Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Feb. 10, 2020 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 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 | 45,585,592 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Trading Symbol | WTER | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 4,173,551 | $ 11,032,451 |
Accounts receivable | 3,295,331 | 3,068,181 |
Inventory | 2,367,125 | 2,058,012 |
Prepaid expenses | 1,999,656 | 378,699 |
Operating lease right-of-use asset - current portion | 65,255 | |
Total current assets | 11,900,918 | 16,537,343 |
Property and Equipment, net | 1,461,790 | 1,945,265 |
Total assets | 13,362,708 | 18,482,608 |
Current liabilities | ||
Accounts payable | 4,948,249 | 2,898,958 |
Accrued expenses | 999,218 | 1,095,458 |
Revolving financing | 2,895,444 | 3,131,279 |
Operating lease liability - current portion | 76,266 | |
Total liabilities | 8,919,177 | 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 December 31, 2019 and March 31, 2019 | 5,300 | 5,300 |
Common stock, Class A - $0.001 par value, 200,000,000 shares authorized 43,685,592 and 39,573,512 shares issued and outstanding at December 31, 2019 and March 31, 2019, respectively | 43,685 | 39,573 |
Additional paid in capital | 53,932,243 | 50,006,919 |
Accumulated deficit | (49,537,697) | (38,694,879) |
Total stockholders' equity | 4,443,531 | 11,356,913 |
Total liabilities and stockholders' equity | $ 13,362,708 | $ 18,482,608 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 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 | 43,685,592 | 39,573,512 |
Common stock, shares, outstanding | 43,685,592 | 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 (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 8,455,030 | $ 7,691,013 | $ 29,053,052 | $ 24,211,398 |
Cost of Goods Sold | 5,061,324 | 4,822,694 | 17,048,951 | 14,301,068 |
Gross Profit | 3,393,706 | 2,868,319 | 12,004,101 | 9,910,330 |
Operating expenses | ||||
Sales and marketing expenses | 4,077,599 | 3,650,105 | 13,359,941 | 9,846,940 |
General and administrative | 1,812,763 | 2,718,567 | 8,439,405 | 5,096,043 |
Depreciation | 254,220 | 110,613 | 727,917 | 334,769 |
Total operating expenses | 6,144,582 | 6,479,285 | 22,527,263 | 15,277,752 |
Total operating loss | (2,750,876) | (3,610,966) | (10,523,162) | (5,367,422) |
Other (expense) | ||||
Interest expense | (110,797) | (144,606) | (319,656) | (413,868) |
Total other (expense) | (110,797) | (144,606) | (319,656) | (413,868) |
Net loss | $ (2,861,673) | $ (3,755,572) | $ (10,842,818) | $ (5,781,290) |
LOSS PER SHARE (Basic and Diluted) | $ (0.07) | $ (0.11) | $ (0.26) | $ (0.19) |
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted) | 43,685,592 | 32,814,187 | 42,187,056 | 30,765,915 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - 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 (in shares) at Mar. 31, 2018 | 5,300,000 | 25,991,346 | |||
Shares issued in connection with offerings | $ 5,132 | 3,843,668 | 3,848,800 | ||
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 (in shares) at Jun. 30, 2018 | 5,300,000 | 31,123,011 | |||
Beginning balance at Mar. 31, 2018 | $ 5,300 | $ 25,990 | 30,506,265 | (30,077,314) | 460,241 |
Beginning balance (in shares) at Mar. 31, 2018 | 5,300,000 | 25,991,346 | |||
Net loss | (5,781,290) | ||||
Ending balance at Dec. 31, 2018 | $ 5,300 | $ 34,093 | 39,126,699 | (35,858,604) | 3,307,488 |
Ending balance (in shares) at Dec. 31, 2018 | 5,300,000 | 34,093,011 | |||
Beginning balance at Jun. 30, 2018 | $ 5,300 | $ 31,122 | 34,349,933 | (31,167,898) | 3,218,457 |
Beginning balance (in shares) at Jun. 30, 2018 | 5,300,000 | 31,123,011 | |||
Shares issued in connection with offerings | $ 1,620 | 3,236,408 | 3,238,028 | ||
Shares issued in connection with offerings (Shares) | 1,619,947 | ||||
Net loss | (935,134) | (935,134) | |||
Ending balance at Sep. 30, 2018 | $ 5,300 | $ 32,742 | 37,586,341 | (32,103,032) | 5,521,351 |
Ending balance (in shares) at Sep. 30, 2018 | 5,300,000 | 32,742,958 | |||
Warrant exercises | $ 1,276 | 1,146,973 | 1,148,249 | ||
Warrant exercises (in shares) | 1,275,832 | ||||
Stock option exercise | $ 75 | (75) | |||
Stock option exercise (in shares) | 74,221 | ||||
Stock option expense | 393,460 | 393,460 | |||
Net loss | (3,755,572) | (3,755,572) | |||
Ending balance at Dec. 31, 2018 | $ 5,300 | $ 34,093 | 39,126,699 | (35,858,604) | 3,307,488 |
Ending balance (in shares) at Dec. 31, 2018 | 5,300,000 | 34,093,011 | |||
Beginning balance at Mar. 31, 2019 | $ 5,300 | $ 39,573 | 50,006,919 | (38,694,879) | 11,356,913 |
Beginning balance (in shares) at Mar. 31, 2019 | 5,300,000 | 39,573,512 | |||
Warrant exercises | $ 1,774 | 1,178,712 | 1,180,486 | ||
Warrant exercises (in shares) | 1,774,000 | ||||
Stock option expense | 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 (in shares) at Jun. 30, 2019 | 5,300,000 | 41,347,512 | |||
Beginning balance at Mar. 31, 2019 | $ 5,300 | $ 39,573 | 50,006,919 | (38,694,879) | 11,356,913 |
Beginning balance (in shares) at Mar. 31, 2019 | 5,300,000 | 39,573,512 | |||
Net loss | (10,842,818) | ||||
Ending balance at Dec. 31, 2019 | $ 5,300 | $ 43,685 | 53,932,243 | (49,537,697) | 4,443,531 |
Ending balance (in shares) at Dec. 31, 2019 | 5,300,000 | 43,685,592 | |||
Beginning balance at Jun. 30, 2019 | $ 5,300 | $ 41,347 | 52,289,371 | (43,751,067) | 8,584,951 |
Beginning balance (in shares) at Jun. 30, 2019 | 5,300,000 | 41,347,512 | |||
Warrant exercises | $ 2,200 | 1,317,800 | 1,320,000 | ||
Warrant exercises (in shares) | 2,200,000 | ||||
Stock option exercise | $ 138 | (138) | |||
Stock option exercise (in shares) | 138,080 | ||||
