FORT LAUDERDALE, Fla., May 21, 2021 (GLOBE NEWSWIRE) – via InvestorWire – VPR Brands LP (OTC: VPRB), a leading supplier and patent holder for electronic cigarettes or vaporizers for nicotine, cannabis and cannabidiol (CBD) and other related accessories such as lighters, recently reported its first quarter financial results 2021, showing increased revenue and reduced net loss compared to 2020.
While increasing its quarterly revenue by approximately 209% to $ 1.25 million, the company also reduced its net loss from $ 421,590 in 2020 to $ 101,651 in 2021 and the company was also able to strengthen its margins in ” gross operating at 43% in the 1st Quarter 2021 versus 35% in Q1 2020.
“We’re back in business,” said Kevin Frija, CEO of VPR Brands. “After a difficult 2020 due to circumstances beyond our control, we are grateful that we can come back in force and continue where we left off in 2019 and look forward to the rest of 2021 and beyond. ”
“Our company has made great strides in regaining revenue to pre-Covid-19 levels, and with marked increases in our direct-to-customer business and the addition of Dissim Lighters to our portfolio, our profit margins have started to increase. “Said Dan Hoff, COO” As much of the country opens up and business continues to pick up, we look forward to what lies ahead. ”
Results of operations for the three months ended March 31, 2021 compared to the three months ended March 31, 2020
Our revenues for the three months ended March 31, 2021 and 2020 were $ 1,252,058 and $ 598,633, respectively. The increase was the result of an industry-wide health-related crisis that significantly hampered sales in 2020, as well as an increase in direct online sales in 2021.
Cost of sales
The cost of sales for the three months ended March 31, 2021 and 2020 was $ 710,501 and $ 386,128, respectively. Gross margins increased to 43% in 2021 from 35% in 2020, due to price pressures resulting from the drop in demand linked to the industry crisis in 2020 and the increase in direct sales in 2021 .
Operating expenses for the quarter ended March 31, 2021 amounted to $ 537,903 compared to $ 476,824 for the quarter ended March 31, 2020. The increase in expenses is mainly due to the increase in sales in 2021 .
Other income (expenses)
Interest expense decreased to $ 105,305 for the quarter ended March 31, 2021, compared to $ 157,271 for the quarter ended March 31, 2020 due to the decrease in interest expense recognized on related party loans in 2021.
The net loss for the three months ended March 31, 2021 was $ 101,651 compared to a net loss of $ 421,590 for the three months ended March 31, 2020.
Liquidity and capital resources
The company used cash in operating activities of $ 138,245 for the quarter ended March 31, 2021 compared to $ 21,386 of cash used during the quarter ended March 31, 2020. Cash used in operations in 2021 was related to the Company’s net loss of approximately $ 102,000, offset by an increase in accounts payable offset by an increase in supplier deposits. Cash used in operations in 2020 was related to the Company’s net loss of approximately $ 422,000, offset by lower inventory levels and accounts receivable as well as increased accounts payable.
During the three-month period ended March 31, 2021, the company received $ 180,000 from the issuance of notes payable to related parties, repaid $ 183,754 of principal on notes payable to related parties, repaid $ 42,251 in principal on notes payable and received $ 190,057 in proceeds of notes payable. under the Paycheck Protection Program (“PPP”) and the Disaster Economic Damage Loan Program (“EIDL”). Both PPP and EIDL are financial programs under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) signed by the US President on March 27, 2020 to provide economic relief small businesses affected by COVID-19.
During the three-month period ended March 31, 2020, the Company received $ 290,000 in proceeds from the issuance of notes payable to related parties, repaid $ 185,622 of principal on notes payable to related parties and repaid $ 101,141 in principal on the notes payable.
As at March 31, 2021 and December 31, 2020, we had total assets of $ 1,018,165 and $ 908,345, respectively. The assets consist mainly of cash accounts held by the company, inventories, suppliers’ deposits, accounts receivable and a right of use asset. In 2021, the Company’s supplier deposits increased by $ 117,078 and inventories were reduced by approximately $ 51,000 due to increased demand from direct customers.
As at March 31, 2021 and December 31, 2020, we had total liabilities of $ 3,361,785 and $ 3,150,314, respectively. The increase is mainly attributable to the issuance of a PPP loan in the amount of $ 190,057 in 2021.
For the rest of the information filed:
https://www.sec.gov/Archives / edgar / data / 0001376231/000089109221004547 / e13142-10q.htm.
|About VPR Brands, LP:
VPR Brands is a technology company, whose assets include issued US and Chinese patents for products related to atomization, including technology for medical marijuana vaporizers and electronic cigarette products and components as well as lighters. The company is also engaged in the development of products for the vapor or vaping market, including e-liquids, vaporizers, and electronic cigarettes (also known as e-cigarettes) which are devices that deliver nicotine and / or cannabis by atomization or vaping, and without the smoke and other chemical constituents commonly found in traditional products. For more information on the VPR brands, please visit the company on the web at www.vprbrands.com.
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