Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date: August 26, 2016
Business Description: Leading maker of craft sodas nationwide.
Event: Notice regarding NYSE continued listing status and acceptance of a compliance plan.
Key Financial Metrics
The filing references specific historical financial data related to listing compliance but does not provide current period revenue, profit, or cash flow figures.
- Stockholders' Deficit: $(581,000) as of March 31, 2016.
- Net Losses: Reported in the five most recent fiscal years ended December 31, 2015.
- Other Metrics: Revenue, profit, cash flow, margins, debt, and liquidity figures for the current period are not provided in this filing.
Material Changes and Listing Status
The Company previously received notice on June 28, 2016, that its common stock was not in compliance with NYSE continued listing standards (Sections 1003(a)(i), 1003(a)(ii), and 1003(a)(iii)) due to the stockholders' deficit and net losses.
Update: The NYSE reviewed the Company's July 20, 2016 plan and determined to accept it. The Company has been granted a plan period through December 22, 2017, to regain compliance.
Guidance, Outlook, and Risks
Outlook: The acceptance of the compliance plan allows the Company to maintain its listing on the NYSE MKT through December 22, 2017, provided it meets the plan's requirements.
Risks: Failure to satisfy the continued listing standards or the terms of the compliance plan could result in delisting.
Unusual Items: The filing notes the release of a press release (Exhibit 99.1) concurrent with this report.
Investor Verification Checklist
- Verify the specific milestones and financial targets outlined in the July 20, 2016 compliance plan accepted by the NYSE.
- Review the attached press release (Exhibit 99.1) for additional details on the Company's strategy to address the stockholders' deficit.
- Monitor upcoming quarterly reports to assess progress toward eliminating the stockholders' deficit and achieving profitability.
- Confirm the Company's ability to meet the December 22, 2017 deadline to avoid potential delisting.