Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Aug. 21, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Trading Symbol | wter | |
Entity Registrant Name | ALKALINE WATER Co INC | |
Entity Central Index Key | 1,532,390 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 19,763,739 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well Known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 441,827 | $ 603,805 |
Accounts receivable | 2,283,626 | 1,419,281 |
Inventory | 837,311 | 819,988 |
Prepaid expenses | 285,085 | 307,247 |
Total current assets | 3,847,849 | 3,150,321 |
Fixed assets - net | 1,101,452 | 1,120,148 |
Total assets | 4,949,301 | 4,270,469 |
Current liabilities | ||
Accounts payable | 1,355,146 | 1,343,824 |
Accrued expenses | 448,522 | 455,916 |
Revolving financing | 2,064,956 | 1,436,083 |
Current portion of capital leases | 156,829 | 190,207 |
Derivative liability | 3,407 | 3,407 |
Total current liabilities | 4,028,860 | 3,429,437 |
Long-term Liabilities | ||
Capitalized leases | 0 | 8,006 |
Convertible notes payable, net of debt discount | 224,667 | 0 |
Total long-term liabilities | 224,667 | 8,006 |
Total liabilities | 4,253,527 | 3,437,443 |
Stockholders' equity | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, Series A issued 20,000,000, Series C issued 3,000,000, Series D issued 3,000,000 | 26,000 | 23,000 |
Common stock, Class A - $0.001 par value, 200,000,000 shares authorized 18,263,739 and 17,532,451 shares issued and outstanding at June 30, 2017 and March 31, 2017 respectively | 18,262 | 17,531 |
Additional paid in capital | 25,811,800 | 24,181,029 |
Accumulated deficit | (25,160,288) | (23,388,534) |
Total stockholders' equity | 695,774 | 833,026 |
Total liabilities and stockholders' equity | $ 4,949,301 | $ 4,270,469 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Jun. 30, 2017 | Mar. 31, 2017 |
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 18,263,739 | 17,532,451 |
Common Stock, Shares, Outstanding | 18,263,739 | 17,532,451 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Shares Issued | 20,000,000 | 20,000,000 |
Series C Preferred Stock [Member] | ||
Preferred Stock, Shares Issued | 3,000,000 | 3,000,000 |
Series D Preferred Stock [Member] | ||
Preferred Stock, Shares Issued | 3,000,000 | 3,000,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | $ 5,180,194 | $ 2,946,749 |
Cost of Goods Sold | 2,951,944 | 1,790,713 |
Gross Profit | 2,228,250 | 1,156,036 |
Operating expenses | ||
Sales and marketing expenses | 1,670,017 | 1,085,999 |
General and administrative | 2,090,392 | 840,774 |
Depreciation | 96,279 | 89,439 |
Total operating expenses | 3,856,688 | 2,016,212 |
Total operating loss | (1,628,438) | (860,176) |
Other income (expense) | ||
Interest income | 0 | 98 |
Interest expense | (123,649) | (112,601) |
Amortization of debt discount and accretion | (19,667) | (45,258) |
Change in derivative liability | 0 | 4,306 |
Total other income (expense) | (143,316) | (153,455) |
Net loss | $ (1,771,754) | $ (1,013,631) |
EARNINGS PER SHARE (Basic) | $ (0.10) | $ (0.07) |
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic) | 17,967,618 | 14,716,285 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,771,754) | $ (1,013,631) |
Adjustments to reconcile net loss to net cash used in operating | ||
Depreciation expense | 96,279 | 89,439 |
Stock compensation expense | 1,339,502 | 142,625 |
Amortization of debt discount and accretion | 19,667 | 79,049 |
Interest expense relating to amortization of capital lease discount | 25,752 | 25,752 |
Change in derivative liabilities | 0 | (4,306) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (864,345) | (26,561) |
Inventory | (17,323) | (74,492) |
Prepaid expenses and other current assets | 22,162 | 206 |
Accounts payable | 11,322 | (247,813) |
Accrued expenses | (7,394) | 35,953 |
NET CASH USED IN OPERATING ACTIVITIES | (1,146,132) | (993,779) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of fixed assets | (77,583) | (49,310) |
Equipment Deposits - related party | 0 | (67,619) |
CASH USED IN INVESTING ACTIVITIES | (77,583) | (116,929) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 0 | 260,000 |
Proceeds from convertible note payable | 500,000 | 0 |
Proceeds from revolving financing | 628,873 | 70,532 |
Proceeds from sale of common stock, net | 0 | 425,000 |
Repayment of notes payable | 0 | (341,863) |
Repayment of capital lease | (67,136) | (57,360) |
CASH PROVIDED BY FINANCING ACTIVITIES | 1,061,737 | 356,309 |
NET CHANGE IN CASH | (161,978) | (754,399) |
CASH AT BEGINNING OF PERIOD | 603,805 | 1,192,119 |
CASH AT END OF PERIOD | 441,827 | 437,720 |
INTEREST PAID | $ 83,960 | $ 19,162 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in U.S. dollars, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The interim financial statements are condensed and should be read in conjunction with the Company's latest annual financial statements and that interim disclosures generally do not repeat those in the annual statements. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. Principles of consolidation The consolidated financial statements include the accounts of The Alkaline Water Company Inc. (a Nevada Corporation), Alkaline Water Corp. (an Arizona Corporation) and Alkaline 88, LLC (an Arizona Limited Liability Company). All significant intercompany balances and transactions have been eliminated. The Alkaline Water Company Inc. (a Nevada Corporation), Alkaline Water Corp. (an Arizona Corporation) and Alkaline 88, LLC (an Arizona Limited Liability Company) will be collectively referred herein to as the “Company”. Any reference herein to “The Alkaline Water Company Inc.”, the “Company”, “we”, “our” or “us” is intended to mean The Alkaline Water Company Inc., including the subsidiaries indicated above, unless otherwise indicated. Reverse split Effective December 30, 2015, the Company effected a fifty for one reverse stock split of its authorized and issued and outstanding shares of common stock. As a result, the authorized common stock has decreased from 1,125,000,000 shares of common stock, with a par value of $0.001 per share, to 22,500,000 shares of common stock, with a par value of $0.001 per share. All shares and per share amounts have been retroactively restated to reflect such split. On January 21, 2016, stockholders of our company approved, by written consents, an amendment to the articles of incorporation of our company to increase the number of authorized shares of our common stock from 22,500,000 to 200,000,000. The Company received written consents representing 20,776,000 votes from the holders of shares of its common stock and our Series A Preferred Stock voting as a single class, representing approximately 61% of the voting power of its outstanding common stock and its outstanding Series A Preferred Stock voting as a single class as of the record date (January 12, 2016). On January 21, 2016, there were no written consents received by the Company representing a vote against, abstention or broker non-vote with respect to the proposal. Our authorized preferred stock was not affected