Stock option expense | 162,605 | 162,605 | |||
Net loss | (2,924,957) | (2,924,957) | |||
Ending balance at Sep. 30, 2019 | $ 5,300 | $ 43,685 | 53,769,638 | (46,676,024) | 7,142,599 |
Ending balance (in shares) at Sep. 30, 2019 | 5,300,000 | 43,685,592 | |||
Stock option expense | 162,605 | 162,605 | |||
Net loss | (2,861,673) | (2,861,673) | |||
Ending balance at Dec. 31, 2019 | $ 5,300 | $ 43,685 | $ 53,932,243 | $ (49,537,697) | $ 4,443,531 |
Ending balance (in shares) at Dec. 31, 2019 | 5,300,000 | 43,685,592 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (10,842,818) | $ (5,781,290) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 727,917 | 334,769 |
Stock compensation expense | 1,428,950 | 393,460 |
Warrant Expense | 131,030 | |
Right-of-use asset amortization | 11,011 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (227,150) | 521,367 |
Inventory | (309,113) | (701,777) |
Prepaid expenses and other current assets | (1,620,957) | 115,387 |
Accounts payable | 2,049,291 | 270,254 |
Accrued expenses | (96,240) | (139,949) |
NET CASH USED IN OPERATING ACTIVITIES | (8,879,109) | (4,856,749) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of fixed assets | (244,442) | (1,174,458) |
CASH USED IN INVESTING ACTIVITIES | (244,442) | (1,174,458) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds (payments) from revolving financing | (235,835) | 157,283 |
Proceeds from sale of common stock, net | 6,955,798 | |
Proceeds for the exercise of warrants, net | 2,500,486 | 1,148,249 |
Repayment of notes payable | (131,583) | |
CASH PROVIDED BY FINANCING ACTIVITIES | 2,264,651 | 8,129,747 |
NET CHANGE IN CASH | (6,858,900) | 2,098,540 |
CASH AT BEGINNING OF PERIOD | 11,032,451 | 988,905 |
CASH AT END OF PERIOD | 4,173,551 | 3,087,445 |
INTEREST PAID | 235,197 | 333,534 |
TAXES PAID | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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 Alkaline Water Company Inc. and its four wholly owned subsidiaries shall collectively be referred to as the "Company." The Company offers retail consumers bottled alkaline water in 500-milliliter, 700-milliliter, 1-liter, 1.5 -liter, 3-liter and 1-gallon sizes, all of 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. The Company also sells to retail customers flavor infused bottled water in the 500-milliliter size in six flavors: Raspberry, Watermelon, Lemon, Lemon Lime, Peach Mango, and Blood Orange Basis of presentation These unaudited financial statements represent the condensed consolidated financial statements of 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 and nine months ended December 31, 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 and nine months ended December 31, 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 four wholly owned subsidiaries: A88 Infused Beverage Division Inc. (a Nevada Corporation), A88 International, Inc. (a Nevada Corporation), A88 Infused Products Inc. (a Nevada Corporation), and Alkaline 88, LLC (an Arizona Limited Liability Company). All significant intercompany balances and transactions have been eliminated. 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 $4,173,551 and $11,032,451 in cash at December 31, 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 December 31, 2019 and March 31, 2019: December 31, March 31, Trade receivables, net $ 3,371,878 $ 3,142,580 Less: Allowance for doubtful accounts (40,000) (40,000) Accrual for 2% 10 days discount $ (36,547) $ (34,399) Net accounts receivable $ 3,295,331 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 3. As of December 31, 2019, and March, 31 2019, inventory consisted of the following: December 31, 2019 March 31, 2019 Raw materials $ 1,118,275 $ 1,066,105 Finished goods 1,248,850 991,907 Total inventory $ 2,367,125 $ 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 the Company's performance obligations are satisfied. The Company's primary obligation (the distribution and sale of beverage products) is satisfied upon the delivery of products to the Company's 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 variable consideration, consisting of 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 $1,175,274 and $1,266,031 for the three months ended December 31, 2019 and 2018, respectively and $4,103,437 and $4,166,274 for the nine months ended December 31, 2019 and 2018, respectively. Concentration Risks We have 3 major customers that together account for 51% (22%, 16% and 13%, respectively) of accounts receivable at December 31, 2019. The Company has 2 customers that together accounted for 40% (26% and 14%, respectively) of the total revenues earned for the three months ended December 31, 2019 and 2 customers that together accounted for 40% (24% and 16% respectively) of the total revenues earned for the nine months ended December 31, 2019. The Company has 2 vendors that accounts for 42% (23% and 19% respectively) of purchases for the three months ended December 31, 2019 and 3 vendors that accounted for 52% (21%, 21% and 10% respectively) of purchases for the nine months ended December 31, 2019. We had 2 major customers that together accounted for 45% (29% and 16%, respectively) of accounts receivable at December 31, 2018. The Company has 2 customers that together accounted for 47% (28% and 19%, respectively) of the total revenues earned for the three months ended December 31, 2018 and 2 customers that together accounted for 43% (24% and 19% respectively) of the total revenues earned for the nine months ended December 31, 2018. The Company has 3 vendors that accounts for 58% (36%, 11%, and 11% respectively) of purchases for the three months ended December 31, 2018 and 3 vendors that accounted for 59% (36%, 12% and 11% respectively) of purchases for the nine months ended December 31, 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 with ASC 260- 10 "Earnings per Share", which establishes the requirements for presenting EPS. