REED Stock
REED Stock

Reed’s, Inc. (REED) stock plummeted 13.48% in the after-market trading session at the price of $0.26 after announcing its earnings report for the fourth quarter and full year of 2021.

REED is a leading and innovative corporation that supplies premium, high-quality, and naturally bold beverages worldwide. The company, founded in 1989, sells its drinks to 45,000 marts nationwide.

REED Q4 2021 Financial Highlights

On 31st March 2022, REED published its financial results for the quarter and year ended 31st December 2021. Net revenue grew 20 percent to US$12.8M for Q4 of 2021. The gross profit was US$2.6M for Q4 of 2021 compared to US$3.5M for the same quarter last year.

For Q4 of 2021, REED reported a gross margin of 20.4 percent. The gross margin was 32.7 percent in Q4 of 2020. Operating loss totaled US$(4.4) M for Q4 of 2021 compared to US$(2.7) M for Q4 of 2020. The company has a modified EBITDA of US$(3.9) M during Q4 of 2021.

REED Year 2021 Earnings Report

REED calculated revenue of US$49.6M for the year 2021, a surge of 19 percent. Gross profit raised 7 percent to US$13.6M for 2021. For 2021, the gross margin was 27.4 percent compared to 30.7 percent last year. The company has US$(15.9) M in an operating loss for 2021. Operating loss was US$(8.6) M the prior year. For 2021, modified EBITDA totaled US$(13.5) M.

REED Closed US$5.4M Placement

Earlier on 14th March 2022, REED announced the closure of its private placement of 18,594,571 shares and warrants with several institutional investors to purchase 9,297,289 common stock shares. The common stock shares had offered at US$0.28 per share. Each warrant has an exercise price of US$0.2877 per share. The company earned US$5.4M in gross proceeds before subtracting the agent’s fees and other charges. REED plans to use the net proceeds for its working capital and other business purposes.

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