Wed, May 21, 9:11 PM (26 days ago)
**VPR Brands, LP (VPRB) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenue decreased to $933,328 (Q1 2024: $1,518,759) due to declines in product sales ($885,283, down from $1,183,701) and royalty revenue ($48,045, down from $335,058). - **Profit Margins:** Gross margin decreased to 25% (Q1 2024: 40%) due to a shift in product sales mix towards lower-margin products. - **Net Loss:** Net loss was $290,864 (Q1 2024: Net income of $203,059) due to reduced revenues and increased operating expenses. - **Cash Flow:** Negative cash flow from operations was $323,741 (Q1 2024: Positive $23,444) due to the net loss and changes in working capital. **Key Metrics & Trends:** - **Operating Expenses:** Decreased to $496,459 (Q1 2024: $646,866) due to reduced selling costs and marketing expenditures. - **Debt Repayment:** Fully repaid convertible notes payable ($69,130) and made payments on other notes payable. - **Customer Concentration:** Four customers accounted for 41% of net revenues (Q1 2024: 56%). **Uncertainties & Future Operations:** - **Going Concern:** Substantial doubt about the ability to continue as a going concern due to net losses and accumulated deficit. - **Liquidity:** No immediate source of liquidity; may need to raise additional capital or curtail operations. - **Legal Matters:** Ongoing patent and trademark infringement cases, with recent settlements providing some revenue. **Management's Outlook:** - **Strategic Focus:** Continue efforts to monetize intellectual property, enforce patents, and develop new products. - **Financial Strategy:** Explore additional financing options, cost reductions, and strategic acquisitions to improve liquidity and operational efficiency. **Ticker:** VPRB