Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Feb. 14, 2019 | |
Entity Registrant Name | ALKALINE WATER Co INC | |
Entity Central Index Key | 1,532,390 | |
Trading Symbol | wter | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,656,829 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 3,087,445 | $ 988,905 |
Accounts receivable | 2,077,728 | 2,599,095 |
Inventory | 1,703,797 | 1,002,020 |
Prepaid expenses | 181,084 | 296,471 |
Total current assets | 7,050,054 | 4,886,491 |
Fixed assets - net | 2,009,324 | 1,169,635 |
Total assets | 9,059,378 | 6,056,126 |
Current liabilities | ||
Accounts payable | 2,323,242 | 2,052,988 |
Accrued expenses | 679,062 | 819,011 |
Revolving financing | 2,749,298 | 2,592,015 |
Current portion of capital leases | 131,583 | |
Derivative liability | 288 | 288 |
Total current liabilities | 5,751,890 | 5,595,885 |
Total liabilities | 5,751,890 | 5,595,885 |
Stockholders' equity | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, Series C issued 1,500,000, Series D issued 3,800,000 | 5,300 | 5,300 |
Common stock, Class A - $0.001 par value, 200,000,000 shares authorized 34,093,011 and 25,991,346 shares issued and outstanding at December 31, 2018 and March 31, 2018 | 34,093 | 25,990 |
Additional paid in capital | 39,126,699 | 30,506,265 |
Accumulated deficit | (35,858,604) | (30,077,314) |
Total stockholders' equity | 3,307,488 | 460,241 |
Total liabilities and stockholders' equity | $ 9,059,378 | $ 6,056,126 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
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 | 34,093,011 | 25,991,346 |
Common Stock, Shares, Outstanding | 34,093,011 | 25,991,346 |
Series C Preferred Stock [Member] | ||
Preferred Stock, Shares Issued | 1,500,000 | 1,500,000 |
Series D Preferred Stock [Member] | ||
Preferred Stock, Shares Issued | 3,800,000 | 3,800,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 7,691,013 | $ 3,816,661 | $ 24,211,398 | $ 13,838,383 |
Cost of Goods Sold | 4,822,694 | 2,091,258 | 14,301,068 | 7,797,081 |
Gross Profit | 2,868,319 | 1,725,403 | 9,910,330 | 6,041,302 |
Operating expenses | ||||
Sales and marketing expenses | 3,650,105 | 1,497,594 | 9,846,940 | 4,985,955 |
General and administrative | 2,718,567 | 2,692,636 | 5,096,043 | 5,661,274 |
Depreciation | 110,613 | 94,585 | 334,769 | 286,482 |
Total operating expenses | 6,479,285 | 4,284,815 | 15,277,752 | 10,933,711 |
Total operating loss | (3,610,966) | (2,559,412) | (5,367,422) | (4,892,409) |
Other income (expense) | ||||
Interest expense | (144,606) | (98,280) | (413,868) | (349,765) |
Amortization of debt discount and accretion | (295,000) | |||
Total other income (expense) | (144,606) | (98,280) | (413,868) | (644,765) |
Net loss | $ (3,755,572) | $ (2,657,692) | $ (5,781,290) | $ (5,537,174) |
EARNINGS PER SHARE (Basic) | $ (0.11) | $ (0.12) | $ (0.19) | $ (0.28) |
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic) | 32,814,187 | 21,508,050 | 30,765,915 | 19,757,832 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (5,781,290) | $ (5,537,174) |
Adjustments to reconcile net loss to net cash used in operating | ||
Depreciation expense | 334,769 | 286,482 |
Stock compensation expense | 393,460 | 3,554,912 |
Warrant Expense | 131,030 | |
Amortization of debt discount and accretion | 295,000 | |
Interest expense converted to equity | 14,583 | |
Interest expense relating to amortization of capital lease discount | 60,089 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 521,367 | 207,906 |
Inventory | (701,777) | (100,728) |
Prepaid expenses and other current assets | 115,387 | 71,456 |
Accounts payable | 270,254 | (184,735) |
Accrued expenses | (139,949) | 69,322 |
NET CASH USED IN OPERATING ACTIVITIES | (4,856,749) | (1,262,887) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of fixed assets | (1,174,458) | (264,876) |
CASH USED IN INVESTING ACTIVITIES | (1,174,458) | (264,876) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from convertible note payable | 500,000 | |
Proceeds from revolving financing | 157,283 | 58,966 |
Proceeds from sale of common stock, net | 6,955,798 | |
Proceeds from the exercise of warrants, net | 1,148,249 | |
Proceeds from advance by third party | 1,000,000 | |
Repayment of notes payable | (131,583) | |
Repayment of capital lease | (209,599) | |
CASH PROVIDED BY FINANCING ACTIVITIES | 8,129,747 | 1,349,367 |
NET CHANGE IN CASH | 2,098,540 | (178,396) |
