Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity Registrant Name | ALKALINE WATER Co INC | |
Entity Central Index Key | 0001532390 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,347,512 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Current assets | ||
Cash | $ 10,013,737 | $ 11,032,451 |
Accounts receivable | 4,118,117 | 3,068,181 |
Inventory | 1,045,313 | 2,058,012 |
Prepaid expenses | 168,927 | 378,699 |
Operating lease right-of-use asset | 78,306 | |
Total current assets | 15,424,400 | 16,537,343 |
Fixed assets - net | 1,746,995 | 1,945,265 |
Operating lease right-of-use asset | 26,102 | |
Total assets | 17,197,497 | 18,482,608 |
Current liabilities | ||
Accounts payable | 3,746,000 | 2,898,958 |
Accrued expenses | 1,033,200 | 1,095,458 |
Revolving financing | 3,714,101 | 3,131,279 |
Operating lease liability - current portion | 88,168 | |
Total current liabilities | 8,581,469 | 7,125,695 |
Operating lease liability | 31,077 | |
Total liabilities | 8,612,546 | 7,125,695 |
Stockholders' equity | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, Series C issued 1,500,000 and Series D issued 3,800,000 at June 30, 2019 and March 31, 2019 | 5,300 | 5,300 |
Common stock, Class A - $0.001 par value, 200,000,000 shares authorized 41,347,512 and 39,573,512 shares issued and outstanding at June 30, 2019 and March 31, 2019, respectively | 41,347 | 39,573 |
Additional paid in capital | 52,289,371 | 50,006,919 |
Accumulated deficit | (43,751,067) | (38,694,879) |
Total stockholders' equity | 8,584,951 | 11,356,913 |
Total liabilities and stockholders' equity | $ 17,197,497 | $ 18,482,608 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Mar. 31, 2019 |
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 | 41,347,512 | 39,573,512 |
Common Stock, Shares, Outstanding | 41,347,512 | 39,573,512 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | $ 10,153,044 | $ 7,880,865 |
Cost of Goods Sold | 6,028,197 | 4,491,213 |
Gross Profit | 4,124,847 | 3,389,652 |
Operating expenses | ||
Sales and marketing expenses | 4,472,460 | 3,136,990 |
General and administrative | 4,379,271 | 1,085,567 |
Depreciation | 233,940 | 114,073 |
Total operating expenses | 9,085,671 | 4,336,630 |
Total operating loss | (4,960,824) | (946,978) |
Other income (expense) | ||
Interest expense | (95,364) | (143,606) |
Total other income (expense) | (95,364) | (143,606) |
Net loss | $ (5,056,188) | $ (1,090,584) |
LOSS PER SHARE (Basic and Diluted) | $ (0.12) | $ (0.04) |
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted) | 40,849,600 | 27,739,496 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning Balance at Mar. 31, 2018 | $ 5,300 | $ 25,990 | $ 30,506,265 | $ (30,077,314) | $ 460,241 |
Beginning Balance (Shares) at Mar. 31, 2018 | 5,300,000 | 25,991,346 | |||
Common shares issued in connection with offerings | $ 5,132 | 3,843,668 | 3,848,800 | ||
Common shares issued in connection with offerings (Shares) | 5,131,665 | ||||
Net (loss) | (1,090,584) | (1,090,584) | |||
Ending Balance at Jun. 30, 2018 | $ 5,300 | $ 31,122 | 34,349,933 | (31,167,898) | 3,218,457 |
Ending Balance (Shares) at Jun. 30, 2018 | 5,300,000 | 31,123,011 | |||
Beginning Balance at Mar. 31, 2019 | $ 5,300 | $ 39,573 | 50,006,919 | (38,694,879) | 11,356,913 |
Beginning Balance (Shares) at Mar. 31, 2019 | 5,300,000 | 39,573,512 | |||
Common shares issued upon exercise of warrants | $ 1,774 | 1,178,712 | 1,180,486 | ||
Common shares issued upon exercise of warrants (Shares) | 1,774,000 | ||||
Stock Option exercises | 1,103,740 | 1,103,740 | |||
Net (loss) | (5,056,188) | (5,056,188) | |||
Ending Balance at Jun. 30, 2019 | $ 5,300 | $ 41,347 | $ 52,289,371 | $ (43,751,067) | $ 8,584,951 |
Ending Balance (Shares) at Jun. 30, 2019 | 5,300,000 | 41,347,512 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (5,056,188) | $ (1,090,584) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 233,940 | 114,073 |
Stock compensation expense | 1,103,740 | |
Right-of-use asset amortization | 14,837 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,049,936) | (348,416) |
Inventory | 1,012,699 | (255,877) |
Prepaid expenses and other current assets | 209,772 | (401,764) |
Accounts payable | 847,042 | 235,800 |
Accrued expenses | (62,258) | (65,267) |
NET CASH USED IN OPERATING ACTIVITIES | (2,746,352) | (1,812,035) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of fixed assets | (35,670) | (375,272) |
CASH USED IN INVESTING ACTIVITIES | (35,670) | (375,272) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from revolving financing | 582,822 | 147,141 |
Proceeds from sale of common stock, net | 3,848,800 | |
Proceeds for the exercise of warrants, net | 1,180,486 | |
Repayment of notes payable | (41,268) | |
CASH PROVIDED BY FINANCING ACTIVITIES | 1,763,308 | 3,954,673 |
NET CHANGE IN CASH | (1,018,714) | 1,767,366 |
CASH AT BEGINNING OF PERIOD | 11,032,451 | 988,905 |
CASH AT END OF PERIOD | 10,013,737 | 2,756,271 |
INTEREST PAID | 59,828 | 100,784 |
TAXES PAID | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2019 | |
