SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

November 13, 2015 16:30 ET

True Drinks Announced Q3'2015 Financial Results

IRVINE, CA--(Marketwired - November 13, 2015) - True Drinks, Inc. (OTC PINK: TRUU), makers of the zero-sugar, vitamin-enhanced AquaBall™ Naturally Flavored Water, today announces its financial results for the third quarter of 2015.

Achievements in Third Quarter of 2015:

  • Revenues for Third Quarter up 24% over year ago period;
  • Agreed to Bottling Agreement with Niagara Bottling LLC which was signed in October;
  • Extended Disney Licensing Agreement through March 2017;
  • Extended Marvel Licensing Agreement through December 2017;
  • New Distribution agreements with Savemart Stores, Food Maxx, and B&B Distributors;
  • Same store sales grew from $20.56 per store per week to $48.32 per week versus same period last year, the highest in the category.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "This past quarter, we have focused on one objective, to improve supply chain efficiency and create supply to meet our demand. With the announcement of our partnership with Niagara Bottling, we have accomplished this goal. We now have the product availability that will allow us to go after high-volume retailers and enter into new channels such as natural foods, schools and casual dining." He added, "Our same stores sales are strong and our ability to capture more consumers with our healthy kids drink has never been stronger, and we anticipate tripling our business in 2016 with the added capacity."

Kevin Sherman, Chief Marketing Officer of True Drinks, added, "The significance of AquaBall's new clean label and preservative free formulation cannot be overlooked. The simplicity of the ingredient list, comprised of only four ingredients (purified water, stevia, vitamins and natural fruit flavors) only further differentiates the brand as the true leader in healthy beverages for children. Consumers want nutrition to be simplified, and we have accomplished this with our new formulation for children."

Dan Kerker, Chief Financial Officer of True Drinks, commented, "Operational improvements have been a focus for True Drinks. Our partnership with Niagara not only provides us with hot-fill capabilities, but our cost of goods sold will decrease by over 15% and will be consistent moving forward. Our working capital needs will be greatly reduced as we will be purchasing finished goods as they ship rather than procuring raw materials. Additional savings come from the elimination of storage expenses and the reduction of freight expenses, as we will be able to ship 69% more bottles per truckload. These improvements will allow True Drinks to focus resources on the sales and marketing of AquaBall."

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
     
   September 30,
2015
 December 31,
2014
ASSETS  (Unaudited)   
Current Assets:      
Cash  $92,032   $668,326
Accounts receivable, net   500,448    343,709
Inventory   2,267,340    1,363,443
Prepaid expenses and other current assets   241,907    628,675
Total Current Assets   3,101,727    3,004,153
          
Restricted Cash   209,308    133,198
Property and Equipment, net   2,118    4,587
Patents, net   1,105,882    1,211,765
Trademarks, net   -    6,849
Goodwill   3,474,502    3,474,502
Total Assets  $7,893,537   $7,835,054
          
LIABILITIES AND STOCKHOLDERS' EQUITY         
          
Current Liabilities:         
Accounts payable and accrued expenses  $1,695,963   $1,922,285
Debt   967,008    4,263,002
Derivative liabilities   3,678,321    1,569,522
Total Current Liabilities   6,341,292    7,754,809
          
Commitments and Contingencies (Note 5)         
          
Stockholders' Equity:         
Common Stock, $0.001 par value, 200,000,000 and 120,000,000 shares authorized, 106,352,235 and 48,622,675 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively   106,352    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 September 30, 2015 and December 31, 2014, respectively   1,343    1,491
Preferred Stock - Series C (liquidation preference $100 per share), $0.001 par value, 115,000 and 50,000 shares authorized, 25,250 and 0 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively   25    -
Additional paid in capital   26,626,610    18,388,212
Accumulated deficit   (25,182,085 )  (18,358,081)
Total Stockholders' Equity   1,552,245    80,245
          
