Vapor Hub International (VHUBD) 10-K 29 Sep 14 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Document and Entity Information:	'	'
Entity Registrant Name	'VAPOR HUB INTERNATIONAL INC.	'
Document Type	'10-K	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001515718	'
Current Fiscal Year End Date	'--06-30	'
Entity Common Stock, Shares Outstanding	'	68,060,001
Entity Public Float	'	$0
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'FY	'

Vapor_Hub_International_Inc_Co

Vapor Hub International Inc. - Consolidated Balance Sheets (USD $)	Jun. 30, 2014		Dec. 31, 2013
Current Assets:	'		'
Cash	$307,567		$34,152	[1]
Inventories	196,163		59,938	[1]
Prepaid expenses and other current assets	152,081		2,214	[1]
Total Current Assets	655,811		96,304	[1]
Property and Equipment, net	104,731		15,925	[1]
Long term assets	12,162		3,039	[1]
Total Assets	772,704		115,268	[1]
LIABILITIESAND STOCKHOLDERS' EQUITY	'		'
Accounts payable and accrued expenses	213,154		46,397	[1]
Deferred income	307,135		'	[1]
Income taxes payable	6,702		3,623	[1]
Officers loans payable	101,378	[2]	2,593	[1],[2]
Total Current Liabilities	628,369		52,613	[1]
Long Term Liabilities:	'		'
Leases Payable	9,212		'	[1]
Note Payable	560,000		'	[1]
Long term liabilities	569,212		'	[1]
TOTAL LIABILITIES	1,197,581		52,613	[1]
Stockholders' Equity	'		'
Common stock	68,060	[3]	68,060	[1],[3]
Additional paid-in capital	-69,331		-16,274	[1]
Retained earnings (deficit)	-423,606		10,869	[1]
Total Stockholders Equity	-424,877		62,655	[1]
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$772,704		$115,268	[1]
[1]	June 30, 2013 has not been presented, as the date of inception of Vapor, the accounting acquirer in the CompanyÂ’s exchange transaction, is July 12, 2013 (see Note 3). The audited December 31, 2013 balances of Vapor have been presented for comparative purposes only.
[2]	See Note 5
[3]	See Note 4: $0.001 par value, 140,000,000 shares authorized, 68,060,001 issued and outstanding as of June 30, 2014. See Footnote 1: All common share amounts and per share amounts in these consolidated financial statements reflect the one-for-nine forward stock split by way of a stock dividend of issued and outstanding shares of common stock of the Company, effective January 19, 2014, including retroactive adjustment of common share amounts.

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	140,000,000	140,000,000
Common Stock, Shares Issued	68,060,001	68,060,001
Common Stock, Shares Outstanding	68,060,001	68,060,001

Vapor_Hub_International_Inc_Co1

Vapor Hub International Inc. - Consolidated Statements of Operations (USD $)	12 Months Ended
	Jun. 30, 2014
Income Statement	'
Revenue	$1,202,663
Cost of revenue	647,287
Gross Profit	555,376
General and administrative expenses	984,776
Net loss from operations	-429,400
Interest expense	-10,966
Other income	23,839
Total other income (expense)	12,873
Net loss before taxes	-416,527
Income tax provision	-7,079
Net loss	($423,606)
Net loss per share:	'
Net income (loss) per share, basic	($0.01)
Net income (loss) per share, diluted	($0.01)
Weighted average shares outstanding:	'
Weighted average shares outstanding, basic	68,060,001	[1]
Weighted average shares outstanding, diluted	68,060,001	[1]
[1]	All common share amounts and per share amounts in these consolidated financial statements reflect the one-for-nine forward stock split by way of a stock dividend of issued and outstanding shares of common stock of the Company, effective January 19, 2014, including retroactive adjustment of common share amounts.

Vapor_Hub_International_Inc_Co2

Vapor Hub International Inc. - Consolidated Statement of Changes in Stockholders' Equity (Deficit) (USD $)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Balance, Value at Jul. 11, 2013	$38,000	($38,000)	'	'
Balance, Shares at Jul. 11, 2013	38,000,001	'	'	'
Recapitalization Adjustment, Value	80,989	-82,260	'	-1,271
Recapitalization Adjustment, Shares	80,988,984	'	'	'
Cancellation of Shares, Value	-50,929	50,929	'	'
Cancellation of Shares, Shares	-50,928,984	'	'	'
Net loss	'	'	-423,606	-423,606
Balance, Value at Jun. 30, 2014	$68,060	($69,331)	($423,606)	($424,877)
Balance, Shares at Jun. 30, 2014	68,060,001	'	'	'