CASH AT BEGINNING OF PERIOD | 988,905 | 603,805 |
CASH AT END OF PERIOD | 3,087,445 | 425,409 |
INTEREST PAID | $ 333,534 | $ 244,288 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2018 | |
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) and its wholly owned subsidiaries: A88 Infused Beverage Division, Inc. (a Nevada Corporation), A88 International, Inc. (a Nevada 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), A88 Infused Beverage Division, Inc (a Nevada Corporation), A88 International, Inc. (a Nevada 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 subsidiary 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 votes 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 November 14, 2017, we withdrew the Certificate of Designation establishing Series A Preferred Stock. There were no shares of Series A Preferred Stock outstanding immediately prior to the withdrawal. 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. On November 2, 2017, we increased the number of authorized shares of Series D Preferred Stock in our company to 5,000,000 shares by filing an Amendment to the foregoing 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 $3,087,445 and $988,905 in cash and cash equivalents at December 31, 2018 and March 31, 2018, 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 December 31, 2018 and March 31, 2018: December 31, March 31, 2018 2018 Trade receivables $ 2,117,728 $ 2,639,095 Less: Allowance for doubtful accounts (40,000 ) (40,000 ) Net accounts receivable $ 2,077,728 $ 2,599,095 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 December 31, 2018, and March, 31 2018, inventory consisted of the following: December 31, 2018 March 31, 2018 Raw materials $ 1,297,392 $ 766,556 Finished goods 406,405 235,464 Total inventory $ 1,703,797 $ 1,002,020 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 has elected to account for forfeitures as they occur. 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 Reclassification Certain accounts in the prior period were reclassified to conform to the current period financial statements presentation. Newly issued accounting pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting 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. On March 30, 2016, the FASB issued Accounting Standards Update (ASU) 2O16-09) Improvements to Employee Share-based Accounting which amends ASC 718, Compensation –Stock Compensation . The ASU includes provisions intended to simplify various provisions related to how share-based payments are accounted for and presented in the financial statements. Compensation cost is ultimately only recognized for awards with performance and/or service conditions that vest (or for awards with market conditions for which the requisite service period is satisfied). Under the new guidance, entities are permitted to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost. Currently entities are required to develop an assumption regarding the forfeiture rate on the grant date, which impacts the estimated amount of compensation cost recorded over the requisite service period. The forfeiture estimates are updated throughout the service period so that compensation cost is ultimately only recognized for awards that vest. Under the new guidance, entities are permitted to make an accounting policy to either estimate forfeitures each period, as required today or to account for forfeitures as they occur. The Company elects to account for forfeitures as they occur. ASU 2O16-O9 is effective for public business entities for annual reporting periods beginning after December 15, 2O16 and interim periods within that reporting period. The Company has evaluated other recent accounting pronouncements through December 2018 and believes that none of them will have a material effect on our financial statements. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 of ($35,858,604). 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 | 9 Months Ended |
Dec. 31, 2018 | |