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 1 -NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company (as defined below) offers retail consumers bottled alkaline water in 500-milliliter, 700-milliliter, 1-liter, 1.5 -liter, 3-liter and 1-gallon sizes under the trade name Alkaline88® which is produced through an electrolysis process that uses specialized electronic cells coated with a variety of rare earth minerals to produce 8.8 pH drinking water without the use of any manmade chemicals. Basis of presentation These unaudited financial statements represent the condensed consolidated financial statements of The Alkaline Water Company and its wholly owned subsidiaries (collectively, the "Company"). These unaudited condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and the notes thereto as set forth in the Company's Form 10-K, filed with the SEC on July 1, 2019, which included all disclosures required by generally accepted accounting principles ("GAAP") In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's financial position on a consolidated basis and the consolidated results of operations, equity and cash flows for the interim periods presented. The results of operations for the three months ended June 30, 2019 and 2018 are not necessarily indicative of expected operating results for the full year. The information presented throughout the document as of and for the three months ended June 30, 2019 and 2018 is unaudited. The condensed consolidated balance sheet at March 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. 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., A88 Infused Beverage Division, Inc., A88 International, Inc., and Alkaline 88, LLC 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. 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. As of the balance sheet date and periodically throughout the period, the Company has maintained balances in various operating accounts in excess of federally insured limits. The Company had $10,013,737 and $11,032,451 in cash and cash equivalents at June 30, 2019 and March 31, 2019, 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, 2019 and March 31, 2019: June 30, 2019 (unaudited) March 31, 2019 Trade receivables, net $ 4,199,323 $ 3,142,580 Less: Allowance for doubtful accounts (40,000) (40,000) Accrual for 2% 10 days discount (41,206) (34,399) Net accounts receivable $ 4,118,117 $ 3,068,181 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. The accounts receivable balance is pledged as collateral for the Company's revolving financing as disclosed in Note 3. Inventory Inventory represents raw materials and finished goods 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. The inventory balance is pledged as collateral for the Company's revolving financing as disclosed in Note 1. As of June 30, 2019 and March 31, 2019, inventory consisted of the following: June 30, 2019 March 31, 2019 (unaudited) Raw materials $ 818,275 $ 1,066,105 Finished goods 227,038 991,907 Total inventory $ 1,045,313 $ 2,058,012 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 (half-life convention) method over the estimated useful life of the assets, which the Company has determined to be 3 years. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with Accounting Standards Codification ("ASC") 718. Stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite 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 per ASC 606. The Company recognizes revenue when our performance obligations are satisfied. Our primary obligation (the distribution and sale of beverage products) is satisfied upon the delivery of products to our customers, which is also when control is transferred. 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. The Company provides credit to its customers which typically require payment within 30 days. As an incentive to pay early the Company also typically provides a 2% discount if the customer pays within 10 days. The Company estimates the amount of the discount that the customer is likely to take and recognizes it as variable consideration. The amounts are not considered material. After evaluating the revenue disclosure requirements the Company does not believe that any revenues are required to be disaggregated. Revenue consists of the gross sales price, less estimated allowances for which provisions are made at the time of sale, and less certain other discounts, allowances, and rebates that are accounted for as a reduction from gross revenue. Shipping and handling charges that are billed to customers are included as a component of revenue. Costs incurred by the Company for shipping and handling charges are included in selling expenses and amounted to $1,431,456 and $1,376,967 for the quarters ended June 30, 2019 and 2018, respectively. Concentration Risks We have 2 major customers that together account for 35% (23% and 12%, respectively) of accounts receivable at June 30, 2019, and 2 customers that together account for 40% (22% and 18%, respectively) of the total revenues earned for the quarter ended June 30, 2019.The Company has 3 vendors that accounted for 58% (28%, 16% and 14% respectively) of purchases for the quarter ended June 