Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date: August 13, 2018
Event: Announcement of Second Quarter 2018 Results of Operations and Financial Condition.
Key Financial Metrics
The filing serves as a notification of the Q2 2018 results and references a press release (Exhibit 99.1) for detailed figures. The text of this 8-K does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity.
Non-GAAP Measure: The Company utilizes "Modified EBITDA" as a supplemental performance metric. It is defined as net income (loss) adjusted for interest expense, depreciation and amortization, stock-based compensation, changes in fair value of warrant expense, and one-time employee severance costs.
Material Changes
Specific material changes in financial performance versus the prior comparable period are not detailed in this filing text. The document states that a reconciliation of Modified EBITDA to net income for the three months ended June 2018 and 2017 is included in the accompanying financial schedules of the press release.
Guidance, Outlook, and Risks
Outlook: The filing contains forward-looking statements regarding goals and strategies but explicitly states the Company undertakes no obligation to update these statements. Specific guidance numbers are not provided in this text.
Risks and Uncertainties: The Company identified several risks that could cause actual results to differ materially from projections, including:
- Difficulty in marketing products and services.
- Challenges in maintaining and protecting brand recognition.
- Need for significant capital.
- Dependence on third-party distributors and brewers.
- Increasing costs of fuel and freight.
- Intellectual property protection issues.
- Competition.
Investor Verification Checklist
- Review the full text of the press release (Exhibit 99.1) for specific Q2 2018 revenue and earnings figures.
- Examine the reconciliation of Modified EBITDA to net income to understand the magnitude of non-GAAP adjustments.
- Verify the upcoming Form 10-Q filing (expected on or about August 13, 2018) for audited financial statements.
- Assess the impact of fuel and freight cost increases on future margins.
- Confirm the status of capital needs and dependence on third-party partners.