Note_1_Incorporation_Nature_of

Note 1- Incorporation, Nature of Operations and Acquisition	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 1- Incorporation, Nature of Operations and Acquisition	'
	NOTE 1- INCORPORATION, NATURE OF OPERATIONS AND ACQUISITION
	Vapor Hub International Inc. (formerly DogInn, Inc.) (hereinafter known as “the Company”)  was  incorporated in the State of Nevada on July 15, 2010. On February 14, 2014, the Company entered into a Share Exchange Agreement with Vapor Hub Inc., a California corporation (“Vapor”), Delite Products, Inc., a California corporation (“Delite”) and the shareholders of both companies (the “Exchange Agreement”).  Pursuant to the terms of Exchange Agreement, the Company agreed to acquire all 30,000 of the issued and outstanding shares of Vapor’s common stock, as well as all 30,000 of the issued and outstanding shares of Delite’s common stock in exchange for the issuance by the Company of 38,000,001 shares of common stock to the shareholders of both companies.  On March 14, 2014, the Company completed the acquisition of Vapor and issued all of the 38,000,001 shares of its stock to the shareholders of Vapor, who are also the shareholders of Delite.  On March 26, the Company completed the acquisition of Delite.  As a result of the closing of the transactions contemplated by the Exchange Agreement, Vapor and Delite became the Company’s wholly owned subsidiaries and the Company now carries on the business of developing, producing, marketing and selling vaping devices and related accessories.  The exchange transaction was accounted for as a reverse acquisition (recapitalization) with Vapor deemed to be the accounting acquirer (see Note 2), and the Company the legal acquirer.  Prior to the Company’s acquisition of Vapor, the Company existed as a “shell company” with nominal assets whose sole business was to identify, evaluate and investigate various companies to acquire or with which to merge.
	Upon the Company’s acquisition of Vapor, Robin Looban resigned as the Company’s sole director, president, secretary, treasurer, Chief Financial Officer and Chairman of the Board of Directors and management members from Vapor were appointed to serve as directors and officers of the Company.   As a condition of the closing of the acquisition of Vapor, the Company cancelled 50,928,984 outstanding common shares and retired them in treasury.
	Vapor was incorporated in the State of California on July 12, 2013 and is the retail arm of the Company’s business.  Vapor sells and markets the next generation of smokeless electronic cigarettes which are popularly known as vaping devices as well as E-liquid, accessories, and supplies relating to electronic cigarettes through its retail locations. Vapor’s initial focus is to establish brand recognition through its current locations in Southern California.  The format of the retail establishments is to provide a “lounge” atmosphere where “vaping” can be enjoyed by the customer in a congenial environment. Thus far, Vapor has opened two retail locations in Southern California.  Vapor sources substantially all of its products which it offers for sale from Delite.
	Delite was incorporated in the State of California on August 14, 2008 and is the wholesale and distribution arm of the Company’s business.  Delite provides a selection of brands of electronic cigarettes and related accessories which it sells nationally and internationally to wholesale customers and retail customers, including through its websites  www.vapor-hub.com  and www.smokelessdelite.com.  Products distributed by Delite include vaping devices and related accessories purchased from third parties for resale as well as the company’s own vaping devices and related accessories which it designs and sources, including the company’s popular “AR Mechanical Mods”.

Note_2_Reverse_Acquisition_Acc

Note 2 - Reverse Acquisition Accounting	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 2 - Reverse Acquisition Accounting	'
	NOTE 2 – REVERSE ACQUISITION ACCOUNTING
	Since former Vapor security holders owned, after the acquisition, the majority of the Company’s shares of common stock, and as a result of certain other factors, including that all members of the Company’s executive management are from Vapor, Vapor is deemed to be the acquiring company for accounting purposes and the acquisition of Vapor was accounted for as a reverse acquisition and a recapitalization in accordance with generally accepted accounting principles in the United States (“US GAAP”). These consolidated financial statements reflect the historical results of Vapor prior to the exchange transaction and that of the combined company following the exchange transaction, and do not include the historical financial results of Vapor Hub International prior to the completion of the exchange transaction.  Common stock and the corresponding capital amounts of the Company pre-exchange transaction have been retroactively restated as capital stock shares reflecting the exchange ratio in the exchange transaction.

