Reeds Inc. (REED, Financial) filed Quarterly Report for the period ended 2010-03-31.
Reeds Inc. has a market cap of $22 million; its shares were traded at around $2.18 with and P/S ratio of 1.4.
General and administrative expense consists primarily of the cost of executive, administrative, and finance personnel, as well as professional fees. General and administrative expenses increased to $652,000 during the three months ended March 31, 2010 from $603,000 in the same period of 2009, a net increase of $49,000 or 8%. The overall increase in 2010 is primarily due to an increase in compensation costs of $61,000 and professional fees expense of $12,000, partially offset by a decrease in facilities-related costs of $17,000 and a decrease in stock option expense of $7,000.
As of March 31, 2010, we had stockholders equity of $4,815,000 and we had working capital of $2,526,000, compared to stockholders equity of $4,377,000 and working capital of $2,037,000 at December 31, 2009. Cash and cash equivalents were $235,000 as of March 31, 2010, as compared to $1,306,000 at December 31, 2009. This increase in our working capital of $489,000 was primarily a result of sales of our equities securities. In addition to our cash position on March 31, 2010, we had availability under our line of credit of approximately $1,082,000.
Our decrease in cash and cash equivalents to $235,000 at March 31, 2010 compared to $1,306,000 at December 31, 2009 was primarily a result of net pay-downs on our line of credit. Total cash plus revolving line of credit availability was $1,317,000 at March 31, 2010, as compared to $1,527, 000 at December 31, 2009.
Net cash used by financing activities of $47,000 during 2010 was primarily due to proceeds from the sale of our common and preferred stock in the aggregate amount of $527,000, net of offering costs; offset by net pay-downs on the revolving line of credit of $534,000 and other debt repayments of $40,000. On February 5, 2010, the Company completed a standby offering of 12,780 shares of its Series B Preferred Stock at $10.00 per share, for gross proceeds of $127,800. The Company paid legal and broker fees of approximately $11,000 in connection with the offering. On February 18, 2010, the Company sold an aggregate of 277,359 shares of common stock at a price of $1.70 per share for gross proceeds of $472,000. In connection with the sale, the Company paid legal and broker fees of approximately $38,000.
During the three months ended March 31, 2010, the Company issued 22,231 shares of common stock at prices ranging from $1.35 to $2.05 per share with a value of $36,000 for services rendered and 62,847 shares of common stock at stock prices ranging from $1.32 to $1.66 per share with a value of $91,000 to employees as a bonus.
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Reeds Inc. has a market cap of $22 million; its shares were traded at around $2.18 with and P/S ratio of 1.4.
Highlight of Business Operations:
Selling and marketing expenses consist primarily of direct charges for staff compensation costs, advertising, sales promotion, marketing and trade shows. Selling and marketing costs decreased to $524,000 in the three months ended March 31, 2010 from $659,000 in 2009, a net decrease of $135,000 or 20%. The decrease is primarily due to decreases in compensation and travel costs of $37,000, a decrease stock option expense of $82,000, and a decrease in advertising promotion and trade shows of $16,000.General and administrative expense consists primarily of the cost of executive, administrative, and finance personnel, as well as professional fees. General and administrative expenses increased to $652,000 during the three months ended March 31, 2010 from $603,000 in the same period of 2009, a net increase of $49,000 or 8%. The overall increase in 2010 is primarily due to an increase in compensation costs of $61,000 and professional fees expense of $12,000, partially offset by a decrease in facilities-related costs of $17,000 and a decrease in stock option expense of $7,000.
As of March 31, 2010, we had stockholders equity of $4,815,000 and we had working capital of $2,526,000, compared to stockholders equity of $4,377,000 and working capital of $2,037,000 at December 31, 2009. Cash and cash equivalents were $235,000 as of March 31, 2010, as compared to $1,306,000 at December 31, 2009. This increase in our working capital of $489,000 was primarily a result of sales of our equities securities. In addition to our cash position on March 31, 2010, we had availability under our line of credit of approximately $1,082,000.
Our decrease in cash and cash equivalents to $235,000 at March 31, 2010 compared to $1,306,000 at December 31, 2009 was primarily a result of net pay-downs on our line of credit. Total cash plus revolving line of credit availability was $1,317,000 at March 31, 2010, as compared to $1,527, 000 at December 31, 2009.
Net cash used by financing activities of $47,000 during 2010 was primarily due to proceeds from the sale of our common and preferred stock in the aggregate amount of $527,000, net of offering costs; offset by net pay-downs on the revolving line of credit of $534,000 and other debt repayments of $40,000. On February 5, 2010, the Company completed a standby offering of 12,780 shares of its Series B Preferred Stock at $10.00 per share, for gross proceeds of $127,800. The Company paid legal and broker fees of approximately $11,000 in connection with the offering. On February 18, 2010, the Company sold an aggregate of 277,359 shares of common stock at a price of $1.70 per share for gross proceeds of $472,000. In connection with the sale, the Company paid legal and broker fees of approximately $38,000.
During the three months ended March 31, 2010, the Company issued 22,231 shares of common stock at prices ranging from $1.35 to $2.05 per share with a value of $36,000 for services rendered and 62,847 shares of common stock at stock prices ranging from $1.32 to $1.66 per share with a value of $91,000 to employees as a bonus.
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