30, 2019. We had 2 major customers that together accounted for 42% (23% and 19%, respectively) of accounts receivable at June 30, 2018, and 2 customers that together accounted for 45% (24% and 21%, respectively) of the total revenues earned for the quarter ended June 30, 2018.The Company had 2 vendors that accounted for 51% (38% and 13% respectively) of purchases for the quarter ended June 30, 2018. Income Taxes The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income (loss), permanent tax differences and statutory tax rates. Deferred income taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate principally to net operating loss carryforwards. Deferred tax assets and liabilities represent the future tax consequence for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. 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 The Company had 1,136,675 and 1,162,856 shares relating to options, 1,714,392 and 2,519,140 shares relating to warrants and 1.5 million convertible preferred shares at June 30, 2019 and 2018, respectively that were not included in the diluted earnings per share calculation because they were antidilutive. Business Segments The Company operates on one segment in one geographic location - the United States of America and; therefore, segment information is not presented. Fair Value of Financial Instruments The carrying amounts of the company's financial instruments including accounts payable, accrued expenses, and notes payable approximate fair value due to the relative short period for maturity these instruments. The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the company's assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on reliability of the inputs as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As of June 30, 2019 and 2018, the Company did not have any financial instruments that are measured on a recurring basis as Level 1, 2 or 3. Recent Accounting Pronouncements Recently Adopted Standards. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). On April 1, 2019 the Company was required to adopt new guidance for non-employee stock options as set forth in ASC 718. Previously the Company recorded stock compensation expense on each annual vesting date which was determined to be the measurement date and valued each tranche of vested options. Under the new guidance the Company determined the value of all of the options on April 1, 2019, the inception date which became the new measurement date and calculated what the straight line amortization would be by period. As a result the Company recorded stock option expense in the amount of $1,103,740 in the three months ended June 30, 2019. Standards Required to be Adopted in Future Years. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Codification Improvements to Topic 326, Financial Instruments - Credit Losses. The Company has evaluated other recent accounting pronouncements through June 30, 2019 and believes that none of them will have a material effect on our consolidated financial statements. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Jun. 30, 2019 | |
PROPERTY AND EQUIPMENT [Text Block] | NOTE 2 - PROPERTY AND EQUIPMENT Fixed assets consisted of the following at: Fixed assets consisted of the following at: June 30, 2019 March 31, 2019 Machinery and Equipment $ 3,796,511 $ 3,764,533 Office Equipment 32,992 29,300 Less: Accumulated Depreciation (2,082,508) (1,848,568) Fixed Assets, net $ 1,746,995 $ 1,945,265 Depreciation expense for the quarter ended June 30, 2019 and 2018 was $233,940 and $114,073, respectively. |
REVOLVING FINANCING
REVOLVING FINANCING | 3 Months Ended |
Jun. 30, 2019 | |
REVOLVING FINANCING [Text Block] | NOTE 3 - REVOLVING FINANCING On February 1, 2017, the Company entered into a Credit and Security Agreement (the "Credit Agreement") with SCM Specialty Finance Opportunities Fund, L.P. (the "Lender") which has been amended from time to time the last of which was June 28, 2019. 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) $5 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, and is subject to certain customer specific requirements). 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. The interest rate as of June 30, 2019 was 8.75%. 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 the 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 1% of the Revolving Loan Commitment Amount if the termination occurs before July 1, 2021. 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 EBITDA, fixed charge coverage ratio and minimum liquidity requirements. The Company was in compliance with those covenants as of June 30, 2019. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Jun. 30, 2019 | |
STOCKHOLDERS' EQUITY [Text Block] | NOTE 4 - 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. 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. At June 30, 2019 and March 31, 2019, 1,500,000 shares of Series C preferred stock were convertible into 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 nonassessable 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. At June 30, 2019 and 2018 there were 3,800,000 shares of Series D preferred stock outstanding none of which were convertible. |