Note_3_summary_of_Significant_

Note 3 -summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 3 -summary of Significant Accounting Policies	'
	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation - Consolidation
	The accompanying audited consolidated financial statements primarily reflect the financial position, results of operations and cash flows of Vapor (See Note 2) and that of Delite after its acquisition on March 26, 2014. All intercompany transactions have been eliminated for the periods consolidated. The accompanying audited consolidated financial statements of the Company have been prepared in accordance with US GAAP and pursuant to the instructions to Form 10-K of the Securities and Exchange Commission.  The Company’s fiscal year end is June 30, 2014.
	Fiscal Year End
	Following the exchange transaction, the Company elected to adopt the June 30 year end of Vapor, the accounting acquirer.  As such, the Company has presented activity since the inception of Vapor (July 12, 2013) and has presented the activity of Delite since its acquisition on March 26, 2014.
	Going Concern
	The Company’s audited consolidated financial statements have been presented on the basis that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company’s cash balance as of June 30, 2014 along with other factors, including its net loss, raise doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
	The Company believes it will be necessary to raise additional funds to finance its operations in the next twelve months, and intends to do so through equity financings, debt financings, or from other sources.
	Use of Estimates
	The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.  At June 30, 2014, the Company had no cash equivalents.
	Concentration of Risk
	Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash.  The Company places its cash with high quality banking institutions.
	Financial Instruments and Fair Value Measurement
	Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:
	Level 1 - applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
	Level 2 - applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
	Level 3 - applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
	The Company’s financial instruments consist principally of cash, bank overdraft, accounts payable, accrued liabilities, convertible notes payable and amounts due to related parties.  Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.
	Revenue Recognition
	The Company recognizes revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.
	Deferred Income
	The Company accrues deferred income when customer payments are received, but product has not yet shipped. As of June 30, 2014, the Company had accrued $307,135 for deferred income as a result of prepayments for product made by customers.
	Inventories
	Inventories consist primarily of vaping devices, e-liquid and related supplies and accessories and are stated at the lower of cost (first-in, first-out) or market value.
	Property and Equipment
	Property and equipment consist of computer equipment, furniture, facility equipment, and leasehold improvements which are carried at historical cost and are depreciated over the estimated useful lives of the related assets. Estimated useful lives are from 3 to 10 years.   Much of the property and equipment was contributed by shareholders of the Company. Expenditures for maintenance and repairs are charged against operations.  The modified accelerated cost recovery system (straight line) is used for federal income tax purposes and also for financial reporting as the difference between the two does not appear to be material.
	Advertising Expense
	Advertising costs are expensed as incurred. Advertising expense for the period from inception (July 12, 2013) to June 30, 2014 was $59,822 and are included in general and administrative expenses.
	Basic and Diluted Net Loss per Share
	The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants or debentures. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of June 30, 2014, there are 261,669 common stock equivalents related to convertible promissory notes, which were excluded from diluted EPS calculation as they would have had an anti-dilutive effect.
	Income Taxes
	The Company accounts for income taxes under the provisions of ASC Topic 740-10, Income Taxes, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method.  Under this method, deferred tax liabilities and assets are determined and income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes determined on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  As of June 30, 2014, the Company has federal and state net operating loss carry forwards of approximately $109,000 which will begin to expire in 2030 unless utilized in earlier years.
	Recent Accounting Pronouncements
	In August 2014, FASB issued Accounting Standards Update (ASU)  No. 2014-15 Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s  Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements—Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in the Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, at the current period, management does not believe that it has met conditions which would subject the company’s consolidated financial statements to additional disclosure.
	The Company has reviewed other recent accounting pronouncements issued prior to the date of issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the Company’s consolidated financial statements.

Note_4_Capital_Stock

Note 4 - Capital Stock	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 4 - Capital Stock	'
	NOTE 4 – CAPITAL STOCK
	The Company is authorized to issue 140,000,000 shares of common stock and had 68,060,001 shares of common stock issued and outstanding as of June 30, 2014.
	The Company is authorized to issue 10,000,000 shares of preferred stock and had no shares of preferred stock issued and outstanding as of June 30, 2014.
	On January 9, 2014, the Company authorized an increase of its share capital from 65,000,000 common shares to 140,000,000 common shares. Furthermore, the Company approved a forward stock split of its issued and outstanding common shares by way of a stock dividend, on a basis of 1:9, pursuant to which, the company’s stockholders as at January 17, 2014 received eight (8) shares of common stock for each one (1) share of common stock currently held.  The pay-out date as approved by the Company’s board of directors and Financial Industry Regulatory Authority was January 17, 2014. The effects of the forward split increased the Company’s issued and outstanding common shares from 8,998,776 common shares to 80,988,984 common shares. The effects of the forward split have been applied on a retroactive basis.
	On February 14, 2014, the Company entered into the Exchange Agreement whereby the Company acquired all of the issued and outstanding shares of Vapor and Delite in exchange for 38,000,001 common shares of the Company. The Agreement was completed in two stages – with the acquisition of Vapor closing on March 14, 2014 and the acquisition of Delite closing on March 26, 2014.  In connection with the acquisition of Vapor on March 14, 2014, the Company canceled 50,928,984 common shares and issued a convertible debenture of approximately $185,000 (see Note 10).

