Business Context and Reporting Period
This Form 8-K is a current report filed by REED's, INC. on April 26, 2017, covering events that occurred on April 24, 2017. The filing addresses regulatory compliance status with the New York Stock Exchange (NYSE) and corrects a material statement made during an investor conference call regarding first-quarter 2017 sales performance.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses on regulatory status and a qualitative correction of sales trends rather than reporting new financial data.
Material Changes and Corrections
- NYSE Compliance: The Company received notice from the NYSE that it is back in compliance with continued listing standards (Sections 134 and 1101 of the NYSE MKT Company Guide). This deficiency was resolved following the filing of the Form 10-K for the fiscal year ended December 31, 2016.
- Sales Mix Correction: During an investor conference call on April 24, 2017, management incorrectly stated that sales for the Reed's and Virgil's brands improved in the first quarter of 2017. This filing clarifies that sales for both brands were actually down during the first quarter.
Guidance, Outlook, and Risks
The filing does not contain updated financial guidance or forward-looking projections. The primary risk addressed is the correction of a misleading statement regarding brand performance, which clarifies that the sales mix outlook for the Reed's and Virgil's brands is weaker than previously communicated in the conference call.
Investor Verification Checklist
- Verify the Company's current listing status on the NYSE following the April 24, 2017 compliance notice.
- Review the Form 10-K filed on April 24, 2017, for the fiscal year ended December 31, 2016, to understand the financial context of the listing deficiency.
- Confirm the downward trend in first-quarter 2017 sales for the Reed's and Virgil's brands as corrected in this filing.
- Monitor future communications for updated revenue outlooks that reflect the corrected sales mix data.