FORT LAUDERDALE, Fla., Aug. 16, 2023 (GLOBE NEWSWIRE) — via IBN — VPR Brands LP (OTC: VPRB) a licensing company owning patents and trademarks as well as a market leader for the design and sale of electronic cigarettes (vaporizers) for nicotine, cannabis and cannabidiol (CBD) and other related accessories such as Lighters has recently announced its second quarter 2023 financial results, posting increased revenues and record profits as compared to previous quarters.
While increasing its Q2 2023 revenues over 2022 by approximately one million dollars to $1,909,529, and year to date six month revenue by more than two million dollars to $4,990,550 the company also reduced its operating expenses for both periods. Net income increased to over $928,322 in Q2 2023 from $73,733 in Q2 2022 and $953,636 Year to Date compared to a net loss of $73,508 for the six 6 months end June 30th reported in 2022.
“We have been able to successfully license and monetize our ELF brand trademark this year while aggressively protecting the mark in the courts and creating a monumental asset for the company and we are now focusing on developing business for our other trademarks as well,” said Kevin Frija, CEO of VPR Brands. “We believe partnering as a Licensor with experienced and well capitalized licensees to expand our Brand portfolios business is the model that will work best for the company in the long run.”
“I’m very proud of our team for successfully cultivating our Intellectual Properties and building a foundation so they can be licensed and monetized effectively. This has had a large-scale positive impact on our revenues as well as net income and will be a core business segment for our company’s future,” said Dan Hoff, COO of VPR Brands.
Results of Operations for the Three Months Ended June 30, 2023, Compared to the Three Months Ended June 30, 2022
Revenues
Our revenues for the three months ended June 30, 2023, and 2022 were $1,909,529 and $920,705, respectively. The increase was a result of royalty revenue from the licensing of intellectual property.
Cost of Sales
Cost of sales for the three months ended June 30, 2023, and 2022 was $814,437 and $553,122, respectively. Gross margins decreased to 32% in 2023 compared to 40% in 2022, due to higher volume of lower margin sales in 2023.
Operating Expenses
Operating expenses for the three months ended June 30, 2023, were $452,903 as compared to $460,470 for the three months ended June 30, 2022.
Other Income
Net other income for the three months ended June 30, 2023, was $286,133 compared to $166,620 for the three months ended June 30, 2022.
Net Income
Net income for the three months ended June 30, 2023, was $928,322 compared to $73,733 for the three months ended June 30, 2022.
Results of Operations for the Six Months Ended June 30, 2023, Compared to the Six Months Ended June 30, 2022
Revenues
Our revenues for the six months ended June 30, 2023, and 2022 were $4,990,550 and $1,975,937, respectively. The increase was a result of a large distribution sales order compared to 2022 and royalty revenue from the licensing of intellectual property.
Cost of Sales
Cost of sales for the six months ended June 30, 2023, and 2022 was $3,371,785 and $1,182,242, respectively. The decrease was a result of 2022 including higher online direct to customer sales compared to 2023.
Operating Expenses
Operating expenses for the six months ended June 30, 2023, were $857,564 as compared to $975,913 for the six months ended June 30, 2022.
Other Income
Net other income for the six months ended June 30, 2023, was $192,435 as compared to net other income of $108,710 for the six months ended June 30, 2022. The change is due primarily to an increase in settlement income and a decrease in interest expenses.
Net Income (Loss)
Net income for the six months ended June 30, 2023, was $953,636 compared to a net loss of ($73,508) for the six months ended June 30, 2022.
About VPR Brands, LP:
VPR Brands is a technology company, as well as an IP holding company. The Company is engaged in various monetization strategies of a U.S. patent that the Company owns covering electronic cigarette, electronic cigar and personal vaporizer patents, as well as a patent for an inverted pocket lighter. The Company also has several trademarks (ELF, PHANTOM, HRB, VPOD, VAPOR X, and RIPPER) for which it is also engaged in licensing and various monetization strategies. The Company also designs, develops, markets and distributes products (the HoneyStick brand of vaporizers and the Goldline CBD products) oriented toward the cannabis markets. This allows us to capitalize on the rapidly growing expansion within the cannabis markets. The Company is also identifying electronic cigarette companies that may be infringing our patents and trademarks and exploring options to license and/or enforce our patents. The Company is now also selling DISSIM brand pocket lighters for which it holds a U.S. patent and patents pending. The Company also has patents pending in the cigar accessory space and sells these proprietary accessories.
For more information about VPR Brands, please visit the company on the web at www.vprbrands.com.
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.