PROPERTY AND EQUIPMENT [Text Block] | NOTE 3 – PROPERTY AND EQUIPMENT Fixed assets consisted of the following at: December 31, 2018 March 31, 2018 Machinery and Equipment $ 2,408,234 $ 2,096,074 Machinery – Construction in progress 1,174,457 312,160 Office Equipment 29,300 29,300 Less: Accumulated Depreciation (1,602,667 ) (1,267,899 ) Fixed Assets, net $ 2,009,324 $ 1,169,635 Depreciation expense for the nine months ended December 31, 2018 and December 31, 2017 was $334,769 and $286,482, respectively. On February 1, 2018, we exercised our purchase option to purchase four alkaline generating electrolysis system machines leased under the master lease agreement entered into on October 22, 2014, as amended on February 25, 2015 with Veterans Capital Fund, LLC for a total of $160,000. The purchase price bears interest of 12% per annum and is payable in eleven equal monthly installments of $14,934 each and one final installment of $4,040, with the first installment due on February 1, 2018 and on the remaining eleven installments due on the first of each month thereafter with the final installment paid on December 1, 2018. |
REVOLVING FINANCING
REVOLVING FINANCING | 9 Months Ended |
Dec. 31, 2018 | |
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) $4 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. On December 31, 2018, the Lender agreed to provide the Company a $400,000 Temporary Over Advance (“TOA”) under the Credit Facility Agreement. The TOA is to be repaid as follows: (i) the Company shall make five (5) weekly principal payments on the TOA each in the amount of $20,000 commencing on February 18, 2019 and on the first Business Day of each calendar week thereafter through and including March 18, 2019, (ii) the Company shall make ten (10) weekly principle payments on the TOA, each in the amount of $30,000, commencing on March 25, 2018 and on the first Business Day of each calendar week thereafter through and including May 27, 2019 and (iii) repay the remaining principal balance on the TOA, if any, in full on or prior to May 27, 2019. On December 31, 2018, David A. Guarino entered into a Guarantee Agreement (the “Guarantee”) with the Lender in order for the Lender to agree to provide the Company the $400,000 TOA under the Credit Agreement. Under the Guarantee, Mr. Guarino personally, absolutely, and unconditionally, jointly and severally, guaranteed the prompt, complete and full payment of the Company’s obligations to repay the TOA only, under the Credit Agreement, with the Lender. |
DERIVATIVE LIABILITY
DERIVATIVE LIABILITY | 9 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 was $288. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 9 Months Ended |
Dec. 31, 2018 | |
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 P. Nickolas and Richard A. 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 votes 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 November 14, 2017, we withdrew the Certificate of Designation establishing Series A Preferred Stock. There were no shares of Series A Preferred Stock outstanding immediately prior to the withdrawal. 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 P. Nickolas and Richard A. Wright (1,500,000 shares to each), pursuant to their employment agreements dated effective March 1, 2016. On July 17, 2017, Steven P. Nickolas converted his 1,500,000 shares of Series C Preferred Stock to 1,500,000 shares of Common Stock. 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. On November 2, 2017, we increased the number of authorized shares of Series D Preferred Stock in our company to 5,000,000 shares by filing an Amendment to the foregoing 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. In May, 2017, the company issued a total of 3,000,000 shares of our Series D Preferred Stock to our directors, officers, consultants and employees. In November, 2017, the company issued an additional 800,000 shares of our Series D Preferred Stock as follows: (a) 300,000 shares to Steve Nickolas pursuant to the Settlement Agreement detailed below; and (b) 500,000 shares to Richard A. Wright pursuant to the Exchange Agreement and stock option forfeitures detailed below. 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 was 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. On November 20, 2018, we issued an aggregate of 1,275,832 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of US$0.90 per share for aggregate gross proceeds of US$1,148,248.80. All of the shares were issued were issued to non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933, as amended) in an offshore transaction relying on Regulation S and/or Section 4(a)(2) of the Securities Act of 1933, as amended. Compensation expense in the amount of 393,460 was recognized by the Company on account of the vesting schedule of its outstanding stock options as of April 28, 2018. In October 2018, three option holders exercised 53,000 stock options in a cashless exchange for 46,544 common stock shares. In December 2018, one option holder exercised 41,000 stock options in a cashless exchange for 27,677 common stock shares. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS [Text Block] | NOTE 7 – RELATED PARTY TRANSACTIONS 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. Richard A. Wright, our President and CEO, and Mr. David Guarino, our Chief Financial Officer, Secretary, and Treasurer, were each issued 1,000,000 shares each of the Series D Preferred Stock. On December 31, 2018, David A. Guarino entered into a Guarantee Agreement (the “Guarantee”) with the Lender in order for the Lender to agree to provide the Company the $400,000 TOA under the Credit Agreement. Under the Guarantee, Mr. Guarino personally, absolutely, and unconditionally, jointly and severally, guaranteed the prompt, complete and full payment of the Company’s obligations to repay the TOA only, under the Credit Agreement, with the Lender. |
LOANS PAYABLE
LOANS PAYABLE | 9 Months Ended |
Dec. 31, 2018 | |
LOANS PAYABLE [Text Block] | NOTE 8 – LOANS PAYABLE On December 31, 2017, the Company exercised its purchase option with Lessor to purchase all four pieces of equipment leased under the above referenced master lease agreement for a total of $160,000 (the “Purchase Payment”). The Purchase Payment bears interest of 12% per annum and is payable in eleven equal monthly installments of $14,934.00 each and one final installment of $4,040.41, with the first installment due on February 1, 2018 and on the remaining eleven installments due on the first of each month thereafter with the final installment paid on December 1, 2018. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS [Text Block] | NOTE 9 – SUBSEQUENT EVENTS On January 24, 2019, we issued an aggregate of 512,332 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of US$0.90 per share for aggregate gross proceeds of US$461,098.80. All of the shares were issued to non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933, as amended) in an offshore transaction relying on Regulation S and/or Section 4(a)(2) of the Securities Act of 1933, as amended. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
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) and its wholly owned subsidiaries: A88 Infused Beverage Division, Inc. (a Nevada Corporation), A88 International, Inc. (a Nevada 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), A88 Infused Beverage Division, Inc (a Nevada Corporation), A88 International, Inc. (a Nevada 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 subsidiary 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 votes 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 November 14, 2017, we withdrew the Certificate of Designation establishing Series A Preferred Stock. There were no shares of Series A Preferred Stock outstanding immediately prior to the withdrawal. 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. On November 2, 2017, we increased the number of authorized shares of Series D Preferred Stock in our company to 5,000,000 shares by filing an Amendment to the foregoing 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 $3,087,445 and $988,905 in cash and cash equivalents at December 31, 2018 and March 31, 2018, 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 December 31, 2018 and March 31, 2018: December 31, March 31, 2018 2018 Trade receivables $ 2,117,728 $ 2,639,095 Less: Allowance for doubtful accounts (40,000 ) (40,000 ) Net accounts receivable $ 2,077,728 $ 2,599,095 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 December 31, 2018, and March, 31 2018, inventory consisted of the following: December 31, 2018 March 31, 2018 Raw materials $ 1,297,392 $ 766,556 Finished goods 406,405 235,464 Total inventory $ 1,703,797 $ 1,002,020 |
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 has elected to account for forfeitures as they occur. 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 |
Reclassification [Policy Text Block] | Reclassification Certain accounts in the prior period were reclassified to conform to the current period financial statements presentation. |