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS is based on the weighted average number of common shares outstanding and dilutive common stock equivalents. Basic EPS is computed by dividing net income or loss available to common stockholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Potentially dilutive securities were excluded from the calculation of diluted loss per share, because their effect would be anti-dilutive. The Company had 250,506 and 1,578,343 shares relating to options and -0- and 3,013,000 shares relating to warrants at December 31, 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 of 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 December 31, 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). The new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases, other than leases with a term of 12 months or less, and to provide additional disclosures about leasing arrangements. The Company adopted this standard as of April 1, 2019, the first day of its 2020 fiscal year, using the modified retrospective approach the impact of which was not material. 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 $1,428,949 in the nine months ended December 31, 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. ASU 2016-13 amends the guidance on the impairment of financial instruments. This update adds an impairment model (known as the current expected credit losses model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. In November 2018, ASU 2016-13 was amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. ASU 2018-19 changes the effective date of the credit loss standards (ASU 2016-13) to fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Further, the ASU clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. The Company does not believe that the impact of adopting this standard will have a material effect on its financial statements. The Company has evaluated other recent accounting pronouncements through December 31, 2019 and believes that none of them will have a material effect on our consolidated financial statements. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT [Text Block] | NOTE 2 - PROPERTY AND EQUIPMENT Property and Equipment consisted of the following at: December 31, 2019 (unaudited) March 31, 2019 Machinery and Equipment $ 4,005,283 $ 3,764,533 Office Equipment 32,991 29,300 Less: Accumulated Depreciation (2,576,484 ) (1,848,568 ) Property and Equipment, net $ 1,461,790 $ 1,945,265 Depreciation expense for the nine months ended December 31, 2019 and December 31, 2018 was $727,917 and $334,769, respectively. |
REVOLVING FINANCING
REVOLVING FINANCING | 9 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
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 Credit Agreement expires on July 1, 2021, 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. The interest rate as of December 31, 2019 was 8.0%. 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 December 31, 2019. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 9 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
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 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 the 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. 1,500,000 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. 3,800,000 |
OPTIONS AND WARRANTS
OPTIONS AND WARRANTS | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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. Effective as of September 3, 2019, the Company issued an aggregate of 2,200,000 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 $1,320,000. 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 for the three and nine months ended December 31, 2019 of $162,605 and $1,428,949 respectively. The remaining 357,500 unvested options are valued at $216,806 and that amount will be amortized over the remaining 4 month vesting period ending April 2020. |
LEASES
LEASES | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES [Text Block] | 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 and nine months ending December 31, 2019 was $23,534 and $70,043, respectively. The Company also has a short-term lease ending March 31, 2020 and the lease expense for this short-term lease for the three and nine months ended December 31, 2019 was $12,622 and $36,749, respectively. The right-of-use amortization for the three and nine months ended December 31, 2019 was $21,281 and $65,034, respectively. Operating Leases: December 31, 2019 Operating lease right-of-use asset - current portion $ 65,255 Operating lease right-of-use asset - non-current portion 0 Total Operating lease right-of-use asset $ 65,255 Operating lease liability - current portion $ 76,266 Operating lease liability - non-current portion 0 Total Operating lease liability $ 76,266 Weighted average remaining lease term (in years): Operating leases 0.83 Operating leases 7.50 % |
Commitments and Contingency
Commitments and Contingency | 9 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements [Abstract] | |
