True Drinks Announces Record First Quarter Results
/EINPresswire.com/ -- IRVINE, CA--(Marketwired - May 16, 2017) - True Drinks Holdings, Inc. (OTC PINK: TRUU), makers of AquaBall® Naturally Flavored Water, the healthiest children's beverage on the market with no sugar, preservatives, calories, or artificial flavors, today announces its financial results for the first quarter of 2017.
Dan Kerker, Chief Financial Officer of True Drinks, commented, "The first quarter resulted in record first quarter revenue of over $1.5 million. This is a result of distribution gains for AquaBall at retail and the commencement of partnerships with distributors across the country. We look to build on this momentum heading into the second quarter. We have maintained gross margin in the high thirties, and we continue to work on making cost improvements to our packaging. Heading into the summer, we will continue to spend to promote AquaBall at our retailers and in our key markets."
James Greco, Chief Executive Officer of True Drinks, added, "2017 is off to a solid start with strong first quarter results which include record first quarter revenue and greatly improved operating margins. Our distribution network continues to grow and, with it, our retail presence. By the end of this month, AquaBall will be available in over 14,000 stores around the country. As a result, our sales volumes and velocity continue to grow by double-digit percentages far outstripping that of other children's beverages." Greco continued, "Health and wellness awareness has increased significantly, resulting in growing demand for beverages with little or no calories and natural ingredients. AquaBall is directly responsive to this need for children, and we plan to increase our offerings for this and other age groups."
About True Drinks Holdings, Inc.
True Drinks Holdings, Inc., the holding company for True Drinks, Inc., is a healthy beverage provider which produces AquaBall® Naturally Flavored Water. AquaBall is a healthy alternative to the other products in the children's beverage market. True Drinks has licensing agreements with Disney and Marvel for use of their characters on bottles of AquaBall®. AquaBall® is a naturally flavored, vitamin-enhanced, zero-calorie, preservative-free, dye-free, sugar-free alternative to juice and soda. AquaBall® is currently available in four flavors: fruit punch, grape, strawberry lemonade 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 HOLDINGS, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
|
March 31, 2017 (unaudited) |
December 31, 2016 | ||||||||
| ASSETS | |||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents | $ | 1,675,197 | $ | 15,306 | |||||
| Accounts receivable, net | 989,279 | 536,817 | |||||||
| Inventory, net | 792,931 | 318,912 | |||||||
| Prepaid expenses and other current assets | 389,075 | 127,258 | |||||||
| Total Current Assets | 3,846,482 | 998,293 | |||||||
| Restricted Cash | 209,622 | 209,570 | |||||||
| Property and Equipment, net | 9,731 | 11,064 | |||||||
| Patents, net | 220,000 | 250,000 | |||||||
| Goodwill | 3,474,502 | 3,474,502 | |||||||
| Total Assets | $ | 7,760,337 | $ | 4,943,429 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||
| Current Liabilities: | |||||||||
| Accounts payable and accrued expenses | $ | 2,400,668 | $ | 1,258,252 | |||||
| Debt | 177,802 | 109,682 | |||||||
| Derivative liabilities | 96,707 | 5,792,572 | |||||||
| Total Current Liabilities | 2,675,177 | 7,160,506 | |||||||
| Commitments and Contingencies (Note 7) | |||||||||
| Stockholders' Equity (Deficit): | |||||||||
| Common Stock, $0.001 par value, 300,000,000 shares authorized, 200,317,230 and 119,402,009 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 200,317 | 119,402 | |||||||
| Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,292,870 and 1,292,870 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 1,293 | 1,293 | |||||||
| Preferred Stock - Series C (liquidation preference $100 per share), $0.001 par value, 200,000 shares authorized, 106,704 and 109,352 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 107 | 109 | |||||||
| Preferred Stock - Series D (liquidation preference $100 per share), $0.001 par value, 50,000 and 0 shares authorized, 35,250 and 0 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 35 | - | |||||||
| Additional paid in capital | 40,947,888 | 33,456,325 | |||||||
