Attached files
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| 8-K - FORM 8-K - Charlie's Holdings, Inc. | truu8k_aug132015.htm |
Exhibit 99.1
True Drinks Announced Q2’2015 Financial Results
IRVINE, CA – (Marketwire – August 13, 2015) – True Drinks, Inc. (OTC QB: TRUU), makers of the zero-sugar, vitamin-enhanced AquaBall™ Naturally Flavored Water, today announces its financial results for the second quarter of 2015.
Achievements in Second Quarter of 2015:
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·
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Revenues for Second Quarter up 79% over year ago period to $2.1 million;
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·
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Agreed to extension of Disney Licensing Agreement which was signed in August;
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·
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New Distribution agreements with Jetro Cash & Carry, RBI Distributing, and Central Beverages;
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·
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Same store sales grew from $19.43 per store per week to $46.66 per week versus same period last year, the highest in the category.
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Lance Leonard, Chief Executive Officer of True Drinks, commented, “2015 started off with a new equity investment allowing us access to the working capital needed to accelerate the growth of AquaBall Naturally Flavored water. The brand is driving growth within the category at a rate faster than our competitors allowing AquaBall to build market share in the second quarter, and we are seeing that growth continue in the current quarter. We now look forward to the balance of 2015 with new retail partners like Target Stores, Jetro Cash & Carry, and Sam’s Club, each major contributors to our growth plan. We also had the opportunity to erase our debt and focus on gross margin improvement, getting us closer to sustainable long-term profitability and improved marginal contribution. We are excited about the milestones that we have achieved to-date and are more confident than ever that we will reach our internal goals.”
Management will hold a conference call to discuss Q2 2015 financial results and to give a shareholder update today, Thursday, August 13, 2015 at 4:30PM EDT / 1:30PM PDT.
Management will hold a conference call to discuss Q2 2015 financial results and to give a shareholder update today, Thursday, August 13, 2015 at 4:30PM EDT / 1:30PM PDT.
Second Quarter 2015 Financial Results Conference Call Details:
Date: Thursday, August 13, 2015
Time: 4:30PM Eastern / 1:30PM 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 4:30PM 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 is a healthy beverage provider with licensing agreements with Disney and Marvel for use of their characters on its proprietary, patented bottles. AquaBall™ is a naturally flavored, vitamin-enhanced, zero- calorie, dye-free, sugar-free alternative to juice and soda. AquaBall™ is currently available in four flavors: orange, grape, fruit punch 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.
18552 MacArthur Blvd., Ste. 325
Irvine, CA 92612
ir@truedrinks.com
949-203-3500
TRUE DRINKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30,
2015
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December 31,
2014
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|||||||
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ASSETS
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(Unaudited)
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|||||||
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Current Assets:
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||||||||
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Cash
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$
|
54,284
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$
|
668,326
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||||
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Accounts receivable, net
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1,665,093
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343,709
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||||||
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Inventory
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1,874,011
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1,363,443
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||||||
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Prepaid expenses and other current assets
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617,523
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628,675
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||||||
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Total Current Assets
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4,210,911
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3,004,153
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||||||
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Restricted Cash
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133,264
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133,198
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||||||
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Property and Equipment, net
|
3,419
|
4,587
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||||||
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Patents, net
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1,152,941
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1,211,765
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||||||
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Trademarks, net
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-
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6,849
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||||||
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Goodwill
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3,474,502
|
3,474,502
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||||||
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Total Assets
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$
|
8,975,037
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$
|
7,835,054
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||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
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Current Liabilities:
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||||||||
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Accounts payable and accrued expenses
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$
|
2,392,878
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$
|
1,922,285
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||||
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Debt
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365,676
|
4,263,002
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||||||
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Derivative liabilities
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4,269,055
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1,569,522
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||||||
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Total Current Liabilities
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7,027,609
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7,754,809
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||||||
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Commitments and Contingencies (Note 5)
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||||||||
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Stockholders’ Equity:
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||||||||
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Common Stock, $0.001 par value, 200,000,000 and 120,000,000 shares authorized, 54,080,243 and 48,622,675 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
54,080
|
48,623
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||||||
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Preferred Stock – Series B (liquidation preference of $4 per share), $0.001 par value, 2,750,000 shares authorized, 1,342,870 and 1,490,995 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
1,343
|
1,491
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||||||
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Preferred Stock – Series C (liquidation preference $100 per share), $0.001 par value, 90,000 shares authorized, 82,148 and 0 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
82
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-
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||||||
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Additional paid in capital
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24,941,343
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18,388,212
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||||||
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Accumulated deficit
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(23,049,420
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)
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(18,358,081
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)
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||||
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Total Stockholders’ Equity
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1,947,428
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80,245
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||||||
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Total Liabilities and Stockholders’ Equity
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$
|
8,975,037
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$
|
7,835,054
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||||
The accompanying notes are an integral part of these financial statements.
TRUE DRINKS, INC.