Newly Issued Accounting Pronouncements [Policy Text Block] | Newly issued accounting pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting 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. On March 30, 2016, the FASB issued Accounting Standards Update (ASU) 2O16-09) Improvements to Employee Share-based Accounting which amends ASC 718, Compensation –Stock Compensation . The ASU includes provisions intended to simplify various provisions related to how share-based payments are accounted for and presented in the financial statements. Compensation cost is ultimately only recognized for awards with performance and/or service conditions that vest (or for awards with market conditions for which the requisite service period is satisfied). Under the new guidance, entities are permitted to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost. Currently entities are required to develop an assumption regarding the forfeiture rate on the grant date, which impacts the estimated amount of compensation cost recorded over the requisite service period. The forfeiture estimates are updated throughout the service period so that compensation cost is ultimately only recognized for awards that vest. Under the new guidance, entities are permitted to make an accounting policy to either estimate forfeitures each period, as required today or to account for forfeitures as they occur. The Company elects to account for forfeitures as they occur. ASU 2O16-O9 is effective for public business entities for annual reporting periods beginning after December 15, 2O16 and interim periods within that reporting period. The Company has evaluated other recent accounting pronouncements through December 2018 and believes that none of them will have a material effect on our financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Schedule of Accounts Receivable [Table Text Block] | December 31, March 31, 2018 2018 Trade receivables $ 2,117,728 $ 2,639,095 Less: Allowance for doubtful accounts (40,000 ) (40,000 ) Net accounts receivable $ 2,077,728 $ 2,599,095 |
Schedule of Inventory, Current [Table Text Block] | December 31, 2018 March 31, 2018 Raw materials $ 1,297,392 $ 766,556 Finished goods 406,405 235,464 Total inventory $ 1,703,797 $ 1,002,020 |
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) | 9 Months Ended |
Dec. 31, 2018 | |
Schedule of Property, Plant and Equipment [Table Text Block] | December 31, 2018 March 31, 2018 Machinery and Equipment $ 2,408,234 $ 2,096,074 Machinery – Construction in progress 1,174,457 312,160 Office Equipment 29,300 29,300 Less: Accumulated Depreciation (1,602,667 ) (1,267,899 ) Fixed Assets, net $ 2,009,324 $ 1,169,635 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Dec. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Nov. 02, 2017USD ($)shares | May 03, 2017shares | Mar. 30, 2016USD ($)shares | Jan. 21, 2016shares | Dec. 30, 2015$ / sharesshares | Dec. 29, 2015$ / sharesshares | Oct. 07, 2013shares |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 | 22,500,000 | 1,125,000,000 | ||||
Common Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Number of votes to approve amendment to articles of incorporation to increase the number of authorized shares | 20,776,000 | ||||||||
Percentage of voting power approving amendment to articles of incorporation to increase the number of authorized shares | 61.00% | ||||||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Preferred Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||||
Preferred Stock, votes per share of Series A Preferred Stock | 10 | ||||||||
Cash and cash equivalents | $ | $ 3,087,445 | $ 988,905 | |||||||
Series A Preferred Stock [Member] | |||||||||
Preferred Stock, Shares Issued | 20,000,000 | ||||||||
Preferred Stock, votes per share of Series A Preferred Stock | 0.2 | 10 | |||||||
Series C Preferred Stock [Member] | |||||||||
Preferred Stock, Shares Authorized | 3,000,000 | ||||||||
Preferred Stock, Shares Issued | 1,500,000 | 1,500,000 | |||||||
Terms of conversion of Preferred Stock, consolidated revenue threshold | $ | $ 15,000,000 | ||||||||
Series D Preferred Stock [Member] | |||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 3,000,000 | |||||||
Preferred Stock, Shares Issued | 3,800,000 | 3,800,000 | |||||||
Terms of conversion of Preferred Stock, consolidated revenue threshold | $ | $ 40,000,000 |
GOING CONCERN (Narrative) (Deta