OPTIONS AND WARRANTS
OPTIONS AND WARRANTS | 3 Months Ended |
Jun. 30, 2019 | |
OPTIONS AND WARRANTS [Text Block] | NOTE 5 - OPTIONS AND WARRANTS Effective as of April 12, 2019, the Company issued an aggregate of 74,000 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of CAD$2.90 (US$2.17) per share for aggregate gross proceeds of $160,486 Effective as of April 26, 2019, the Company issued an aggregate of 1,700,000 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of $0.60 per share for aggregate gross proceeds of $1,020,000. The closing of the exercise of these warrants occurred on May 7, 2019. All of these shares were issued to non-U.S. persons (as the 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. On April 1, 2019 the Company was required to adopt new guidance for non-employee stock options as set forth in ASC 718. Previously the Company recorded stock compensation expense on each annual vesting date which was determined to be the measurement date and valued each tranche of vested options. Under the new guidance the Company determined the value using Black-Scholes of all of the options on April 1, 2019, the inception date which became the new measurement date and calculated what the straight line amortization would be by period. As a result the Company recorded stock option expense in the amount of $1,103,740 in the three months ended June 30, 2019. The remaining 357,500 unvested options are valued at $704,620 and that amount will be amortized over the 12 month vesting period ending April 2020. |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 6: LEASES The Company adopted ASC 842 on April 1, 2019 which requires lessees to recognize right-of-use ("ROU") asset and lease liability for all leases. The Company elected the package of transition practical expedients for existing contracts, which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and determination of initial direct costs. The Company leases property under operating leases. The Company leases its corporate office space with a size of 3,352 square feet leased from a third party through November, 2020 at the current rate of $7,752 per month; increasing to $7,891 in November 2019. At inception the ROU and Lease Liability was calculated based on the net present value of the future lease payments over the term of the lease. When available, the Company uses the rate implicit in the lease discount payments as the incremental borrowing rate to calculate the net present value; however, the rate implicit in the lease is not readily determinable for our corporate office lease. In this case, the Company estimated its incremental borrowing rate as the interest rate it could borrow an amount equal to the lease payments over a similar term, with similar collateral as the lease, and in a similar economic environment. The Company estimated its rate using available evidence such as rates imposed by third-party lenders to the Company in recent financings or observable risk-free interest rate and credit spreads for commercial debt of a similar duration, with credit spreads correlating to the Company's estimated creditworthiness. For operating leases that include rent holidays and rent escalation clauses, the Company recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. The Company records the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the condensed consolidated statements of operations. The corporate office, lease also requires the Company to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in the general and administrative expenses on the condensed consolidated statements of operations. Operating Lease expense for the three months ended June 30, 2019 was $22,072. The Company also has a short-term lease ending March 31, 2020 and the lease expense for this short-term lease for the three months ended June 30, 2019 was $12,471. Operating Leases: June 30, 2019 Operating lease right-of-use asset - current portion $ 78,306 Operating lease right-of-use asset - non-current portion 26,102 Total Operating lease right-of-use asset $ 104,408 Operating lease liability - current portion $ 88,168 Operating lease liability - non-current portion 31,077 Total Operating lease liability $ 119,245 Weighted average remaining lease term (in years): Operating leases 1.33 Operating leases 7.50 % Supplemental cash flow information related to leases is as follows: Three months Ended June 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating lease $ 23,255 Maturities of undiscounted lease liabilities as of June 30, 2019 are as follows: Operating Leases Year ending March 31, 2020 (remainder) $ 70,462 Year ending March 31, 2021 55,238 Total lease payments 125,700 Less: Imputed interest (6,455 ) Total lease obligations 119,245 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2019 | |