Total Liabilities and Stockholders' Equity  $7,893,537   $7,835,054
        

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

 
TRUE DRINKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
     
   Three Months Ended
September 30,
 Nine Months Ended
September 30,
   2015  2014  2015  2014
             
         
Net Sales $1,323,730  $1,064,065  $4,172,626  $2,875,739 
                      
Cost of Sales  $1,188,222    977,324    3,950,961    2,473,018  
                      
Gross Profit   135,508    86,741    221,665    402,721  
                      
Operating Expenses                     
 Selling and marketing   2,325,567    1,085,405    4,269,670    2,661,279  
 General and administrative   1,006,486    1,029,118    3,302,782    3,153,687  
  Total operating expenses   3,332,053    2,114,523    7,572,452    5,814,966  
                      
Operating Loss   (3,196,545 )  (2,027,782 )  (7,350,787 )  (5,412,245  
                      
Other Income (Expense)                     
 Change in fair value of derivative liabilities   1,079,335    398,603    749,943    (1,343,495 )
 Interest income (expense)   (15,456 )  (37,037 )  (223,160 )  (88,286 )
    1,063,879    369,319    526,783    (1,431,781 )
                      
NET LOSS  $(2,132,666 ) $(1,666,216 ) $(6,824,004 ) $(6,844,026 )
                      
Declared dividends on Preferred Stock  $68,636   $148,181   $203,397   $148,181  
                      
Net loss attributable to common stockholders  $(2,201,302 ) $(1,814,397 ) $(7,027,401 ) $(6,992,207 )
                      
Loss per common share, basic and diluted  $(0.02 ) $(0.05 ) $(0.11 ) $(0.21 )
                      
Weighted average common shares outstanding, basic and diluted   88,086,922    38,920,319    64,289,691    33,939,850  
                 

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

 
TRUE DRINKS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
   
   Nine Months Ended 
September 30,
   2015  2014
CASH FLOWS FROM OPERATING ACTIVITIES      
 Net loss  $(6,824,004 ) $(6,844,026 )
Adjustments to reconcile net loss to net cash used in operating activities           
 Depreciation   2,469    5,283  
 Amortization   112,732    143,383  
 Provision for bad debt expense   (51,769 )     
 Change in estimated fair value of derivative   (749,943    1,343,495  
 Fair value of common stock issued for services   470,062    171,464  
 Stock based compensation   453,491    368,172  
Change in operating assets and liabilities:           
 Accounts receivable   (104,970 )  (202,693 )
 Restricted cash   (76,110 )  (66 )
 Inventory   (903,897 )  (766,866 )
 Prepaid expenses and other current assets   386,768    6,996  
 Accounts payable and accrued expenses   (142,177    1,317,696  
Net cash used in operating activities   (7,427,348 )  (4,457,162 )
            
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   -    1,887,413  
 Proceeds from issuance of Series C Preferred Stock   9,000,048    -  
 Borrowings on debt   1,035,792    1,432,136  
 Repayments on debt   (3,184,786 )  (1,936,667 )
Net cash provided by financing activities   6,851,054    1,380,688  
            
NET DECREASE IN CASH   (576,294 )  (3,078,823 )
            
CASH - beginning of period  $668,326   $3,136,766  
            
CASH - end of period  $92,032   $57,943  
            
SUPPLEMENTAL DISCLOSURES           
 Interest paid in cash  $137,556   $7,944  
 Non-cash financing and investing activities:           
 Conversion of preferred stock to common stock  $54,034   $8,621  
 Cashless exercise of warrants  $-   $44,751  
 Dividends paid in common stock  $203,397   $247,255  
 Dividends declared but unpaid  $68,636   $148,181  
 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   $-  
 Common stock issued for accrued expenses  $-   $487,650  
 Warrants issued in connection with Series B Preferred Offering  $-   $616,411  
 Warrants issued in connection with Series C Preferred Offering  $2,858,742   $-  
         

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

Contact Information

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