True Drinks Announces 2014 Financial Results
Tweet
Share
E-mailIRVINE, CA -- (Marketwired) -- 03/31/15 -- True Drinks, Inc. (OTCQB: TRUU), makers of the zero-sugar, vitamin-enhanced AquaBall™ Naturally Flavored Water, today announces its financial results for the year ended December 31, 2014.
Lance Leonard, Chief Executive Officer of True Drinks, commented, "2014 was a critical year for the development of True Drinks, Inc. and AquaBall™ Naturally Flavored Water. Our ability to create demand in new channels, establish the highest growing same store sales increase within the children's drink market, and communicate the benefits of healthy hydration to consumers has set us up for accelerated growth in 2015. Management remains very optimistic that AquaBall™ Naturally Flavored Water will grow faster than the competition allowing us to meet our market share goals this year."
Achievements in 2014:
- Developed club channel and packaging with new partner Sam's Club
- Increased same stores sales by 415%
- Agreed to terms on extension of Disney licensing agreement through March 2017
- Invested into incremental capacity allowing for reduction in overall cost of goods
Mr. Leonard continued, "We now look to the future and are prepared to execute our plan to achieve profitability. As part of this goal, we will build market share and develop cost savings throughout the organization that will bring increased marginal contribution to the bottom line."
Strategic Initiatives for 2015:
- Financial liquidity that allows us to invest in the sales and marketing of AquaBall
- Two new factories that will allow for improved margins and reduced variable distribution
- Investment in headcount to manage sales growth
- Brand Marketing has been created to reach more consumers looking for healthier options for the family
About True Drinks, Inc.
True Drinks is a healthy beverage provider with licensing agreements with Disney and Marvel for use of their characters on its proprietary, patented bottles. AquaBall™ is a naturally flavored, vitamin-enhanced, zero- calorie, dye-free, sugar-free alternative to juice and soda. AquaBall™ is currently available in four flavors: orange, grape, fruit punch and berry. Their target consumers: kids, young adults, and their guardians, are attracted to the product by the entertainment and media characters on the bottle and continue to consume the beverage because of its healthy benefits and great taste. For more information, please visit www.aquaballdrink.com and www.truedrinks.com. Investor information can be found at www.truedrinks.com/investor-relations/. Proudly made in the USA.
FORWARD-LOOKING STATEMENTS
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if," "should" and "will" and similar expressions as they relate to True Drinks, Inc. are intended to identify such forward-looking statements. True Drinks, Inc. may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations or the anticipated benefits of the merger and other aspects of the proposed merger should not be construed in any manner as a guarantee that such results or other events will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in True Drink's report on Form 10-K filed with the Securities and Exchange Commission and its other filings under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
TRUE DRINKS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2014 and 2013
2014 2013
----------------- -----------------
ASSETS
Current Assets:
Cash $ 668,326 $ 3,136,766
Accounts receivable, net 343,709 175,068
Inventory 1,363,443 1,056,756
Prepaid expenses and other current assets 628,675 591,434
----------------- -----------------
Total Current Assets 3,004,153 4,960,024
Restricted Cash 133,198 133,065
Property and Equipment, net 4,587 8,399
Patents, net 1,211,765 1,352,941
Trademarks, net 6,849 48,516
Goodwill 3,474,502 3,474,502
----------------- -----------------
Total Assets $ 7,835,054 $ 9,977,447
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,922,285 $ 1,222,404
Debt, net 4,263,002 2,596,667
Derivative liabilities 1,569,522 1,619,021
----------------- -----------------
Total Current Liabilities 7,754,809 5,438,092
Commitments and Contingencies (Note 7)
Stockholders' Equity:
Common Stock, $0.001 par value,
120,000,000 and 40,000,000 shares
authorized, 48,622,675 and 27,885,587
shares issued and outstanding at
December 31, 2014 and December 31, 2013,
respectively 48,623 27,886
Preferred Stock - Series B (liquidation
preference of $4 per share), $0.001 par
value, 2,750,000 shares authorized,
1,490,995 and 1,776,923 shares issued
and outstanding at December 31, 2014 and
December 31, 2013, respectively 1,491 1,777
Additional paid in capital 18,388,212 14,751,170
Accumulated deficit (18,358,081) (10,241,478)
----------------- -----------------
Total Stockholders' Equity 80,245 4,539,355
----------------- -----------------
Total Liabilities and Stockholders'
Equity $ 7,835,054 $ 9,977,447
================= =================
The accompanying notes are an integral part of these financial statements.
