SOURCE: True Drinks Holdings, Inc.

www.truedrinks.com

August 13, 2014 16:05 ET

True Drinks Announces Second Quarter 2014 Financial Results

IRVINE, CA--(Marketwired - August 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 June 30, 2014.

Achievements in Second Quarter of 2014:

  • Completed successful test at Sam's Club in June, shipping 199 pallets to 150 stores. Second order from Sam's Club for 550 pallets was shipped in August;
  • Dollar sales per point of distribution increased by 22% year to date;
  • Rite Aid and Toys'R'Us become latest national retailers authorized to sell AquaBall™ six packs;
  • Over 29,000 retail locations now authorized to sell AquaBall;
  • Q2 revenues ahead of internal plan.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "We head into the second half of 2014 well positioned to increase market share, drive revenue, and increase consumer consumption of AquaBall™ Naturally Flavored Water. As a team, we are ahead of schedule in developing AquaBall and building a multi-channel, multi-market brand, as well as taking advantage of a major consumer shift away from sugary drinks marketed towards children." Mr. Leonard continued, "I am pleased with our initial sell though into our growing channel of national retailers and am especially excited by the near-term opportunity that the club channel offers us. We now have a base of 29,000 doors in the US and access to China and Canada. As we successfully penetrate this growing base, we believe our opportunity could be significant in what is a very large, and growing, market need."

Management will hold a conference call to discuss Q2 2014 financial results and to give a shareholder update today, Wednesday, August 13, 2014 at 5:00PM EDT / 2:00PM PDT.

 
Second Quarter 2014 Financial Results Conference Call Details: 
Date: Wednesday, August 13, 2014
Time: 5:00PM Eastern / 2:00PM 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 5:00PM 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 provides a healthy alternative for kids to drink. Their AquaBallTM is a naturally flavored, vitamin-enhanced, zero-calorie, dye-free, sugar-free alternative to juice and soda. AquaBallTM is currently available in four flavors: orange, grape, fruit punch and berry. Their target consumers are kids, young adults, and their guardians, who 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.theaquaball.com and www.truedrinks.com. 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,
2014
  December 31,
2013
 
ASSETS  (Unaudited)      
Current Assets:         
Cash  $ 362,736   $ 3,136,766  
Accounts receivable, net    522,531     175,068  
Inventory    1,800,893     1,056,756  
Prepaid expenses and other current assets    623,819     591,434  
Total Current Assets    3,309,979     4,960,024  
              
Restricted Cash    133,131     133,065  
Property and Equipment, net    6,342     8,399  
Patents, net    1,282,353     1,352,941  
Trademarks, net    23,516     48,516  
Goodwill    3,474,502     3,474,502  
Total Assets  $ 8,229,823   $ 9,977,447  
              
LIABILITIES AND STOCKHOLDERS' EQUITY             
              
Current Liabilities:             
Accounts payable and accrued expenses  $ 2,382,412   $ 1,222,404  
Convertible notes payable, net    25,000     680,000  
Notes payable, net    360,000     -  
Term loan    -     1,916,667  
Derivative liabilities    3,936,301     1,619,021  
Total Current Liabilities    6,703,713     5,438,092  
              
Commitments and Contingencies (Note 5)             
              
Stockholders' Equity:             
Common Stock, $0.001 par value, 120,000,000 and 40,000,000 shares authorized, 36,542,960 and 27,855,587 shares outstanding at June 30, 2014 and December 31, 2013, respectively    36,543     27,886  
Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,607,870 and 1,776,923 shares outstanding at June 30, 2014 and December 31, 2013, respectively    1,608     1,777  
Additional paid in capital    16,907,247     14,751,170  
Accumulated deficit    (15,419,288 )   (10,241,478 )
              
Total Stockholders' Equity    1,526,110     4,539,355  
              
Total Liabilities and Stockholders' Equity  $ 8,229,823   $ 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
June 30,
   Six Months Ended
June 30,
 