Note_5_Loan_From_Related_Party

Note 5 - Loan From Related Party	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 5 - Loan From Related Party	'
	NOTE 5 – LOAN FROM RELATED PARTY
	As of June 30, 2014, the Company had a balance of $101,378 outstanding as related party loans from Kyle Winther, the Company’s CEO, Lori Winther, the Company’s CFO and Winther & Company (an entity owned by Lori Winther, and her husband, Niels Winther, who is a director of the Company).  The outstanding balances are non-interest bearing and repayable upon demand. Since inception, we have repaid $42,100 of related party loans.

Note_6_Inventories

Note 6 - Inventories	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 6 - Inventories	'
	NOTE 6 – INVENTORIES
	As of June 30, 2014, the Company had a balance of $196,163 as finished goods inventories which consist of vaping devices, e-liquid, and related supplies and accessories.

Note_7_Lease_Agreement

Note 7 - Lease Agreement	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 7 - Lease Agreement	'
	NOTE 7 – LEASE AGREEMENT
	The Company entered into a lease agreement with S. J. Real Estate Group, LLC to lease a retail space in Chatsworth, California, effective September 13, 2013. The lease term is for two years with a monthly lease payment of approximately $2,214. The Company has a remaining commitment under this lease of $11,070 through August 30, 2015.
	The Company also has a month-to-month rental agreement with Madera Development for a retail space in Simi Valley for $825.
	The Company entered into a lease agreement with S.B.P.W., LLC to lease warehouse and office space in Simi Valley, California effective August 5, 2013 which agreement was subsequently amended on February 20, 2014. The lease term extends through April 30, 2015 with a monthly lease payment of $2,035 which increased to $4,070 effective July 1, 2014. The Company has a remaining commitment under this lease of $40,700 through April 30, 2015.  A security deposit of $10,482 has been paid to the landlord in relation to this lease.

Note_8_Other_Income

Note 8- Other Income	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 8- Other Income	'
	NOTE 8– OTHER INCOME
	The Company received a fee of $30,000 in exchange for the right of an unaffiliated third party to share in 10% of the net profits derived from operations of the Chatsworth Vapor Hub lounge. At June 30, 2014, no obligation is due under this profit sharing agreement.

Note_9_Related_Parties

Note 9 - Related Parties	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 9 - Related Parties	'
	NOTE 9 – RELATED PARTIES
	The Company entered into a Management Agreement with Kyle Winther and Gary “Jake” Perlingos who are each shareholders, directors and officers of the Company related to operational supervision of the Vapor Hub retail locations in Simi Valley and Chatsworth, CA.  Each of them was to receive 2.5% each (for a total of 5%) of the monthly revenue generated from each respective lounge.  The Agreement commenced September 1, 2013 and was scheduled to continue until terminated by agreement of the parties. Effective February 1, 2014, the parties agreed to terminate the Management Agreement.  An additional Management Agreement was entered into between Delite and Vapor, which relates to the provision of administrative support to Vapor.  Pursuant to the agreement, Delite received a fee of $10,000 per month from Vapor.  The Agreement commenced October 1, 2013 and was scheduled to continue until terminated by agreement of the parties. Effective March 1, 2014, the parties agreed to terminate the Management Agreement.
	Vapor purchases substantially all of its inventory which is sold at its retail locations from Delite.  As of March 26, 2014, Delite became a wholly-owned subsidiary of the Company.  As a result of the acquisition, all intercompany transactions subsequent to March 26, 2014 have been eliminated.

