FORT LAUDERDALE, Fla., May 21, 2021 (GLOBE NEWSWIRE) — via InvestorWire — VPR Brands LP (OTC: VPRB), a market leading supplier and patent holder for electronic cigarettes or vaporizers for nicotine, cannabis and cannabidiol (CBD) and other related accessories such as lighters, recently announced its first quarter 2021 financial results, posting increased revenues and a narrowed net loss as compared to 2020.
While increasing its quarterly revenues 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 gross operating margins to 43% in the 1st Quarter 2021 from 35% in Q1, 2020.
“We are back in business,” said Kevin Frija, CEO of VPR Brands. “After a difficult year in 2020 due to circumstances beyond our control, we are grateful to be able to come back strong and continue where we left off in 2019 and we look forward to the rest of 2021 and beyond.”
“Our company made great strides in regaining revenues to pre Covid-19 levels, and with marked increases to our direct to customer business and the addition of Dissim Lighters to our portfolio our profit margins have started to trend upwards,” said Dan Hoff, COO of VPR Brands. “As much of the country opens up and business continues to recover we eagerly await what lies ahead for the company. ”
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 a result of an industry-wide health-related crisis that hampered sales significantly in 2020, as well as increased direct on-line sales in 2021.
Cost of Sales
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 compared to 35% in 2020, due to pricing pressures from the decreased demand related to the industry crisis in 2020, and increased direct sales in 2021.
Operating expenses for the three months ended March 31, 2021 were $537,903 as compared to $476,824 for the three months ended March 31, 2020. The increase in expenses is primarily due to increased sales activity in 2021.
Other Income (Expense)
Interest expense decreased to $105,305 for the three months ended March 31, 2021 as compared to $157,271 for the three months ended March 31, 2020 due to less interest expense recognized on related party loans in 2021.
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 three months ended March 31, 2021as compared to $21,386 of cash used in three months ended March 31, 2020. Cash used in operations in 2021 related to the Company’s net loss of approximately $102,000, offset by an increase in accounts payable offset by an increase in vendor deposits. Cash used in operations in 2020 related to the Company’s net loss of approximately $422,000, offset by decreases in inventory and accounts receivable levels as well as increase in accounts payable.
During the three months 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 of principal on notes payable, and received $190,057 of notes payable proceeds under the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program. Both the PPP and EIDL are financial programs under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) signed into law by the U.S. President on March 27, 2020 to provide economic relief to small businesses adversely impacted by COVID-19.
During the three months ended March 31, 2020, the Company received $290,000 of 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 of principal on notes payable.
At March 31, 2021 and December 31, 2020, we had total assets of $1,018,165 and $908,345, respectively. Assets primarily consist of the cash accounts held by the Company, inventory, vendor deposits, accounts receivable and a right-to-use asset. In 2021, the Company’s vendor deposits increased by $117,078 and inventory was decreased by approximately $51,000 as a result of increased demand from direct customers.
At March 31, 2021 and December 31, 2020, we had total liabilities of $3,361,785 and $3,150,314, respectively. The increase was primarily due to the issuance of a PPP Loan in the amount of $190,057 in 2021.
For the Rest of the information filed:
About VPR Brands, LP:
VPR Brands is a technology company, whose assets include issued U.S. and Chinese patents for atomization related products including technology for medical marijuana vaporizers and electronic cigarette products and components as well as lighters. The company is also engaged in product development for the vapor or vaping market, including e-liquids, vaporizers and electronic cigarettes (also known as e-cigarettes) which are devices which deliver nicotine and or cannabis through atomization or vaping, and without smoke and other chemical constituents typically found in traditional products. For more information about VPR Brands, please visit the company on the web at www.vprbrands.com.
This news release contains statements that involve expectations, plans or intentions, and other factors discussed from time to time in the company’s Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.