FORT LAUDERDALE, FL - 
(NewMediaWire) - May 17, 2024 - VPR Brands, LP (OTCQB: VPRB), a market leader in the manufacturing, distribution and Licensing of electronic cigarettes, vaporizers, and accessories brands and technologies, today announced its financial results for the first quarter ended March 31, 2024.
Key Financial Highlights for Q1 2024:
● Total Revenues: $1,518,759, compared to $3,081,021 in Q1 2023
● Gross Profit: $476,856, compared to $523,673 in Q1 2023
● Net Income: $203,059, up from $25,314 in Q1 2023
● Operating Expenses: $646,866, compared to $404,665 in Q1 2023
● Net Cash Provided by Operating Activities: $23,444, compared to net cash used of $281,528 in Q1 2023
● Total Assets: $3,103,269, compared to $3,191,246 as of December 31, 2023
● Total Liabilities: $2,285,900, down from $2,576,936 as of December 31, 2023
Revenues: For the three months ended March 31, 2024, VPR Brands reported revenues from product sales of $1,183,701, down from $3,039,354 in the same period in 2023. Royalty revenues, however, saw a significant increase, rising to $335,058 from $41,667. The decrease in total revenues was primarily driven by lower product sales, while the increase in royalty revenues was due to higher licensing income from intellectual property.
Cost of Sales and Gross Profit: The cost of sales for Q1 2024 was $1,041,903, a decrease from $2,557,348 in Q1 2023. Gross profit for the first quarter of 2024 was $476,856, compared to $523,673 in the same period last year. The gross margin for the first quarter of 2024 was 31%, up from 17% in Q1 2023, primarily due to a favorable product sales mix with a higher proportion of lower margin products.
Operating Expenses: Operating expenses for the quarter increased to $646,866, compared to $404,665 in Q1 2023. This increase was mainly attributable to higher administrative costs and strategic investments in growth initiatives.
Other Income: Net other income for Q1 2024 was $442,007, a substantial increase from a net expense of $93,694 in Q1 2023. This increase was driven by legal settlement income of $486,639.
Net Income: Net income for the first quarter of 2024 was $203,059, a notable improvement compared to $25,314 in the same period last year. This increase was primarily due to higher royalty revenues and improved gross margins.
Liquidity and Capital Resources: Net cash provided by operating activities was $23,444 for Q1 2024, compared to net cash used of $281,528 in Q1 2023. The positive cash flow from operations was mainly a result of the company's net income, increases in vendor deposit assets, and royalty receivables, partially offset by increased inventory and decreased customer deposit liabilities.
Assets and Liabilities: As of March 31, 2024, VPR Brands had total assets of $3,103,269, slightly down from $3,191,246 as of December 31, 2023. Total liabilities decreased to $2,285,900 from $2,576,936 over the same period. The decrease in liabilities was due to repayments of convertible notes payable, notes payable to related parties, and lease liability principal.
CEO Commentary: Kevin Frija, CEO of VPR Brands, commented, "We are pleased with our financial performance in the first quarter of 2024, particularly the strong growth in royalty revenues and significant improvement in gross margins. Our strategic focus on licensing intellectual property and optimizing our product mix has yielded positive results. We remain committed to driving sustainable growth and enhancing shareholder value."
About VPR Brands, LP: VPR Brands is a technology company and an IP holding company engaged in various monetization strategies of its U.S. patents covering electronic cigarette, vaporizer technologies, and related accessories. The company designs, develops, markets, and distributes products oriented towards the cannabis markets, including the ELF and HONEYSTICK brand of vaporizers and DISSIM Lighters. VPR Brands is actively enforcing its patents and exploring and monetizing licensing opportunities.
Forward-Looking Statements: 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. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These statements are based on management's current expectations and involve risks and uncertainties that may cause actual results to differ from those described. VPR Brands undertakes no obligation to update these statements following the date of this release.
For more information, please visit www.vprbrands.com.
Contact: VPR Brands, LP Investor Relations Phone: (954) 715-7001 Email: Kevin.Frija@vprbrands.com
