Pulse Beverage Corp. (fka PLSB)

[pswebauctions]

Not sure if many of you have noticed, Pulse changed their Investor Relations during the quarter. It is now:

Investor Relations:
Judy Sfetcu /Evan Pondel
[phone]
[e-mail]

I contacted them after the change to ask a question. They kept my e-mail address and sent a copy of the press release from today (Foodtown and United Grocers) and a Q3 letter to shareholders. They seem to be taking a different approach to try to keep investors up-to-date - which is why the change may have occurred.

Here is the letter with a few bolded items for consideration:

Dear Fellow Shareholders:

As 2013 draws to a close, I want to provide an update on the company's progress and recent activities. Given Pulse Beverage Corporation's relatively brief history -- having launched operations in the latter part of 2011 -- I can say with pride that we have come a long way in a short period of time.

Our acclaimed Natural Cabana® Lemonade and PULSE® brand of functional beverages continue to gain outstanding and growing consumer acceptance, as we are making excellent progress establishing our presence throughout the country in some of the nation's leading supermarkets and convenience stores. Listings for Natural Cabana® Lemonade increased 88 percent from the start of the year to 17,000 locations.

Following are recent company highlights that I'd like to share with you:

1.) Pulse adds iconic Texas grocery chain, H-E-B, for Natural Cabana® Lemonade.
2.) Natural Cabana® Lemonade available at more than 380 Albertsons locations, including 98 stores in the company's Rocky Mountain division (CO, E.WA, ID, MT, WY).
3.) Expanded distribution agreement with Geyser Beverage Company now includes PULSE® Brand of Functional Beverages.
4.) Natural Cabana® Lemonade rolled out across 187 Save Mart locations in Northern California.
5.) Kmart introduces Natural Cabana® Lemonade in 87 locations in California and Oregon.
6.) Pulse unveils direct-to-consumer sales of PULSE Beverage and Natural Cabana® Lemonade at http://www.pulsebeverages.com.

This morning, we issued a news release announcing that gross sales for the third quarter ended September 30, 2013, increased 30 percent to $1.1 million from $846,000 for the corresponding prior year period.

Our growth during the quarter continued to reflect deeper market penetration and growing brand awareness, along with new packaging and flavor profiles. We are particularly pleased that all of the stores that initially began selling our lemonades and functional beverages since launching the Company are still doing so.

Net loss for the 2013 third quarter was $736,000, or $0.01 per share, based on 51.5 million weighted average shares outstanding, versus $766,000, or $0.02 per share, based on 35.4 million weighted average shares outstanding, in the same quarter last year. Net loss for the first nine months of 2013 was $2.1 million, or $0.04 per share, based on 49.3 million weighted average shares outstanding, compared with $2.2 million, or $0.06 per share, based on 34.3 million weighted average shares outstanding, in the same period in 2012.

Changes in grocery industry purchasing patterns, with many of the large retailers moving to centralized buying, along with a protracted period from when agreements are signed until products hit the shelves, have delayed the timeline until 2014 for reaching the milestone mark of an annualized sales run rate of one million cases for Natural Cabana® Lemonade. Nevertheless, we remain confident as ever about the company's future.

Several new and exciting products are on the near-term horizon. We are on solid financial footing with $2.4 million in cash at the end of the third quarter versus $745,000 at December 31, 2012, and total assets of $6.4 million, up from $3.5 million at the end of 2012.

At the same time, our distribution network has grown rapidly in an industry that historically takes five to seven years to achieve what we have accomplished in a fraction of that time. As of September 30, 2013, Pulse had 141 distributors across 47 states in the United States, in addition to distribution in Canada, Mexico, Panama, Bermuda and Ireland.

We greatly appreciate your continued support and look forward to keeping you apprised of our progress.

Robert Yates
President and Chief Executive Officer