SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

March 31, 2015 16:31 ET

True Drinks Announces 2014 Financial Results

IRVINE, CA--(Marketwired - March 31, 2015) - 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 Information

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