Financial Performance - Net sales for Q3 2024 were $6.8 million, down 42% from $11.9 million in Q3 2023, primarily due to production limitations and short shipments impacting sales by over $4 million[3][6] - Gross profit decreased to $1.2 million with a gross margin of 18.0%, compared to $4.0 million and 34.0% in the same quarter last year[3][7] - Selling, general and administrative expenses rose to $3.1 million, representing 46% of net sales, compared to $2.3 million or 19% in Q3 2023[3][9] - The company reported an operating loss of $3.1 million, compared to a loss of $0.1 million in the prior year[3][9] - Modified EBITDA was $(3.0) million in Q3 2024, down from $0.2 million in Q3 2023[3][10] - Net loss for the nine months ended September 30, 2024, was $9,035 million, compared to a net loss of $8,927 million for the same period in 2023, indicating a slight increase in losses[29] - Modified EBITDA for the nine months ended September 30, 2024, was $(3,323) million, compared to $(3,711) million for the same period in 2023, showing an improvement in core operating performance[32] Cash Flow and Liquidity - The company generated approximately $1.1 million in cash from operating activities, a significant improvement from cash used of $1.8 million in Q3 2023[11] - Cash at the end of the period decreased from $1,004 million to $306 million, reflecting a net decrease of $698 million[29] - Proceeds from the line of credit amounted to $24,878 million, while payments on the line of credit were $29,367 million, resulting in a net cash outflow from financing activities[29] - The company has secured a new $10 million revolving credit facility with an interest rate of 8% to improve liquidity and inventory levels[2][4] - The majority stockholder, D&D, has acquired all outstanding secured notes, enhancing the company's liquidity position[2][4] Debt and Liabilities - As of September 30, 2024, total debt was approximately $27.1 million, including $21.8 million from a convertible note and $5.4 million from a revolving line of credit[12] - Current liabilities increased significantly from $27,190 million to $36,986 million, marking an increase of about 36%[27] - The company reported a significant increase in the current portion of convertible notes payable, rising from $6,737 million to $21,751 million, reflecting a change in debt structure[27] - Total stockholders' deficit increased from $(19,181) million to $(21,953) million, indicating a deterioration in the company's equity position[27] - Interest expense for the nine months ended September 30, 2024, was $4,578 million, slightly higher than $4,459 million for the same period in 2023, reflecting ongoing financing costs[32] Inventory Management - Due to ongoing inventory challenges, the company has withdrawn its previously issued FY 2024 financial outlook[13] - Inventory write-downs for the nine months ended September 30, 2024, totaled $825 million, compared to $205 million in the same period of 2023, indicating increased challenges in inventory management[29] Asset Management - Total assets decreased from $18,883 million on December 31, 2023, to $15,033 million on September 30, 2024, representing a decline of approximately 20%[27]

Financial Performance - For the three months ended June 30, 2024, gross billing increased by 22% to $13,584,000 compared to $11,164,000 in the same period of 2023[93]. - Net sales for the same period rose by 19% to $11,874,000 from $10,005,000 year-over-year[93]. - Gross profit for the three months ended June 30, 2024, was $3,831,000, representing a 53% increase compared to $2,509,000 in the prior year[93]. - Core brand gross billing increased by 22% to $13,584 compared to $11,095 during the same period last year, driven by a 16% increase in Reed's volume and a 21% increase in Virgil's volume[99]. - Net sales revenue increased 19% in the three months ended June 30, 2024, to $11,874, compared to $10,005 in the same period last year[100]. - Cost of goods sold as a percentage of net sales decreased to 68% for the three months ended June 30, 2024, compared to 75% for the same period last year[101]. - Gross margin improved to 32% for the three months ended June 30, 2024, compared to 25% for the same period last year[102]. - Modified EBITDA for the three months ended June 30, 2024, was $45, compared to a loss of $1,606 in the same period last year[110]. - Net loss for the six months ended June 30, 2024, was $4,885, a 35% improvement compared to a net loss of $7,491 in the same period last year[112]. - Modified EBITDA for the six months ended June 30, 2024, was $(325) million, an improvement from $(3,871) million in the same period last year, with total EBITDA adjustments amounting to $4,560 million[130]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $4,500,000, a 6% increase from $4,256,000 in the same period of 2023[93]. - Delivery and handling expenses decreased by $263 to $1,423, representing 12% of net sales in the three months ended June 30, 2024, down from 17% in the same period last year[103]. - Selling and marketing expenses decreased to $1,097 during the three months ended June 30, 2024, compared to $1,259 during the same period last year, representing 9% of net sales[104]. - General and administrative expenses increased to $1,980 from $1,311, representing 17% of net sales in the three months ended June 30, 2024[105]. - Total selling and marketing expenses decreased to $2,190 million for the six months ended June 30, 2024, from $2,706 million in the same period last year, representing 10% of net sales compared to 13% previously[124]. - General and administrative expenses increased to $3,448 million for the six months ended June 30, 2024, up from $3,020 million, driven by higher legal settlements and professional fees[125]. Loss and Improvement - The company reported a loss from operations of $669,000 for Q2 2024, a 62% improvement compared to a loss of $1,747,000 in Q2 2023[93]. - Loss from operations improved to $669 for the three months ended June 30, 2024, compared to a loss of $1,747 in the same period last year[106]. - Loss from operations improved to $1,319 million for the six months ended June 30, 2024, compared to a loss of $4,325 million in the same period last year, due to increased gross profit and decreased operating expenses[126]. Cash Flow and Funding - The company recorded a net loss of $4,885 million and utilized $3,307 million of cash in operations for the six months ended June 30, 2024, with a working capital deficiency of $19,378 million[131]. - As of June 30, 2024, the company had a cash balance of $326 million and no availability under its line of credit[132]. - The company is exploring various funding alternatives, including raising additional funds through equity issuance and restructuring debt with existing lenders[133]. Strategic Focus and Challenges - The company continues to focus on channel expansion, new product introductions, and improved sales execution to drive sales growth[88]. - Supply chain challenges, including increased lead times and inflation of raw materials, continue to pose risks to the company's operations[89]. - The company anticipates continued moderation in inflation throughout 2024, which may positively impact margins[90]. - The company has taken actions to improve margins by outsourcing manufacturing, streamlining the product portfolio, and negotiating better vendor contracts[134]. - The financial statements raise substantial doubt about the company's ability to continue as a going concern within one year due to significant losses and working capital deficiencies[131].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-32501 REED'S, INC. (Exact name of registrant as specified in its charter) (State of incorporation) Delaware 35-2177773 (I.R.S. Employer Identificati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-32501 REED'S, INC. (Exact name of registrant as specified in its charter) 201 Merritt 7, Norwalk, CT 06851 (Address of principal e ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q REED'S, INC. (Exact name of registrant as specified in its charter) incorporation) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (I.R.S. Employer Identification No.) For the quarterly period ended September 30, 2023 201 Merritt 7, Norwalk, CT. 06851 (Address of principal executive offices) (Zip Code) ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 For the transiti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-32501 REED'S, INC. (Exact name of registrant as specified in its charter) (State of incorporation) Delaware 35-2177773 (I.R.S. Employer Identificatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-32501 REED'S, INC. (Exact name of registrant as specified in its charter) (State of incorporation) Delaware 35-2177773 201 Merritt 7, Norwalk, CT. 0 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-32501 REED'S, INC. (Exact name of registrant as specified in its charter) Delaware 35-2177773 (State of incorporation) (I.R.S. Emp ...