DAVIE, FL--(NewMediaWire - Jun 4, 2015) - Vapor Group, Inc.
(OTCQB: VPOR), (the "Company" or "Vapor Group"), today
released the following letter to its shareholders from its
President and CEO, Dror Svorai.
Dear Shareholders:
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,
Dror Svorai
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.
