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VPR Brands, LP has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $1,442,963 from $3,540,409 in the same quarter the previous year. This decrease is attributed to a reduction in royalty revenues from a prior agreement.
Cost of sales for the quarter was $1,008,960, representing 70% of sales, compared to 16% in the same quarter of the previous year. This increase in cost ratio is due to a decrease in royalty revenue.
The company reported a net loss of $166,884 for the quarter, compared to a net income of $2,951,216 in the previous year, with the decline attributed to reduced royalty revenue and increased operating expenses.
Operating expenses increased to $858,221 from $533,700, primarily due to higher marketing, payroll, and professional fees, as well as unit-based compensation expenses.
Net other income for the quarter was $272,666, down from $514,015 in the previous year. This decrease was primarily due to lower settlement income and increased interest expenses.
Cash provided by operating activities was $249,303, while cash used in financing activities was $492,964.
VPR Brands had total assets of $3,328,550 as of September 30, 2024, up from $3,191,246 at the end of 2023. The increase in assets was primarily due to an increase in accounts receivable and inventory.
The company had total liabilities of $2,254,820 as of September 30, 2024, down from $2,576,936 at the end of 2023. This decrease was due to reductions in notes payable and convertible notes.
The filing also details the company's efforts to address a material weakness in internal controls over financial reporting and outlines steps being taken to remediate this issue.
VPR Brands continues to focus on its electronic cigarette and personal vaporizer industry operations, including the design, marketing, and distribution of various brands and products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the VPR Brands LP quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.