Yesterday, VPR Brands, LP (OTC:VPRB) released and filed its first quarter 2017 financial results. So far in early morning trading, shares of the company are up big on the news. There are a few highlights of the financials worth looking at:
Revenues for Q1 2017 was $786,535 compared to $0 for Q1 2016. This boost in revenues was due to the company's acquisition of the wholesale business operations from Vapor Corp.
Cost of sales for Q1 2017 was $511,521 compared to $0 for Q1 2016.
Gross profit for Q1 2017 was $275,014 compared to $0 for Q1 2016. This was also due to the acquisition of Vapor Corp.'s wholesale business. This amounted to gross margins of $34.96%.
Operating expenses rose dramatically in Q1 2017, totaling $598,556 compared to $61,005 for Q1 2016. $250,482 of this was attributable to payroll. Another $162,330 of this was attributable to marketing costs. The remainder was attributable to travel and "professional fees related to the Vapor Corp. asset acquisition."
Other expenses included $31,248 in interest expenses related to the loans for the Vapor Corp. asset acquisition.
Net losses for Q1 2017 amounted to -$292,294 compared to a net loss of -$61,005 for Q1 2016.
Accumulated deficits for the company have risen to $6,306,126 as of March 31, 2017.
Loss per common share amounted to -0.01 per share compared to a negligible loss per common share in Q1 2016.
Common shares outstanding (basic and diluted) rose to 49,695,679 in Q1 2017 compared to 36,792,125 for Q1 2016.
In addition to the financial highlights noted above, there were a few other notable points in the filing and release.
VPR Brands has transitioned from focusing on the distribution of popular vaporizers and e-liquids to focusing on its in-house Honeystick brand of vaporizers. The Honeystick line of vaporizers won the High Times Southern California Cannabis Cup this April alongside Golden Nugget Extracts.
As stated previously in the article, shares are currently up over 20% at the time of writing as markets digest the recent financial results. It will be interesting to watch how the upcoming quarter goes for VPR Brands given this transitional stage they are in.
The full 10-Q as filed with the SEC is embedded below: