Reeds, Inc.(REED) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 net sales were $9.7 million, down 17% from$ 11.7 million in Q4 2023, primarily due to short order shipments from prior inventory constraints[4] - Q4 2024 gross profit increased to $2.9 million, up more than 5x from$ 0.5 million in Q4 2023, with a gross margin of 30.0% compared to 4.0%[4] - FY 2024 net sales totaled $38.0 million, a decrease of 15% from$ 44.7 million in FY 2023, while gross profit rose 18% to $11.4 million with a gross margin of 30.0%[4] - Operating loss improved to$ 3.7 million in Q4 2024 from $4.9 million in Q4 2023, with modified EBITDA at$ (0.7) million compared to $43,000 in the prior year[11] - Net loss for the year ended December 31, 2024, was$ 13,152 million, an improvement from a net loss of $15,523 million in 2023, reflecting a reduction of 15.3%[28] - Modified EBITDA for the year ended December 31, 2024, was$ (4,070) million, compared to $(3,668) million in 2023, indicating a decline in core operating performance[31] Cost Management - Delivery and handling costs per case decreased by 10% to$ 3.00 in Q4 2024, down from $2.82 in Q4 2023[10] - Total liabilities decreased to$ 18,492 million in 2024 from $38,064 million in 2023, a reduction of 51.5%[26] - Accounts payable decreased to$ 6,956 million from $9,133 million, a decline of 23.9%[26] - Inventory write-downs were recorded at$ 277 million in 2024, compared to $955 million in 2023, showing a decrease of 70.9%[28] Capital and Financing - The company closed a$ 10 million private placement in Q4 2024, enhancing its capital for inventory, personnel, and marketing[5] - Cash at the end of the period increased significantly to $10,391 million from$ 603 million, a rise of 1,623.9%[28] - Proceeds from the line of credit amounted to $29,195 million in 2024, down from$ 43,836 million in 2023, a decrease of 33.6%[28] Leadership and Strategy - The company appointed Douglas W. McCurdy as CFO and Salvatore Vassallo as Vice President of Operations to enhance leadership in finance and operations[6] - The company aims for accelerated growth and profitability in 2025, supported by a de-leveraged balance sheet and improved financial flexibility[7] Asset Management - Total assets increased to $25,140 million as of December 31, 2024, up from$ 18,883 million in 2023, representing a growth of 33.5%[26] - Current assets rose to $23,311 million, compared to$ 17,761 million in the previous year, marking a 31.2% increase[26] Product Development - A new multi-functional beverage line is set to launch in April 2025, with over 8,000 points of distribution secured across key retailers[7] Shareholder Activity - The company issued 22,478 million common shares upon conversion of convertible notes payable in 2024, compared to no such issuance in 2023[28]