by the reverse stock split and continues to be 100,000,000 shares of preferred stock, with a par value of $0.001 per share. In addition, the number of issued and outstanding shares of Series A Preferred Stock continues to be 20,000,000. However, holders of Series A Preferred Stock had 0.2 vote per share of Series A Preferred Stock, instead of 10 votes per share of Series A Preferred Stock, as a result of the reverse stock split. On January 22, 2016, the Company amended the certificate of designation for our Series A Preferred Stock by filing an amendment to certificate of designation with the Secretary of State of the State of Nevada. The Company amended the certificate of designation for our Series A Preferred Stock by deleting Section 2.2 of the certificate of designation, which proportionately increases or decreases the number of votes per share of Series A Preferred Stock in the event of any dividend or other distribution on our common stock payable in its common stock or a subdivision or consolidation of the outstanding shares of its common stock. Accordingly, holders of Series A Preferred Stock will have 10 votes per share of Series A Preferred Stock, instead of 0.2 votes per share of Series A Preferred Stock. On March 30, 2016, the Company designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series C Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Each share of the Series C Preferred Stock will be convertible, without the payment of any additional consideration by the holder and at the option of the holder, into one fully paid and non-assessable share of our common stock at any time after (i) the Company achieves consolidated revenue equal to or greater than $15,000,000 in any 12 month period, ending on the last day of any quarterly period of our fiscal year; or (ii) a Negotiated Trigger Event, defined as an event upon which the Series C Preferred Stock will be convertible as may be agreed by our company and the holder in writing from time to time. On May 3, 2017, we designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series D Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Each share of the Series D Preferred Stock will be convertible, without the payment of any additional consideration by the holder and at the option of the holder, into one fully paid and non-assessable share of our common stock at any time after (i) we achieve the consolidated revenue of our company and all of its subsidiaries equal to or greater than $40,000,000 in any 12 month period, ending on the last day of any quarterly period of our fiscal year; or (ii) a Negotiated Trigger Event, defined as an event upon which the Series D Preferred Stock will be convertible as may be agreed by our company and the holder in writing from time to time. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be considered cash equivalents. The carrying value of these investments approximates fair value. The Company had $441,827 and $603,805 in cash and cash equivalents at June 30, 2017 and March 31, 2017, respectively. Accounts Receivable and Allowance for Doubtful Accounts The Company generally does not require collateral, and the majority of its trade receivables are unsecured. The carrying amount for accounts receivable approximates fair value. Accounts receivable consisted of the following as of June 30, 2017 and March 31, 2017: June 30. March 31, 2017 2017 Trade receivables $ 2,283,626 $ 1,419,281 Less: Allowance for doubtful accounts (-0- ) (-0- ) Net accounts receivable $ 2,283,626 $ 1,419,281 Accounts receivable are periodically evaluated for collectability based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance and current economic conditions. Inventory Inventory represents raw and blended chemicals and other items valued at the lower of cost or market with cost determined using the weight average method which approximates first-in first-out method, and with market defined as the lower of replacement cost or realizable value. As of June 30, 2017 and March 31, 2017, inventory consisted of the following: June 30, March 31, 2017 2017 Raw materials $ 578,889 $ 587,689 Finished goods 258,422 232,300 Total inventory $ 837,311 $ 819,989 Property and Equipment The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Depreciation periods are as follows for the relevant fixed assets: Equipment 5 years Equipment under capital lease 5 years Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with Accounting Standards Codification (“ASC”) 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances. Revenue Recognition The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount to be paid by the customer is fixed or determinable; and (4) the collection of such amount is probable. The Company records revenue when it is realizable and earned upon shipment of the finished products. The Company does not accept returns due to the nature of the product. However, the Company will provide credit to our customers for damaged goods. Fair Value Measurements The valuation of our embedded derivatives and warrant derivatives are determined primarily by the multinomial distribution (Lattice) model. An embedded derivative is a derivative instrument that is embedded within another contract, which under the convertible note (the host contract) includes the right to convert the note by the holder, certain default redemption right premiums and a change of control premium (payable in cash if a fundamental change occurs). In accordance with ASC 815 “ Accounting for Derivative Instruments and Hedging Activities” Level 1 unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Level 2 inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Level 3 unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded. Income Taxes In accordance with ASC 740 “ Accounting for Income Taxes Basic and Diluted Loss Per Share Basic and diluted earnings or loss per share (“EPS”) amounts in the consolidated financial statements are computed in accordance ASC 260 – 10 “ Earnings per Share Newly Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issuedAccounting Standards Update No. 2015-11 (ASU 2015-11) "Simplifying the Measurement of Inventory". According to ASU 2015-11 an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments in ASU 2015-11 more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of ASU 2015-11, there are no other substantive changes to the guidance on measurement of inventory. For public business entities, the amendments in ASU 2015-11 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in ASU 2015-11 are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in ASU 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Board decided that the only disclosures required at transition should be the nature of and reason for the change in accounting principle. An entity should disclose that information in the first annual period of adoption and in the interim periods within the first annual period if there is a measurement-period adjustment during the first annual period in which the changes are effective. The Company has evaluated other recent accounting pronouncements through June 2017 and believes that none of them will have a material effect on our financial statements. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Jun. 30, 2017 | |
