SYS-CON MEDIA Authors: Carmen Gonzalez, Yeshim Deniz, Nikita Ivanov, Sean Houghton, Glenn Rossman

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True Drinks Announces First Quarter 2014 Financial Results

IRVINE, CA--(Marketwired - May 13, 2014) - True Drinks, Inc. (OTCQB: 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 March 31, 2014.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "True Drinks made some significant strides in the first quarter of 2014. We completed our Series B financing which enabled us to significantly improve our balance sheet, as well as providing us with the capital necessary to prepare for our expansion into new packages and new channels in 2014. We introduced six packs of all of our flavors in February, and we have completed the development of our mixed club pack for introduction in the second quarter. We began to focus on consumption and sell-thru, and as planned, saw the increase in off-take in March. We are also prepared to begin sharing our message that we are the healthiest beverage available with parents across the nation, and we anticipate this to increase brand awareness and sales."

Achievements in First Quarter of 2014:

  • Finished development and commenced shipping of six packs in our four current flavors, fruit punch, grape, berry and orange;
  • Completed the remainder of our $8.0 Series B Preferred financing;
  • Developed mixed club pack for introduction in second quarter of 2014.

We will hold a conference call to discuss Q1 2014 financial results and to give a shareholder update today, Tuesday, May 13, 2014 at 4:30PM EDT / 1:30PM PDT.

First Quarter 2014 Financial Results Conference Call Details:
Date: Tuesday, May 13, 2014
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, Inc. is a beverage company with licensing agreements with major entertainment and media companies for use of their characters on its proprietary, patented bottles. AquaBall™ Naturally Flavored Water, the Company's vitamin-enhanced water that was created as a 0 calorie, sugar-free alternative to juice and soda for kids, is currently being sold into mass-market retailers throughout the United States. For more information, please visit www.theaquaball.com and www.truedrinks.com

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.

                                                                            
                             TRUE DRINKS, INC.                              
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                   March 31,   December 31, 
                                                     2014          2013     
                                                 ------------  ------------ 
                     ASSETS                       (Unaudited)               
Current Assets:                                                             
Cash                                             $  2,928,222  $  3,136,766 
Accounts receivable, net                              307,920       175,068 
Inventory                                           1,236,794     1,056,756 
Prepaid expenses and other current assets             549,069       591,434 
                                                 ------------  ------------ 
Total Current Assets                                5,022,005     4,960,024 
                                                                            
Restricted Cash                                       133,065       133,065 
Property and Equipment, net                             7,218         8,399 
Patents, net                                        1,317,647     1,352,941 
Trademarks, net                                        36,016        48,516 
Goodwill                                            3,474,502     3,474,502 
                                                 ------------  ------------ 
Total Assets                                     $  9,990,453  $  9,977,447 
                                                 ============  ============ 
                                                                            
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
                                                                            
Current Liabilities:                                                        
Accounts payable and accrued expenses            $    938,450  $  1,222,404 
Convertible notes payable, net                         25,000       680,000 
Term loan                                           1,666,667     1,916,667 
Derivative liabilities                              4,360,969     1,619,021 
                                                 ------------  ------------ 
Total Current Liabilities                           6,991,086     5,438,092 
                                                                            
Commitments and Contingencies (Note 5)                                      
                                                                            
Stockholders' Equity:                                                       
Common Stock, $0.001 par value, 40,000,000                                  
 shares authorized, 34,476,822 and 27,855,587                               
 shares outstanding at March 31, 2014 and                                   
 December 31, 2013, respectively                       34,477        27,886 
Preferred Stock - Series B (liquidation                                     
 preference of $4 per share), $0.001 par value,                             
 2,750,000 shares authorized, 2,082,870 and                                 
 1,776,923 shares outstanding at March 31, 2014                             
 and December 31, 2013, respectively                    2,082         1,777 
Additional paid in capital                         16,808,055    14,751,170 
Accumulated deficit                               (13,845,247)  (10,241,478)
                                                 ------------  ------------ 
                                                                            
Total Stockholders' Equity                          2,999,367     4,539,355 
                                                 ------------  ------------ 
                                                                            
Total Liabilities and Stockholders' Equity       $  9,990,453  $  9,977,447 
                                                 ============  ============ 
                                                                            
 The accompanying notes are an integral part of these financial statements. 
                                                                            
                                                                            
                             TRUE DRINKS, INC.                              
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (Unaudited)                                 
                                                                            
                                                     Three Months Ended     
                                                          March 31,         
                                                 -------------------------- 
                                                     2014          2013     
                                                 ------------  ------------ 
                                                                            