Commitments and Contingency [Text Block] | Note 7 - Commitments and Contingency AQUAhydrate On September 9, 2019, the Company, AQUAhydrate, Inc. ("AQUAhydrate") and AWC Acquisition Company Inc. (the "Merger Sub"), a wholly-owned subsidiary of the Company, entered into an Agreement and Plan of Merger (the "Merger Agreement"). The Merger Agreement provides that, among other things, the Merger Sub will merge with and into AQUAhydrate with AQUAhydrate as the surviving corporation and a wholly-owned subsidiary of the Company (the "Merger"). Subject to the terms and conditions of the Merger Agreement, in consideration for the Merger, the Company agreed to, at the closing of the Merger (the "Closing"), issue to the holders of shares of AQUAhydrate's common stock, on a pro-rata basis, such number of shares of the Company's common stock (the "Company Common Stock") that is equal to 19,565,217 less any shares of the Company Common Stock to be directed by AQUAhydrate to be issued in connection with the Merger to any placement agents or other service providers, including Roth Capital Partners LLC and Emerald Partners Pty Limited, and to any other persons for the payment of any outstanding liabilities of AQUAhydrate. In addition, on the Closing, the Company agreed to issue to the holders of the shares of AQUAhydrate's preferred stock (after the capital reorganization), on a pro-rata basis, an additional 3,750,000 shares of the Company Common Stock as follows: (1) an aggregate of 1,000,000 shares of the Company Common Stock which will be subject to escrow and not released until the Company achieves trailing revenue of $60 million in any twelve month period ending on the last day of any quarterly period of the fiscal year of the Company (each, a "Period") after the Closing; (2) an aggregate of 1,250,000 shares of the Company Common Stock which will be subject to escrow and not released until the Company achieves trailing revenue of $80 million in any Period after the Closing; and (3) an aggregate of 1,500,000 shares of the Company Common Stock which will be subject to escrow and not released until the Company achieves trailing revenue of $100 million in any Period after the Closing, provided that these shares of the Company Common Stock will be immediately released from escrow upon a change of control of the Company. On September 9, 2019, and subject to the Merger Agreement closing, the Company agreed to issue 750,000 stock options to purchase shares of its common stock at a price of $3.00 per share until September 9, 2029 to Mark Wahlberg pursuant to a services agreement among the Company, Mr. Wahlberg and AQUAhydrate, Inc. The services agreement, which requires Mr. Wahlberg to provide certain promotional services to the Company, was entered into in connection with the Merger. The stock options vest as follows: (i) 25% will vest one year following the effective date of the Merger, (ii) 25% will vest once the combined company resulting from the Merger (the "Combined Company") has achieved $80 million of revenue in any 12 month period, (iii) 25% will vest once the Combined Company has achieved $100 million of revenue in any 12 month period and (iv) 25% will vest once the Combined Company has achieved $125 million in revenue in any 12 month period; provided that all stock options will immediately vest upon a change of control of the Company. On September 9, 2019, the Company also granted to Mr. Wahlberg a further 250,000 stock options to purchase shares of its common stock at a price of $3.00 per share until September 9, 2029, and such stock options will vest upon a change of control of the Company. The issuance of all of the above referenced stock options to Mr. Wahlberg is conditioned upon Mr. Wahlberg and the Company entering in to separate stock option grant agreements. In the event of the termination of the Merger Agreement, the aforementioned services agreement will automatically terminate and all of the above referenced options will automatically be forfeited. On September 9, 2019, and subject to the Merger Agreement closing, the Company agreed to issue 750,000 stock options to purchase shares of its common stock at an exercise price of $3.00 per share until September 9, 2029 to SC Beverages LLC, a company controlled by Sean Combs, pursuant to a services agreement among the Company, SC Beverages LLC and AQUAhydrate, Inc. The services agreement, which requires Mr. Combs to provide certain promotional services to the Company, was entered into in connection with the Merger. The stock options vest as follows: (i) 25% will vest one year following the effective date of the Merger, (ii) 25% will vest once the Combined Company has achieved $80 million of revenue in any 12 month period, (iii) 25% will vest once the Combined Company has achieved $100 million of revenue in any 12 month period and (iv) 25% will vest once the Combined Company has achieved $125 million in revenue in any 12 month period; provided that all stock options will immediately vest upon a change of control of the Company. On September 9, 2019, the Company also granted to SC Beverages LLC a further 250,000 stock options to purchase shares of its common stock at a price of $3.00 per share until September 9, 2029, and such stock options will vest upon a change of control of the Company. The issuance of all of the above referenced stock options to SC Beverages, LLC is conditioned upon SC Beverages, LLC and the Company entering in to separate stock option grant agreements. In the event of the termination of the Merger Agreement, the aforementioned services agreement will automatically terminate and all of the above referenced options will automatically be forfeited. On September 9, 2019, and subject to the Merger Agreement closing, the Company agreed to issue 125,000 stock options to purchase shares of its common stock at an exercise price of $3.00 per share until September 9, 2024 to Jillian Michaels, and 125,000 stock