True Drinks Provides Shareholder Update and Announces 2012 Financial Results

Management to Host Shareholder Update Conference Call on Wednesday, April 17th at 4:15 p.m. Eastern

Marketwired

IRVINE, CA--(Marketwired - April 08, 2013) -  True Drinks, Inc. (TRUU), a healthy beverage provider with major entertainment and media company licensing agreements for use of their characters on its proprietary, patented bottles, provides shareholders with an update on the national distribution milestones of its healthy, great tasting, vitamin-enhanced water for kids and young adults, AquaBall™ (www.theaquaball.com) and announces its financial results for the year ending December 31, 2012. Management will host a shareholder update conference call on Wednesday, April 17th at 4:15 p.m. Eastern.

Lance Leonard, Chief Executive Officer of True Drinks, commented, "Since rolling out AquaBall™ Naturally Flavored Water in July 2012, we have made significant strides in all major aspects of our business including building brand recognition, achieving national distribution, increasing production and operating efficiencies culminating with revenue generation of approximately $1.0 million in 2012. After initial sales success with our original formula which contained 30 calories and 7 grams of sugar, we made a strategic decision to develop and launch a great-tasting, zero-calorie, sugar-free formulation. We introduced our new formula to retailers in the first quarter of 2013, and we are gaining traction with the improved positioning of our product as arguably the healthiest beverage for children on the market today. We had sales of approximately $280,000 for the first three months of 2013. We are shipping nationally to a variety of retailers, including Safeway and Toys 'R' Us. By the end of the first quarter of 2013, we achieved distribution to over 4,000 locations around the United States. As the sales cycle on our new formulation has gained traction, we currently have commitments for distribution to more than 14,000 locations by the end of the second quarter with further commitments pending final confirmation. Our goal is to achieve distribution to over 38,000 locations by the end of 2013."

AquaBall™ National Distribution Milestones:

  • Began selling AquaBall™ Naturally Flavored Water in July 2012;
  • 2012 revenue totaled $1.0 million;
  • Launched Zero Calorie, No Sugar formula in January 2013;
  • 2013 First quarter revenue approximately $280,000;
  • Modesto, California and Dallas, Texas co-packer locations have capacity to produce 167,000 cases month;

Mr. Leonard continued, "In less than one year, True Drinks has rapidly evolved in all aspects of the business. Our goal of increasing production, developing and expanding both domestically and internationally, as well as communicating our message of healthy hydration, positions us well and puts us on track to exceed our 2013 goals. We look forward to updating shareholders as milestones are achieved."

Strategic Initiatives for 2013:

  • Third co-packer in Northeast to become available in second half of 2013;
  • Two new flavors, strawberry lemonade and berry;
  • Achieve distribution to 38,000 locations throughout United States
  • Begin sales to Central America, the Caribbean and Canada

Shareholder Update Conference Call Details:
Conference Call Details:
Date: Wednesday, April 17, 2013
Time: 4:15 p.m. Eastern
Participant Dial-In: (480) 629-9664
Live Webcast: http://truedrinks.com/investor-relations/ or http://public.viavid.com/index.php?id=104094

It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:15 p.m. Eastern call. There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available under the Investor Relations section of the company website at http://truedrinks.com/investor-relations/ or by clicking on the following link, http://public.viavid.com/index.php?id=104094.

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.  
Consolidated Balance Sheet  
As of December 31, 2012  
     
ASSETS  
     
Current Assets      
  Cash $ 4,449  
  Accounts receivable, net   130,909  
  Inventory   832,874  
  Prepaid expenses and other current assets   268,716  
  Total current assets   1,236,948  
       
Restricted Cash   81,270  
Property and Equipment, net   25,399  
Patents, net   1,494,118  
Trademarks, net   98,516  
Goodwill   3,474,502  
Other Assets   3,948  
       
  Total assets $ 6,414,701  
       
LIABILITIES AND STOCKHOLDERS' EQUITY  
       
Liabilities      
  Accounts payable and accrued expenses $ 1,292,147  
  Notes payable   772,000  
  Total liabilities   2,064,147  
       
Commitments and Contingencies (Note 8)      
       
Stockholders' Equity      
  Common Stock   1,337  
  Preferred Stock   1,545  
  Additional Paid in Capital   7,467,015  
  Returned Earnings   (3,119,343 )
       
  Total stockholders' equity   4,350,554  
       
  Total Liabilities and Stockholders' Equity $ 6,414,701  
       
The accompanying notes are an integral part of the financial statements.  
   
   
   
   
True Drinks, Inc.  
Condensed Consolidated Statement of Operations  
For theYear Ended December 31, 2012  
       
Net Sales $ 1,021,908  
       
Cost of Sales   749,529  
       
Gross (Loss) Profit   272,379  
       
Operating Expenses      
  Selling and marketing   692,242  
  General and administrative   2,580,985  
      Total operating expenses   3,273,227  
       
Operating Loss   (3,000,848 )
       
Other Income (Expense)      
  Interest (expense)   (119,942 )
  Other income (expense)   1,447  
    (118,495 )
       
Net Loss $ (3,119,343 )
       
Net loss per common share      
    Basic and diluted net loss per share $ (0.14 )
       
Weighted average common shares      
    outstanding, basic and diluted (1)   22,757,712  
       
The accompanying notes are an integral part of the financial statements.  
       
(1) The weighted average common shares number was calculated based on as-converted to common stock figures for the preferred stock that was granted to shareholders of True Drinks, Inc. upon the merger with Bazi Intl. on October 15, 2012. The 100 for 1 reverse stock split executed on January 18, 2013 was retrospectively reflected in weighted average common shares outstanding.  
   
   
   
   
True Drinks, Inc.  
Condensed Consolidated Statement of Cash Flows  
For the Year Ended December 31, 2012  
       
CASH FLOWS FROM OPERATING ACTIVITIES      
  Net loss $ (3,119,343 )
  Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation   8,668  
    Amortization   114,215  
    Provision for bad debt expense   54,396  
    Stock issued to founders   855  
    Fair value of stock issued for services   276,300  
    Stock based compensation   163,055  
    Changes in operating assets and liabilities:      
      Accounts receivable   (185,305 )
      Inventory   (785,874 )
      Prepaid expenses and other current assets   (268,716 )
      Other assets   (3,948 )
      Accounts payable and accrued expenses   (306,692 )
Net cash used in operating activities   (4,052,389 )
       
CASH FLOWS FROM INVESTING ACTIVITIES:      
  Change in restricted cash   (81,270 )
  Purchase of property and equipment   (7,671 )
  Purchase of trademarks   (6,849 )
Net cash used in investing activities   (95,790 )
       
CASH FLOWS FROM FINANCING ACTIVITIES      
  Proceeds from issuance in common stock   3,374,982  
  Proceeds from notes payable issued to related parties   772,000  
Net cash provided by financing activities   4,146,982  
       
CASH OF ACQUIRED COMPANY   5,646  
       
NET INCREASE IN CASH   4,449  
       
CASH - beginning of year   -  
       
CASH - end of year $ 4,449  
       
The accompanying notes are an integral part of the financial statements.  
   
   
Contact:

Investor Relations
True Drinks, Inc.
18552 MacArthur Blvd., Ste. 325
Irvine, CA 92612
ir@truedrinks.com
949-203-3500

Alliance Advisors, LLC
Alan Sheinwald
(914) 669-0222
asheinwald@allianceadvisors.net

Valter Pinto
(914) 669-0222 x201
valter@allianceadvisors.net
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