IRVINE, CA--(Marketwired - March 24, 2016) - True Drinks, Inc. (OTC PINK: TRUU), a healthy beverage provider and maker of children's beverage, AquaBall, today announced its financial results for the year ended December 31, 2015.
Revenue for the year ending December 31, 2015 was $6.1 million compared to $4.7 million in the same period 2014, a 30% increase. For the year ending December 31, 2015, net loss was $11.9 million compared to $8.1 million in the year ending December 31, 2014. The increase in loss was due to the issuance of a warrant in connection with the Niagara Bottling, LLC bottling agreement.
"2015 was a year of several positive changes at True Drinks. We've added employees to further enhance our marketing and sales strategy, signed an agreement with Niagara Bottling to be our exclusive manufacturer of our new preservative-free, zero-sugar formulation for AquaBall™ Naturally Flavored Water, and continued to build demand in new channels," stated Kevin Sherman, Interim Chief Executive Officer of True Drinks. "We believe that our current sales strategy will build market share and provide increased contribution to our earnings. In addition, we've developed a new marketing plan showcasing AquaBall™ as the healthiest drink on the market for kids and reaching the ultimate decision maker in that purchase -- moms. These improvements will allow us to capture an increased percentage of the children's beverage market."
2015 Highlights:
- Entered into a bottling agreement with Niagara Bottling to become our exclusive manufacturer
- Developed new preservative free formula of AquaBall to be launched in May 2016
- Renewed licensing agreement with Disney through March 2017
- Renewed licensing agreement with Marvel through December 2017
- Shifted to a DSD (Direct Store Distribution) model for all sales to the grocery, drug and convenience channels in November 2015
Mr. Sherman continued, "We are confident in the opportunities that we have as a company in 2016 and beyond. Our new clean-label product with no preservatives, zero sugar and zero calories is launching in May 2016. This new formulation gives us access to new markets such as the health food retail channel. Our new bottle also gives us expanded opportunities in the convenience market. AquaBall™ is leading the charge in healthy hydration for kids, and we will continue to be the innovator in this market."
Management is very optimistic for the future prospects for AquaBall™ as one of the fastest growing companies in the children's drink market. True Drinks will be issuing a letter to shareholders with a business outlook for 2016 by April 15th.
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.
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TRUE DRINKS HOLDINGS, INC.
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CONSOLIDATED BALANCE SHEETS
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December 31, 2015 and 2014
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2015
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2014
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ASSETS
|
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Current Assets: |
|
|
|
|
|
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| Cash |
|
$ |
376,840 |
|
|
$ |
668,326 |
|
| Accounts receivable, net |
|
|
1,843,415 |
|
|
|
343,709 |
|
| Inventory |
|
|
1,558,719 |
|
|
|
1,363,443 |
|
| Prepaid expenses and other current assets |
|
|
75,923 |
|
|
|
628,675 |
|
| Total Current Assets |
|
|
3,854,897 |
|
|
|
3,004,153 |
|
| |
|
|
|
|
|
|
|
|
|
Restricted Cash
|
|
|
209,360 |
|
|
|
133,198 |
|
|
Property and Equipment, net
|
|
|
4,530 |
|
|
|
4,587 |
|
|
Patents, net
|
|
|
1,070,588 |
|
|
|
1,211,765 |
|
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Trademarks, net
|
|
|
- |
|
|
|
6,849 |
|
|
Goodwill
|
|
|
3,474,502 |
|
|
|
3,474,502 |
|
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Total Assets
|
|
$ |
8,613,877 |
|
|
$ |
7,835,054 |
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LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
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Current Liabilities: |
|
