Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $7.5 million, down from $9.7 million in the same quarter last year, primarily due to lower volumes with recurring national customers and higher promotional allowances [12] - Gross profit for Q4 2025 was $1.5 million, compared to $2.9 million in the year-ago quarter, with a gross margin of 20% versus 30% previously, driven by inventory write-offs and higher cost of goods sold [12] - Delivery and handling costs decreased by 35% to $1.1 million in Q4 2025, down from $1.7 million in the prior year [12] - Net loss improved to $3.8 million or -$0.44 per share, compared to a net loss of $4.1 million or -$1.33 per share in the year-ago quarter [13] - EBITDA was -$3.6 million in Q4 2025, compared to -$3.1 million in the year-ago quarter [13] Business Line Data and Key Metrics Changes - The company saw sequential improvements in net sales across various channels, including natural, specialty, grocery, mass, and e-commerce, driven by increased sales velocity and seasonal product launches [4][5] - The core product, Reed's Ginger Ale, remains the number one premium ginger ale in the U.S., with dollar sales growing by 13.7% over the past 52 weeks [7] Market Data and Key Metrics Changes - The company is expanding its presence in underpenetrated channels, particularly food service and convenience, which represent significant growth opportunities [6] - The company is also focusing on international expansion, particularly in the Asian market, with plans to exhibit at major trade events [9] Company Strategy and Development Direction - The company is focused on stabilizing the business and reinforcing its operational framework to support sustainable growth [4] - Key initiatives include optimizing the manufacturing network, improving plant productivity, and enhancing sourcing strategies to reduce costs [5][11] - The company plans to launch new products, including a line extension of Reed's Ginger Ale and non-alcoholic mixers, to drive incremental sales [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sequential improvement in financial metrics and emphasized the focus on executing operational priorities to drive profitable growth [15] - The company aims to improve overall operating performance and achieve consistent, profitable growth through disciplined trade spending and operational efficiency [11] Other Important Information - The company completed a $10 million public offering and uplisted its shares to the NYSE American, enhancing its financial flexibility and visibility within the investment community [10][11] Q&A Session Summary Question: How best is it to think about the cadence of distribution gains in 2026? - Management indicated that they are focused on improving placements and velocities at the store level, with a dedicated sales team working on these initiatives [17] Question: How should we think about the path to profitability and margin initiatives? - Management highlighted ongoing efforts to reduce expenses while driving growth, expecting significant improvements in the upcoming quarters [19] Question: Any additional detail on the timing of the Smarter Soda launch? - Management is working on improving flavors and execution for the Smarter Soda launch while also focusing on the new mixer line [22]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $7.5 million, down from $9.7 million in the same quarter last year, primarily due to lower volumes with national customers and higher promotional allowances [12] - Gross profit decreased to $1.5 million from $2.9 million year-over-year, with gross margin dropping to 20% from 30% due to inventory write-offs and higher cost of goods sold [12] - Delivery and handling costs were reduced by 35% to $1.1 million, with costs as a percentage of net sales decreasing to 14% from 17% [12][13] - Net loss improved to $3.8 million or -$0.44 per share, compared to a loss of $4.1 million or -$1.33 per share in the prior year [13] - EBITDA was -$3.6 million, slightly worse than -$3.1 million in the year-ago quarter [13] Business Line Data and Key Metrics Changes - The company saw sequential improvements in net sales across various channels, including natural, specialty, grocery, mass, and e-commerce, driven by increased sales velocity and seasonal product launches [4][5] - The core product, Reed's Ginger Ale, remains the number one premium ginger ale in the U.S., with dollar sales growing by 13.7% over the past 52 weeks [7] Market Data and Key Metrics Changes - The company is expanding its presence in underpenetrated channels such as food service and convenience, which are seen as significant growth opportunities [6] - The company is also focusing on international expansion, particularly in the Asian market, with plans to exhibit at major trade events [9] Company Strategy and Development Direction - The company is focused on stabilizing the business and reinforcing its operational framework to support sustainable growth [4] - Key initiatives include optimizing the manufacturing network, improving plant productivity, and enhancing sourcing strategies to reduce costs [5][11] - The company plans to launch new products, including a line extension of Reed's Ginger Ale and non-alcoholic mixers, to drive incremental sales [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sequential improvement in financial metrics and emphasized the importance of focusing on customer and distributor relationships to improve placements and velocities [15][19] - The path to profitability will involve reducing expenses while driving growth, with expectations for significant changes by Q4 of the current year [19] Other Important Information - The company completed a $10 million public offering and uplisted to the NYSE American, enhancing its financial flexibility and visibility within the investment community [10][11] - The company is implementing a social media strategy to increase brand awareness and engagement [8] Q&A Session Summary Question: Distribution gains cadence in 2026 and spring resets opportunities - Management acknowledged the need for improvement in placements and emphasized a focus on velocities and increasing shelf placement in 2026 [17] Question: Path to profitability and margin initiatives - Management discussed ongoing efforts to reduce expenses while driving growth, indicating that future results will differ significantly from current performance [19] Question: Timing and improvements for the Smarter Soda launch - Management confirmed that they are working on improving flavors and