(Unaudited)
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Three Months Ended
June 30,
|
Six Months Ended
June 30,
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|||||||||||||||
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2015
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2014
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2015
|
2014
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|||||||||||||
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Net Sales
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$
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2,083,921
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$
|
1,161,142
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$
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2,848,896
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$
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1,811,674
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||||||||
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Cost of Sales
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2,142,012
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966,393
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2,762,740
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1,495,694
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||||||||||||
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Gross (Loss) Profit
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(58,091
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)
|
194,749
|
86,156
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315,980
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|||||||||||
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Operating Expenses
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||||||||||||||||
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Selling and marketing
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1,320,738
|
1,005,346
|
1,971,103
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1,575,874
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||||||||||||
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General and administrative
|
848,028
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1,132,763
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2,269,296
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2,124,569
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||||||||||||
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Total operating expenses
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2,168,766
|
2,138,109
|
4,240,399
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3,700,443
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||||||||||||
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Operating Loss
|
(2,226,857
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)
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(1,943,360
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)
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(4,154,243
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)
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(3,384,463
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)
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||||||||
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Other Income (Expense)
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||||||||||||||||
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Change in fair value of derivative liabilities
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(186,470
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)
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383,439
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(329,392
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)
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(1,742,098
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)
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|||||||||
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Interest income (expense)
|
33
|
(14,120
|
)
|
(207,704
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)
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(51,249
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)
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|||||||||
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(186,437
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)
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369,319
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(537,096
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)
|
(1,793,347
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)
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||||||||||
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NET LOSS
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$
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(2,413,294
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)
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$
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(1,574,041
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)
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$
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(4,691,339
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)
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$
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(5,177,810
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)
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||||
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Declared dividends on Preferred Stock
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$
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67,890
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$
|
97,775
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$
|
134,762
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$
|
230,979
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||||||||
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Net loss attributable to common stockholders
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$
|
(2,481,184
|
)
|
$
|
(1,671,816
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)
|
$
|
(4,826,101
|
)
|
$
|
(5,408,789
|
)
|
||||
|
Loss per common share, basic and diluted
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$
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(0.05
|
)
|
$
|
(0.05
|
)
|
$
|
(0.09
|
)
|
$
|
(0.17
|
)
|
||||
|
Weighted average common shares outstanding, basic and diluted
|
54,047,453
|
34,839,764
|
52,315,587
|
31,407,485
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||||||||||||
The accompanying notes are an integral part of these financial statements.
TRUE DRINKS HOLDINGS, INC.
(Unaudited)
|
Six Months Ended
June 30,
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||||||||
|
2015
|
2014
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|||||||
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CASH FLOWS FROM OPERATING ACTIVITIES
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||||||||
|
Net loss
|
$
|
(4,691,339
|
)
|
$
|
(5,177,810
|
)
|
||
|
Adjustments to reconcile net loss to net cash used in operating activities
|
||||||||
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Depreciation
|
1,168
|
4,406
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||||||
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Amortization
|
65,673
|
95,588
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||||||
|
Provision for bad debt expense
|
(49,225
|
)
|
-
|
|||||
|
Change in estimated fair value of derivative
|
329,392
|
1,742,098
|
||||||
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Fair value of common stock issued for services
|
462,062
|
69,875
|
||||||
|
Stock based compensation
|
234,710
|
258,834
|
||||||
|
Change in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
(1,272,159
|
)
|
(347,463
|
)
|
||||
|
Restricted cash
|
(66
|
)
|
(66
|
)
|
||||
|
Inventory
|
(510,568
|
)
|
(744,137
|
)
|
||||
|
Prepaid expenses and other current assets
|
11,152
|
(32,385
|
)
|
|||||
|
Accounts payable and accrued expenses
|
555,484
|
1,050,828
|
||||||
|
Other current liabilities
|
-
|
-
|
||||||
|
Net cash used in operating activities
|
(4,863,716
|
)
|
(3,080,232
|
)
|
||||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
|
Purchase of property and equipment
|
-
|
(2,349
|
)
|
|||||
|
Net cash used in investing activities
|
-
|
(2,349
|
)
|
|||||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
|
Dividends paid
|
-
|
(2,195
|
)
|
|||||
|
Proceeds from issuance of Series B Preferred Stock, net
|
-
|
1,887,413
|
||||||
|
Proceeds from issuance of Series C Preferred Stock
|
7,000,000
|
-
|
||||||
|
Borrowings in debt
|
235,792
|
-
|
||||||
|
Repayments on debt
|
(2,986,118
|
)
|
(1,576,667
|
)
|
||||
|
Net cash provided by financing activities
|
4,249,674
|
308,551
|
||||||
|
NET DECREASE IN CASH
|
(614,042
|
)
|
(2,774,030
|
)
|
||||
|
CASH- beginning of period
|
$
|
668,326
|
$
|
3,136,766
|
||||
|
CASH- end of period
|
$
|
54,284
|
$
|
362,736
|
||||
|
SUPPLEMENTAL DISCLOSURES
|
||||||||
|
Interest paid in cash
|
$
|
122,556
|
$
|
7,944
|
||||
|
Non-cash financing and investing activities:
|
||||||||
|
Conversion of preferred stock to common stock
|
$
|
2,222
|
$
|
7,458
|
||||
|
Cashless exercise of warrants
|
$
|
-
|
$
|
41,229
|
||||
|
Dividends paid in common stock
|
152,445
|
8,139
|
||||||
|
Dividends declared but unpaid
|
$
|
134,762
|
$
|
230,979
|
||||
|
Conversion of notes payable and accrued interest to Common Stock
|
$
|
-
|
$
|
764,938
|
||||
|
Conversion of notes payable and accrued interest to Series C preferred stock
|
$
|
1,214,206
|
$
|
-
|
||||
|
Warrants issued in connection with Series B Preferred Offering
|
$
|
-
|
$
|
616,411
|
||||
|
Warrants issued in connection with Series C Preferred Offering
|
$
|
2,370,141
|
$
|
-
|
||||
The accompanying notes are an integral part of these condensed consolidated financial statements.