Note_10_Convertible_Notes_Paya

Note 10 - Convertible Notes Payable	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 10 - Convertible Notes Payable	'
	NOTE 10 – CONVERTIBLE NOTES PAYABLE
	On March 14, 2014, the Company closed the first of three tranches of a financing transaction pursuant to the terms of the Exchange Agreement.  At the closing, the Company issued a convertible promissory note in the principal amount of $185,000 to Gotama Capital S.A. in exchange for cash proceeds of $185,000.  The note bears interest at a rate of 8% per annum, with interest being payable on May 15th of each year that the note remains outstanding. The principal amount of the note is convertible at any time, in whole or in part, at the Company’s election or the election of the holder into shares of the Company’s common stock at a price equal to the greater of $0.15 or 90% of the average closing prices of the Company’s common stock for the ten trading days immediately preceding the applicable conversion date.  Unless earlier converted or repaid, the principal amount of the note is due and payable on March 14, 2017.  On April 10, 2014, the Company closed the second tranche of the financing contemplated pursuant to the terms of the Exchange Agreement.  At the closing, the Company issued a convertible promissory note in the principal amount of $200,000 to the same investor in exchange for cash proceeds of $200,000.  The note has the same terms as the note described above, except that unless earlier converted or repaid, the principal amount of the note is due and payable on April 10, 2017. On May 15, 2014, the Company closed the third tranche of the financing contemplated pursuant to the terms of the Exchange Agreement.  At the closing, the Company issued a convertible promissory note in the principal amount of $150,000 to the same investor in exchange for cash proceeds of $149,881.  The note has the same terms as the notes described above, except that unless earlier converted or repaid, the principal amount of the note is due and payable on May 15, 2017.  The Company may prepay the principal amount of the notes at any time, in whole or in part, without the prior written consent of the holder.

Note_11_Delite_Acquisition

Note 11 - Delite Acquisition	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 11 - Delite Acquisition	'
	NOTE 11 – DELITE ACQUISITION
	As described in Note 4, the Company acquired Delite as part of the transactions contemplated by the Exchange Agreement on March 26, 2014. This transaction was treated as a business acquisition. The balance sheet of Delite has been consolidated with the Company as of June 30, 2014 and the activity subsequent to acquisition has been consolidated with the Company’s operations.
	Below is a summarized presentation of unaudited pro-form results of operations with Delite for the period from inception (July 12, 2013) to June 30, 2014:
		Delite	Vapor	Company	Elimination	Pro-Forma
	Revenue	$  1,446,749	$  513,811	$                   -	$    (346,077)	$   1,614,483
	Cost of revenue	858,128	280,181	-	(280,181)	858,128
	Gross profit	588,621	233,630	-	(65,895)	756,355
	General and administrative expense	992,090	259,558	25,149	(65,895)	1,210,902
	Other income	-	29,999	9,019	-	39,018
	Income tax provision	1,963	6,702	-	-	8,665
	Net income (loss)	$   (405,432)	$     (2,631)	$      (16,130)	-	$    (424,194)

Note_12_Income_Tax

Note 12 - Income Tax	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 12 - Income Tax	'
	NOTE 12 – INCOME TAX
	The provision for income taxes was determined by applying the statutory federal income tax rate to net income before income taxes and is as follows for June 30, 2014:
		2014
	Federal tax	$             3,751
	State tax	$             3,328
	The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes were as follows:
		2014
	Statutory federal income tax rate	-34%
	State taxes, net of federal benefit	10%
	Other	22%
		-2%

Note_13_Loss_Per_Common_Share

Note 13 - Loss Per Common Share	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 13 - Loss Per Common Share	'
	NOTE 13 – LOSS PER COMMON SHARE
	A summary of the net loss and shares used to compute net loss per share for the year ended June 30, 2014 is as follows:
		2014
	Net loss for computation of basic and dilutive net (loss) per share	$      (423,606)
	Basic and dilutive net (loss) per share	$        (0.0062)
	Basic and dilutive weighted average shares outstanding	6,806,001

Note_14_Property_and_Equipment

Note 14 - Property and Equipment	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 14 - Property and Equipment	'
	NOTE 14 – PROPERTY AND EQUIPMENT
	Property and equipment consisted of the following as of June 30, 2014:
	Computers	$  12,895
	Furniture and equipment	97,300
	Leasehold improvements	17,539
	Accumulated depreciation	-23,003
	Property and equipment, net	$104,731

Note_15_Subsequent_Events

Note 15 - Subsequent Events	12 Months Ended
	Jun. 30, 2014
Notes	'
Note 15 - Subsequent Events	'
	NOTE 15 – SUBSEQUENT EVENTS
	Andrew Birnbaum, who on March 24, 2014, was appointed as Chief Executive Officer and Director subsequently resigned his office and directorship on and effective July 8, 2014.  As a result, the Board of Directors subsequently appointed Kyle Winther as Chief Executive Officer to fill the vacancy of that office.