options to purchase shares of its common stock at an exercise price of $3.00 per share until September 9, 2024 to G-Money, Inc. pursuant to an endorsement agreement among the Company, Ms. Michaels, G-Money, Inc., Firelight, Inc. and AQUAhydrate, Inc. The endorsement agreement, which requires Ms. Michaels to provide certain promotional services to the Company, was entered into in connection with the Merger. The stock options vest as follows: (i) 25% will vest one year following the effective date of the Merger, (ii) 25% will vest once the Combined Company has achieved $80 million of revenue in any 12 month period, (iii) 25% will vest once the Combined Company has achieved $100 million of revenue in any 12 month period and (iv) 25% will vest once the Combined Company has achieved $125 million in revenue in any 12 month period; provided that all stock options will immediately vest upon a change of control of the Company. On September 9, 2019, the Company also granted to Ms. Michaels a further 125,000 stock options to purchase shares of its common stock at an exercise price of $3.00 per share until September 9, 2024, and granted to G-Money, Inc. a further 125,000 stock options to purchase shares of its common stock at a price of $3.00 per share until September 9, 2024, and such stock options will vest upon a change of control of the Company. The issuance of all of the above referenced stock options to entities affiliated with Ms. Michaels is conditioned upon such entities and the Company entering in to separate stock option grant agreements. In the event of the termination of the Merger Agreement, the aforementioned services agreement will automatically terminate and all of the above referenced options will automatically be forfeited. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | NOTE 8 - SUBSEQUENT EVENTS Effective as of January 13, 2020, the Company issued 1,500,000 shares of its common stock to Richard A. Wright, president, chief executive officer and director, upon conversion of 1,500,000 shares of its Series C Preferred Stock without the payment of any additional consideration. On February 4, 2020, the Company terminated the Agreement and Plan of Merger (the "Merger Agreement") that it had entered into with AQUAhydrate, Inc. and AWC Acquisition Company Inc., a wholly-owned subsidiary of the Company, on September 9, 2019 as amended. The Company terminated the Merger Agreement pursuant to Section 7.2(a) of the Merger Agreement as the merger had not been consummated on or before January 31, 2020. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business [Policy Text Block] | Nature of Business The Alkaline Water Company Inc. and its four wholly owned subsidiaries shall collectively be referred to as the "Company." The Company offers retail consumers bottled alkaline water in 500-milliliter, 700-milliliter, 1-liter, 1.5 -liter, 3-liter and 1-gallon sizes, all of 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. The Company also sells to retail customers flavor infused bottled water in the 500-milliliter size in six flavors: Raspberry, Watermelon, Lemon, Lemon Lime, Peach Mango, and Blood Orange |
Basis of presentation [Policy Text Block] | Basis of presentation These unaudited financial statements represent the condensed consolidated financial statements of 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 and nine months ended December 31, 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 and nine months ended December 31, 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 four wholly owned subsidiaries: A88 Infused Beverage Division Inc. (a Nevada Corporation), A88 International, Inc. (a Nevada Corporation), A88 Infused Products Inc. (a Nevada Corporation), and Alkaline 88, LLC (an Arizona Limited Liability Company). All significant intercompany balances and transactions have been eliminated. 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 $4,173,551 and $11,032,451 in cash at December 31, 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 December 31, 2019 and March 31, 2019: December 31, March 31, Trade receivables, net $ 3,371,878 $ 3,142,580 Less: Allowance for doubtful accounts (40,000) (40,000) Accrual for 2% 10 days discount $ (36,547) $ (34,399) Net accounts receivable $ 3,295,331 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 3. As of December 31, 2019, and March, 31 2019, inventory consisted of the following: December 31, 2019 March 31, 2019 Raw materials $ 1,118,275 $ 1,066,105 Finished goods 1,248,850 991,907 Total inventory $ 2,367,125 $ 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 the Company's performance obligations are satisfied. The Company's primary obligation (the distribution and sale of beverage products) is satisfied upon the delivery of products to the Company's 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 variable consideration, consisting of 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 $1,175,274 and $1,266,031 for the three months ended December 31, 2019 and 2018, respectively and $4,103,437 and $4,166,274 for the nine months ended December 31, 2019 and 2018, respectively. |