SUBSEQUENT EVENTS [Text Block] | NOTE 7 - SUBSEQUENT EVENTS In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to June 30, 2019 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Nature of Business [Policy Text Block] | Nature of Business The Company (as defined below) offers retail consumers bottled alkaline water in 500-milliliter, 700-milliliter, 1-liter, 1.5 -liter, 3-liter and 1-gallon sizes under the trade name Alkaline88® which is produced through an electrolysis process that uses specialized electronic cells coated with a variety of rare earth minerals to produce 8.8 pH drinking water without the use of any manmade chemicals. |
Basis of presentation [Policy Text Block] | Basis of presentation These unaudited financial statements represent the condensed consolidated financial statements of The Alkaline Water Company and its wholly owned subsidiaries (collectively, the "Company"). These unaudited condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and the notes thereto as set forth in the Company's Form 10-K, filed with the SEC on July 1, 2019, which included all disclosures required by generally accepted accounting principles ("GAAP") In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's financial position on a consolidated basis and the consolidated results of operations, equity and cash flows for the interim periods presented. The results of operations for the three months ended June 30, 2019 and 2018 are not necessarily indicative of expected operating results for the full year. The information presented throughout the document as of and for the three months ended June 30, 2019 and 2018 is unaudited. The condensed consolidated balance sheet at March 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. |
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., A88 Infused Beverage Division, Inc., A88 International, Inc., and Alkaline 88, LLC 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. |
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. As of the balance sheet date and periodically throughout the period, the Company has maintained balances in various operating accounts in excess of federally insured limits. The Company had $10,013,737 and $11,032,451 in cash and cash equivalents at June 30, 2019 and March 31, 2019, 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, 2019 and March 31, 2019: June 30, 2019 March 31, 2019 (unaudited) Trade receivables, net $ 4,199,323 $ 3,142,580 Less: Allowance for doubtful accounts (40,000) (40,000) Accrual for 2% 10 days discount (41,206) (34,399) Net accounts receivable $ 4,118,117 $ 3,068,181 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. The accounts receivable balance is pledged as collateral for the Company's revolving financing as disclosed in Note 3. |
Inventory [Policy Text Block] | Inventory Inventory represents raw materials and finished goods 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. The inventory balance is pledged as collateral for the Company's revolving financing as disclosed in Note 1. As of June 30, 2019 and March 31, 2019, inventory consisted of the following: June 30, 2019 March 31, 2019 (unaudited) Raw materials $ 818,275 $ 1,066,105 Finished goods 227,038 991,907 Total inventory $ 1,045,313 $ 2,058,012 |
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 (half-life convention) method over the estimated useful life of the assets, which the Company has determined to be 3 years. |
Stock-Based Compensation [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with Accounting Standards Codification ("ASC") 718. Stock-based compensation is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite 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 per ASC 606. The Company recognizes revenue when our performance obligations are satisfied. Our primary obligation (the distribution and sale of beverage products) is satisfied upon the delivery of products to our customers, which is also when control is transferred. 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. The Company provides credit to its customers which typically require payment within 30 days. As an incentive to pay early the Company also typically provides a 2% discount if the customer pays within 10 days. The Company estimates the amount of the discount that the customer is likely to take and recognizes it as variable consideration. The amounts are not considered material. After evaluating the revenue disclosure requirements the Company does not believe that any revenues are required to be disaggregated. Revenue consists of the gross sales price, less estimated allowances for which provisions are made at the time of sale, and less certain other discounts, allowances, and rebates that are accounted for as a reduction from gross revenue. Shipping and handling charges that are billed to customers are included as a component of revenue. Costs incurred by the Company for shipping and handling charges are included in selling expenses and amounted to $1,431,456 and $1,376,967 for the quarters ended June 30, 2019 and 2018, respectively. |