Note_3_summary_of_Significant_1

Note 3 -summary of Significant Accounting Policies: Basis of Presentation - Consolidation (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Basis of Presentation - Consolidation	'
	Basis of Presentation - Consolidation
	The accompanying audited consolidated financial statements primarily reflect the financial position, results of operations and cash flows of Vapor (See Note 2) and that of Delite after its acquisition on March 26, 2014. All intercompany transactions have been eliminated for the periods consolidated. The accompanying audited consolidated financial statements of the Company have been prepared in accordance with US GAAP and pursuant to the instructions to Form 10-K of the Securities and Exchange Commission.  The Company’s fiscal year end is June 30, 2014.

Note_3_summary_of_Significant_2

Note 3 -summary of Significant Accounting Policies: Fiscal Year End (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Fiscal Year End	'
	Fiscal Year End
	Following the exchange transaction, the Company elected to adopt the June 30 year end of Vapor, the accounting acquirer.  As such, the Company has presented activity since the inception of Vapor (July 12, 2013) and has presented the activity of Delite since its acquisition on March 26, 2014.

Note_3_summary_of_Significant_3

Note 3 -summary of Significant Accounting Policies: Going Concern (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Going Concern	'
	Going Concern
	The Company’s audited consolidated financial statements have been presented on the basis that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company’s cash balance as of June 30, 2014 along with other factors, including its net loss, raise doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
	The Company believes it will be necessary to raise additional funds to finance its operations in the next twelve months, and intends to do so through equity financings, debt financings, or from other sources.

Note_3_summary_of_Significant_4

Note 3 -summary of Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Note_3_summary_of_Significant_5

Note 3 -summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.  At June 30, 2014, the Company had no cash equivalents.

Note_3_summary_of_Significant_6

Note 3 -summary of Significant Accounting Policies: Concentration of Risk (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Concentration of Risk	'
	Concentration of Risk
	Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash.  The Company places its cash with high quality banking institutions.

Note_3_summary_of_Significant_7

Note 3 -summary of Significant Accounting Policies: Fair Value Measurements (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Fair Value Measurements	'
	Financial Instruments and Fair Value Measurement
	Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:
	Level 1 - applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
	Level 2 - applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
	Level 3 - applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
	The Company’s financial instruments consist principally of cash, bank overdraft, accounts payable, accrued liabilities, convertible notes payable and amounts due to related parties.  Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

Note_3_summary_of_Significant_8

Note 3 -summary of Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Revenue Recognition	'
	Revenue Recognition
	The Company recognizes revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.

Note_3_summary_of_Significant_9

Note 3 -summary of Significant Accounting Policies: Deferred Income (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Deferred Income	'
	Deferred Income
	The Company accrues deferred income when customer payments are received, but product has not yet shipped. As of June 30, 2014, the Company had accrued $307,135 for deferred income as a result of prepayments for product made by customers.

Recovered_Sheet1

Note 3 -summary of Significant Accounting Policies: Inventories (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Inventories	'
	Inventories
	Inventories consist primarily of vaping devices, e-liquid and related supplies and accessories and are stated at the lower of cost (first-in, first-out) or market value.

Recovered_Sheet2

Note 3 -summary of Significant Accounting Policies: Property and Equipment (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Property and Equipment	'
	Property and Equipment
	Property and equipment consist of computer equipment, furniture, facility equipment, and leasehold improvements which are carried at historical cost and are depreciated over the estimated useful lives of the related assets. Estimated useful lives are from 3 to 10 years.   Much of the property and equipment was contributed by shareholders of the Company. Expenditures for maintenance and repairs are charged against operations.  The modified accelerated cost recovery system (straight line) is used for federal income tax purposes and also for financial reporting as the difference between the two does not appear to be material.

Recovered_Sheet3

Note 3 -summary of Significant Accounting Policies: Advertising Expense (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Advertising Expense	'
	Advertising Expense
	Advertising costs are expensed as incurred. Advertising expense for the period from inception (July 12, 2013) to June 30, 2014 was $59,822 and are included in general and administrative expenses.

Recovered_Sheet4

Note 3 -summary of Significant Accounting Policies: Basic and Diluted Net Loss Per Share (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Basic and Diluted Net Loss Per Share	'
	Basic and Diluted Net Loss per Share
	The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants or debentures. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of June 30, 2014, there are 261,669 common stock equivalents related to convertible promissory notes, which were excluded from diluted EPS calculation as they would have had an anti-dilutive effect.

