SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

May 16, 2017 08:30 ET

True Drinks Announces Record First Quarter Results

IRVINE, CA--(Marketwired - May 16, 2017) - True Drinks Holdings, Inc. (OTC PINK: TRUU), makers of AquaBall® Naturally Flavored Water, the healthiest children's beverage on the market with no sugar, preservatives, calories, or artificial flavors, today announces its financial results for the first quarter of 2017.

Dan Kerker, Chief Financial Officer of True Drinks, commented, "The first quarter resulted in record first quarter revenue of over $1.5 million. This is a result of distribution gains for AquaBall at retail and the commencement of partnerships with distributors across the country. We look to build on this momentum heading into the second quarter. We have maintained gross margin in the high thirties, and we continue to work on making cost improvements to our packaging. Heading into the summer, we will continue to spend to promote AquaBall at our retailers and in our key markets."

James Greco, Chief Executive Officer of True Drinks, added, "2017 is off to a solid start with strong first quarter results which include record first quarter revenue and greatly improved operating margins. Our distribution network continues to grow and, with it, our retail presence. By the end of this month, AquaBall will be available in over 14,000 stores around the country. As a result, our sales volumes and velocity continue to grow by double-digit percentages far outstripping that of other children's beverages." Greco continued, "Health and wellness awareness has increased significantly, resulting in growing demand for beverages with little or no calories and natural ingredients. AquaBall is directly responsive to this need for children, and we plan to increase our offerings for this and other age groups."

About True Drinks Holdings, Inc.
True Drinks Holdings, Inc., the holding company for True Drinks, Inc., is a healthy beverage provider which produces AquaBall® Naturally Flavored Water. AquaBall is a healthy alternative to the other products in the children's beverage market. True Drinks has licensing agreements with Disney and Marvel for use of their characters on bottles of AquaBall®. AquaBall® is a naturally flavored, vitamin-enhanced, zero-calorie, preservative-free, dye-free, sugar-free alternative to juice and soda. AquaBall® is currently available in four flavors: fruit punch, grape, strawberry lemonade 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 HOLDINGS, INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
  
   March 31, 2017 
(unaudited)
  December 31, 2016  
ASSETS           
Current Assets:           
 Cash and cash equivalents  $1,675,197   $15,306  
 Accounts receivable, net   989,279    536,817  
 Inventory, net   792,931    318,912  
 Prepaid expenses and other current assets   389,075    127,258  
 Total Current Assets   3,846,482    998,293  
            
Restricted Cash   209,622    209,570  
Property and Equipment, net   9,731    11,064  
Patents, net   220,000    250,000  
Goodwill   3,474,502    3,474,502  
Total Assets  $7,760,337   $4,943,429  
            
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)           
            
Current Liabilities:           
 Accounts payable and accrued expenses  $2,400,668   $1,258,252  
 Debt   177,802    109,682  
 Derivative liabilities   96,707    5,792,572  
 Total Current Liabilities   2,675,177    7,160,506  
            
Commitments and Contingencies (Note 7)           
            
Stockholders' Equity (Deficit):           
 Common Stock, $0.001 par value, 300,000,000 shares authorized, 200,317,230 and 119,402,009 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively   200,317    119,402  
 Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,292,870 and 1,292,870 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively   1,293    1,293  
 Preferred Stock - Series C (liquidation preference $100 per share), $0.001 par value, 200,000 shares authorized, 106,704 and 109,352 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively   107    109  
 Preferred Stock - Series D (liquidation preference $100 per share), $0.001 par value, 50,000 and 0 shares authorized, 35,250 and 0 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively   35    -  
 Additional paid in capital   40,947,888    33,456,325  
 Accumulated deficit   (36,064,480 )  (35,794,206 )
             
 Total Stockholders' Equity (Deficit)   5,085,160    (2,217,077 )
            
