SOURCE: True Drinks Holdings, Inc.

May 16, 2013 08:00 ET

True Drinks Reports 2013 First Quarter Financial Results

Management to Host Financial Results Conference Call on Thursday, May 16th at 4:15 p.m. Eastern

IRVINE, CA--(Marketwired - May 16, 2013) - 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 announced its financial results for the first quarter ended March 31, 2013.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "AquaBall™ is a 'first mover,' offering a unique vitamin-enhanced, naturally flavored water beverage for kids. In the market today, only extremes are available for kids ranging from water to high sugar, high calorie, nutritionally-deficient beverages. Our goal is to create and deliver beverages for families that encourage improved health, while being clear that our products are a great-tasting, zero-calorie, sugar-free alternative. Additionally, our licensing agreements with major media partners to display their characters on our bottles are a key differentiating factor for AquaBall™. AquaBall™ is a product with aesthetic appeal for kids, great taste, and the healthy hydration attributes parents are seeking for their children."

2013 Operational Highlights to Date:

  • After launching the 30 calorie AquaBall™ beverage in July 2012, True Drinks launched a 0-calorie, sugar-free formulation in January 2013.
  • AquaBall™ is available in 47 states and in over 6,800 outlets.
  • 14,000 outlets targeted by the end of June 2013 and 38,000 by the end of 2013.
  • 2013 first quarter revenue totaled $410,801.
  • Signed international distribution agreement that will make AquaBall™ available in Central America and South America.
  • Signed agreement with Core-Mark, a supplier to over 29,000 retail locations in the United States and Canada through 28 distribution centers.
  • Secured distribution agreements with leading regional supermarket chains, HEB Grocery Group, Raley's Supermarkets, Save Mart Supermarkets and Schnucks Markets.
  • Became available in 680 BI-LO and Winn-Dixie locations.
  • Gained new distribution and retail outlets through Babies 'R' Us, H.T. Hackney, Central Grocers, Associated Grocers, Associated Foods, Grocery Supply, and Stop & Shop, amongst others.

Lance Leonard, continued, "The progress we have made in our distribution strategy has exceeded our expectations. We are already in nearly every state and in over 6,800 outlets. We have set high standards for ourselves in the remainder of the year with a target of 14,000 outlets at the end of June and 38,000 outlets by the end of 2013. We have aligned ourselves with leading retailers and grocers including Core-Mark, Safeway, and HEB Grocery Group. Additionally, we are pleased to expand our distribution outside the United States with our venture into Central and South America. There is a large opportunity for our expansion in this area, and we have already begun having further discussions with leaders in these markets."

2013 First Quarter Financial Results Conference Call Details:
Date: Thursday, May 16, 2013
Time: 4:15 p.m. Eastern
Participant Dial-In: (480) 629-9664
Live Webcast: or

It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:15 p.m. Eastern call. There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available under the Investor Relations section of the company website at or by clicking on the following link,

About True Drinks, Inc.
True Drinks, Inc. is a beverage company with licensing agreements with major entertainment and media companies for use of their characters on its proprietary, patented bottles. AquaBall™ Naturally Flavored Water, the Company's vitamin-enhanced water that was created as a 0 calorie, sugar-free alternative to juice and soda for kids, is currently being sold into mass-market retailers throughout the United States. For more information, please visit and

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.

  March 31,
  December 31,
Current Assets:        
 Cash $ 31,581   $ 4,449  
 Accounts receivable, net   181,684     130,909  
 Inventory   529,669     832,874  
 Prepaid expenses and other current assets   286,083     268,716  
  Total Current Assets   1,029,017     1,236,948  
Restricted Cash   81,008     81,270  
Property and Equipment, net   19,173     25,399  
Patents, net   1,458,823     1,494,118  
Trademarks, net   86,016     98,516  
Goodwill   3,474,502     3,474,502  
Other Assets   3,948     3,948  
Total Assets $ 6,152,487   $ 6,414,701  
 Accounts payable and accrued expenses $ 1,040,828   $ 1,292,147  
 Convertible notes payable   1,686,000     772,000  
  Total Liabilities   2,726,828     2,064,147  
Commitments and Contingencies (Note 8)            
Stockholders' Equity:            
Common stock, $0.001 par value, 40,000,000 shares authorized, 26,889,402 and 1,337,335 shares outstanding at March 31, 2013 and December 31, 2012, respectively   26,889     1,337  
Preferred stock (liquidation preference of $10 per share), $0.001 par value, 5,000,000 shares authorized, 0 and 1,544,565 shares outstanding at March 31, 2013 and December 31, 2012, respectively       1,545  
Additional paid in capital   8,075,011     7,467,015  
Accumulated deficit   (4,676,241 )   (3,119,343 )
 Total Stockholders' Equity   3,425,659     4,350,554  
Total Liabilities and Stockholders' Equity $ 6,152,487   $ 6,414,701  

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

  Three Months Ended
March 31,
  2013   2012  
Net Sales $ 410,801   $ -
Cost of Sales   263,950     -
Gross Profit   146,851     -
Operating Expenses:            
 Selling and marketing   430,486     43,216  
 General and administrative   1,045,064     349,213  
 Total operating expenses   1,475,550     392,429  
Operating Loss   (1,328,699 )   (392,429 )
Other Expense            
 Interest expense   228,199     -
    228,199     -
Net Loss $ (1,556,898 ) $ (392,429 )
Basic and diluted net loss per share $ (0.06 ) $ (0.03 )
Weighted average common shares outstanding, basic and diluted (1)   26,810,744     15,155,050  

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

(1) The weighted average common shares outstanding number was calculated based on as-converted to common stock figures for the preferred stock that was granted to shareholders of True Drinks, Inc. upon the merger with Bazi Intl. on October 15, 2012. The 100 for 1 reverse stock split executed on January 18, 2013 was retrospectively reflected in weighted average common shares outstanding.
  Three Months Ended
March 31,
  2013   2012  
Net loss $ (1,556,898 ) $ (392,429 )
 Adjustments to reconcile net loss to net cash used in operating activities            
 Depreciation   6,226     -
 Amortization   47,795     -
 Stock issued to founders   -
 Fair value of stock issued for services   195,600        
 Stock based compensation   436,403     3,281  
 Change in operating assets and liabilities:            
  Accounts receivable   (50,775 )   -
  Inventory   303,205     (32,263 )
  Prepaid expenses and other current assets   (17,367 )   (65,448 )
  Other assets         (686,223 )
  Accounts payable and accrued expenses   (251,319 )   187,668  
Net cash used in operating activities   (887,130 )   (984,559 )
 Change in restricted cash   262     (81,000 )
Net cash used in investing activities   262     (81,000 )
 Proceeds from issuance of common stock   -
 Proceeds from notes payable   1,049,000     -
 Repayments on notes payable   (135,000 )   -
Net cash provided by financing activities   914,000     1,625,000  
NET INCREASE IN CASH   27,132     559,441  
CASH- beginning of period   4,449     -
CASH- end of period $ 31,581   $ 559,441  
 Interest paid in cash $ 13,795   $ -  
Non-cash transactions:            
 Conversion of preferred stock to common stock $ 25,304   $ -  

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

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