Source: Hot Stocked – by Simona Tolcheva October 17, 2014

VAPE HOLDINGS INC (OTCMKTS:VAPE, VAPE message board)’s plummet continues, as it wiped out another 6.67% while 343.9 thousand shares changed hands yesterday. That makes for a total 52.8% decrease since the descend started on Oct 01. After the closing bell, the stock was sitting at $0.98.

The last time VAPE closed below $1 was after the first four trading sessions of 2014. As the marijuana hype kicked in, the stock gathered momentum and began to climb the charts, hitting its 52-week high of $41.25 in March. What could have caused this continuous descend VAPE is faced with now?
A highly probable answer is the lack of news. VAPE hasn’t been particularly active on the PR front this month, and it’s latest filing is from two months ago. There haven’t been any current updates on their company website, either.

VAPE‘s latest filing is a 10-Q report for the three months ended June 30. It shows the following:

  • cash: $72.8 thousand
  • current assets: $526.9 thousand
  • current liabilities: $739.8 thousand
  • quarterly revenue: $361.7 thousand
  • quarterly net loss: $1.3 million

As the company has announced in a PR, this was their “first revenue-generating fiscal quarter”. Otherwise, when you compare Q2 with Q3, it’s evident that the numbers have worsened.

The 10-Q also showed several issuances at great discounts. There are 296 thousand shares priced at $0.678 issued just during this quarter. There are also notes, which convert at a 40% discount from the lowest market closing price within the previous twenty market days. Also, shares with a set price of $1.31 were printed.

VAPE‘s latest PR states that the company plans to launch a new product from its HIVE Ceramics line, which is expected to hit the market “on or before December 1, 2014”. We’ll probably have to wait for the company’s next report to receive updates. It will be their 10-K, and hopefully for investors, it will show VAPE in a better financial situation, with greater revenues and less issuances.

As always, due diligence is advised before you decide whether or not to make an investment in VAPE, or in any other company.

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