Total Liabilities and Stockholders' Equity (Deficit)  $7,760,337   $4,943,429  
            

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

  
TRUE DRINKS HOLDINGS, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(Unaudited) 
   Three Months Ended March 31,  
   2017   2016  
            
Net Sales  $1,529,752   $583,298  
            
Cost of Sales   973,613    733,411  
            
Gross Profit (Loss)   556,139    (150,113 )
            
Operating Expenses           
 Selling and marketing   1,583,531    1,068,913  
 General and administrative   1,417,908    1,068,350  
  Total operating expenses   3,001,439    2,137,263  
            
Operating Loss   (2,445,300 )  (2,287,376 )
            
Other Income (Expense)           
 Change in fair value of derivative liabilities   2,243,518    1,139,365  
 Interest expense   (20,538 )  (12,214 )
 Other expense   (47,954 )  (18,923 )
    2,175,026    1,108,228  
            
NET LOSS   (270,274 )  (1,179,148 )
            
Declared dividends on Preferred Stock   64,644    66,626  
            
Net loss attributable to common stockholders  $(334,918 ) $(1,245,774 )
            
Net loss per common share, basic and diluted  $(0.00 ) $(0.01 )
            
Weighted average common shares outstanding, basic and diluted   146,976,287    112,219,264  

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

  
TRUE DRINKS HOLDINGS, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(Unaudited) 
   Three Months Ended March 31,  
   2017   2016  
CASH FLOWS FROM OPERATING ACTIVITIES           
Net loss  $(270,274 ) $(1,179,148 )
Adjustments to reconcile net loss to net cash used in operating activities           
 Depreciation   1,333    657  
 Amortization   30,000    35,294  
 Provision for bad debt expense   8,030    140,152  
 Provision for inventory losses   -    110,000  
 Change in estimated fair value of derivative   (2,243,518 )  (1,139,365 )
 Fair value of stock issued for services   360,500    18,000  
 Stock based compensation   83,227    61,555  
Change in operating assets and liabilities:           
 Accounts receivable   (460,491 )  1,470,994  
 Inventory   (474,019 )  (51,614 )
 Prepaid expenses and other current assets   (261,817 )  (201,063 )
 Accounts payable and accrued expenses   1,143,852    (141,493 )
Net cash used in operating activities   (2,083,177 )  (876,031 )
            
CASH FLOWS FROM INVESTING ACTIVITIES           
 Restricted cash   (52 )  (53 )
Net cash used in investing activities   (52 )  (53 )
            
CASH FLOWS FROM FINANCING ACTIVITIES           
 Proceeds from warrants exercised for cash   -    30,000  
 Proceeds from issuance of Series C Preferred Stock   -    1,000,000  
 Proceeds from issuance of Series D Preferred Stock   3,675,000    -  
 Net borrowings on line-of-credit facility   68,120       
 Repayments on debt   -    (403,778 )
Net cash provided by financing activities   3,743,120    626,222  
            
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   1,659,891    (249,862 )
            
CASH AND CASH EQUIVALENTS- beginning of period   15,306    376,840  
            
CASH AND CASH EQUIVALENTS- end of period  $1,675,197   $126,978  
            
SUPPLEMENTAL DISCLOSURES           
Interest paid in cash  $20,538   $13,119  
Non-cash financing and investing activities:           
Conversion of preferred stock to common stock  $2,766   $698  
Conversion of notes payable and accrued interest to Series C preferred stock  $-   $500,000  
Dividend paid in common stock  $66,080   $68,441  
Dividends declared but unpaid  $64,644   $66,626  
Warrants issued in connection with Series C Preferred Offering  $-   $303,043  
Warrants issued in connection with Series D Preferred Offering  $2,262,334   $-  
Warrants issued for services  $29,000   $-  
Warrants exchanged for common stock  $5,743,681   $-  
            

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

Contact Information

  • Contact:
    Investor Relations
    True Drinks, Inc.
    18662 MacArthur Blvd., Ste. 110
    Irvine, CA 92612
    ir@truedrinks.com
    949-203-3500