Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: March 16, 2020
Reporting Period: Fiscal fourth quarter and full year ended December 31, 2019.
This filing serves as a notification that the Company issued a press release and conducted a conference call on March 12, 2020, to announce financial results for the period ended December 31, 2019. The actual financial data is contained in the attached press release (Exhibit 99.1) and conference call transcript (Exhibit 99.2), which are not included in the text of this 8-K.
Key Financial Metrics
The text of this Form 8-K does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are referenced as being available in the press release furnished as Exhibit 99.1.
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, changes in fair value of warrant expense, and one-time restructuring-related costs (including employee severance and asset impairment).
Material Changes
The filing does not detail specific material changes in financial metrics versus prior periods. It references the announcement of results for the fourth quarter and full year 2019 but does not summarize the variance or growth rates within this document.
Guidance, Outlook, and Risks
Forward-Looking Statements: The filing contains forward-looking statements regarding goals and strategies, identified by terms such as "expects," "should," "believes," and "anticipates." Management notes that actual results could differ materially due to various risks.
Identified Risks and Uncertainties:
- 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.
Management Commentary: Management considers core operating performance to be that which managers can affect through the management of resources affecting underlying revenue and profit. The Company undertakes no obligation to publicly update forward-looking statements.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated March 12, 2020) for specific revenue, net income, and cash flow figures for Q4 and FY 2019.
- Review Exhibit 99.2 (Conference Call Transcript) for management's detailed commentary on operational performance and future outlook.
- Verify the reconciliation of Net Income to Modified EBITDA to understand the impact of non-GAAP adjustments.
- Consult the most recent Form 10-K and Form 10-Q for a comprehensive discussion of risk factors and financial condition.