GOING CONCERN [Text Block] | NOTE 2 – GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability and/or acquisition and sale of assets and the satisfaction of liabilities in the normal course of business. Since its inception, the Company has been engaged substantially in financing activities, developing its business plan and building its initial customer and distribution base for its products. As a result, the Company incurred accumulated net losses from Inception (June 19, 2012) through the period ended June 30, 2017 of ($25,160,288). In addition, the Company’s development activities since inception have been financially sustained through debt and equity financing. The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Jun. 30, 2017 | |
PROPERTY AND EQUIPMENT [Text Block] | NOTE 3 – PROPERTY AND EQUIPMENT Fixed assets consisted of the following at: June 30, 2017 March 31, 2017 Machinery and Equipment $ 1,200,293 $ 1,012,000 Machinery under Capital Lease 735,781 735,781 Machinery - Construction in Progress 75,138 185,848 Office Equipment 79,681 79,681 Leasehold Improvements 3,979 3,979 Less: Accumulated Depreciation (993,420 ) (897,141 ) Fixed Assets, net $ 1,101,452 $ 1,120,148 Depreciation expense for the three months ended June 30, 2017 and 2016 was $96,279 and $89,439, respectively. |
REVOLVING FINANCING
REVOLVING FINANCING | 3 Months Ended |
Jun. 30, 2017 | |
REVOLVING FINANCING [Text Block] | NOTE 4 – REVOLVING FINANCING On February 1, 2017, The Alkaline Water Company Inc. and its subsidiaries (the “Company”) entered into a Credit and Security Agreement (the “Credit Agreement”) with SCM Specialty Finance Opportunities Fund, L.P. (the “Lender”). The Credit Agreement provides the Company with a revolving credit facility (the “Revolving Facility”), the proceeds of which are to be used to repay existing indebtedness of the Company, transaction fees incurred in connection with the Credit Agreement and for working capital needs of the Company. Under the terms of the Credit Agreement, the Lender has agreed to make cash advances to the Company in an aggregate principal at any one time outstanding not to exceed the lesser of (i) $3 million (the “Revolving Loan Commitment Amount”) and (ii) the Borrowing Base (defined to mean, as of any date of determination, 85% of net eligible billed receivables plus 65% of eligible unbilled receivables, minus certain reserves). The Credit Agreement has a term of three years, unless earlier terminated by the parties in accordance with the terms of the Credit Agreement. The principal amount of the Revolving Facility outstanding bears interest at a rate per annum equal to (i) a fluctuating interest rate per annum equal at all times to the rate of interest announced, from time to time, within Wells Fargo Bank at its principal office in San Francisco as its “prime rate,” plus (ii) 3.25%, payable monthly in arrears. To secure the payment and performance of the obligations under the Credit Agreement, the Company granted to the Lender a continuing security interest in all of the Company’s assets and agreed to a lockbox account arrangement in respect of certain eligible receivables. In connection with the Credit Agreement, the Company paid to the Lender a $30,000 facility fee. The Company agreed to pay to Lender monthly an unused line fee in amount equal to 0.083% per month of the difference derived by subtracting (i) the average daily outstanding balance under the Revolving Facility during the preceding month, from (ii) the Revolving Loan Commitment Amount. The unused line fee will be payable monthly in arrears. The Company also agreed to pay the Lender as additional interest a monthly collateral management fee equal to 0.35% per month calculated on the basis of the average daily balance under the Revolving Facility outstanding during the preceding month. The collateral management fee will be payable monthly in arrears. Upon a termination of the Revolving Facility, the Company agreed to pay the Lender a termination fee in an amount equal to 2% of the Revolving Loan Commitment Amount if the termination occurs before February 1, 2020. The Company must also pay certain fees in the event that receivables are not properly deposited in the appropriate lockbox account. The interest rate will be increased by 5% in the event of a default under the Credit Agreement. Events of default under the Credit Agreement, some of which are subject to certain cure periods, include a failure to pay obligations when due, the making of a material misrepresentation to the Lender, the rendering of certain judgments or decrees against the Company and the commencement of a proceeding for the appointment of a receiver, trustee, liquidator or conservator or filing of a petition seeking reorganization or liquidation or similar relief. The Credit Agreement contains customary representations and warranties and various affirmative and negative covenants including the right of first refusal to provide financing for the Company and the financial and loan covenants, such as the loan turnover rate, minimum EBTDA, fixed charge coverage ratio and minimum liquidity requirements. |
DERIVATIVE LIABILITY
DERIVATIVE LIABILITY | 3 Months Ended |
Jun. 30, 2017 | |
DERIVATIVE LIABILITY [Text Block] | NOTE 5 – DERIVATIVE LIABILITY On May 1, 2014, the Company completed the offering and sale of an aggregate of shares of our common stock and warrants. Each share of common stock sold in the offering was accompanied by a warrant to purchase one-half of a share of common stock. The warrants include down-round provisions that reduce the exercise price of a warrant and convertible instrument. As required by ASC 815 “Derivatives and Hedging”, if the Company either issues equity shares for a price that is lower than the exercise price of those instruments or issues new warrants or convertible instruments that have a lower exercise price, the investors will be entitled to down-round protection. The Company evaluated whether its warrants and convertible debt instruments contain provisions that protect holders from declines in its stock price or otherwise could result in modification of either the exercise price or the shares to be issued under the respective warrant agreements. The Company determined that a portion of its outstanding warrants and conversion instruments contained such provisions thereby concluding were not indexed to the Company’s own stock and therefore a derivative instrument. On August 20, 2014, the Company entered into a warrant amendment agreement with certain holders of the Company’s outstanding common stock purchase warrants whereby the Company agreed to reduce the exercise price of the Existing Warrants the Holders are to be issued new common stock purchase warrants of the Company in the form of the Existing Warrants to purchase up to a number of shares of our common stock equal to the number of Existing Warrants exercised by the Holders The Company analyzed the warrants and conversion feature under ASC 815 “Derivatives and Hedging” to determine the derivative liability as of June 30, 2017 was $3,407. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 3 Months Ended |
