Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: March 28, 2018
Subject: Announcement of Fourth Quarter and Full Year 2017 Results of Operations and Financial Condition.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the press release furnished as Exhibit 99.1, which is referenced but not included in the provided text.
Non-GAAP Measure: The Company utilizes "Modified EBITDA" as a supplemental performance measure. It is defined as net income (loss) plus interest expense, depreciation and amortization, stock-based compensation, impairments, and changes in fair value of warrant expenses.
Material Changes
The filing text does not disclose specific material changes or comparative data versus prior periods. Investors are directed to the press release (Exhibit 99.1) and the upcoming Annual Report on Form 10-K for detailed financial comparisons.
Guidance, Outlook, and Risks
Outlook: The Company issued forward-looking statements regarding goals and strategies, noting that actual results could differ materially due to various risks.
Key Risks Identified:
- Difficulty in marketing products and services.
- Maintaining and protecting brand recognition.
- Need for significant capital.
- Dependence on third-party distributors and brewers.
- Increasing costs of fuel and freight.
- Protection of intellectual property.
- Competition.
Conference Call: A conference call was scheduled for March 28, 2018, at 4:30 pm Eastern Time to discuss the results.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific Q4 and Full Year 2017 revenue and earnings figures.
- Verify the reconciliation of Modified EBITDA to Net Income in the accompanying financial schedules.
- Monitor the upcoming Form 10-K filing (expected on or about April 2, 2018) for audited financial statements.
- Assess the impact of fuel and freight costs on future margins as highlighted in the risk factors.