Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Aug. 13, 2020 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Entity Registrant Name | ALKALINE WATER Co INC | |
Entity Central Index Key | 0001532390 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 64,325,115 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
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 $0.001 per share | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets | ||
Cash | $ 3,617,764 | $ 4,561,682 |
Restricted Cash | 1,999,998 | |
Accounts receivable | 4,621,614 | 4,917,081 |
Inventory | 2,894,362 | 2,919,860 |
Prepaid expenses | 1,813,557 | 1,697,199 |
Operating lease right-of-use asset | 56,440 | 87,393 |
Total current assets | 15,003,735 | 14,183,215 |
Fixed assets - net | 1,263,189 | 1,422,581 |
Total assets | 16,266,924 | 15,605,796 |
Current liabilities | ||
Accounts payable | 5,381,101 | 5,406,541 |
Accrued expenses | 1,247,168 | 1,186,516 |
Revolving financing | 4,275,310 | 7,291,217 |
PPP loan payable - current portion | 162,150 | |
Operating lease liability | 66,235 | 99,389 |
Total current liabilities | 11,131,964 | 13,983,663 |
PPP loan payable | 164,193 | |
Total liabilities | 11,296,157 | 13,983,663 |
Stockholders' equity | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, nil issued and outstanding on June 30, 2020 and 3,400,000 Series D issued and outstanding on March 31, 2020 | 3,400 | |
Common stock, Class A - $0.001 par value, 200,000,000 shares authorized 59,611,258 and 45,585,592 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively | 59,611 | 45,585 |
Additional paid in capital | 59,453,861 | 54,094,848 |
Stock Payable | 1,999,998 | 1,000,000 |
Accumulated deficit | (56,542,703) | (53,521,700) |
Total stockholders' equity | 4,970,767 | 1,622,133 |
Total liabilities and stockholders' equity | $ 16,266,924 | $ 15,605,796 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares, issued | 59,611,258 | 45,585,592 |
Common stock, shares, outstanding | 59,611,258 | 45,585,592 |
Series D Preferred Stock [Member] | ||
Preferred stock, shares issued | 3,400,000 | |
Preferred stock, shares outstanding | 3,400,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue | $ 14,219,424 | $ 10,153,044 |
Cost of Goods Sold | 8,369,526 | 6,028,197 |
Gross Profit | 5,849,898 | 4,124,847 |
Operating expenses | ||
Sales and marketing expenses | 4,505,345 | 4,472,460 |
General and administrative | 3,947,321 | 4,379,271 |
Depreciation | 227,911 | 233,940 |
Total operating expenses | 8,680,577 | 9,085,671 |
Total operating loss | (2,830,679) | (4,960,824) |
Other (expense) | ||
Interest expense | (190,324) | (95,364) |
Total other (expense) | (190,324) | (95,364) |
Net loss | $ (3,021,003) | $ (5,056,188) |
LOSS PER SHARE (Basic and Diluted) | $ (0.05) | $ (0.12) |
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted) | 57,231,724 | 40,849,600 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Stock Payable [Member] | Accumulated Deficit [Member] | Total |
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 | ||||
Common shares issued upon exercise of warrants | $ 1,774 | 1,178,712 | 1,180,486 | |||
Common shares issued upon exercise of warrants (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, 2020 | $ 3,400 | $ 45,585 | 54,094,848 | $ 1,000,000 | (53,521,700) | 1,622,133 |
Beginning balance (in shares) at Mar. 31, 2020 | 3,400,000 | 45,585,592 | ||||
Preferred Stock Conversion | $ (3,400) | $ 3,400 | ||||
Preferred Stock Conversion (in shares) | (3,400,000) | 3,400,000 | ||||
Common shares issued in connection with offerings | $ 9,750 | 3,890,250 | (1,000,000) | 2,900,000 | ||
Common shares issued in connection with offerings (in shares) | 9,750,000 | |||||
Common shares issued upon exercise of warrants | $ 288 | 258,612 | 258,900 | |||
Common shares issued upon exercise of warrants (in shares) | 287,666 | |||||