Jun. 30, 2017 | |
STOCKHOLDERS EQUITY [Text Block] | NOTE 6 – STOCKHOLDERS’ EQUITY Preferred Shares On October 7, 2013, the Company amended its articles of incorporation to create 100,000,000 shares of preferred stock by filing a Certificate of Amendment to Articles of Incorporation with the Secretary of State of Nevada. The preferred stock may be divided into and issued in series, with such designations, rights, qualifications, preferences, limitations and terms as fixed and determined by our board of directors. The Series A Preferred Stock had 10 votes per share (reduced to 0.2 votes per share as a result of the fifty for one reverse stock split, which became effective as of December 30, 2015) and are not convertible into shares of our common stock. Grant of Series A Preferred Stock On October 8, 2013, the Company issued a total of 20,000,000 shares of non-convertible Series A Preferred Stock to Steven Nickolas and Richard Wright ( 10,000,000 shares to each), our directors and executive officers, in consideration for the past services, at a deemed value of $0.001 per share. The company valued these shares based on the cost considering the time and average billing rate of these individuals and recorded a $20,000 stock compensation cost for the year ended March 31, 2014. Our authorized preferred stock was not affected by the reverse stock split and continues to be 100,000,000 shares of preferred stock, with a par value of $0.001 per share. In addition, the number of issued and outstanding shares of Series A Preferred Stock continues to be 20,000,000. However, holders of Series A Preferred Stock had 0.2 vote per share of Series A Preferred Stock, instead of 10 votes per share of Series A Preferred Stock, as a result of the reverse-stock split. On January 22, 2016, the Company amended the certificate of designation for our Series A Preferred Stock by filing an amendment to certificate of designation with the Secretary of State of the State of Nevada. The Company amended the certificate of designation for our Series A Preferred Stock by deleting Section 2.2 of the certificate of designation, which proportionately increases or decreases the number of votes per share of Series A Preferred Stock in the event of any dividend or other distribution on our common stock payable in its common stock or a subdivision or consolidation of the outstanding shares of its common stock. Accordingly, holders of Series A Preferred Stock will have 10 votes per share of Series A Preferred Stock, instead of 0.2 votes per share of Series A Preferred Stock. Grant of Series C Convertible Preferred Stock On March 30, 2016, the Company designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series C Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Each share of the Series C Preferred Stock will be convertible, without the payment of any additional consideration by the holder and at the option of the holder, into one fully paid and non-assessable share of our common stock at any time after (i) the Company achieves consolidated revenue equal to or greater than $15,000,000 in any 12 month period, ending on the last day of any quarterly period of our fiscal year; or (ii) a Negotiated Trigger Event, defined as an event upon which the Series C Preferred Stock will be convertible as may be agreed by our company and the holder in writing from time to time. Effective March 31, 2016, the Company issued a total of 3,000,000 shares of our Series C Preferred Stock to Steven Nickolas and Richard Wright ( 1,500,000 shares to each), pursuant to their employment agreements dated effective March 1, 2016. Grant of Series D Convertible Preferred Stock On May 3, 2017, the Company designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series D Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Each share of the Series D Preferred Stock will be convertible, without the payment of any additional consideration by the holder and at the option of the holder, into one fully paid and non-assessable share of our common stock at any time after (i) we achieve the consolidated revenue of our company and all of its subsidiaries equal to or greater than $40,000,000 in any 12 month period, ending on the last day of any quarterly period of our fiscal year; or (ii) a Negotiated Trigger Event, defined as an event upon which the Series D Preferred Stock will be convertible as may be agreed by our company and the holder in writing from time to time. The company then issued a total of 3,000,000 shares of our Series D Preferred Stock to our directors, officers, consultants and employees. We issued these shares relying on the registration exemption provided for in Section 4(a)(2) of the Securities Act of 1933. Common Stock The Company is authorized to issue 1,125,000,000 shares of $0.001 par value common stock. On May 31, 2013, the Company effected a 15 -for- 1 forward stock split of our $0.001 par value common stock. All shares and per share amounts have been retroactively restated to reflect such split. Prior to the acquisition of Alkaline Water Corp., the Company had 109,500,000 shares of common stock issued and outstanding. On May 31, 2013, the Company issued 43,000,000 shares in exchange for a 100% interest in Alkaline Water Corp. For accounting purposes, the acquisition of Alkaline Water Corp. by The Alkaline Water Company Inc. has been recorded as a reverse acquisition of a company and recapitalization of Alkaline Water Corp. based on the factors demonstrating that Alkaline Water Corp. represents the accounting acquirer. Consequently, after the closing of this agreement the Company adopted the business of Alkaline Water Corp.’s wholly-owned subsidiary, Alkaline 88, LLC. As part of the acquisition, the former management of the Company agreed to cancel 75,000,000 shares of common stock. On December 30, 2015, the Company effected a fifty for one reverse stock split of its authorized and issued and outstanding shares of common stock. As a result, the authorized common stock has decreased from 1,125,000,000 shares of common stock, with a par value of $0.001 per share, to 22,500,000 shares of common stock, with a par value of $0.001 per share. All shares and per share amounts have been retroactively restated to reflect such split. On January 21, 2016, stockholders of our company approved, by written consents, an amendment to the articles of incorporation of our company to increase the number of authorized shares of our common stock from 22,500,000 to 200,000,000. The Company received written consents representing 20,776,000 votes from the holders of shares of its common stock and our Series A Preferred Stock voting as a single class, representing approximately 61% of the voting power of its outstanding common stock and its outstanding Series A Preferred Stock voting as a single class as of the record date (January 12, 2016). On January 21, 2016, there were no written consents received by the Company representing a vote against, abstention or broker non-vote with respect to the proposal. Common Stock Issued for Services Effective April 28, 2017, we issued 610,000 shares of common stock to six persons, one of whom is a director and officer of our company. Of these shares, 560,000 are restricted from transfer for a period of two years. |