GOING CONCERN (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Accumulated deficit | $ 35,858,604 | $ 30,077,314 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Depreciation expense | $ 110,613 | $ 94,585 | $ 334,769 | $ 286,482 | |
Payments to Acquire Machinery and Equipment | $ 160,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||
Capital Lease Purchase Option Monthly Installments | $ 14,934 | $ 14,934 | |||
Capital Lease Purchase Option Final Installments | $ 4,040 | $ 4,040 |
REVOLVING FINANCING (Narrative)
REVOLVING FINANCING (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Mar. 25, 2018 | |
Line of Credit Facility, Borrowing Capacity, Description | 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) $4 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). | ||
Line of Credit Facility, Interest Rate Description | 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. | ||
Line of Credit Facility, Facility Fee | $ 30,000 | ||
Line of Credit Facility, Commitment Fee Percentage | 0.083% | ||
Line of Credit Facility, Interest Rate During Period | 0.35% | ||
Line of Credit Facility, Termination Fee | 2.00% | ||
Line of Credit Facility, Interest Increase Upon Default | 5.00% | ||
Temporary Over Advance | $ 400,000 | ||
Temporary Over Advance, Weekly Principal Payments | $ 30,000 | ||
Subsequent Event [Member] | |||
Temporary Over Advance, Weekly Principal Payments | $ 20,000 | ||
Mr. David Guarino [Member] | |||
Temporary Over Advance | $ 400,000 |
DERIVATIVE LIABILITY (Narrative
DERIVATIVE LIABILITY (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Derivative liability | $ 288 | $ 288 |
STOCKHOLDERS EQUITY (Narrative)
STOCKHOLDERS EQUITY (Narrative) (Details) | Oct. 08, 2013$ / sharesshares | Dec. 31, 2018$ / sharesshares | Nov. 20, 2018USD ($)$ / sharesshares | Oct. 31, 2018shares | Nov. 30, 2017shares | May 31, 2017shares | Mar. 31, 2016shares | May 31, 2013shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2018$ / sharesshares | Nov. 02, 2017USD ($)shares | Jul. 17, 2017shares | May 03, 2017shares | Mar. 03, 2017shares | Mar. 30, 2016USD ($)shares | Jan. 21, 2016shares | Dec. 30, 2015$ / sharesshares | Dec. 29, 2015$ / sharesshares | Oct. 07, 2013shares |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||
Preferred Stock, votes per share of Series A Preferred Stock | 10 | ||||||||||||||||||||
Preferred stock votes reduction per share of series A Preferred Stock | 0.2 | ||||||||||||||||||||
Preferred Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||
Stock compensation expense | $ | $ 393,460 | $ 3,554,912 | |||||||||||||||||||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 22,500,000 | 1,125,000,000 | |||||||||||||||
Common Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||
Common Stock, Shares, Outstanding | 34,093,011 | 109,500,000 | 34,093,011 | 25,991,346 | |||||||||||||||||
Number of votes to approve amendment to articles of incorporation to increase the number of authorized shares | 20,776,000 | ||||||||||||||||||||
Percentage of voting power approving amendment to articles of incorporation to increase the number of authorized shares | 61.00% | ||||||||||||||||||||
Warrant Expense | $ | $ 131,030 | ||||||||||||||||||||
Number of aggregate common stock issued upon exercise of purchase of warrant | 1,275,832 | ||||||||||||||||||||
Exercise price of warrant | $ / shares | $ 0.90 | ||||||||||||||||||||
Aggregate gross proceeds | $ | $ 1,148,248.80 | 6,955,798 | |||||||||||||||||||
Stock or Unit Option Plan Expense | $ | $ 393,460 | ||||||||||||||||||||
Number of shares exercised under stock options | 41,000 | 53,000 | |||||||||||||||||||
Number of common stock shares issued under cashless exchange | 27,677 | 46,544 | |||||||||||||||||||
Alkaline Water Corp [Member] | |||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 43,000,000 | ||||||||||||||||||||
Ownership Percentage | 100.00% | ||||||||||||||||||||
Stock Cancelled During Period, Shares | 75,000,000 | ||||||||||||||||||||
Series C Preferred Stock [Member] | |||||||||||||||||||||
Preferred Stock, Shares Authorized | 3,000,000 | ||||||||||||||||||||
Preferred stock issued during period (shares) | 3,000,000 | ||||||||||||||||||||
Preferred stock issued during period per person (shares) | 1,500,000 | ||||||||||||||||||||
Preferred Stock, Shares Issued | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||||||
Terms of conversion of Preferred Stock, consolidated revenue threshold | $ | $ 15,000,000 | ||||||||||||||||||||