      2014    2013    2014    2013  
                           
Net Sales   $ 1,161,142    $1,303,371    $1,811,674    $1,714,172  
                           
Cost of Sales     966,393     1,200,936     1,495,694     1,464,886  
                           
Gross Profit     194,749     102,435     315,980     249,286  
                           
Operating Expenses                          
 Selling and marketing     1,005,346     654,412     1,575,874     1,084,898  
 General and administrative     1,132,763     851,582     2,124,569     1,896,646  
  Total operating expenses     2,138,109     1,505,994     3,700,443     2,981,544  
                           
Operating Loss     (1,943,360 )   (1,403,559 )   (3,384,463 )   (2,732,258 )
                           
Other Expense (Income)                          
 Change in fair value of derivative liabilities     (383,439 )   (105,605 )   1,742,098     (105,605 )
 Interest expense     14,120     152,418     51,249     380,617  
                           
                           
NET LOSS   $ (1,574,041 )  $(1,450,372 )  $(5,177,810 )  $(3,007,270 )
                           
Dividends on Preferred Stock   $ 97,775    $-    $230,979    $-  
                           
Net loss attributable to common stockholders   $ (1,671,816 )  $(1,450,372 )  $(5,408,789 )  $(3,007,270 )
                           
Loss per common share, basic and diluted   $ (0.05 )  $(0.05 )  $(0.17 )  $(0.11 )
                           
Weighted average common shares outstanding, basic and diluted     34,839,764     27,400,619     31,407,485     27,105,681  
                 
The accompanying notes are an integral part of these financial statements. 
 
 
 
TRUE DRINKS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
   Six Months Ended
June 30,
 
   2014   2013  
CASH FLOWS FROM OPERATING ACTIVITIES           
Net loss  $(5,177,810 ) $(3,007,270 )
Adjustments to reconcile net loss to net cash used in operating activities           
Depreciation   4,406    10,190  
Amortization   95,588    95,589  
Accretion of deferred financing costs   -    32,074  
Change in estimated fair value of derivative liabilities   1,742,098    (105,605 )
Amortization of debt discount   -    45,109  
Fair value of common stock issued for services   69,875    247,340  
Stock based compensation   258,834    594,902  
Change in operating assets and liabilities:           
 Accounts receivable   (347,463 )  (597,603 )
 Inventory   (744,137 )  247,863  
 Prepaid expenses and other current assets   (32,385 )  (267,902 )
 Other assets   -    3,948  
 Accounts payable and accrued expenses   1,050,828    309,407  
 Other current liabilities   -    167,715  
Net cash used in operating activities   (3,080,166 )  (2,224,243 )
            
CASH FLOWS FROM INVESTING ACTIVITIES           
 Change in restricted cash   (66 )  242  
 Purchase of property and equipment   (2,349 )  -  
Net cash (used in ) provided by investing activities   (2,415 )  242  
            
CASH FLOWS FROM FINANCING ACTIVITIES           
 Dividends paid   (2,195 )  -  
 Proceeds from issuance of Series B Preferred Stock, net   1,887,413    -  
 Proceeds from notes payable   360,000    2,869,000  
 Deferred financing costs paid   -    (219,924 )
 Repayments on notes payable   (20,000 )  (172,000 )
 Repayments on term loan   (1,916,667 )  -  
Net cash provided by financing activities   308,551    2,477,076  
            
NET (DECREASE) INCREASE IN CASH   (2,774,030 )  253,075  
            
CASH- beginning of period  $3,136,766   $4,449  
            
CASH- end of period  $362,736   $257,524  
            
SUPPLEMENTAL DISCLOSURES           
Interest paid in cash  $7,944   $17,330  
Non-cash financing and investing activities:           
Conversion of Preferred Stock to Common Stock  $7,458   $25,304  
Cashless exercise of warrants  $41,229   $-  
Dividends declared but unpaid  $230,979   $-  
Dividends on Preferred Stock paid in Common Stock  $8,139   $-  
Conversion of notes payable and accrued interest to Common Stock  $764,938   $860,818  
Warrants issued in connection with Series B Preferred Offering  $616,411   $299,699  
Warrants issued as debt discount  $-   $730,758  
 
The accompanying notes are an integral part of these condensed consolidated 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