SOURCE: True Drinks Holdings, Inc.

True Drinks, Inc.

May 13, 2014 16:07 ET

True Drinks Announces First Quarter 2014 Financial Results

IRVINE, CA--(Marketwired - May 13, 2014) - True Drinks, Inc. (OTCQB: TRUU), a healthy beverage provider with major entertainment and media company licensing agreements for use of their characters on its proprietary, patented bottles, today announces its financial results for the quarter ended March 31, 2014.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "True Drinks made some significant strides in the first quarter of 2014. We completed our Series B financing which enabled us to significantly improve our balance sheet, as well as providing us with the capital necessary to prepare for our expansion into new packages and new channels in 2014. We introduced six packs of all of our flavors in February, and we have completed the development of our mixed club pack for introduction in the second quarter. We began to focus on consumption and sell-thru, and as planned, saw the increase in off-take in March. We are also prepared to begin sharing our message that we are the healthiest beverage available with parents across the nation, and we anticipate this to increase brand awareness and sales."

Achievements in First Quarter of 2014:

  • Finished development and commenced shipping of six packs in our four current flavors, fruit punch, grape, berry and orange;
  • Completed the remainder of our $8.0 Series B Preferred financing;
  • Developed mixed club pack for introduction in second quarter of 2014.

We will hold a conference call to discuss Q1 2014 financial results and to give a shareholder update today, Tuesday, May 13, 2014 at 4:30PM EDT / 1:30PM PDT.

First Quarter 2014 Financial Results Conference Call Details:
Date: Tuesday, May 13, 2014
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, Inc. is a beverage company with licensing agreements with major entertainment and media companies for use of their characters on its proprietary, patented bottles. AquaBall™ Naturally Flavored Water, the Company's vitamin-enhanced water that was created as a 0 calorie, sugar-free alternative to juice and soda for kids, is currently being sold into mass-market retailers throughout the United States. For more information, please visit www.theaquaball.com and www.truedrinks.com

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,   December 31,  
   2014   2013  
ASSETS  (Unaudited)      
Current Assets:           
Cash  $2,928,222   $3,136,766  
Accounts receivable, net   307,920    175,068  
Inventory   1,236,794    1,056,756  
Prepaid expenses and other current assets   549,069    591,434  
Total Current Assets   5,022,005    4,960,024  
            
Restricted Cash   133,065    133,065  
Property and Equipment, net   7,218    8,399  
Patents, net   1,317,647    1,352,941  
Trademarks, net   36,016    48,516  
Goodwill   3,474,502    3,474,502  
Total Assets  $9,990,453   $9,977,447  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
            
Current Liabilities:           
Accounts payable and accrued expenses  $938,450   $1,222,404  
Convertible notes payable, net   25,000    680,000  
Term loan   1,666,667    1,916,667  
Derivative liabilities   4,360,969    1,619,021  
Total Current Liabilities   6,991,086    5,438,092  
            
Commitments and Contingencies (Note 5)           
            
Stockholders' Equity:           
Common Stock, $0.001 par value, 40,000,000 shares authorized, 34,476,822 and 27,855,587 shares outstanding at March 31, 2014 and December 31, 2013, respectively   34,477    27,886  
Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 2,082,870 and 1,776,923 shares outstanding at March 31, 2014 and December 31, 2013, respectively   2,082    1,777  
Additional paid in capital   16,808,055    14,751,170  
Accumulated deficit   (13,845,247 )  (10,241,478 )
            
Total Stockholders' Equity   2,999,367    4,539,355  
            
Total Liabilities and Stockholders' Equity  $9,990,453   $9,977,447  
 
The accompanying notes are an integral part of these financial statements.
   
   
TRUE DRINKS, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
   
   Three Months Ended  
   March 31,  
   2014   2013  
            
Net Sales  $650,532   $410,801  
            
Cost of Sales   529,301    263,950  
            
Gross Profit   121,231    146,851  
            
Operating Expenses           
  Selling and marketing   570,528    430,486  
  General and administrative   991,806    1,045,064  
   Total operating expenses   1,562,334    1,475,550  
            
Operating Loss   (1,441,103 )  (1,328,699 )
            
Other Expense           
  Change in fair value of derivative liabilities   (2,125,537 )  -  
  Interest expense   (37,129 )  (228,199 )
    (2,162,666 )  (228,199 )
            
Net Loss  $(3,603,769 ) $(1,556,898 )
            
Declared dividends on Preferred Stock   133,204    -  
            
Net Loss attributed to common stockholders  $(3,603,769 ) $(1,556,898 )
            
Loss per common shared           
  Basic and diluted net loss per share  $(0.13 ) $(0.06 )
            
            
Weighted average common shares outstanding, basic and diluted   27,902,154    26,810,744  
 
The accompanying notes are an integral part of these financial statements. 
   
   
TRUE DRINKS, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(Unaudited)  
    Three Months Ended  
    March 31,  
    2014     2013  
CASH FLOWS FROM OPERATING ACTIVITIES                
  Net loss   $ (3,603,769
)   $ (1,556,898 )
  Adjustments to reconcile net loss to net cash used in operating activities                
    Depreciation     3,530       6,226  
    Amortization     47,794       47,795  
    Change in estimated fair value of derivative     2,125,537       -  
    Fair value of stock issued for services     39,875       195,600  
    Stock based compensation     123,364       436,403  
    Changes in operating assets and liabilities:                
      Accounts receivable     (132,852 )     (50,775 )
      Inventory     (180,038 )     303,205  
      Prepaid expenses and other current assets     42,365       (17,367
)
      Accounts payable and accrued expenses     (287,219 )     (251,319 )
Net cash used in operating activities     (1,821,413 )     (887,130 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
  Change in restricted cash     -       262  
  Purchase of property and equipment     (2,349 )     -  
Net cash (used in) provided by investing activities     (2,349 )     262  
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
  Dividends paid     (2,194 )     -  
  Proceeds from issuance of Series B Preferred Stock, net     1,887,412       -  
  Proceeds from convertible notes payable     -       1,049,000  
  Repayments on convertible notes payable     (20,000 )     (135,000 )
  Repayments on term loan     (250,000 )     -  
Net cash provided by financing activities     1,615,218        914,000  
                 
NET (DECREASE) INCREASE IN CASH     (208,544 )     27,132  
                 
CASH - beginning of period     3,136,766        4,449  
                 
CASH - end of period   $ 2,928,222     $ 31,581  
             
             
SUPPLEMENTAL DISCLOSURES           
Interest paid in cash  $7,944   $13,795  
Non-cash financing and investing activities:           
Conversion of preferred stock to common stock  $6,033   $25,304  
Conversion of notes payable and accrued interest to common stock  $764,938   $-  
Dividends declared but unpaid  $133,204   $   
Warrants issued in connection with Series B Preferred Offering  $616,411   $-  
 
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

    Capital Markets Contact:
    Alexandra Petek
    Director of Client Services
    Merriman Capital, Inc.
    250 Montgomery Street, 16th Floor
    San Francisco, CA 94104
    apetek@merrimanco.com
    415-248-5681