SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

May 14, 2015 16:00 ET

True Drinks Announced Q1'2015 Financial Results

IRVINE, CA--(Marketwired - May 14, 2015) - True Drinks, Inc. (OTCQB: TRUU), makers of the zero-sugar, vitamin-enhanced AquaBall™ Naturally Flavored Water, today announces its financial results for the first quarter of 2015.

Achievements in First Quarter of 2015:

  • Revenues for First Quarter up 19% over year ago period;
  • Completed a $4.3 million round of financing in February;
  • Completed a $2.7 million round of financing in March and used proceeds to repay outstanding debt. All remaining debt was converted into equity;
  • Gained replenishment status in two regions at Sam's Club;
  • Margins improved from 8% in Q4'2014 to 20% in Q1'2015;
  • Same store sales grew 391% Q1 2015 vs. Q1 2014, the highest in the category;
  • National ACV grew from 6.6% to 7.2% year to date 2015 in all channel Nielsen Syndicated reporting;
  • New Distribution in 840 retail accounts including Loblaws in Canada.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "2015 started off with a new equity investment allowing us access to the working capital we needed to accelerate the growth of AquaBall Naturally Flavored water. The brand is driving growth within the category at a rate faster then our competitors allowing AquaBall to build market share. We now look forward to the balance of 2015 with new retail partners like Target Stores, Jetro, and Sam's Club, each major contributors to our growth plan." He added, "We also had the opportunity to erase our debt and focus on gross margin improvement, getting us closer to sustainable long-term profitability and improved marginal contribution. We are excited about the milestones that we have achieved to-date and are more confident then ever that we will reach our internal goals."

Management will hold a conference call to discuss Q1 2015 financial results and to give a shareholder update today, Thursday, May 14, 2015 at 4:30PM EDT / 1:30PM PDT.

First Quarter 2015 Financial Results Conference Call Details:
Date: Thursday, May 14, 2015
Time: 4:30PM Eastern / 1:30PM Pacific
Participant Dial-In: 877-407-8133 (Toll Free), 201-689-8040 (International)

It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:30PM Eastern call. There will also be an archived recording of the conference call available under the Investor Relations section of the company website at http://truedrinks.com/investor-relations/.

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. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
  
   March 31,
2015
  December 31,
2014
 
ASSETS  (Unaudited)      
Current Assets:           
Cash  $48,803   $668,326  
Accounts receivable, net   545,361    343,709  
Inventory   1,429,086    1,363,443  
Prepaid expenses and other current assets   713,855    628,675  
Total Current Assets   2,737,105    3,004,153  
            
Restricted Cash   133,231    133,198  
Property and Equipment, net   3,711    4,587  
Patents, net   1,176,470    1,211,765  
Trademarks, net   -    6,849  
Goodwill   3,474,502    3,474,502  
Total Assets  $7,525,019   $7,835,054  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
            
Current Liabilities:           
Accounts payable and accrued expenses  $1,565,423   $1,922,285  
Debt   129,884    4,263,002  
Derivative liabilities   3,396,940    1,569,522  
Total Current Liabilities   5,092,247    7,754,809  
            
Commitments and Contingencies (Note 5)           
            
Stockholders' Equity:           
Common Stock, $0.001 par value, 120,000,000 shares authorized, 53,691,225 and 48,622,675 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively   53,691    48,623  
Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,342,870 and 1,490,995 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively   1,343    1,491  
Preferred Stock - Series C (liquidation preference $100 per share), $0.001 par value, 90,000 shares authorized, 57,148 and 0 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively   57    -  
Additional paid in capital   23,013,807    18,388,212  
Accumulated deficit   (20,636,126 )  (18,358,081 )
            
Total Stockholders' Equity   2,432,772    80,245  
            
Total Liabilities and Stockholders' Equity  $7,525,019   $7,835,054  

The accompanying notes are an integral part of these condensed consolidated financial statements.

  
TRUE DRINKS, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(Unaudited) 
   Three Months Ended
March 31,
 
   2015   2014  
            
Net Sales  $764,975   $650,532  
            
Cost of Sales   620,728    529,301  
            
Gross Profit   144,247    121,231  
            
Operating Expenses           
 Selling and marketing   650,365    570,528  
 General and administrative   1,421,268    991,806  
  Total operating expenses   2,071,633    1,562,334  
            
Operating Loss   (1,927,386 )  (1,441,103 )
            
Other Expense           
 Change in fair value of derivative liabilities   (142,922 )  (2,125,537 )
 Interest expense   (207,737 )  (37,129 )
    (350,659 )  (2,162,666 )
            
NET LOSS  $(2,278,045 ) $(3,603,769 )
            
Declared dividends on Preferred Stock   66,872    133,204  
            
Net loss attributable to common stockholders  $(2,344,917 ) $(3,736,973 )
            
Loss per common share, basic and diluted  $(0.05 ) $(0.13 )
            
Weighted average common shares outstanding, basic and diluted   50,548,805    27,902,154  
         

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,
 
   2015   2014  
CASH FLOWS FROM OPERATING ACTIVITIES           
Net loss  $(2,278,045 ) $(3,603,769 )
Adjustments to reconcile net loss to net cash used in operating activities           
Depreciation   876    3,530  
Amortization   42,144    47,794  
Provision for bad debt expense   (6,847 )  -  
Change in estimated fair value of derivative   142,922    2,125,537  
Fair value of stock issued for services   453,062    39,875  
Stock based compensation   129,098    123,364  
Change in operating assets and liabilities:           
 Accounts receivable   (194,805 )  (132,852 )
 Restricted cash   (33 )  -  
 Inventory   (65,643 )  (180,038 )
 Prepaid expenses and other current assets   (85,180 )  42,365  
 Accounts payable and accrued expenses   (270,954 )  (287,219  
Net cash used in operating activities   (2,133,405 )  (1,821,413 )
            
CASH FLOWS FROM INVESTING ACTIVITIES           
            
 Purchase of property and equipment   -    (2,349 )
Net cash used in investing activities   -    (2,349 )
            
CASH FLOWS FROM FINANCING ACTIVITIES           
 Dividends Paid   -    (2,194 )
 Proceeds from issuance of Series B Preferred Stock, net   -    1,887,412  
 Proceeds from issuance of Series C Preferred Stock   4,500,000    -  
 Repayments on debt   (2,986,118 )  (270,000 )
Net cash provided by financing activities   1,513,882    1,615,218  
            
NET DECREASE IN CASH   (619,523 )  (208,544 )
            
CASH- beginning of period   668,326    3,136,766  
            
CASH- end of period  $48,803   $2,928,222  
            
SUPPLEMENTAL DISCLOSURES           
Interest paid in cash  $122,556   $7,944  
Non-cash financing and investing activities:           
Conversion of preferred stock to common stock  $2,222   $6,033  
Conversion of notes payable and accrued interest to common stock  $-   $764,938  
Conversion of notes payable and accrued interest to Series C preferred stock  $1,214,206   $-  
Dividend paid in common stock  $85,573   $-  
Dividends declared but unpaid  $66,872   $133,204  
Cashless exercise of warrants  $-   $616,411  
Warrants issued in connection with Series B Preferred Offering  $-   $7,944  
Warrants issued in connection with Series C Preferred Offering  $1,684,496   $-  
         

The accompanying notes are an integral part of these condensed consolidated financial statements.

Contact Information

  • Contact:
    Investor Relations
    True Drinks, Inc.
    18552 MacArthur Blvd., Ste. 325
    Irvine, CA 92612
    ir@truedrinks.com
    949-203-3500