Concentration Risks [Policy Text Block] | Concentration Risks We have 3 major customers that together account for 51% (22%, 16% and 13%, respectively) of accounts receivable at December 31, 2019. The Company has 2 customers that together accounted for 40% (26% and 14%, respectively) of the total revenues earned for the three months ended December 31, 2019 and 2 customers that together accounted for 40% (24% and 16% respectively) of the total revenues earned for the nine months ended December 31, 2019. The Company has 2 vendors that accounts for 42% (23% and 19% respectively) of purchases for the three months ended December 31, 2019 and 3 vendors that accounted for 52% (21%, 21% and 10% respectively) of purchases for the nine months ended December 31, 2019. We had 2 major customers that together accounted for 45% (29% and 16%, respectively) of accounts receivable at December 31, 2018. The Company has 2 customers that together accounted for 47% (28% and 19%, respectively) of the total revenues earned for the three months ended December 31, 2018 and 2 customers that together accounted for 43% (24% and 19% respectively) of the total revenues earned for the nine months ended December 31, 2018. The Company has 3 vendors that accounts for 58% (36%, 11%, and 11% respectively) of purchases for the three months ended December 31, 2018 and 3 vendors that accounted for 59% (36%, 12% and 11% respectively) of purchases for the nine months ended December 31, 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 with ASC 260- 10 "Earnings per Share", which establishes the requirements for presenting EPS. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS is based on the weighted average number of common shares outstanding and dilutive common stock equivalents. Basic EPS is computed by dividing net income or loss available to common stockholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Potentially dilutive securities were excluded from the calculation of diluted loss per share, because their effect would be anti-dilutive. The Company had 250,506 and 1,578,343 shares relating to options and -0- and 3,013,000 shares relating to warrants at December 31, 2019 and 2018, respectively that were not included in the diluted earnings per share calculation because they were antidilutive. |
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 of 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 December 31, 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). The new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases, other than leases with a term of 12 months or less, and to provide additional disclosures about leasing arrangements. The Company adopted this standard as of April 1, 2019, the first day of its 2020 fiscal year, using the modified retrospective approach the impact of which was not material. 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 $1,428,949 in the nine months ended December 31, 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. ASU 2016-13 amends the guidance on the impairment of financial instruments. This update adds an impairment model (known as the current expected credit losses model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. In November 2018, ASU 2016-13 was amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. ASU 2018-19 changes the effective date of the credit loss standards (ASU 2016-13) to fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Further, the ASU clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. The Company does not believe that the impact of adopting this standard will have a material effect on its financial statements. The Company has evaluated other recent accounting pronouncements through December 31, 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) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | December 31, March 31, Trade receivables, net $ 3,371,878 $ 3,142,580 Less: Allowance for doubtful accounts (40,000) (40,000) Accrual for 2% 10 days discount $ (36,547) $ (34,399) Net accounts receivable $ 3,295,331 3,068,181 |
Schedule of Inventory, Current [Table Text Block] | December 31, 2019 March 31, 2019 Raw materials $ 1,118,275 $ 1,066,105 Finished goods 1,248,850 991,907 Total inventory $ 2,367,125 $ 2,058,012 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment [Table Text Block] | December 31, 2019 (unaudited) March 31, 2019 Machinery and Equipment $ 4,005,283 $ 3,764,533 Office Equipment 32,991 29,300 Less: Accumulated Depreciation (2,576,484 ) (1,848,568 ) Property and Equipment, net $ 1,461,790 $ 1,945,265 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense [Table Text Block] | Operating Leases: December 31, 2019 Operating lease right-of-use asset - current portion $ 65,255 Operating lease right-of-use asset - non-current portion 0 Total Operating lease right-of-use asset $ 65,255 Operating lease liability - current portion $ 76,266 Operating lease liability - non-current portion 0 Total Operating lease liability $ 76,266 Weighted average remaining lease term (in years): Operating leases 0.83 Operating leases 7.50 % |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019USD ($)customersvendors | Dec. 31, 2018USD ($)customersvendors | Dec. 31, 2019USD ($)customersvendorsshares | Dec. 31, 2018USD ($)customersvendorsshares | Apr. 01, 2019USD ($) | Mar. 31, 2019USD ($) | |
Cash and cash equivalents | $ 4,173,551 | $ 4,173,551 | $ 11,032,451 | |||
Selling expenses | $ 1,175,274 | $ 1,266,031 | $ 4,103,437 | $ 4,166,274 | ||
Right of use asset | $ 123,985 | |||||
Lease liability | $ 140,004 | |||||
Accounts Receivable [Member] | ||||||
Number of major customers | customers | 3 | 2 | ||||
Concentration Risk, Percentage | 51.00% | 45.00% | ||||
Accounts Receivable [Member] | Customer 1 [Member] | ||||||
Concentration Risk, Percentage | 22.00% | 29.00% | ||||
Accounts Receivable [Member] | Customer 2 [Member] | ||||||
Concentration Risk, Percentage | 16.00% | 16.00% | ||||
Accounts Receivable [Member] | Customer 3 [Member] | ||||||
Concentration Risk, Percentage | 13.00% | |||||
Revenues [Member] | ||||||
Number of major customers | customers | 2 | 2 | 2 | 2 | ||