| Accumulated deficit | (36,064,480 | ) | (35,794,206 | ) | |||||
| Total Stockholders' Equity (Deficit) | 5,085,160 | (2,217,077 | ) | ||||||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 7,760,337 | $ | 4,943,429 | |||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| TRUE DRINKS HOLDINGS, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Net Sales | $ | 1,529,752 | $ | 583,298 | ||||||
| Cost of Sales | 973,613 | 733,411 | ||||||||
| Gross Profit (Loss) | 556,139 | (150,113 | ) | |||||||
| Operating Expenses | ||||||||||
| Selling and marketing | 1,583,531 | 1,068,913 | ||||||||
| General and administrative | 1,417,908 | 1,068,350 | ||||||||
| Total operating expenses | 3,001,439 | 2,137,263 | ||||||||
| Operating Loss | (2,445,300 | ) | (2,287,376 | ) | ||||||
| Other Income (Expense) | ||||||||||
| Change in fair value of derivative liabilities | 2,243,518 | 1,139,365 | ||||||||
| Interest expense | (20,538 | ) | (12,214 | ) | ||||||
| Other expense | (47,954 | ) | (18,923 | ) | ||||||
| 2,175,026 | 1,108,228 | |||||||||
| NET LOSS | (270,274 | ) | (1,179,148 | ) | ||||||
| Declared dividends on Preferred Stock | 64,644 | 66,626 | ||||||||
| Net loss attributable to common stockholders | $ | (334,918 | ) | $ | (1,245,774 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.00 | ) | $ | (0.01 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 146,976,287 | 112,219,264 | ||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| TRUE DRINKS HOLDINGS, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2017 | 2016 | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| Net loss | $ | (270,274 | ) | $ | (1,179,148 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||||
| Depreciation | 1,333 | 657 | |||||||
| Amortization | 30,000 | 35,294 | |||||||
| Provision for bad debt expense | 8,030 | 140,152 | |||||||
| Provision for inventory losses | - | 110,000 | |||||||
| Change in estimated fair value of derivative | (2,243,518 | ) | (1,139,365 | ) | |||||
| Fair value of stock issued for services | 360,500 | 18,000 | |||||||
| Stock based compensation | 83,227 | 61,555 | |||||||
| Change in operating assets and liabilities: | |||||||||
| Accounts receivable | (460,491 | ) | 1,470,994 | ||||||
| Inventory | (474,019 | ) | (51,614 | ) | |||||
| Prepaid expenses and other current assets | (261,817 | ) | (201,063 | ) | |||||
| Accounts payable and accrued expenses | 1,143,852 | (141,493 | ) | ||||||
| Net cash used in operating activities | (2,083,177 | ) | (876,031 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
| Restricted cash | (52 | ) | (53 | ) | |||||
| Net cash used in investing activities | (52 | ) | (53 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
| Proceeds from warrants exercised for cash | - | 30,000 | |||||||
| Proceeds from issuance of Series C Preferred Stock | - | 1,000,000 | |||||||
| Proceeds from issuance of Series D Preferred Stock | 3,675,000 | - | |||||||
| Net borrowings on line-of-credit facility | 68,120 | ||||||||
| Repayments on debt | - | (403,778 | ) | ||||||
| Net cash provided by financing activities | 3,743,120 | 626,222 | |||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,659,891 | (249,862 | ) | ||||||
| CASH AND CASH EQUIVALENTS- beginning of period | 15,306 | 376,840 | |||||||
| CASH AND CASH EQUIVALENTS- end of period | $ | 1,675,197 | $ | 126,978 | |||||
| SUPPLEMENTAL DISCLOSURES | |||||||||
| Interest paid in cash | $ | 20,538 | $ | 13,119 | |||||
| Non-cash financing and investing activities: | |||||||||
| Conversion of preferred stock to common stock | $ | 2,766 | $ | 698 | |||||
| Conversion of notes payable and accrued interest to Series C preferred stock | $ | - | $ | 500,000 | |||||
| Dividend paid in common stock | $ | 66,080 | $ | 68,441 | |||||
| Dividends declared but unpaid | $ | 64,644 | $ | 66,626 | |||||
| Warrants issued in connection with Series C Preferred Offering | $ | - | $ | 303,043 | |||||
| Warrants issued in connection with Series D Preferred Offering | $ | 2,262,334 | $ | - | |||||
| Warrants issued for services | $ | 29,000 | $ | - | |||||
| Warrants exchanged for common stock | $ | 5,743,681 | $ | - | |||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
Contact:
Investor Relations
True Drinks, Inc.
18662 MacArthur Blvd., Ste. 110
Irvine, CA 92612
ir@truedrinks.com
949-203-3500
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