Attached files
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| 8-K - Charlie's Holdings, Inc. | form8k-11132015_041107.htm |
Exhibit 99.1
True Drinks Announced Q3’2015 Financial Results
IRVINE, CA – (Marketwire – November 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 third quarter of 2015.
Achievements in Third Quarter of 2015:
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·
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Revenues for Third Quarter up 24% over year ago period;
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·
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Agreed to Bottling Agreement with Niagara Bottling LLC which was signed in October.
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·
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Extended Disney Licensing Agreement through March 2017;
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·
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Extended Marvel Licensing Agreement through December 2017
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·
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New Distribution agreements with Savemart Stores, Food Maxx, and B&B Distributors
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·
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Same store sales grew from $20.56 per store per week to $48.32 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, “This past quarter, we have focused on one objective, to improve supply chain efficiency and create supply to meet our demand. With the announcement of our partnership with Niagara Bottling, we have accomplished this goal. We now have the product availability that will allow us to go after high-volume retailers and enter into new channels such as natural foods, schools and casual dining.” He added, “Our same stores sales are strong and our ability to capture more consumers with our healthy kids drink has never been stronger, and we anticipate tripling our business in 2016 with the added capacity.”
Kevin Sherman, Chief Marketing Officer of True Drinks, added, “The significance of AquaBall's new clean label and preservative free formulation can not be overlooked. The simplicity of the ingredient list, comprised of only four ingredients (purified water, stevia, vitamins and natural fruit flavors) only further differentiates the brand as the true leader in healthy beverages for children. Consumers want nutrition to be simplified, and we have accomplished this with our new formulation for children.”
Dan Kerker, Chief Financial Officer, commented, “Operational improvements have been a focus for True Drinks. Our partnership with Niagara not only provides us with hot-fill capabilities, but our cost of goods sold will decrease by over 15% and will be consistent moving forward. Our working capital needs will be greatly reduced as we will be purchasing finished goods as they ship rather than procuring raw materials. Additional savings come from the elimination of storage expenses and the reduction of freight expenses, as we will be able to ship 69% more bottles per truckload. These improvements will allow True Drinks to focus our resources more on the sales and marketing of AquaBall.”
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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September 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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$
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92,032
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$
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668,326
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||||
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Accounts receivable, net
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500,448
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343,709
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||||||
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Inventory
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2,267,340
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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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241,907
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628,675
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||||||
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Total Current Assets
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3,101,727
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3,004,153
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||||||
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Restricted Cash
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209,308
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133,198
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||||||
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Property and Equipment, net
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2,118
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4,587
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||||||
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Patents, net
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1,105,882
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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
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3,474,502
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||||||
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Total Assets
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$
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7,893,537
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$
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7,835,054
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||||
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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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$
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1,695,963
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$
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1,922,285
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||||
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Debt
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967,008
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4,263,002
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||||||
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Derivative liabilities
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3,678,321
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1,569,522
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||||||
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Total Current Liabilities
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6,341,292
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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, 106,352,235 and 48,622,675 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively
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106,352
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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 September 30, 2015 and December 31, 2014, respectively
|
1,343
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1,491
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||||||
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Preferred Stock – Series C (liquidation preference $100 per share), $0.001 par value, 115,000 and 50,000 shares authorized, 25,250 and 0 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively
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25
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-
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||||||
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Additional paid in capital
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26,626,610
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18,388,212
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Accumulated deficit
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(25,182,085
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)
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(18,358,081
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)
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Total Stockholders’ Equity
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1,552,245
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80,245
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||||||
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Total Liabilities and Stockholders’ Equity
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$
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7,893,537
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$
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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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
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2015
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2014
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2015
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2014
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|||||||||||||
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Net Sales
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$
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1,323,730
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$
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1,064,065
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$
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4,172,626
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$
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2,875,739
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||||||||
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Cost of Sales
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1,188,222
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977,324
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3,950,961
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2,473,018
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||||||||||||
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Gross Profit
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135,508
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86,741
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221,665
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402,721
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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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2,325,567
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1,085,405
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4,269,670
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2,661,279
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||||||||||||
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General and administrative
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1,006,486
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1,029,118
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3,302,782
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3,153,687
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||||||||||||
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Total operating expenses
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3,332,053
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2,114,523
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7,572,452
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5,814,966
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||||||||||||
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Operating Loss
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(3,196,545
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)
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(2,027,782
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)
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(7,350,787
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)
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(5,412,245
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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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1,079,335
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398,603
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749,943
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(1,343,495
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)
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|||||||||||
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Interest income (expense)
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(15,456
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)
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(37,037
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)
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(223,160
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)
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(88,286
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)
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||||||||
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1,063,879
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369,319
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526,783
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(1,431,781
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)
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||||||||||||
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NET LOSS
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$
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(2,132,666
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)
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$
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(1,666,216
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)
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$
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(6,824,004
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)
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$
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(6,844,026
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)
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Declared dividends on Preferred Stock
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$
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68,636
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$
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148,181
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$
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203,397
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$
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148,181
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||||||||
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Net loss attributable to common stockholders
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$
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(2,201,302
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)
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$
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(1,814,397
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)
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$
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(7,027,401
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)
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$
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(6,992,207
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)
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||||
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Loss per common share, basic and diluted
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$
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(0.02
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)
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$
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(0.05
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)
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$
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(0.11
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)
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$
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(0.21
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)
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||||
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Weighted average common shares outstanding, basic and diluted
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88,086,922
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38,920,319
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64,289,691
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33,939,850
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||||||||||||
The accompanying notes are an integral part of these financial statements.