Recovered_Sheet5

Note 3 -summary of Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
Income Taxes	'
	Income Taxes
	The Company accounts for income taxes under the provisions of ASC Topic 740-10, Income Taxes, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns using the liability method.  Under this method, deferred tax liabilities and assets are determined and income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes determined on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  As of June 30, 2014, the Company has federal and state net operating loss carry forwards of approximately $109,000 which will begin to expire in 2030 unless utilized in earlier years.

Recovered_Sheet6

Note 3 -summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies)	12 Months Ended
	Jun. 30, 2014
Policies	'
New Accounting Pronouncements, Policy	'
	Recent Accounting Pronouncements
	In August 2014, FASB issued Accounting Standards Update (ASU)  No. 2014-15 Preparation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s  Ability to Continue as a Going Concern. Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements—Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in the Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, however, at the current period, management does not believe that it has met conditions which would subject the company’s consolidated financial statements to additional disclosure.
	The Company has reviewed other recent accounting pronouncements issued prior to the date of issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the Company’s consolidated financial statements.

Note_11_Delite_Acquisition_Sch

Note 11 - Delite Acquisition: Schedule of Business Acquisitions, by Acquisition (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Business Acquisitions, by Acquisition	'
		Delite	Vapor	Company	Elimination	Pro-Forma
	Revenue	$  1,446,749	$  513,811	$                   -	$    (346,077)	$   1,614,483
	Cost of revenue	858,128	280,181	-	(280,181)	858,128
	Gross profit	588,621	233,630	-	(65,895)	756,355
	General and administrative expense	992,090	259,558	25,149	(65,895)	1,210,902
	Other income	-	29,999	9,019	-	39,018
	Income tax provision	1,963	6,702	-	-	8,665
	Net income (loss)	$   (405,432)	$     (2,631)	$      (16,130)	-	$    (424,194)

Note_14_Property_and_Equipment1

Note 14 - Property and Equipment: Note 14 - Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Note 14 - Property and Equipment	'
	Computers	$  12,895
	Furniture and equipment	97,300
	Leasehold improvements	17,539
	Accumulated depreciation	-23,003
	Property and equipment, net	$104,731

Note_1_Incorporation_Nature_of1

Note 1- Incorporation, Nature of Operations and Acquisition (Details)	Jun. 30, 2014	Jan. 09, 2014	Dec. 31, 2013	Mar. 31, 2014	Mar. 14, 2014	Feb. 14, 2014
				Delite	Delite	Delite
Common Stock, Other Shares, Outstanding	'	'	'	'	'	30,000
Common Stock, Shares Issued	68,060,001	140,000,000	68,060,001	'	38,000,001	'
Treasury Stock, Shares, Retired	'	'	'	50,928,984	'	'

Recovered_Sheet7

Note 3 -summary of Significant Accounting Policies: Deferred Income (Details) (USD $)	Jun. 30, 2014
Details	'
Deferred Revenue	$307,135

Recovered_Sheet8

Note 3 -summary of Significant Accounting Policies: Advertising Expense (Details) (USD $)	12 Months Ended
	Jun. 30, 2014
Details	'
Advertising Expense	$59,822

Recovered_Sheet9

Note 3 -summary of Significant Accounting Policies: Income Taxes (Details) (USD $)	Jun. 30, 2014
Details	'
Operating Loss Carryforwards	$109,000

Note_4_Capital_Stock_Details

Note 4 - Capital Stock (Details) (USD $)	0 Months Ended				1 Months Ended
	Jan. 17, 2014	Jun. 30, 2014	Jan. 09, 2014	Dec. 31, 2013	Mar. 14, 2014	Feb. 14, 2014
					Exchange Agreement	Exchange Agreement
Common Stock, Shares Authorized	'	140,000,000	'	140,000,000	'	'
Common Stock, Shares Outstanding	'	68,060,001	'	68,060,001	'	38,000,001
Preferred Stock, Shares Issued	'	10,000,000	'	'	'	'
Common Stock, Shares Issued	'	68,060,001	140,000,000	68,060,001	'	'
Stock Issued During Period, Shares, Stock Splits	80,988,984	'	'	'	'	'
Treasury Stock, Shares, Retired	'	'	'	'	50,928,984	'
Convertible Debt	'	'	'	'	$185,000	'

Note_5_Loan_From_Related_Party1

Note 5 - Loan From Related Party (Details) (USD $)	Jun. 30, 2014		Dec. 31, 2013
Details	'		'
Officers loans payable	$101,378	[1]	$2,593	[1],[2]
[1]	See Note 5
[2]	June 30, 2013 has not been presented, as the date of inception of Vapor, the accounting acquirer in the CompanyBs exchange transaction, is July 12, 2013 (see Note 3). The audited December 31, 2013 balances of Vapor have been presented for comparative purposes only.