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|
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| Accounts payable and accrued expenses |
|
$ |
1,623,046 |
|
|
$ |
1,922,285 |
|
| Debt |
|
|
1,336,819 |
|
|
|
4,263,002 |
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| Derivative liabilities |
|
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6,199,021 |
|
|
|
1,569,522 |
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| Total Current Liabilities |
|
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9,158,886 |
|
|
|
7,754,809 |
|
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|
|
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|
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Commitments and Contingencies (Note 7) |
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Stockholders' (Deficit) Equity: |
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| Common Stock, $0.001 par value, 300,000,000 and 120,000,000 shares authorized, 111,434,284 and 48,622,675 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively |
|
|
111,434 |
|
|
|
48,623 |
|
| Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,317,870 and 1,490,995 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively |
|
|
1,318 |
|
|
|
1,491 |
|
| Preferred Stock - Series C (liquidation preference $100 per share), $0.001 par value, 150,000 and 0 shares authorized, 48,853 and 0 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively |
|
|
49 |
|
|
|
- |
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| Additional paid in capital |
|
|
29,690,834 |
|
|
|
18,388,212 |
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| Accumulated deficit |
|
|
(30,348,644 |
) |
|
|
(18,358,081 |
) |
| |
|
|
|
|
|
|
|
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| Total Stockholders' (Deficit) Equity |
|
|
(545,009 |
) |
|
|
80,245 |
|
| |
|
|
|
|
|
|
|
|
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Total Liabilities and Stockholders' (Deficit) Equity
|
|
$ |
8,613,877 |
|
|
$ |
7,835,054 |
|
| The accompanying notes are an integral part of these financial statements. |
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TRUE DRINKS HOLDINGS, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Years Ended December 31, 2015 and 2014
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2015
|
|
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2014
|
|
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Net Sales
|
|
$ |
6,121,097 |
|
|
$ |
4,693,414 |
|
| |
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
6,282,087 |
|
|
|
4,401,702 |
|
| |
|
|
|
|
|
|
|
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Gross (Loss) Profit
|
|
|
(160,990 |
) |
|
|
291,712 |
|
| |
|
|
|
|
|
|
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Operating Expenses
|
|
|
|
|
|
|
|
|
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Selling and marketing |
|
|
5,073,211 |
|
|
|
4,388,108 |
|
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General and administrative |
|
|
5,475,673 |
|
|
|
4,450,101 |
|
| |
|
Total operating expenses |
|
|
10,548,884 |
|
|
|
8,838,209 |
|
| |
|
|
|
|
|
|
|
|
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Operating Loss
|
|
|
(10,709,874 |
) |
|
|
(8,546,497 |
) |
| |
|
|
|
|
|
|
|
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Other Expense
|
|
|
|
|
|
|
|
|
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Change in fair value of derivative liabilities |
|
|
1,262,329 |
|
|
|
621,159 |
|
| |
Interest expense |
|
|
(257,389 |
) |
|
|
(202,773 |
) |
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Other (expense) income |
|
|
(2,285,629 |
) |
|
|
11,508 |
|
| |
|
|
(1,280,689 |
) |
|
|
429,894 |
|
| |
|
|
|
|
|
|
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Net Loss
|
|
$ |
(11,990,563 |
) |
|
$ |
(8,116,603 |
) |
| |
|
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|
|
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Dividends on Preferred Stock
|
|
$ |
271,838 |
|
|
$ |
434,096 |
|
| |
|
|
|
|
|
|
|
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Net loss attributable to common stockholders
|
|
$ |
(12,262,401 |
