SOURCE: True Drinks Holdings, Inc.

True Drinks Holdings, Inc.

November 13, 2014 16:15 ET

True Drinks Grows Revenues 105% in Q3 Year Over Year

IRVINE, CA--(Marketwired - November 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 September 30, 2014.

Achievements in Third Quarter of 2014:

  • Revenues for Third Quarter up 105% over year ago period;
  • Completed successful second test at Sam's Club in August, shipping 550 pallets to 199 stores. Success led to an order totaling over $1.4 million to 612 Sam's Clubs in November 2014;
  • Dollar sales per point of distribution increased by ­­34% year to date;
  • Expansion of our DSD model in key markets in the East Coast including NYC;
  • Secured licensing agreement for the sale of AquaBall™ Naturally Flavored Water in China;

Lance Leonard, Chief Executive Officer of True Drinks, commented, "The access to consumers and high volume channels has increased significantly in the 3rd quarter enabling AquaBall Naturally Flavored water to be available to consumers around the world. The addition of several key US distributors, including Drink King in NYC, has added hundreds of additional people to sell and merchandise AquaBall on a daily basis. This increase in availability has further been supported with new distribution in the Mass Merchandiser channel to include Walmart Stores. We are now excited to share the message of healthy hydration on multiple platforms including digitally, socially, and on YouTube to bring awareness to the healthiest drinks available to kids."

Management will hold a conference call to discuss Q3 2014 financial results and to give a shareholder update today, Thursday, November 13, 2014 at 5:00PM EST / 2:00PM PST.

Third Quarter 2014 Financial Results Conference Call Details:
Date: Thursday, November 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
 
   September 30,
2014
  December 31,
2013
 
ASSETS  (Unaudited)      
Current Assets:           
Cash  $57,943   $3,136,766  
Accounts receivable, net   377,761    175,068  
Inventory   1,823,622    1,056,756  
Prepaid expenses and other current assets   584,438    591,434  
Total Current Assets   2,843,764    4,960,024  
            
Restricted Cash   133,131    133,065  
Property and Equipment, net   5,465    8,399  
Patents, net   1,247,059    1,352,941  
Trademarks, net   11,015    48,516  
Goodwill   3,474,502    3,474,502  
Total Assets  $7,714,936   $9,977,447  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
            
Current Liabilities:           
Accounts payable and accrued expenses  $2,021,586   $1,222,404  
Convertible notes payable, net   25,000    680,000  
Notes payable, net   1,190,000    -  
Line-of-credit facility   242,136    -  
Term loan   -    1,916,667  
Derivative liabilities   3,534,176    1,619,021  
Total Current Liabilities   7,012,898    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, 39,893,825 and 27,885,587 shares outstanding at September 30, 2014 and December 31, 2013, respectively   39,894    27,886  
Preferred Stock - Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,910,370 and 1,776,923 shares outstanding at September 30, 2014 and December 31, 2013, respectively   1,910    1,777  
Additional paid in capital   17,745,738    14,751,170  
Accumulated deficit   (17,085,504 )  (10,241,478 )
            
Total Stockholders' Equity   702,038    4,539,355  
            
Total Liabilities and Stockholders' Equity  $7,714,936   $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
 September 30,
   Nine Months Ended
September 30,
 
   2014      2013    2014    2013  
                             
Net Sales  $ 1,064,065    $ 517,689    $ 2,875,739    $ 2,231,861  
                             
Cost of Sales    977,324      406,757      2,473,018      1,871,643  
                             
Gross Profit    86,741      110,932      402,721      360,218  
                             
Operating Expenses:                            
Selling and marketing    1,085,405      752,151      2,661,279      1,837,049  
General and administrative    1,029,118      1,321,227      3,153,687      3,217,873  
Total operating expenses    2,114,523      2,073,378      5,814,966      5,054,922  
                             
Operating Loss    (2,027,782 )    (1,962,446 )    (5,412,245 )    (4,694,704 )
                             
Other Expense                            
Change in fair value of derivative liability    (398,603 )    (489,425)      1,343,495      (595,030 )
Interest expense    37,037      684,206      88,286      1,064,823  
                             
Net Loss  $ (1,666,216 )  $ (2,157,227 )  $ (6,844,026 )  $ (5,164,497 )
                             
Dividends on Preferred Stock  $ 148,181    $      $ 148,181    $    
                             
Net loss attributable to common stockholders  $ (1,814,397 )  $ (2,157,227 )  $ (6,922,207 )  $ (5,164,497 )
                             
Loss per common share, basic and diluted  $ (0.05 )  $ (0.08 )  $ (0.21 )  $ (0.19 )
                             
Weighted average shares of Common Stock outstanding, basic and diluted (1)    38,920,319      27,844,438      33,939,850      27,355,426  
                 
                 

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

  
(1) The 100-for-1 reverse stock split executed on January 18, 2013 was retrospectively reflected in weighted average number of shares of Common Stock outstanding.
  
  
 
TRUE DRINKS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
   Nine Months Ended
September 30,
 
   2014    2013  
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $ (6,844,026 )  $ (5,164,497 )
Adjustments to reconcile net loss to net cash used in operating activities              
Depreciation    5,283      7,443  
Amortization    143,383      143,383  
Accretion of deferred financing costs    -      450,806  
Provision for bad debt expense    -      150,000  
Change in estimated fair value of derivative    1,343,495      (595,030 )
Amortization of debt discount    -      657,307  
Fair value of stock issued for services    171,464      331,341  
Stock based compensation    368,172      694,533  
Change in operating assets and liabilities:              
 Accounts receivable    (202,693 )    (293,065 )
 Inventory    (766,866 )    (39,681 )
 Prepaid expenses and other current assets    6,996      (336,497 )
 Other assets    -      3,948  
 Accounts payable and accrued expenses    1,317,696      582,946  
Net cash used in operating activities    (4,457,096 )    (3,407,063 )
               
CASH FLOWS FROM INVESTING ACTIVITIES              
 Change in restricted cash    (66 )    (51,761 )
 Purchase of property and equipment    (2,349 )    (1,299 )
Net cash used in investing activities    (2,415 )    (53,060 )
               
CASH FLOWS FROM FINANCING ACTIVITIES              
 Dividends Paid    (2,194 )       
 Proceeds from issuance of Series B Preferred Stock, net    1,887,413      -  
 Proceeds from notes payable    1,190,000      4,009,000  
 Net proceeds from line-of-credit facility    242,136      -  
 Deferred financing costs paid    -      (354,704 )
 Repayments on notes payable    (20,000 )    (172,000 )
 Repayments on term loan    (1,916,667 )    -  
Net cash provided by financing activities    1,380,688      3,482,296  
               
NET INCREASE IN CASH    (3,078,823 )    22,173  
               
CASH- beginning of period    3,136,766      4,449  
               
CASH- end of period  $ 57,943    $ 26,622  
               
SUPPLEMENTAL DISCLOSURES              
Interest paid in cash  $ 7,944    $ 58,758  
Non-cash financing and investing activities:              
Conversion of preferred stock to common stock  $ 8,621    $ 25,304  
Conversion of notes payable and accrued interest to common stock  $ 764,938    $ 860,818  
Dividend paid in common stock  $ 247,255    $ -  
Dividends declared but unpaid  $ 148,181    $ -  
Cashless exercise of warrants  $ 44,751    $ -  
Warrants issued in connection with Series B Preferred Offering  $ 616,411    $ -  
Warrants issued as deferred financing costs  $ -    $ 418,042  
Warrants issued as debt discount  $ -    $ 1,163,240  
Common stock issued for accrued expenses  $ 487,650    $ -  
         
         

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