Note_6_Inventories_Details

Note 6 - Inventories (Details) (USD $)	Jun. 30, 2014
Details	'
Inventory, Finished Goods, Gross	$196,163

Note_7_Lease_Agreement_Details

Note 7 - Lease Agreement (Details) (USD $)	Feb. 20, 2014	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jul. 01, 2014	Apr. 30, 2015
		S.J. Real Estate Group, LLC	S.J. Real Estate Group, LLC	Madera Development	S.B.P.W., LLC	S.B.P.W., LLC
Operating Leases, Rent Expense	'	$2,214	$11,070	$825	$4,070	$40,700
Security Deposit	$10,482	'	'	'	'	'

Note_8_Other_Income_Details

Note 8- Other Income (Details) (USD $)	12 Months Ended
	Jun. 30, 2014
Details	'
Other Operating Income	$30,000

Note_9_Related_Parties_Details

Note 9 - Related Parties (Details) (Management Agreement, USD $)	Oct. 01, 2013
Management Agreement	'
Due to Related Parties, Current	$10,000

Note_10_Convertible_Notes_Paya1

Note 10 - Convertible Notes Payable (Details) (GOTAMA CAPITAL S.A., USD $)	0 Months Ended
	15-May-14	Apr. 10, 2014	Mar. 14, 2014
GOTAMA CAPITAL S.A.	'	'	'
Convertible Notes Payable	$150,000	$200,000	$185,000
Proceeds from Convertible Debt	$149,881	$200,000	$185,000
Short-term Debt, Percentage Bearing Fixed Interest Rate	'	'	8.00%

Note_11_Delite_Acquisition_Sch1

Note 11 - Delite Acquisition: Schedule of Business Acquisitions, by Acquisition (Details) (USD $)	12 Months Ended
	Jun. 30, 2014
Revenue	$1,202,663
Cost of revenue	647,287
Gross Profit	555,376
General and administrative expenses	984,776
Other income	23,839
Income tax provision	-7,079
Net loss	-423,606
Delite	'
Revenue	1,446,749
Cost of revenue	858,128
Gross Profit	588,621
General and administrative expenses	992,090
Income tax provision	1,963
Net loss	-405,432
Vapor	'
Revenue	513,811
Cost of revenue	280,181
Gross Profit	233,630
General and administrative expenses	259,558
Other income	29,999
Income tax provision	6,702
Net loss	-2,631
Company	'
General and administrative expenses	25,149
Other income	9,019
Net loss	-16,130
Elimination	'
Revenue	-346,077
Cost of revenue	-280,181
Gross Profit	-65,895
General and administrative expenses	-65,895
Pro-Forma	'
Revenue	1,614,483
Cost of revenue	858,128
Gross Profit	756,355
General and administrative expenses	1,210,902
Other income	39,018
Income tax provision	8,665
Net loss	($424,194)

Note_12_Income_Tax_Details

Note 12 - Income Tax (Details) (USD $)	12 Months Ended
	Jun. 30, 2014
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	-34.00%
Effective Income Tax Rate Reconciliation, Tax Contingency, State and Local, Amount	$10
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount	22
Federal Tax	'
Income Taxes Receivable	3,751
State Tax	'
Income Taxes Receivable	$3,328

Note_13_Loss_Per_Common_Share_

Note 13 - Loss Per Common Share (Details) (USD $)	12 Months Ended
	Jun. 30, 2014
Details	'
Net loss for computation of basic and dilutive net (loss) per share	($423,606)
Earnings Per Share, Basic and Diluted	($0.01)
Weighted Average Number of Shares Outstanding, Basic and Diluted	6,806,001

Note_14_Property_and_Equipment2

Note 14 - Property and Equipment: Note 14 - Property and Equipment (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Details	'	'
Property, Plant and Equipment, Other, Gross	$12,895	'
Furniture and Fixtures, Gross	97,300	'
Leasehold Improvements, Gross	17,539	'
Property, Plant and Equipment, Other, Accumulated Depreciation	23,003	'
Property and Equipment, net	$104,731	$15,925	[1]
[1]	June 30, 2013 has not been presented, as the date of inception of Vapor, the accounting acquirer in the CompanyBs exchange transaction, is July 12, 2013 (see Note 3). The audited December 31, 2013 balances of Vapor have been presented for comparative purposes only.