SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

September 17, 2014 16:28 ET

True Drinks Announces Update Call Hosted by Merriman Capital

IRVINE, CA--(Marketwired - September 17, 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, announced today it is participating in an update call hosted by Merriman Capital on Thursday, September 18th at 1:30PM PDT / 4:30PM EDT. The call will include an overview and business update from the Company, as well as an opportunity for listeners to ask questions.

True Drinks Update Call hosted by Merriman Capital:
Date: Thursday, September 18, 2014
Time: 1:30PM PDT/ 4:30PM EDT
Participant Dial-In: 877-407-8033 (Toll Free), 201-689-8033 (International)

It is recommended that participants dial in approximately 10 minutes prior to the start of the 1:30PM PDT/ 4:30PM EDT 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. 

About Merriman Capital, Inc.
Merriman Capital, Inc. is a full service investment bank and Broker-Dealer that facilitates efficient capital formation through a proprietary digital network, and offers Capital Markets Advisory and comprehensive Corporate Brokerage services for public and private companies. The firm also provides equity and options execution services for sophisticated investors and differentiated research for high growth companies. Merriman Capital, Inc. is a wholly owned brokerage subsidiary of Merriman Holdings, Inc. and is a leading advisory firm for publicly traded, high-growth companies.

Digital Capital Network, powered by Merriman Capital, is a capital marketplace that enables highly targeted and more efficient execution of transactions. Please visit our website for more information on how you can be a part of our Digital Capital Network: http://www.digitalcapitalnetwork.com. Digital Capital Network, Inc. is a wholly owned subsidiary of Merriman Holdings, Inc. All operations on the Digital Capital Network are currently being executed by Merriman Capital, Inc.

Merriman Capital, Inc. is a registered broker-dealer and member of The Financial Industry Regulatory Authority (FINRA) http://www.finra.org/ and the Securities Investor Protection Corporation (SIPC) http://www.sipc.org/.

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
    * Member FINRA / SIPC