OPTIONS AND WARRANTS
OPTIONS AND WARRANTS | 3 Months Ended |
Jun. 30, 2017 | |
OPTIONS AND WARRANTS [Text Block] | NOTE 7 – OPTIONS AND WARRANTS Stock Option Awards Effective April 28, 2017, we granted a total of 1,790,000 stock options to our directors, officers, consultants employees. The stock options are exercisable at the exercise price of $1.29 per share for a period of six and one-half years from the date of grant. 360,000 of the stock options vest as follows: (i) 120,000 upon the date of grant; and (ii) 120,000 on each anniversary date of grant. 1,430,000 of the stock options vest as follows: (i) 357,500 upon the date of grant; and (ii) 357,500 on each anniversary date of grant. We granted the stock options to 12 U.S. Persons and 3 non U.S. Persons (as that term is defined in Regulation S of the Securities Act of 1933) and in issuing securities we relied on the registration exemption provided for in Regulation S and/or Section 4(a)(2) of the Securities Act of 1933. In June 2017, two option holders elected to exercise their stock options. A total of 181,000 stock options were surrendered in exchange for 121,288 common stock shares. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jun. 30, 2017 | |
RELATED PARTY TRANSACTIONS [Text Block] | NOTE 8 – RELATED PARTY TRANSACTIONS On November 18, 2016, our company provided notice to Steven Nickolas, our CEO and President, of our board of director’s finding that there is “just cause” for termination of Mr. Nickolas’s employment and of our company’s intent to terminate the employment of Mr. Nickolas for “just cause” pursuant to the provision of the Employment Agreement with Mr. Nickolas dated March 1, 2016. Under the Employment Agreement, Mr. Nickolas had 30 days to cure the failures and breaches creating “just cause” for termination. Mr. Nickolas failed to cure such failure and breaches and, on April 7, 2017, our company terminated the employment of Mr. Nickolas for cause. In addition, our company removed Mr. Nickolas as the President and Chief Executive Officer of our company. On April 7, 2017, our board of directors appointed Richard A. Wright as president of our company. On April 28, 2017, Mr. Wright resigned as the secretary and treasurer of our company and he was appointed as the chief executive officer of our company. On April 28, 2017, our board of directors appointed David Guarino as chief financial officer, treasurer, secretary president of our company. On May 3, 2017, the Company designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series D Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Mr. Wright and Mr. Guarino were each issued 1,000,000 shares each of the Series D Preferred Stock. |
CAPITAL LEASE
CAPITAL LEASE | 3 Months Ended |
Jun. 30, 2017 | |
CAPITAL LEASE [Text Block] | NOTE 9 – CAPITAL LEASE On October 22, 2014, the Company entered into a master lease agreement with Veterans Capital Fund, LLC (the “Lessor”) for the secured lease line of credit financing in an amount not to exceed $600,000. The lease is expected to be secured by three new alkaline generating electrolysis system machines. Our wholly-owned subsidiary, Alkaline 88, LLC, and Water Engineering Solutions, LLC acted as co-lessees. Water Engineering Solutions, LLC is an entity that is controlled and owned by our former President, Chief Executive Officer, Steven P. Nickolas, and our current President and Chief Executive Officer, Richard A. Wright. Pursuant to the master lease agreement, the Lessor agreed to lease to us the equipment described in any equipment schedule signed by us and approved by the Lessor. It is expected that any lease under the master lease agreement will be structured for a three year lease term with fixed monthly lease rental payments based on a monthly lease rate factor of 3.4667% of the Lessor’s capital cost. In connection with the entering into the master lease agreement, the Company also entered into a warrant agreement with the Lessor, pursuant to which the Company agreed to issue a warrant to purchase 72,000 shares of our common stock to the Lessor and/or its affiliates at an exercise price of $6.25 per share for a period of five years, 18,000 shares vested. On February 25, 2015, the Company amended the master lease agreement with Veterans Capital Fund, LLC for the increase in the secured lease line of credit financing to an amount not to exceed $800,000. The lease was secured by new alkaline generating electrolysis system machines by our wholly-owned subsidiary, Alkaline 88, LLC, and Water Engineering Solutions, LLC. Water Engineering Solutions, LLC is an entity that is controlled and owned by our former President, Chief Executive Officer, Steven P. Nickolas, and our Vice-President, Secretary, Treasurer and director, Richard A. Wright. Pursuant to the master lease agreement, the Lessor agreed to lease to us the equipment described in any equipment schedule signed by us and approved by the Lessor. It is expected that any lease under the master lease agreement will be structured for a three year lease term with fixed monthly lease rental payments based on a monthly lease rate factor of 3.4667% of the Lessor’s capital cost. In connection with the entering into the master lease agreement, the Company entered into a warrant agreement with the Lessor, pursuant to which the Company agreed to cancel the previous issued warrant for72,000 and issue a warrant to purchase 102,000 shares of our common stock to the Lessor and/or its affiliates at an exercise price of $5.00 per share for a period of five years. 18,000 shares vested on October 22, 2014, 13,316 shares on October 28, 2014, 13,606 shares on December 22, 2014, 6,945 shares on February 3, 2015 and 15,799 shares on March 5, 2015. The remaining 18,105 shares will vest on a pro rata basis according to any mounts the Lessor funds pursuant to any lease schedules under the master lease agreement, provided that if the Company draws on 90% or more of the total lease line under the master lease agreement, then all such shares will be deemed to be vested. The Company recorded the bifurcated value of $309,028 of the warrants issued as additional paid in capital, the value was determine using a Black-Scholes, a level 3 valuation measure. During the year ended March 31, 2015 the Company agreed to lease the specialized equipment used to make our alkaline water with a value of $735,781 under the above Master Lease agreement. The Company evaluated this lease under ASC 840-30 “Leases- Capital Leases” and concluded that these lease where a capital asset. |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Jun. 30, 2017 | |
