Davie, FL – June 4, 2015 – Vapor Group, Inc. (OTC.QB: “VPOR”), (the “Company” or “Vapor Group”), today released the following letter to its shareholders from its President and CEO, Dror Svorai.
I am writing you to provide you with an update on further changes effecting our filing of our annual and quarterly reports and to provide you with some guidance on the first quarter 2015 results that we can’t file until after restatement of year-end 2014 is filed.
Replacement of Auditor and 2014 Financial Statement Restatement: As reported on form 8-K on May 20, 2015, The Company accepted the resignation of its prior auditor, Terry Johnson, CPA, and engaged the firm of D. Brooks and Associates, CPAs, P.A., to replace Johnson. At that time and by mutual agreement with these new auditors, the Company also announced that it would re-audit and restate its Annual Report for 2014 in order to add adjustments for “embedded conversion options” inside its convertible promissory notes. We had anticipated completion of the re-audit work within a brief period of time since we foresaw no reason that such adjustments should take a long time to complete, and had immediately provided the new auditors with the required information.
Yesterday, June 3rd, we terminated the engagement with D. Brooks and Associates, CPAs, P.A., because our Board of Directors concluded that they could not complete the re-audit within the timeframe requested by the Company. As a result, we immediately engaged Anton & Chia, LLP, a PCAOB and CPAB registered firm, to restart the re-audit of the Annual Report to address the “embedded conversion options” as previously stated, on a schedule more acceptable to the Company, and to perform the review of the Quarterly Report for the period ended March 31, 2015. These events will be reported on a form 8-K to be filed with the SEC before the end of the week. We anticipate filing our Annual Report and Quarterly Report before the end of the month or sooner.
Preliminary 2015 Guidance: Pending auditor review, the Company will report revenues for the first quarter of 2015, of over $1,000,000, up from $966,411 for the same period in 2014. As noted, we continue to expand our product distribution domestically and are shipping bulk quantities of our proprietary e-liquids to a Chinese e-cigarette manufacturer. In the second quarter, we are continuing to grow our business, in particular our online presence, and project that 2015 will again demonstrate significant growth for your Company.
I will write you again later this month as we make progress on completion of our filings. We are committed to finish them and to continue to push the growth of your Company forward.
Very truly yours,
President and CEO
Vapor Group, Inc.
About Vapor Group, Inc.
Vapor Group, Inc., www.vaporgroup.com, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, “Made in the USA” e-liquids, with and without nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group, Total Vapor, Vapor 123, and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising. In addition, Vapor Group owns and operates VGR Media, Inc., www.vgr-media.com, a full service interactive advertising agency, offering customized performance marketing solutions to help marketers of consumer products acquire new customers and maximize their return on investment. VGR Media operates in the U.S. and internationally.
Vapor Group is committed to providing e-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.
Vapor Group is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.
Safe Harbor Statement:
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate”, “project”, “intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “will likely”, “should”, “could”, “would”, “may” or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company’s ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company’s limited operating history, the limited financial resources, domestic or global economic conditions — activities of competitors and the presence of new or additional competition and conditions of equity markets.
Vapor Group, Inc. 954-792-8450