Charlie's Holdings, Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE, DATED AUGUST 13, 2014 - August 13, 2014

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True Drinks Announces First Quarter 2014 Financial Results

IRVINE, CA – (Marketwire – August 13, 2014) – True Drinks, Inc. (OTC QB: 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 AquaBallTM 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 AquaBallTM 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.

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

 
 
 
 
 
 
 

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
  
 
 

 
 
 
 
 
 
 


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
  
 
 
 
 
 
 
 
 


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
  
 
 
 
 

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