NOTES PAYABLE [Text Block] | NOTE 10 – NOTES PAYABLE On September 20, 2016, we entered into a loan facility agreement (the “Loan Agreement”) with Turnstone Capital Inc. (the “Lender”), whereby the Lender agreed to make available to our company a loan in the aggregate principal amount of $1,500,000 (the “Loan Amount”). Pursuant to the Loan Agreement, the Lender agreed to make one or more advances of the Loan Amount to our company as requested from time to time by our company in an amount to be agreed upon by our company and the Lender (each, an “Advance”). During the year ended March 31, 2017, the lender made advances totaling $1,000,000. This amount together with accrued interest of $30,000 was converted to 1,030,000 common shares on March 31, 2017. In June, 2017, Turnstone advanced the remaining $500,000 available under the Loan Agreement. The Company evaluated this transaction under ASC 470-20-30 “Debt – liability and equity component” |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2017 | |
SUBSEQUENT EVENTS [Text Block] | NOTE 11 – SUBSEQUENT EVENTS On August 17, 2017, we issued 1,500,000 shares of our common stock to Steven P. Nickolas upon conversion of 1,500,000 shares of our Series C Preferred Stock held by Mr. Nickolas. The shares of our Series C Preferred Stock became convertible into shares of our common stock without the payment of any additional consideration by Mr. Nickolas and at the option of Mr. Nickolas because the termination of the employment agreement between our company and Mr. Nickolas was an event constituting a “Negotiated Trigger Event” as defined in the Certificate of Designation for our Series C Preferred Stock. In consideration for services rendered and to be rendered to our company pursuant to a services agreement dated July 26, 2016, we intend to issue a consultant 262,596 shares of our common stock. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Basis of presentation [Policy Text Block] | Basis of presentation The consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in U.S. dollars, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The interim financial statements are condensed and should be read in conjunction with the Company's latest annual financial statements and that interim disclosures generally do not repeat those in the annual statements. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. |
Principles of consolidation [Policy Text Block] | Principles of consolidation The consolidated financial statements include the accounts of The Alkaline Water Company Inc. (a Nevada Corporation), Alkaline Water Corp. (an Arizona Corporation) and Alkaline 88, LLC (an Arizona Limited Liability Company). All significant intercompany balances and transactions have been eliminated. The Alkaline Water Company Inc. (a Nevada Corporation), Alkaline Water Corp. (an Arizona Corporation) and Alkaline 88, LLC (an Arizona Limited Liability Company) will be collectively referred herein to as the “Company”. Any reference herein to “The Alkaline Water Company Inc.”, the “Company”, “we”, “our” or “us” is intended to mean The Alkaline Water Company Inc., including the subsidiaries indicated above, unless otherwise indicated. |
Reverse split [Policy Text Block] | Reverse split Effective December 30, 2015, the Company effected a fifty for one reverse stock split of its authorized and issued and outstanding shares of common stock. As a result, the authorized common stock has decreased from 1,125,000,000 shares of common stock, with a par value of $0.001 per share, to 22,500,000 shares of common stock, with a par value of $0.001 per share. All shares and per share amounts have been retroactively restated to reflect such split. On January 21, 2016, stockholders of our company approved, by written consents, an amendment to the articles of incorporation of our company to increase the number of authorized shares of our common stock from 22,500,000 to 200,000,000. The Company received written consents representing 20,776,000 votes from the holders of shares of its common stock and our Series A Preferred Stock voting as a single class, representing approximately 61% of the voting power of its outstanding common stock and its outstanding Series A Preferred Stock voting as a single class as of the record date (January 12, 2016). On January 21, 2016, there were no written consents received by the Company representing a vote against, abstention or broker non-vote with respect to the proposal. Our authorized preferred stock was not affected by the reverse stock split and continues to be 100,000,000 shares of preferred stock, with a par value of $0.001 per share. In addition, the number of issued and outstanding shares of Series A Preferred Stock continues to be 20,000,000. However, holders of Series A Preferred Stock had 0.2 vote per share of Series A Preferred Stock, instead of 10 votes per share of Series A Preferred Stock, as a result of the reverse stock split. On January 22, 2016, the Company amended the certificate of designation for our Series A Preferred Stock by filing an amendment to certificate of designation with the Secretary of State of the State of Nevada. The Company amended the certificate of designation for our Series A Preferred Stock by deleting Section 2.2 of the certificate of designation, which proportionately increases or decreases the number of votes per share of Series A Preferred Stock in the event of any dividend or other distribution on our common stock payable in its common stock or a subdivision or consolidation of the outstanding shares of its common stock. Accordingly, holders of Series A Preferred Stock will have 10 votes per share of Series A Preferred Stock, instead of 0.2 votes per share of Series A Preferred Stock. On March 30, 2016, the Company designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series C Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Each share of the Series C Preferred Stock will be convertible, without the payment of any additional consideration by the holder and at the option of the holder, into one fully paid and non-assessable share of our common stock at any time after (i) the Company achieves consolidated revenue equal to or greater than $15,000,000 in any 12 month period, ending on the last day of any quarterly period of our fiscal year; or (ii) a Negotiated Trigger Event, defined as an event upon which the Series C Preferred Stock will be convertible as may be agreed by our company and the holder in writing from time to time. On May 3, 2017, we designated 3,000,000 shares of the authorized and unissued preferred stock of our company as “Series D Preferred Stock” by filing a Certificate of Designation with the Secretary of State of the State of Nevada. Each share of the Series D Preferred Stock will be convertible, without the payment of any additional consideration by the holder and at the option of the holder, into one fully paid and non-assessable share of our common stock at any time after (i) we achieve the consolidated revenue of our company and all of its subsidiaries equal to or greater than $40,000,000 in any 12 month period, ending on the last day of any quarterly period of our fiscal year; or (ii) a Negotiated Trigger Event, defined as an event upon which the Series D Preferred Stock will be convertible as may be agreed by our company and the holder in writing from time to time. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be considered cash equivalents. The carrying value of these investments approximates fair value. The Company had $441,827 and $603,805 in cash and cash equivalents at June 30, 2017 and March 31, 2017, respectively. |