execution for the Smarter Soda launch while also focusing on the new mixer line [22]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $7.5 million, down from $9.7 million in the same quarter last year, primarily due to lower volumes with recurring national customers and higher promotional allowances [12] - Gross profit for Q4 2025 was $1.5 million, compared to $2.9 million in the year-ago quarter, with gross margin decreasing to 20% from 30% [13] - Delivery and handling costs were reduced by 35% to $1.1 million in Q4 2025, compared to $1.7 million in the year-ago quarter [13] - Net loss improved to $3.8 million or -$0.44 per share, compared to $4.1 million or -$1.33 per share in the year-ago quarter [14] - EBITDA was -$3.6 million in Q4 2025, compared to -$3.1 million in the year-ago quarter [14] Business Line Data and Key Metrics Changes - The company saw sequential improvements in net sales, gross margin, and net loss, indicating early signs of operational improvements [4] - Sales growth was driven by increased sales velocity and seasonal product launches, particularly in channels like natural, specialty, grocery, mass, and e-commerce [5] Market Data and Key Metrics Changes - The company is expanding its presence in underpenetrated channels, particularly food service and convenience, which represent significant growth opportunities [6] - The core product, Reed's Ginger Ale, remains the number one premium ginger ale in the U.S., with dollar sales increasing by 13.7% over the past 52 weeks [7] Company Strategy and Development Direction - The company is focused on rebuilding and expanding distribution relationships, enhancing supply chain efficiency, and optimizing manufacturing processes to support sustainable growth [5] - A new product line, Reed's Ginger Ale Cranberry and Blackberry, is set to launch in Q2 2026, along with non-alcoholic mixers in Q3 2026 [7] - The company is also enhancing its digital presence through partnerships and advertising to reach over four million targeted shoppers monthly [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sequential improvement in key financial metrics and emphasized the focus on executing operational priorities to drive profitable growth [16] - The company aims to improve overall operating performance and achieve consistent, profitable growth through disciplined trade spending and operational efficiency gains [11] Other Important Information - The company completed a $10 million public offering and uplisted to the NYSE American, enhancing its financial flexibility and visibility within the investment community [10][11] - Delivery and handling expenses declined significantly, reinforcing the effectiveness of logistics and supply chain initiatives [9] Q&A Session Summary Question: How best is it to think about the cadence of distribution gains in 2026? - Management acknowledged the need for improvement in placements and emphasized a focus on velocities and increasing shelf placement in 2026 [18] Question: How should we think about the path to profitability and margin initiatives? - Management indicated that they are reducing expenses while driving growth, expecting significant improvements in the financial outlook by Q4 of the current year [19] Question: Any additional detail on the timing of the Smarter Soda launch? - Management confirmed that they are working on improving flavors and execution for the Smarter Soda launch while also focusing on the new mixer line [22]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 increased by 4.5% to $10 million compared to $9.6 million in the same quarter last year, driven by higher volumes with recurring national customers [18] - Profit for Q1 2025 remained flat at $3.4 million compared to the previous year [19] - Gross margin decreased to 33.9% from 35.6% year-over-year, primarily due to higher cost of goods sold [19] - Operating loss for Q1 2025 was $1.7 million, compared to a loss of $700,000 in Q1 2024 [20] - Cash used in operating activities increased to $5.4 million from $2.4 million year-over-year, driven by higher inventory purchases [21] Business Line Data and Key Metrics Changes - The company launched a new multifunctional soda line, which includes flavors like berry bubbly and strawberry vanilla, and secured national distribution in Sprouts Farmers Market [8][9] - Expanded presence at Albertsons Safeway for Reed's Ginger Ale, adding over 1,100 new points of distribution [10] - Successfully launched a national offshoot program with Flying Cauldron at Albertsons, exceeding internal projections [10] Market Data and Key Metrics Changes - Distribution gains were noted in three states at Trader Joe's for classic new alcohol products, reflecting growing demand across core functional and alcohol portfolios [12] - The company executed national display programs across core product lines at Sprouts Farmers Market, strengthening visibility [11] Company Strategy and Development Direction - The company is focused on sustainable growth and profitability, with a commitment to delivering premium, better-for-you beverages [15] - A strategic initiative includes transitioning from glass bottles to cans, enhancing cost structure and scalability [13] - The company is taking a measured approach to innovation, prioritizing its heritage and brand credibility [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements and the alignment across the team, laying groundwork for profitable growth [22] - The company expects some modest gross margin pressure in Q2 due to seasonal promotion activity and higher trade spend [14] - Management is focused on improving cash flow performance in the second half of 2025 [26] Other Important Information - The company appointed Rude Baker to the board of directors, bringing extensive experience in the beverage industry [7] - The company is actively evaluating alternative suppliers and sourcing strategies to mitigate potential disruptions from global trade dynamics [13] Q&A Session Summary Question: Operating expenses were higher than expected; what should be expected going forward? - The increase in SG&A is attributed to upfront investments in personnel and marketing to support strategic initiatives [26] Question: Will gross margins be pressured in Q2? - There may be seasonal compression in gross margins due to trade discounts and additional investment in the functional beverage launch [28] Question: Is there any revenue guidance for the year? - The company has not provided specific revenue guidance but is focused on growth and operating efficiency [33]