders in cultivation, extraction and lab testing in the most relevant markets to form a positive working group to set the standard for how these products are made, packaged and responsibly advertised. 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. Vape has already begun deploying management and consultants into areas of interest to evaluate opportunities in this rapidly growing industry.
Company, Product and Distribution Highlights:
'HIVE Ceramics' is the premier brand under the Vape umbrella. HIVE manufactures and distributes a proprietarily blended ceramic vaporization element for torched, electronic and portable vaporizer 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 13 distinct ceramic elements, including 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 and the HIVE Stinger Dabber. The full HIVE product line is currently being manufactured and distributed and is available now.
The Company has recently 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 www.HiveCeramics.com and its wholesale authorized dealer network of over 1,100 authorized shops.
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 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.
Vape has also announced the launch of 'HIVE Supply' coming in early 2015. 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.
THE HIVE Retail Store and Gallery
In connection with its launch of HIVE Supply and HIVE Glass, the Company plans to open '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.
HIVECERAMICS.COM is the Company's e-commerce site for its premier HIVE Ceramics product line. The website will also be used in connection with the Company's new HIVE Glass product line. A beta version of the e-commerce site was successfully launched in April 2014 with a limited product line and no paid or formal advertising. The e-commerce site has since become fully operational since July 1, 2014 with a full product line and is taking orders daily with same or next day shipping available direct to the consumer on all orders.
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, including the HIVE Glass line.
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 product lines 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 as one of the longest-running distributors 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 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.