Net Sales                                        $    650,532  $    410,801 
                                                                            
Cost of Sales                                         529,301       263,950 
                                                 ------------  ------------ 
                                                                            
Gross Profit                                          121,231       146,851 
                                                                            
Operating Expenses                                                          
  Selling and marketing                               570,528       430,486 
  General and administrative                          991,806     1,045,064 
                                                 ------------  ------------ 
    Total operating expenses                        1,562,334     1,475,550 
                                                 ------------  ------------ 
                                                                            
Operating Loss                                     (1,441,103)   (1,328,699)
                                                                            
Other Expense                                                               
  Change in fair value of derivative liabilities   (2,125,537)            - 
  Interest expense                                    (37,129)     (228,199)
                                                 ------------  ------------ 
                                                   (2,162,666)     (228,199)
                                                 ------------  ------------ 
                                                                            
Net Loss                                         $ (3,603,769) $ (1,556,898)
                                                 ============  ============ 
                                                                            
Declared dividends on Preferred Stock                 133,204             - 
                                                 ------------  ------------ 
                                                                            
Net Loss attributed to common stockholders       $ (3,603,769) $ (1,556,898)
                                                 ============  ============ 
                                                                            
Loss per common shared                                                      
  Basic and diluted net loss per share           $      (0.13) $      (0.06)
                                                 ============  ============ 
                                                                            
                                                                            
Weighted average common shares outstanding,                                 
 basic and diluted                                 27,902,154    26,810,744 
                                                 ============  ============ 
                                                                            
 The accompanying notes are an integral part of these financial statements. 
                                                                            
                                                                            
                             TRUE DRINKS, INC.                              
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                (Unaudited)                                 
                                                    Three Months Ended      
                                                        March 31,           
                                               ---------------------------- 
                                                   2014           2013      
                                               -------------  ------------- 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
  Net loss                                     $  (3,603,769) $  (1,556,898)               
  Adjustments to reconcile net loss to net                                  
   cash used in operating activities                                        
    Depreciation                                       3,530          6,226 
    Amortization                                      47,794         47,795 
    Change in estimated fair value of                                       
     derivative                                    2,125,537              - 
    Fair value of stock issued for services           39,875        195,600 
    Stock based compensation                         123,364        436,403 
    Changes in operating assets and                                         
     liabilities:                                                           
      Accounts receivable                           (132,852)       (50,775)
      Inventory                                     (180,038)       303,205 
      Prepaid expenses and other current                             
       assets                                         42,365        (17,367)
      Accounts payable and accrued expenses         (287,219)      (251,319)
                                               -------------  ------------- 
Net cash used in operating activities             (1,821,413)      (887,130)
                                                                            
CASH FLOWS FROM INVESTING ACTIVITIES:                                       
  Change in restricted cash                                -            262 
  Purchase of property and equipment                  (2,349)             - 
                                               -------------  ------------- 
Net cash (used in) provided by investing                                    
 activities                                           (2,349)           262 
                                                                            
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Dividends paid                                      (2,194)             - 
  Proceeds from issuance of Series B Preferred                              
   Stock, net                                      1,887,412              - 
  Proceeds from convertible notes payable                  -      1,049,000 
  Repayments on convertible notes payable            (20,000)      (135,000)
  Repayments on term loan                           (250,000)             - 
                                               -------------  ------------- 
Net cash provided by financing activities          1,615,218        914,000 
                                               -------------  ------------- 
                                                                            
NET (DECREASE) INCREASE IN CASH                     (208,544)        27,132 
                                                                            
CASH - beginning of period                         3,136,766          4,449 
                                               -------------  ------------- 
                                                                            
CASH - end of period                           $   2,928,222  $      31,581 
                                               =============  ============= 
                                               
SUPPLEMENTAL DISCLOSURES                                                    
Interest paid in cash                          $       7,944  $      13,795 
                                               =============  ============= 
Non-cash financing and investing activities:                                
Conversion of preferred stock to common stock  $       6,033  $      25,304 
                                               =============  ============= 
Conversion of notes payable and accrued                                     
 interest to common stock                      $     764,938  $           - 
                                               =============  ============= 
Dividends declared but unpaid                  $     133,204  $             
                                               =============  ============= 
Warrants issued in connection with Series B                                 
 Preferred Offering                            $     616,411  $           - 
                                               =============  ============= 
                                                                            
 The accompanying notes are an integral part of these financial statements. 
                                                                            

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