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Reeds Inc. (REED-6.43%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Reeds' financial performance, including a net loss of $13,152,000 for the year, compared to a net loss of $15,523,000 in the previous year. The decrease in net loss is attributed to improved gross profit and reduced operating expenses.
Reeds reported net sales of $37,954,000, down from $44,711,000 in the previous year, a decline of 15%. The decrease in sales was primarily due to a reduction in volume and increased trade spend.
Cost of goods sold decreased to $26,578,000 from $31,884,000, reflecting a 17% reduction. This was driven by lower supply chain and input costs.
The company experienced a gross margin increase to 30% from 22% in the previous year, attributed to cost-saving initiatives and improved efficiency.
Operating expenses totaled $19,492,000, slightly up from $19,129,000, with notable increases in general and administrative expenses, which rose by 49% due to contract proceedings and impairment of assets.
Reeds' cash flow from operations showed a use of $6,124,000, and the company ended the year with $10,391,000 in cash, up from $603,000 at the end of 2023.
The company restructured its debt during the year, converting high-interest debt to equity and securing a new $10 million senior secured loan.
Reeds continues to focus on its core brands, Reed’s and Virgil’s, while addressing challenges in supply chain and market conditions. The company anticipates further improvements in 2025 as it launches a new line of multi-functional beverages.
The filing also highlights the company's strategic initiatives, including expanding its distribution network and enhancing its product offerings to align with consumer trends towards natural and health-conscious beverages.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Reeds Inc. annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.