Concentration Risk, Percentage | 40.00% | 47.00% | 40.00% | 43.00% | ||
Revenues [Member] | Customer 1 [Member] | ||||||
Concentration Risk, Percentage | 26.00% | 28.00% | 24.00% | 24.00% | ||
Revenues [Member] | Customer 2 [Member] | ||||||
Concentration Risk, Percentage | 14.00% | 19.00% | 16.00% | 19.00% | ||
Purchases [Member] | ||||||
Number of major vendors | vendors | 2 | 3 | 3 | 3 | ||
Concentration Risk, Percentage | 42.00% | 58.00% | 52.00% | 59.00% | ||
Purchases [Member] | Vendor 1 [Member] | ||||||
Concentration Risk, Percentage | 23.00% | 36.00% | 21.00% | 36.00% | ||
Purchases [Member] | Vendor 2 [Member] | ||||||
Concentration Risk, Percentage | 19.00% | 11.00% | 21.00% | 12.00% | ||
Purchases [Member] | Vendor 3 [Member] | ||||||
Concentration Risk, Percentage | 11.00% | 10.00% | 11.00% | |||
Employee Stock Option [Member] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 250,506 | 1,578,343 | ||||
Warrant [Member] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 0 | 3,013,000 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 254,220 | $ 110,613 | $ 727,917 | $ 334,769 |
REVOLVING FINANCING (Narrative)
REVOLVING FINANCING (Narrative) (Details) | 9 Months Ended |
Dec. 31, 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 December 31, 2019 was 8.0%. |
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) | Dec. 31, 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 | ||||
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) | Sep. 03, 2019USD ($)$ / sharesshares | Apr. 12, 2019$ / shares | Apr. 12, 2019USD ($)$ / sharesshares | Apr. 26, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) |
Share-based Payment Arrangement [Abstract] | |||||||
Class of Warrant or Right, Exercises in Period | shares | 2,200,000 | 74,000 | 1,700,000 | ||||
Class of Warrant or Right, Exercises in Period, Exercise Price | (per share) | $ 0.60 | $ 2.90 | $ 2.17 | $ 0.60 | |||
Proceeds from warrants exercised | $ 1,320,000 | $ 160,486 | $ 1,020,000 | $ 2,500,486 | $ 1,148,249 | ||
Stock compensation expense | $ 162,605 | $ 1,428,949 | |||||
Number of shares for remaining unvested options | shares | 357,500 | 357,500 | |||||
Value of remaining unvested options | $ 216,806 | $ 216,806 | |||||
Remaining unvested options vesting period | 4 months |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($)ft² | Dec. 31, 2019USD ($)ft² | |
Lessee, Lease, Description [Line Items] | |||
Area of property under operating lease | ft² | 3,352 | 3,352 | |
Lease and rent expense per month | $ 7,752 | ||
Operating Lease expense | $ 23,534 | 70,043 | |
Short-term lease cost | 12,622 | 36,749 | |
Increased lease and rent expense in November 2019 | $ 7,891 | ||
Right of use amortization assets | $ 21,281 | $ 65,034 |
Commitments and Contingency (Na
Commitments and Contingency (Narrative) (Details) | Sep. 09, 2019USD ($)$ / sharesshares |
Merger Agreement [Member] | AQUAhydrate, Inc [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares issued in consideration for Merger | shares | 19,565,217 |
Number of shares agreed to issue to holders | shares | 3,750,000 |
Description of merger agreement | In addition, on the Closing, the Company agreed to issue to the holders of the shares of AQUAhydrate's preferred stock (after the capital reorganization), on a pro-rata basis, an additional 3,750,000 shares of the Company Common Stock as follows: (1) an aggregate of 1,000,000 shares of the Company Common Stock which will be subject to escrow and not released until the Company achieves trailing revenue of $60 million in any twelve month period ending on the last day of any quarterly period of the fiscal year of the Company (each, a "Period") after the Closing; (2) an aggregate of 1,250,000 shares of the Company Common Stock which will be subject to escrow and not released until the Company achieves trailing revenue of $80 million in any Period after the Closing; and (3) an aggregate of 1,500,000 shares of the Company Common Stock which will be subject to escrow and not released until the Company achieves trailing revenue of $100 million in any Period after the Closing, provided that these shares of the Company Common Stock will be immediately released from escrow upon a change of control of the Company. |
Merger Agreement [Member] | AQUAhydrate, Inc [member] | Achieves trailing revenue of 60 million [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Trailing revenue | $ 60 |
Number of shares agreed to issue to holders | shares | 1,000,000 |
Merger Agreement [Member] | AQUAhydrate, Inc [member] | Achieves trailing revenue of 80 million [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Trailing revenue | $ 80 |
Number of shares agreed to issue to holders | shares | 1,250,000 |
Merger Agreement [Member] | AQUAhydrate, Inc [member] | Achieves trailing revenue of 100 million [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Trailing revenue | $ 100 |
Number of shares agreed to issue to holders | shares | 1,500,000 |
Services agreement [Member] | Mark Wahlberg [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock options granted to purchase shares its common stock | shares | 750,000 |
Exercise price per share | $ / shares | $ 3 |
Percentage of Stock options vest one year following effective time of merger | 25.00% |
Additional number of stock options granted to purchase shares of common stock | shares | 250,000 |
Exercise price of additional number of stock options granted | $ / shares | $ 3 |
Services agreement [Member] | Jillian Michaels [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock options granted to purchase shares its common stock | shares | 125,000 |
Exercise price per share | $ / shares | $ 3 |
