Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: May 14, 2019
Event: Announcement of 2019 First Quarter results of operations and financial condition.
Key Financial Metrics
The provided filing text serves as a cover document referencing a press release (Exhibit 99.1) and does not contain specific numerical data for revenue, profit, cash flow, margins, debt, or liquidity. The filing states that a reconciliation of Modified EBITDA to net income is included in the accompanying financial schedules of the press release, but those schedules are not present in the source text.
Non-GAAP Measure: The Company utilizes "Modified EBITDA" as a supplemental performance measure, defined as net income plus interest expense, depreciation and amortization, stock-based compensation, changes in fair value of warrant expense, and one-time restructuring-related costs.
Material Changes
The filing text does not provide specific comparative data or material changes versus the prior period. It references a conference call to discuss results, but the specific outcomes of that discussion are not detailed in this document.
Guidance, Outlook, and Risks
Forward-Looking Statements: The filing includes standard disclaimers regarding forward-looking statements (e.g., goals, strategies, expectations). Actual results may 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
- Verify the specific Q1 2019 revenue, net income, and Modified EBITDA figures in the press release (Exhibit 99.1) referenced in this filing.
- Review the reconciliation of Modified EBITDA to net income to understand the magnitude of non-GAAP adjustments.
- Check the upcoming Form 10-Q (expected around April 14, 2019, per the text, though the filing date is May 2019) for audited or reviewed financial statements.
- Assess the impact of fuel and freight costs on future margins as highlighted in the risk factors.
- Confirm the status of dependence on third-party brewers and distributors.