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True Drinks Announces First Quarter 2014 Financial Results


May 13, 2014 - IRVINE, CA

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: ï»¿Tuesday, May 13, 2014
Time: ï»¿4:30PM Eastern / 1:30PM Pacific
Participant Dial-In: ï»¿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. 

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

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