Concentration Risks [Policy Text Block] | Concentration Risks We have 2 major customers that together account for 35% (23% and 12%, respectively) of accounts receivable at June 30, 2019, and 2 customers that together account for 40% (22% and 18%, respectively) of the total revenues earned for the quarter ended June 30, 2019.The Company has 3 vendors that accounted for 58% (28%, 16% and 14% respectively) of purchases for the quarter ended June 30, 2019. We had 2 major customers that together accounted for 42% (23% and 19%, respectively) of accounts receivable at June 30, 2018, and 2 customers that together accounted for 45% (24% and 21%, respectively) of the total revenues earned for the quarter ended June 30, 2018.The Company had 2 vendors that accounted for 51% (38% and 13% respectively) of purchases for the quarter ended June 30, 2018. |
Income Taxes [Policy Text Block] | Income Taxes The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income (loss), permanent tax differences and statutory tax rates. Deferred income taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate principally to net operating loss carryforwards. Deferred tax assets and liabilities represent the future tax consequence for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. |
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 |
Business Segments [Policy Text Block] | Business Segments The Company operates on one segment in one geographic location - the United States of America and; therefore, segment information is not presented. |
Fair Value of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments The carrying amounts of the company's financial instruments including accounts payable, accrued expenses, and notes payable approximate fair value due to the relative short period for maturity these instruments. The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the company's assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on reliability of the inputs as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As of June 30, 2019 and 2018, the Company did not have any financial instruments that are measured on a recurring basis as Level 1, 2 or 3. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Standards. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Standards Required to be Adopted in Future Years. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Codification Improvements to Topic 326, Financial Instruments - Credit Losses. The Company has evaluated other recent accounting pronouncements through June 30, 2019 and believes that none of them will have a material effect on our consolidated financial statements. |
NATURE OF BUSINESS AND SUMMAR_3
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Schedule of Accounts Receivable [Table Text Block] | June 30, 2019 March 31, 2019 (unaudited) Trade receivables, net $ 4,199,323 $ 3,142,580 Less: Allowance for doubtful accounts (40,000) (40,000) Accrual for 2% 10 days discount (41,206) (34,399) Net accounts receivable $ 4,118,117 $ 3,068,181 |
Schedule of Inventory, Current [Table Text Block] | June 30, 2019 March 31, 2019 (unaudited) Raw materials $ 818,275 $ 1,066,105 Finished goods 227,038 991,907 Total inventory $ 1,045,313 $ 2,058,012 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Schedule of Property, Plant and Equipment [Table Text Block] | Fixed assets consisted of the following at: June 30, 2019 March 31, 2019 Machinery and Equipment $ 3,796,511 $ 3,764,533 Office Equipment 32,992 29,300 Less: Accumulated Depreciation (2,082,508) (1,848,568) Fixed Assets, net $ 1,746,995 $ 1,945,265 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense [Table Text Block] | Operating Leases: June 30, 2019 Operating lease right-of-use asset - current portion $ 78,306 Operating lease right-of-use asset - non-current portion 26,102 Total Operating lease right-of-use asset $ 104,408 Operating lease liability - current portion $ 88,168 Operating lease liability - non-current portion 31,077 Total Operating lease liability $ 119,245 Weighted average remaining lease term (in years): Operating leases 1.33 Operating leases 7.50 % |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | Three months Ended June 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating lease $ 23,255 |
Schedule of Maturities of Undiscounted Lease Liabilities [Table Text Block] | Operating Leases Year ending March 31, 2020 (remainder) $ 70,462 Year ending March 31, 2021 55,238 Total lease payments 125,700 Less: Imputed interest (6,455 ) Total lease obligations 119,245 |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended | ||
Jun. 30, 2019USD ($)customersvendorsshares | Jun. 30, 2018USD ($)customersvendorsshares | Mar. 31, 2019USD ($) | |
Cash and cash equivalents | $ 10,013,737 | $ 11,032,451 | |
Selling expenses | 1,431,456 | $ 1,376,967 | |
Lease liability | 119,245 | ||
Right of use asset | 104,408 | ||
Stock compensation expense | $ 1,103,740 | ||
Accounts Receivable [Member] | |||
Number of major customers | customers | 2 | 2 | |
Concentration Risk, Percentage | 35.00% | 42.00% | |
Accounts Receivable [Member] | Customer 1 [Member] | |||
Concentration Risk, Percentage | 23.00% | 23.00% | |
Accounts Receivable [Member] | Customer 2 [Member] | |||
Concentration Risk, Percentage | 12.00% | 19.00% | |
Revenues [Member] | |||
Number of major customers | customers | 2 | 2 | |
Concentration Risk, Percentage | 40.00% | 45.00% | |
