True Drinks Announces Record First Quarter Results
IRVINE,
CA – (Marketwire – May 16, 2017) – True Drinks
Holdings, Inc. (OTC QB: 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.
Contact:
Investor Relations
True
Drinks, Inc.
18662
MacArthur Blvd., Ste. 110
Irvine,
CA 92612
ir@truedrinks.com
949-203-3500
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
|
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.