$REED

REED'S INC

CIK:0001140215|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 7,488	$ 9,523	$ 14,630	$ 19,552
Cost of goods sold	5,607	7,110	11,314	13,682
Inventory write-offs	92	1,606	830	1,661
Total cost of goods sold	5,699	8,716	12,144	15,343
Gross profit	1,789	807	2,486	4,209
Operating expenses:
Delivery and handling expense	1,107	1,572	2,227	3,199
Selling and marketing expense	1,709	1,271	3,456	2,773
General and administrative expense	3,037	3,757	7,082	5,772
Total operating expenses	5,853	6,600	12,765	11,744
Loss from operations	(4,064)	(5,793)	(10,279)	(7,535)
Other income (expense)	(5)	46	(50)	46
Interest expense	(204)	(301)	(408)	(590)
Net loss	(4,273)	(6,048)	(10,737)	(8,079)
Dividends on Series A Convertible Preferred Stock		(5)		(5)
Net Loss Attributable to Common Stockholders	$ (4,273)	$ (6,053)	$ (10,737)	$ (8,084)
Loss per share - basic	$ (0.36)	$ (0.78)	$ (0.91)	$ (1.06)
Loss per share - diluted	$ (0.36)	$ (0.78)	$ (0.91)	$ (1.06)
Weighted average number of shares outstanding - basic	11,846,210	7,727,840	11,833,391	7,645,316
Weighted average number of shares outstanding - diluted	11,846,210	7,727,840	11,833,391	7,645,316

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (10,737)	$ (8,079)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	55	92
Amortization of debt discount	45	199
Fair value of vested options	8	56
Fair value of vested restricted shares	94
Change in allowance for doubtful accounts	1,060	1,091
Inventory write-offs and change in reserve	830	1,661
Changes in operating assets and liabilities:
Accounts receivable	(1,850)	(2,114)
Inventory	224	(6,728)
Prepaid expenses and other assets	(480)	(179)
Decrease in right of use assets	24	23
Accounts payable	2,718	1,637
Accrued expenses	(35)	1,906
Deferred revenue	51
Lease liabilities	(21)	25
Net cash used in operating activities	(8,014)	(10,410)
Cash flows from investing activities:
Trademark costs		(6)
Purchase of property and equipment		(95)
Net cash used in investing activities		(101)
Cash flows from financing activities:
Proceeds from sale of common stock		3,000
Payment of cash recorded as debt discount		(34)
Amounts from former related party, net		(169)
Net cash provided by financing activities		2,797
Net decrease in cash	(8,014)	(7,714)
Cash at beginning of period	10,424	10,391
Cash at end of period	2,410	2,677
Supplemental disclosures of cash flow information:
Cash paid for interest	372	400
Non-cash investing and financing activities:
Reduction in property and equipment and accounts payable	15
Reclass SAFE agreement from accounts payable to equity		115
Dividends on Series A Convertible Preferred Stock		$ 5

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash	$ 2,410	$ 10,424
Accounts receivable, net of allowance of $1,060 and $980, respectively	3,107	2,317
Inventory, net	6,992	8,046
Prepaid expenses and other current assets	1,153	673
Total current assets	13,662	21,460
Property and equipment, net of accumulated depreciation of $864 and $785, respectively	1,137	1,231
Intangible assets	650	650
Total assets	15,449	23,341
Current liabilities:
Accounts payable	6,200	3,496
Accrued expenses	634	669
Deferred revenue	51
Senior secured loan, net of deferred financing costs of $23 and $68, respectively	9,227	9,182
Current portion of lease liabilities	35	40
Total current liabilities	16,147	13,387
Lease liabilities, less current portion	787	803
Total liabilities	16,934	14,190
Stockholders’ equity (deficiency):
Series A Convertible Preferred stock, $10 par value, 500,000 shares authorized, 9,411 shares issued and outstanding	94	94
Common stock, $.0001 par value, 60,000,000 shares authorized; 11,857,086 and 11,820,429 shares issued and outstanding, respectively	5	5
Additional paid in capital	176,884	176,783
Accumulated deficit	(178,468)	(167,731)
Total stockholders’ equity (deficiency):	(1,485)	9,151
Total liabilities and stockholders’ equity (deficiency):	$ 15,449	$ 23,341