) |
|
$ |
(8,550,699 |
) |
| |
|
|
|
|
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Net loss per common share
|
|
|
|
|
|
|
|
|
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Basic and diluted
|
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$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
| |
|
|
|
|
|
|
|
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Weighted average common shares
|
|
|
|
|
|
|
|
|
| |
outstanding, basic and diluted
|
|
|
75,346,961 |
|
|
|
36,429,303 |
|
| The accompanying notes are an integral part of these financial statements. |
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TRUE DRINKS HOLDINGS, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
For the Years Ended December 31, 2015 and 2014
|
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2015
|
|
|
2014
|
|
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CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
| |
Net loss |
|
$ |
(11,990,563 |
) |
|
$ |
(8,116,603 |
) |
| |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
|
|
| |
|
Depreciation |
|
|
3,087 |
|
|
|
6,161 |
|
| |
|
Amortization |
|
|
148,026 |
|
|
|
182,843 |
|
| |
|
Provision for bad debt expense |
|
|
(51,769 |
) |
|
|
(48,473 |
) |
| |
|
Change in estimated fair value of derivative liabilities |
|
|
(1,262,329 |
) |
|
|
(621,159 |
) |
| |
|
Fair value of warrants issued for guaranty |
|
|
2,263,783 |
|
|
|
- |
|
| |
|
Fair value of stock issued for services |
|
|
487,826 |
|
|
|
544,531 |
|
| |
|
Fair value of stock issued for bonuses |
|
|
218,782 |
|
|
|
- |
|
| |
|
Stock based compensation |
|
|
1,055,448 |
|
|
|
497,271 |
|
| |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| |
|
|
Accounts receivable |
|
|
(1,447,937 |
) |
|
|
(120,168 |
) |
| |
|
|
Inventory |
|
|
(195,276 |
) |
|
|
(306,687 |
) |
| |
|
|
Prepaid expenses and other current assets |
|
|
552,752 |
|
|
|
(37,241 |
) |
| |
|
|
Accounts payable and accrued expenses |
|
|
(214,899 |
) |
|
|
1,369,819 |
|
|
Net cash used in operating activities
|
|
|
(10,433,069 |
) |
|
|
(6,649,706 |
) |
| |
|
|
|
|
|
|
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|
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CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
| |
Change in restricted cash |
|
|
(76,162 |
) |
|
|
(133 |
) |
| |
Purchase of property and equipment |
|
|
(3,030 |
) |
|
|
(2,349 |
) |
|
Net cash used in investing activities
|
|
|
(79,192 |
) |
|
|
(2,482 |
) |
| |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
| |
|
Proceeds from issuance of Series B Preferred Stock, net |
|
|
- |
|
|
|
1,857,413 |
|
| |
|
Proceeds from issuance of Series C Preferred Stock, net |
|
|
11,999,958 |
|
|
|
- |
|
| |
|
Proceeds from debt |
|
|
1,103,817 |
|
|
|
4,263,002 |
|
| |
|
Repayments on debt |
|
|
(2,883,000 |
) |
|
|
(1,936,667 |
) |
|
Net cash provided by financing activities
|
|
|
10,220,775 |
|
|
|
4,183,748 |
|
| |
|
|
|
|
|
|
|
|
|
NET DECREASE IN CASH
|
|
|
(291,486 |
) |
|
|
(2,468,440 |
) |
| |
|
|
|
|
|
|
|
|
|
CASH - beginning of year |
|
|
668,326 |
|
|
|
3,136,766 |
|
| |
|
|
|
|
|
|
|
|
|
CASH - end of year |
|
$ |
376,840 |
|
|
$ |
668,326 |
|
| |
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES
|
|
|
|
|
| Cash paid for interest |
|
$ |
179,056 |
|
$ |
7,944 |
| Non-cash financing and investing activities: |
|
|
|
|
|
|
| Conversion of preferred stock to common stock |
|
$ |
55,695 |
|
$ |
15,021 |
| Conversion of notes payable and accrued interest to common stock |
|
$ |
- |
|
$ |
818,926 |
| Conversion of notes payable and accrued interest to Series C preferred stock |
|
$ |
1,214,207 |
|
$ |
- |
| Dividends paid in common stock |
|
$ |
288,971 |
|
$ |
343,457 |
| Dividends declared but unpaid |
|
$ |
271,838 |
|
$ |
434,096 |
| Reclassification of derivative liability |
|
$ |
- |
|
$ |
44,751 |
| Warrants issued in connection with Series B offering |
|
$ |
- |
|
$ |
616,411 |
| Warrants issued in connection with Series C offering |
|
$ |
3,249,364 |
|
$ |
- |
| Warrants issued in connection with debt conversions |
|
$ |
378,681 |
|
$ |
- |
| 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. |