TRUE DRINKS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2014 and 2013
(Unaudited)
2014 2013
--------------- ---------------
Net Sales $ 4,693,414 $ 2,649,473
Cost of Sales 4,401,702 2,127,711
--------------- ---------------
Gross Profit 291,712 521,762
Operating Expenses
Selling and marketing 4,388,108 2,224,801
General and administrative 4,450,101 3,701,094
--------------- ---------------
Total operating expenses 8,838,209 5,925,895
--------------- ---------------
Operating Loss (8,546,497) (5,404,133)
Other Expense
Change in fair value of derivative
liabilities 621,159 1,361,597
Interest expense- accretion of debt
discount - (864,921)
Interest expense (202,773) (1,824,074)
Other income (expense) 11,508 (390,604)
--------------- ---------------
429,894 (1,718,002)
--------------- ---------------
Net Loss $ (8,116,603) $ (7,122,135)
=============== ===============
Dividends on Preferred Stock $ 434,096 $ -
=============== ===============
Net loss attributable to common stockholders $ (8,550,699) $ (7,122,135)
=============== ===============
Net loss per common share
Basic and diluted $ (0.23) $ (0.26)
--------------- ---------------
Weighted average common shares
outstanding, basic and diluted 36,429,303 27,489,422
=============== ===============
The accompanying notes are an integral part of these financial statements.
TRUE DRINKS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2014 and 2013
(Unaudited)
2014 2013
--------------- ---------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (8,116,603) $ (7,122,135)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation 6,161 18,298
Amortization 182,843 191,177
Accretion of deferred financing costs - 864,921
Provision for bad debt expense (48,473) 150,000
Change in estimated fair value of
derivative (621,159) (1,361,597)
Amortization of debt discount - 1,332,543
Fair value of stock issued for services 544,531 401,341
Stock based compensation 497,271 794,165
Changes in operating assets and
liabilities:
Accounts receivable (120,168) (194,159)
Inventory (306,687) (223,882)
Prepaid expenses and other current
assets (37,241) (322,718)
Other assets - 3,948
Accounts payable and accrued expenses 1,369,819 76,210
--------------- ---------------
Net cash used in operating activities (6,649,706) (5,391,888)
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in restricted cash (133) (51,795)
Purchase of property and equipment (2,349) (1,298)
--------------- ---------------
Net cash used in investing activities (2,482) (53,093)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of Series B
Preferred Stock, net 1,857,413 5,483,144
Proceeds from debt 4,263,002 6,549,000
Deferred financing costs paid - (420,813)
Repayments on debt (1,936,667) (3,034,033)
--------------- ---------------
Net cash provided by financing activities 4,183,748 8,577,298
NET (DECREASE) INCREASE IN CASH (2,468,440) 3,132,317
CASH - beginning of year 3,136,766 4,449
--------------- ---------------
CASH - end of year $ 668,326 $ 3,136,766
=============== ===============
SUPPLEMENTAL DISCLOSURES
Interest paid in cash $ 7,944 $ 211,247
=============== ===============
Non-cash financing and investing activities:
Conversion of preferred stock to common
stock $ 15,021 $ 25,304
=============== ===============
Conversion of notes payable and accrued
interest to common stock $ 818,926 $ 1,836,253
=============== ===============
Dividends paid in common stock $ 343,457 $ -
=============== ===============
Dividends declared $ 434,096 $ -
=============== ===============
Reclassification of derivative liability $ 44,751 $ -
=============== ===============
Warrants issued in connection with Series B
Offering $ 616,411 $ 1,268,937
=============== ===============
Warrants issued as deferred financing costs $ - $ 444,108
=============== ===============
Warrants issued as debt discount $ - $ 1,332,543
=============== ===============
Elimination of derivative liability from
conversion of debt to preferred stock $ - $ 64,970
=============== ===============
Issuance of common stock for settlement of
debt $ 601,651 -
=============== ===============
Cashless exercise of warrants $ 78 -
=============== ===============
The accompanying notes are an integral part of these financial statements.
Contact: Investor Relations True Drinks, Inc. 18552 MacArthur Blvd., Ste. 325 Irvine, CA 92612 [email protected] 949-203-3500
Source: True Drinks Holdings, Inc.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
- Intel to report later this week, but analysts flag weakness in chipmaking unit
- Costar Group (CSGP) to Acquire Matterport (MTTR) for $5.50/sh Cash and Stock
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Dividend, Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
