SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

August 13, 2015 16:30 ET

True Drinks Announces Q2 2015 Financial Results

IRVINE, CA--(Marketwired - August 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 second quarter of 2015.

Achievements in Second Quarter of 2015:

  • Revenues for Second Quarter up 79% over year ago period to $2.1 million;
  • Agreed to extension of Disney Licensing Agreement which was signed in August;
  • New Distribution agreements with Jetro Cash & Carry, RBI Distributing, and Central Beverages;
  • Same store sales grew from $19.43 per store per week to $46.66 per week versus same period last year, the highest in the category.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "2015 started off with a new equity investment allowing us access to the working capital needed to accelerate the growth of AquaBall Naturally Flavored water. The brand is driving growth within the category at a rate faster than our competitors allowing AquaBall to build market share in the second quarter, and we are seeing that growth continue in the current quarter. We now look forward to the balance of 2015 with new retail partners like Target Stores, Jetro Cash & Carry, and Sam's Club, each major contributors to our growth plan. 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 than ever that we will reach our internal goals."

Management will hold a conference call to discuss Q2 2015 financial results and to give a shareholder update today, Thursday, August 13, 2015 at 4:30PM EDT / 1:30PM PDT.

Second Quarter 2015 Financial Results Conference Call Details:
Date:Thursday, August 13, 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
 
  June 30,
2015
   December 31,
2014
 
ASSETS (Unaudited)       
Current Assets:         
Cash $ 54,284    $ 668,326  
Accounts receivable, net   1,665,093      343,709  
Inventory   1,874,011      1,363,443  
Prepaid expenses and other current assets   617,523      628,675  
Total Current Assets   4,210,911      3,004,153  
              
Restricted Cash   133,264      133,198  
Property and Equipment, net   3,419      4,587  
Patents, net   1,152,941      1,211,765  
Trademarks, net   -      6,849  
Goodwill   3,474,502      3,474,502  
Total Assets $ 8,975,037    $ 7,835,054  
              
LIABILITIES AND STOCKHOLDERS' EQUITY             
              
Current Liabilities:             
Accounts payable and accrued expenses $ 2,392,878    $ 1,922,285  
Debt   365,676      4,263,002  
Derivative liabilities   4,269,055      1,569,522  
Total Current Liabilities   7,027,609      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, 54,080,243 and 48,622,675 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively   54,080      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 June 30, 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, 82,148 and 0 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively   82      -  
Additional paid in capital   24,941,343      18,388,212  
Accumulated deficit   (23,049,420 )    (18,358,081 )
              
Total Stockholders' Equity   1,947,428      80,245  
              
Total Liabilities and Stockholders' Equity $ 8,975,037    $ 7,835,054  
              
        
TRUE DRINKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2015      2014      2015      2014  
                             
Net Sales  $ 2,083,921    $ 1,161,142    $ 2,848,896    $ 1,811,674  
                             
Cost of Sales    2,142,012      966,393      2,762,740      1,495,694  
                             
Gross (Loss) Profit    (58,091 )    194,749      86,156      315,980  
                             
Operating Expenses                            
 Selling and marketing    1,320,738      1,005,346      1,971,103      1,575,874  
 General and administrative    848,028      1,132,763      2,269,296      2,124,569  
  Total operating expenses    2,168,766      2,138,109      4,240,399      3,700,443  
                             
Operating Loss    (2,226,857 )    (1,943,360 )    (4,154,243 )    (3,384,463 )
                             
Other Income (Expense)                            
 Change in fair value of derivative liabilities    (186,470 )    383,439      (329,392 )    (1,742,098 )
 Interest income (expense)    33      (14,120 )    (207,704 )    (51,249 )
     (186,437 )    369,319      (537,096 )    (1,793,347 )
                             
NET LOSS  $ (2,413,294 )  $ (1,574,041 )  $ (4,691,339 )  $ (5,177,810 )
                             
Declared dividends on Preferred Stock  $ 67,890    $ 97,775    $ 134,762    $ 230,979  
                             
Net loss attributable to common stockholders  $ (2,481,184 )  $ (1,671,816 )  $ (4,826,101 )  $ (5,408,789 )
                             
Loss per common share, basic and diluted  $ (0.05 )  $ (0.05 )  $ (0.09 )  $ (0.17 )
                             
Weighted average common shares outstanding, basic and diluted    54,047,453      34,839,764      52,315,587      31,407,485  
                 
                 
TRUE DRINKS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
   Six Months Ended
June 30,
 
   2015    2014  
CASH FLOWS FROM OPERATING ACTIVITIES          
 Net loss  $ (4,691,339 )  $ (5,177,810 )
Adjustments to reconcile net loss to net cash used in operating activities              
 Depreciation    1,168      4,406  
 Amortization    65,673      95,588  
 Provision for bad debt expense    (49,225 )    -  
 Change in estimated fair value of derivative    329,392      1,742,098  
 Fair value of common stock issued for services    462,062      69,875  
 Stock based compensation    234,710      258,834  
Change in operating assets and liabilities:              
 Accounts receivable    (1,272,159 )    (347,463 )
 Restricted cash    (66 )    (66 )
 Inventory    (510,568 )    (744,137 )
 Prepaid expenses and other current assets    11,152      (32,385 )
 Accounts payable and accrued expenses    555,484      1,050,828  
 Other current liabilities    -      -  
Net cash used in operating activities    (4,863,716 )    (3,080,232 )
               
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    -      (2,195 )
 Proceeds from issuance of Series B Preferred Stock, net    -      1,887,413  
 Proceeds from issuance of Series C Preferred Stock    7,000,000      -  
 Borrowings in debt    235,792      -  
 Repayments on debt    (2,986,118 )    (1,576,667 )
Net cash provided by financing activities    4,249,674      308,551  
               
NET DECREASE IN CASH    (614,042 )    (2,774,030 )
               
CASH- beginning of period  $ 668,326    $ 3,136,766  
               
CASH- end of period  $ 54,284    $ 362,736  
               
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    $ 7,458  
 Cashless exercise of warrants  $ -    $ 41,229  
 Dividends paid in common stock    152,445      8,139  
 Dividends declared but unpaid  $ 134,762    $ 230,979  
 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    $ -  
 Warrants issued in connection with Series B Preferred Offering  $ -    $ 616,411  
 Warrants issued in connection with Series C Preferred Offering  $ 2,370,141    $ -  

Contact Information

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