Accounts Receivable and Allowance for Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts The Company generally does not require collateral, and the majority of its trade receivables are unsecured. The carrying amount for accounts receivable approximates fair value. Accounts receivable consisted of the following as of June 30, 2017 and March 31, 2017: June 30. March 31, 2017 2017 Trade receivables $ 2,283,626 $ 1,419,281 Less: Allowance for doubtful accounts (-0- ) (-0- ) Net accounts receivable $ 2,283,626 $ 1,419,281 Accounts receivable are periodically evaluated for collectability based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance and current economic conditions. |
Inventory [Policy Text Block] | Inventory Inventory represents raw and blended chemicals and other items valued at the lower of cost or market with cost determined using the weight average method which approximates first-in first-out method, and with market defined as the lower of replacement cost or realizable value. As of June 30, 2017 and March 31, 2017, inventory consisted of the following: June 30, March 31, 2017 2017 Raw materials $ 578,889 $ 587,689 Finished goods 258,422 232,300 Total inventory $ 837,311 $ 819,989 |
Property and Equipment [Policy Text Block] | Property and Equipment The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Depreciation periods are as follows for the relevant fixed assets: Equipment 5 years Equipment under capital lease 5 years |
Stock-Based Compensation [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with Accounting Standards Codification (“ASC”) 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances. |
Revenue Recognition [Policy Text Block] | Revenue Recognition The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount to be paid by the customer is fixed or determinable; and (4) the collection of such amount is probable. The Company records revenue when it is realizable and earned upon shipment of the finished products. The Company does not accept returns due to the nature of the product. However, the Company will provide credit to our customers for damaged goods. |
Fair Value Measurements [Policy Text Block] | Fair Value Measurements The valuation of our embedded derivatives and warrant derivatives are determined primarily by the multinomial distribution (Lattice) model. An embedded derivative is a derivative instrument that is embedded within another contract, which under the convertible note (the host contract) includes the right to convert the note by the holder, certain default redemption right premiums and a change of control premium (payable in cash if a fundamental change occurs). In accordance with ASC 815 “ Accounting for Derivative Instruments and Hedging Activities” Level 1 unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Level 2 inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Level 3 unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded. |
Income Taxes [Policy Text Block] | Income Taxes In accordance with ASC 740 “ Accounting for Income Taxes |
Basic and Diluted Loss Per Share [Policy Text Block] | Basic and Diluted Loss Per Share Basic and diluted earnings or loss per share (“EPS”) amounts in the consolidated financial statements are computed in accordance ASC 260 – 10 “ Earnings per Share |
Newly Issued Accounting Pronouncements [Policy Text Block] | Newly Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issuedAccounting Standards Update No. 2015-11 (ASU 2015-11) "Simplifying the Measurement of Inventory". According to ASU 2015-11 an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments in ASU 2015-11 more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of ASU 2015-11, there are no other substantive changes to the guidance on measurement of inventory. For public business entities, the amendments in ASU 2015-11 are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in ASU 2015-11 are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in ASU 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Board decided that the only disclosures required at transition should be the nature of and reason for the change in accounting principle. An entity should disclose that information in the first annual period of adoption and in the interim periods within the first annual period if there is a measurement-period adjustment during the first annual period in which the changes are effective. The Company has evaluated other recent accounting pronouncements through June 2017 and believes that none of them will have a material effect on our financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Schedule of Accounts Receivable [Table Text Block] | June 30. March 31, 2017 2017 Trade receivables $ 2,283,626 $ 1,419,281 Less: Allowance for doubtful accounts (-0- ) (-0- ) Net accounts receivable $ 2,283,626 $ 1,419,281 |
Schedule of Inventory, Current [Table Text Block] | June 30, March 31, 2017 2017 Raw materials $ 578,889 $ 587,689 Finished goods 258,422 232,300 Total inventory $ 837,311 $ 819,989 |
Straight-line Method of Depreciation [Table Text Block] | Equipment 5 years Equipment under capital lease 5 years |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Schedule of Property, Plant and Equipment [Table Text Block] | June 30, 2017 March 31, 2017 Machinery and Equipment $ 1,200,293 $ 1,012,000 Machinery under Capital Lease 735,781 735,781 Machinery - Construction in Progress 75,138 185,848 Office Equipment 79,681 79,681 Leasehold Improvements 3,979 3,979 Less: Accumulated Depreciation (993,420 ) (897,141 ) Fixed Assets, net $ 1,101,452 $ 1,120,148 |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($)mo$ / sharesshares | |
Summary Of Significant Accounting Policies 1 | 1,125,000,000 |
Summary Of Significant Accounting Policies 2 | $ / shares | $ 0.001 |
Summary Of Significant Accounting Policies 3 | 22,500,000 |
Summary Of Significant Accounting Policies 4 | $ / shares | $ 0.001 |
Summary Of Significant Accounting Policies 5 | 22,500,000 |
Summary Of Significant Accounting Policies 6 | 200,000,000 |
Summary Of Significant Accounting Policies 7 | 20,776,000 |
Summary Of Significant Accounting Policies 8 | 61.00% |
Summary Of Significant Accounting Policies 9 | 100,000,000 |
Summary Of Significant Accounting Policies 10 | $ / shares | $ 0.001 |
Summary Of Significant Accounting Policies 11 | 20,000,000 |
Summary Of Significant Accounting Policies 12 | 0.2 |
Summary Of Significant Accounting Policies 13 | 10 |
Summary Of Significant Accounting Policies 14 | 2.2 |
Summary Of Significant Accounting Policies 15 | 10 |
Summary Of Significant Accounting Policies 16 | 0.2 |
Summary Of Significant Accounting Policies 17 | 3,000,000 |