Series C Preferred Stock [Member] | Steven P. Nickolas [Member] | |||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,500,000 | ||||||||||||||||||||
Series D Preferred Stock [Member] | |||||||||||||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 3,000,000 | |||||||||||||||||||
Preferred stock issued during period (shares) | 800,000 | 3,000,000 | |||||||||||||||||||
Preferred Stock, Shares Issued | 3,800,000 | 3,800,000 | 3,800,000 | ||||||||||||||||||
Terms of conversion of Preferred Stock, consolidated revenue threshold | $ | $ 40,000,000 | ||||||||||||||||||||
Series D Preferred Stock [Member] | Steven P. Nickolas [Member] | |||||||||||||||||||||
Preferred stock issued during period (shares) | 300,000 | ||||||||||||||||||||
Series D Preferred Stock [Member] | Richard A. Wright [Member] | |||||||||||||||||||||
Preferred stock issued during period (shares) | 500,000 | ||||||||||||||||||||
Preferred Stock, Shares Issued | 1,000,000 | ||||||||||||||||||||
Preferred Non-Convertible Stock [Member] | |||||||||||||||||||||
Preferred Stock, Shares Authorized | 100,000,000 | ||||||||||||||||||||
Preferred Stock, Par Value Per Share | $ / shares | $ 0.001 | ||||||||||||||||||||
Stock compensation expense | $ | $ 20,000 | ||||||||||||||||||||
Preferred Stock, Shares Issued | 20,000,000 | ||||||||||||||||||||
Preferred Stock, Shares Outstanding | 20,000,000 | ||||||||||||||||||||
Preferred Stock, Voting Rights | 10 votes per share | ||||||||||||||||||||
Preferred Stock, Voting Rights, After Reverse Stock Split | 0.2 votes per share |
OPTIONS AND WARRANTS (Narrative
OPTIONS AND WARRANTS (Narrative) (Details) | 9 Months Ended |
Dec. 31, 2018USD ($) | |
Warrant Expense | $ 131,030 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 | Nov. 02, 2017 | May 03, 2017 | Mar. 03, 2017 | Oct. 07, 2013 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 | ||||
Temporary Over Advance | $ 400,000 | |||||
Mr. David Guarino [Member] | ||||||
Temporary Over Advance | $ 400,000 | |||||
Series D Preferred Stock [Member] | ||||||
Preferred Stock, Shares Authorized | 5,000,000 | 3,000,000 | ||||
Preferred Stock, Shares Issued | 3,800,000 | 3,800,000 | ||||
Series D Preferred Stock [Member] | Richard A. Wright [Member] | ||||||
Preferred Stock, Shares Issued | 1,000,000 | |||||
Series D Preferred Stock [Member] | Mr. David Guarino [Member] | ||||||
Preferred Stock, Shares Issued | 1,000,000 |
LOANS PAYABLE (Narrative) (Deta
LOANS PAYABLE (Narrative) (Details) | Dec. 31, 2017USD ($) |
Capital lease, purchase option | $ 160,000 |
Capital lease, purchase option, interest rate | 12.00% |
Capital lease, purchase option, monthly installments | $ 14,934 |
Capital Lease Purchase Option Final Installments | $ 4,040 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Jan. 24, 2019 | Nov. 20, 2018 | Dec. 31, 2018 | |
Number of aggregate common stock issued upon exercise of purchase of warrant | 1,275,832 | ||
Exercise price of warrant | $ 0.90 | ||
Aggregate gross proceeds | $ 1,148,248.80 | $ 6,955,798 | |
Subsequent Event [Member] | |||
Number of aggregate common stock issued upon exercise of purchase of warrant | 512,332 | ||
Exercise price of warrant | $ 0.90 | ||
Aggregate gross proceeds | $ 461,098.80 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Trade receivables | $ 2,117,728 | $ 2,639,095 |
Less: Allowance for doubtful accounts | (40,000) | (40,000) |
Net accounts receivable | $ 2,077,728 | $ 2,599,095 |
Schedule of Inventory, Current
Schedule of Inventory, Current (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Raw materials | $ 1,297,392 | $ 766,556 |
Finished goods | 406,405 | 235,464 |
Total inventory | $ 1,703,797 | $ 1,002,020 |
Straight-line Method of Depreci
Straight-line Method of Depreciation (Details) | 9 Months Ended |
Dec. 31, 2018 | |
Equipment [Member] | |
Property, plant and equipment, estimated useful lives, years | 5 years |
Equipment under capital lease [Member] | |
Property, plant and equipment, estimated useful lives, years | 5 years |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Less: Accumulated Depreciation | $ (1,602,667) | $ (1,267,899) |
Fixed Assets, net | 2,009,324 | 1,169,635 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment | 2,408,234 | 2,096,074 |
Machinery Construction in progress [Member] | ||
Property, Plant and Equipment | 1,174,457 | 312,160 |
Office Equipment [Member] | ||
Property, Plant and Equipment | $ 29,300 | $ 29,300 |