TRUE DRINKS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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Nine Months Ended
September 30,
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||||||||
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2015
|
2014
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|||||||
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CASH FLOWS FROM OPERATING ACTIVITIES
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||||||||
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Net loss
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$
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(6,824,004
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)
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$
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(6,844,026
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)
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||
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Adjustments to reconcile net loss to net cash used in operating activities
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||||||||
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Depreciation
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2,469
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5,283
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||||||
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Amortization
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112,732
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143,383
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||||||
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Provision for bad debt expense
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(51,769)
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|||||||
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Change in estimated fair value of derivative
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(749,943
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)
|
1,343,495
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|||||
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Fair value of common stock issued for services
|
470,062
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171,464
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||||||
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Stock based compensation
|
453,491
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368,172
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||||||
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Change in operating assets and liabilities:
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||||||||
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Accounts receivable
|
(104,970
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)
|
(202,693
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)
|
||||
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Restricted cash
|
(76,110
|
)
|
(66
|
)
|
||||
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Inventory
|
(903,897
|
)
|
(766,866
|
)
|
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Prepaid expenses and other current assets
|
386,768
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6,996
|
||||||
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Accounts payable and accrued expenses
|
(142,177
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)
|
1,317,696
|
|||||
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Net cash used in operating activities
|
(7,427,348
|
)
|
(4,457,162
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)
|
||||
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CASH FLOWS FROM INVESTING ACTIVITIES
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||||||||
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Purchase of property and equipment
|
-
|
(2,349
|
)
|
|||||
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Net cash used in investing activities
|
-
|
(2,349
|
)
|
|||||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
|
Dividends paid
|
-
|
(2,194
|
)
|
|||||
|
Proceeds from issuance of Series B Preferred Stock, net
|
-
|
1,887,413
|
||||||
|
Proceeds from issuance of Series C Preferred Stock
|
9,000,048
|
-
|
||||||
|
Borrowings on debt
|
1,035,792
|
1,432,136
|
||||||
|
Repayments on debt
|
(3,184,786
|
)
|
(1,936,667
|
)
|
||||
|
Net cash provided by financing activities
|
6,851,054
|
1,380,688
|
||||||
|
NET DECREASE IN CASH
|
(576,294
|
)
|
(3,078,823
|
)
|
||||
|
CASH- beginning of period
|
$
|
668,326
|
$
|
3,136,766
|
||||
|
CASH- end of period
|
$
|
92,032
|
$
|
57,943
|
||||
|
SUPPLEMENTAL DISCLOSURES
|
||||||||
|
Interest paid in cash
|
$
|
137,556
|
$
|
7,944
|
||||
|
Non-cash financing and investing activities:
|
||||||||
|
Conversion of preferred stock to common stock
|
$
|
54,034
|
$
|
8,621
|
||||
|
Cashless exercise of warrants
|
$
|
-
|
$
|
44,751
|
||||
|
Dividends paid in common stock
|
$
|
203,397
|
$
|
247,255
|
||||
|
Dividends declared but unpaid
|
$
|
68,636
|
$
|
148,181
|
||||
|
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
|
$
|
-
|
||||
|
Common stock issued for accrued expenses
|
$
|
-
|
$
|
487,650
|
||||
|
Warrants issued in connection with Series B Preferred Offering
|
$
|
-
|
$
|
616,411
|
||||
|
Warrants issued in connection with Series C Preferred Offering
|
$
|
2,858,742
|
$
|
-
|
||||
The accompanying notes are an integral part of these condensed consolidated financial statements.