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

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Exhibit 99.1
True Drinks Grows Revenues 105% in Q3 Year Over Year

IRVINE, CA – (Marketwire – November 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 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 AquaBallTM 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 EDT / 2:00PM PDT.

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.

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

   
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
  
 


 

 
 
 


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
  
 

(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
    
$
-
  
 


Charlie's Holdings, Inc. Reports