Percentage of Stock options vest one year following effective time of merger | 25.00% |
Additional number of stock options granted to purchase shares of common stock | shares | 125,000 |
Exercise price of additional number of stock options granted | $ / shares | $ 3 |
Services agreement [Member] | G-Money, Inc [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock options granted to purchase shares its common stock | shares | 125,000 |
Exercise price per share | $ / shares | $ 3 |
Percentage of Stock options vest one year following effective time of merger | 25.00% |
Additional number of stock options granted to purchase shares of common stock | shares | 125,000 |
Exercise price of additional number of stock options granted | $ / shares | $ 3 |
Services agreement [Member] | SC Beverages LLC [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock options granted to purchase shares its common stock | shares | 750,000 |
Exercise price per share | $ / shares | $ 3 |
Percentage of Stock options vest one year following effective time of merger | 25.00% |
Additional number of stock options granted to purchase shares of common stock | shares | 250,000 |
Exercise price of additional number of stock options granted | $ / shares | $ 3 |
Services agreement [Member] | Vest upon combined company achieved 80 million of revenue in any 12 month period [Member] | Mark Wahlberg [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 80 |
Services agreement [Member] | Vest upon combined company achieved 80 million of revenue in any 12 month period [Member] | Jillian Michaels [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 80 |
Services agreement [Member] | Vest upon combined company achieved 80 million of revenue in any 12 month period [Member] | G-Money, Inc [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 80 |
Services agreement [Member] | Vest upon combined company achieved 80 million of revenue in any 12 month period [Member] | SC Beverages LLC [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest one year following effective time of merger | 25.00% |
Trailing revenue | $ 80 |
Services agreement [Member] | Vest upon combined company achieved 100 million of revenue in any 12 month period [Member] | Mark Wahlberg [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 100 |
Services agreement [Member] | Vest upon combined company achieved 100 million of revenue in any 12 month period [Member] | Jillian Michaels [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 100 |
Services agreement [Member] | Vest upon combined company achieved 100 million of revenue in any 12 month period [Member] | G-Money, Inc [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 100 |
Services agreement [Member] | Vest upon combined company achieved 100 million of revenue in any 12 month period [Member] | SC Beverages LLC [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 100 |
Services agreement [Member] | Vest upon combined company achieved 125 million of revenue in any 12 month period [Member] | Mark Wahlberg [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 125 |
Services agreement [Member] | Vest upon combined company achieved 125 million of revenue in any 12 month period [Member] | Jillian Michaels [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 125 |
Services agreement [Member] | Vest upon combined company achieved 125 million of revenue in any 12 month period [Member] | G-Money, Inc [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 125 |
Services agreement [Member] | Vest upon combined company achieved 125 million of revenue in any 12 month period [Member] | SC Beverages LLC [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Stock options vest once combined company threshold amount of revenue | 25.00% |
Trailing revenue | $ 125 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event - Richard A. Wright | Jan. 13, 2020shares |
Subsequent Event [Line Items] | |
Stock issued during period for services | 1,500,000 |
Series C Preferred Stock | |
Subsequent Event [Line Items] | |
Number of convertible preferred stock, shares issued upon conversion | 1,500,000 |
NATURE OF BUSINESS AND SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Trade receivables | $ 3,371,878 | $ 3,142,580 |
Less: Allowance for doubtful accounts | (40,000) | (40,000) |
Accrual for 2% 10 days discount | (36,547) | (34,399) |
Net accounts receivable | $ 3,295,331 | $ 3,068,181 |
NATURE OF BUSINESS AND SUMMAR_6
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Schedule of Inventory, Current (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Raw materials | $ 1,118,275 | $ 1,066,105 |
Finished goods | 1,248,850 | 991,907 |
Total inventory | $ 2,367,125 | $ 2,058,012 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Less: Accumulated Depreciation | $ (2,576,484) | $ (1,848,568) |
Property and Equipment, net | 1,461,790 | 1,945,265 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment | 4,005,283 | 3,764,533 |
Office Equipment [Member] | ||
Property, Plant and Equipment | $ 32,991 | $ 29,300 |
LEASES - Schedule of Operating
LEASES - Schedule of Operating Leases (Details) | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use asset - current portion | $ 65,255 |
Operating lease right-of-use asset - non-current portion | 0 |
Total Operating lease right-of-use asset | 65,255 |
Operating lease liability - current portion | 76,266 |
Operating lease liability - non-current portion | 0 |
Total Operating lease liability | $ 76,266 |
Weighted average remaining lease term, operating leases | 9 months 29 days |
Weighted average discount rate, operating leases | 7.50% |