Summary Of Significant Accounting Policies 18 | $ | $ 15,000,000 |
Summary Of Significant Accounting Policies 19 | mo | 12 |
Summary Of Significant Accounting Policies 20 | 3,000,000 |
Summary Of Significant Accounting Policies 21 | $ | $ 40,000,000 |
Summary Of Significant Accounting Policies 22 | mo | 12 |
Summary Of Significant Accounting Policies 23 | $ | $ 441,827 |
Summary Of Significant Accounting Policies 24 | $ | $ 603,805 |
GOING CONCERN (Narrative) (Deta
GOING CONCERN (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Going Concern 1 | $ 25,160,288 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Property And Equipment 1 | $ 96,279 |
Property And Equipment 2 | $ 89,439 |
REVOLVING FINANCING (Narrative)
REVOLVING FINANCING (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Revolving Financing 1 | $ 3,000,000 |
Revolving Financing 2 | 85.00% |
Revolving Financing 3 | 65.00% |
Revolving Financing 4 | 3.25% |
Revolving Financing 5 | $ 30,000 |
Revolving Financing 6 | 0.083% |
Revolving Financing 7 | 0.35% |
Revolving Financing 8 | 2.00% |
Revolving Financing 9 | 5.00% |
DERIVATIVE LIABILITY (Narrative
DERIVATIVE LIABILITY (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative Liability 1 | $ 3,407 |
STOCKHOLDERS EQUITY (Narrative)
STOCKHOLDERS EQUITY (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($)mo$ / sharesshares | |
Stockholders Equity 1 | 100,000,000 |
Stockholders Equity 2 | 10 |
Stockholders Equity 3 | 0.2 |
Stockholders Equity 4 | 20,000,000 |
Stockholders Equity 5 | 10,000,000 |
Stockholders Equity 6 | $ / shares | $ 0.001 |
Stockholders Equity 7 | $ | $ 20,000 |
Stockholders Equity 8 | 100,000,000 |
Stockholders Equity 9 | $ / shares | $ 0.001 |
Stockholders Equity 10 | 20,000,000 |
Stockholders Equity 11 | 0.2 |
Stockholders Equity 12 | 10 |
Stockholders Equity 13 | 2.2 |
Stockholders Equity 14 | 10 |
Stockholders Equity 15 | 0.2 |
Stockholders Equity 16 | 3,000,000 |
Stockholders Equity 17 | $ | $ 15,000,000 |
Stockholders Equity 18 | mo | 12 |
Stockholders Equity 19 | 3,000,000 |
Stockholders Equity 20 | 1,500,000 |
Stockholders Equity 21 | 3,000,000 |
Stockholders Equity 22 | $ | $ 40,000,000 |
Stockholders Equity 23 | mo | 12 |
Stockholders Equity 24 | 3,000,000 |
Stockholders Equity 25 | 1,125,000,000 |
Stockholders Equity 26 | $ | $ 0.001 |
Stockholders Equity 27 | 15 |
Stockholders Equity 28 | 1 |
Stockholders Equity 29 | $ | $ 0.001 |
Stockholders Equity 30 | 109,500,000 |
Stockholders Equity 31 | 43,000,000 |
Stockholders Equity 32 | 100.00% |
Stockholders Equity 33 | 88 |
Stockholders Equity 34 | 75,000,000 |
Stockholders Equity 35 | 1,125,000,000 |
Stockholders Equity 36 | $ / shares | $ 0.001 |
Stockholders Equity 37 | 22,500,000 |
Stockholders Equity 38 | $ / shares | $ 0.001 |
Stockholders Equity 39 | 22,500,000 |
Stockholders Equity 40 | 200,000,000 |
Stockholders Equity 41 | 20,776,000 |
Stockholders Equity 42 | 61.00% |
Stockholders Equity 43 | 610,000 |
Stockholders Equity 44 | 560,000 |
OPTIONS AND WARRANTS (Narrative
OPTIONS AND WARRANTS (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Options And Warrants 1 | 1,790,000 |
Options And Warrants 2 | $ / shares | $ 1.29 |
Options And Warrants 3 | 360,000 |
Options And Warrants 4 | 120,000 |
Options And Warrants 5 | 120,000 |
Options And Warrants 6 | 1,430,000 |
Options And Warrants 7 | 357,500 |
Options And Warrants 8 | 357,500 |
Options And Warrants 9 | 12 |
Options And Warrants 10 | 3 |
Options And Warrants 11 | 181,000 |
Options And Warrants 12 | 121,288 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017shares | |
Related Party Transactions 1 | 3,000,000 |
Related Party Transactions 2 | 1,000,000 |
CAPITAL LEASE (Narrative) (Deta
CAPITAL LEASE (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Capital Lease 1 | $ | $ 600,000 |
Capital Lease 2 | 3.4667% |
Capital Lease 3 | 72,000 |
Capital Lease 4 | $ / shares | $ 6.25 |
Capital Lease 5 | 18,000 |
Capital Lease 6 | $ | $ 800,000 |
Capital Lease 7 | 3.4667% |
Capital Lease 8 | 102,000 |
Capital Lease 9 | $ / shares | $ 5 |
Capital Lease 10 | 18,000 |
Capital Lease 11 | 13,316 |
Capital Lease 12 | 13,606 |
Capital Lease 13 | 6,945 |
Capital Lease 14 | 15,799 |
Capital Lease 15 | 18,105 |
Capital Lease 16 | 90.00% |
Capital Lease 17 | $ | $ 309,028 |
Capital Lease 18 | $ | $ 735,781 |
NOTES PAYABLE (Narrative) (Deta
NOTES PAYABLE (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017USD ($)shares | |
Notes Payable 1 | $ 1,500,000 |
Notes Payable 2 | 1,000,000 |
Notes Payable 3 | $ 30,000 |
Notes Payable 4 | shares | 1,030,000 |
Notes Payable 5 | $ 500,000 |
Notes Payable 6 | $ 295,000 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2017shares | |
Subsequent Events 1 | 1,500,000 |
Subsequent Events 2 | 1,500,000 |
Subsequent Events 3 | 262,596 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 1 | $ 2,283,626 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 2 | 1,419,281 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 3 | 0 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 4 | 0 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 5 | 2,283,626 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 6 | $ 1,419,281 |
Schedule of Inventory, Current
Schedule of Inventory, Current (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 1 | $ 578,889 |
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 2 | 587,689 |
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 3 | 258,422 |
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 4 | 232,300 |
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 5 | 837,311 |
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 6 | $ 819,989 |
Straight-line Method of Depreci
Straight-line Method of Depreciation (Details) | 3 Months Ended |
Jun. 30, 2017yr | |
Summary Of Significant Accounting Policies Straight-line Method Of Depreciation 1 | 5 |
Summary Of Significant Accounting Policies Straight-line Method Of Depreciation 2 | 5 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Property And Equipment Schedule Of Property, Plant And Equipment 1 | $ 1,200,293 |
Property And Equipment Schedule Of Property, Plant And Equipment 2 | 1,012,000 |
Property And Equipment Schedule Of Property, Plant And Equipment 3 | 735,781 |
Property And Equipment Schedule Of Property, Plant And Equipment 4 | 735,781 |
Property And Equipment Schedule Of Property, Plant And Equipment 5 | 75,138 |
Property And Equipment Schedule Of Property, Plant And Equipment 6 | 185,848 |
Property And Equipment Schedule Of Property, Plant And Equipment 7 | 79,681 |
Property And Equipment Schedule Of Property, Plant And Equipment 8 | 79,681 |
Property And Equipment Schedule Of Property, Plant And Equipment 9 | 3,979 |
Property And Equipment Schedule Of Property, Plant And Equipment 10 | 3,979 |
Property And Equipment Schedule Of Property, Plant And Equipment 11 | (993,420) |
Property And Equipment Schedule Of Property, Plant And Equipment 12 | (897,141) |
Property And Equipment Schedule Of Property, Plant And Equipment 13 | 1,101,452 |
Property And Equipment Schedule Of Property, Plant And Equipment 14 | $ 1,120,148 |