Revenues [Member] | Customer 1 [Member] | |||
Concentration Risk, Percentage | 22.00% | 24.00% | |
Revenues [Member] | Customer 2 [Member] | |||
Concentration Risk, Percentage | 18.00% | 21.00% | |
Purchases [Member] | |||
Number of major vendors | vendors | 3 | 2 | |
Concentration Risk, Percentage | 58.00% | 51.00% | |
Purchases [Member] | Vendor 1 [Member] | |||
Concentration Risk, Percentage | 28.00% | 38.00% | |
Purchases [Member] | Vendor 2 [Member] | |||
Concentration Risk, Percentage | 16.00% | 13.00% | |
Purchases [Member] | Vendor 3 [Member] | |||
Concentration Risk, Percentage | 14.00% | ||
Employee Stock Option [Member] | |||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,136,675 | 1,162,856 | |
Warrant [Member] | |||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,714,392 | 2,519,140 | |
Convertible Preferred Stock [Member] | |||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,500,000 | 1,500,000 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Depreciation expense | $ 233,940 | $ 114,073 |
REVOLVING FINANCING (Narrative)
REVOLVING FINANCING (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
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) $5 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, and is subject to certain customer specific requirements). |
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. The interest rate as of June 30, 2019 was 8.75%. |
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 | 1.00% |
Line of Credit Facility, Interest Increase Upon Default | 5.00% |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) | 1 Months Ended | ||||||
May 31, 2013 | Jun. 30, 2019$ / sharesshares | Mar. 31, 2019$ / sharesshares | Nov. 02, 2017USD ($)shares | May 03, 2017shares | Mar. 30, 2016USD ($)shares | Oct. 07, 2013shares | |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Preferred Stock, Par Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 15 | ||||||
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 |
OPTIONS AND WARRANTS (Narrative
OPTIONS AND WARRANTS (Narrative) (Details) | Apr. 12, 2019USD ($)$ / sharesshares | Apr. 12, 2019$ / shares | Apr. 26, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)shares |
Notes to Financial Statements [Abstract] | ||||
Class of Warrant or Right, Exercises in Period | shares | 74,000 | 1,700,000 | ||
Class of Warrant or Right, Exercises in Period, Exercise Price | (per share) | $ 2.17 | $ 2.90 | $ 0.60 | |
Proceeds from warrants exercised | $ 160,486 | $ 1,020,000 | $ 1,180,486 | |
Stock compensation expense | $ 1,103,740 | |||
Number of shares for remaining unvested options | shares | 357,500 | |||
Value of remaining unvested options | $ 704,620 | |||
Remaining unvested options vesting period | 12 months |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 3 Months Ended | 5 Months Ended |
Jun. 30, 2019USD ($)ft² | Nov. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Area of property under operating lease | ft² | 3,352 | |
Lease and rent expense per month | $ 7,752 | |
Operating Lease expense | 22,072 | |
Short-term lease cost | $ 12,471 | |
Subsequent Event | ||
Lessee, Lease, Description [Line Items] | ||
Increased lease and rent expense in November 2019 | $ 7,891 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Trade receivables, net | $ 4,199,323 | $ 3,142,580 |
Less: Allowance for doubtful accounts | (40,000) | (40,000) |
Accrual for 2% 10 days discount | (41,206) | (34,399) |
Net accounts receivable | $ 4,118,117 | $ 3,068,181 |
Schedule of Inventory, Current
Schedule of Inventory, Current (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Raw materials | $ 818,275 | $ 1,066,105 |
Finished goods | 227,038 | 991,907 |
Total inventory | $ 1,045,313 | $ 2,058,012 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Less: Accumulated Depreciation | $ (2,082,508) | $ (1,848,568) |
Fixed Assets, net | 1,746,995 | 1,945,265 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment | 3,796,511 | 3,764,533 |
Office Equipment [Member] | ||
Property, Plant and Equipment | $ 32,992 | $ 29,300 |
Schedule of Operating Leases (D
Schedule of Operating Leases (Details) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use asset - current portion | $ 78,306 |
Operating lease right-of-use asset - non-current portion | 26,102 |
Operating lease right of use asset | 104,408 |
Current operating lease liabilities | 88,168 |
Operating lease liability - non-current portion | 31,077 |
Total Operating lease liability | $ 119,245 |
Weighted average remaining lease term, operating leases | 1 year 3 months 29 days |
Weighted average discount rate, operating leases | 7.50% |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information of Leases (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating lease | $ 23,255 |
Schedule of Maturities of Undis
Schedule of Maturities of Undiscounted Lease Liabilities (Details) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Year ending March 31, 2020 (remainder) | $ 70,462 |
Year ending March 31, 2021 | 55,238 |
Total lease payments | 125,700 |
Less: Imputed interest | (6,455) |
Total lease obligations | $ 119,245 |