Common shares issued to non-employees | $ 452 | 466,848 | 467,300 | |||
Common shares issued to non-employees (in shares) | 452,000 | |||||
Common shares issued to employees | $ 20 | 19,980 | 20,000 | |||
Common shares issued to employees (in shares) | 20,000 | |||||
Stock Option expense | 661,959 | 661,959 | ||||
Stock Option exercise | $ 116 | 61,364 | 61,480 | |||
Stock Option exercise (in shares) | 116,000 | |||||
Stock Payable | 1,999,998 | 1,999,998 | ||||
Net loss | (3,021,003) | (3,021,003) | ||||
Ending balance at Jun. 30, 2020 | $ 59,611 | $ 59,453,861 | $ 1,999,998 | $ (56,542,703) | $ 4,970,767 | |
Ending balance (in shares) at Jun. 30, 2020 | 59,611,258 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (3,021,003) | $ (5,056,188) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 227,911 | 233,940 |
Stock compensation expense | 1,149,259 | 1,103,740 |
Right-of-use asset amortization | (2,200) | 14,837 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 295,467 | (1,049,936) |
Inventory | 25,498 | 1,012,699 |
Prepaid expenses and other current assets | (116,358) | 209,772 |
Accounts payable | (25,440) | 847,042 |
Accrued expenses | 61,195 | (62,258) |
NET CASH USED IN OPERATING ACTIVITIES | (1,405,671) | (2,746,352) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of fixed assets | (68,519) | (35,670) |
CASH USED IN INVESTING ACTIVITIES | (68,519) | (35,670) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from (repayment of) revolving financing | (3,015,907) | 582,822 |
Proceeds from promissory note payable | 325,800 | |
Proceeds from sale of common stock, net | 2,900,000 | |
Proceeds for the exercise of warrants, net | 258,899 | 1,180,486 |
Proceeds for the exercise of stock options, net | 61,480 | |
Proceeds from Stock Payable | 1,999,998 | |
CASH PROVIDED BY FINANCING ACTIVITIES | 2,530,270 | 1,763,308 |
NET CHANGE IN CASH AND RESTRICTED CASH | 1,056,080 | (1,018,714) |
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD | 4,561,682 | 11,032,451 |
CASH AND RESTRICTED CASH AT END OF PERIOD | 5,617,762 | 10,013,737 |
INTEREST PAID | 164,101 | 59,828 |
TAXES PAID | $ 0 | $ 0 |
NATURE OF BUSINESS AND SUMMARY
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2020 | |
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 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. In addition to its bottled alkaline water, the Company also offers retail consumers flavor infused bottled water in the 500-milliliter size in seven flavors: Raspberry, Watermelon, Lemon, Lemon Lime, Peach Mango, Blood Orange, and Cucumber Mint. The Company recently introduced and began selling hemp-derived CBD topical and ingestible products under the brand name “A88CBD™”. Our hemp-derived CBD products are produced and sold in compliance with the Agriculture Improvement Act of 2018 (also known as the 2018 Farm Bill, Public Law 115-334). 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 August 13, 2020, 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, 2020 and 2019 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, 2020 and 2019 is unaudited. The condensed consolidated balance sheet at March 31, 2020 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 five wholly owned subsidiaries: A88 Infused Beverage Division Inc. (a Nevada Corporation), A88 International, Inc. (a Nevada Corporation), A88 Infused Products Inc. (a Nevada Corporation), AWC Acquisition Company 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 Infused Products Inc., A88 International, Inc., AWC Acquisition Company 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. In addition, the Company has maintained balances in its attorney’s client trust account in both C$ and US$. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible. The Company had $3,617,764 and $4,561,682 in cash at June 30, 2020 and March 31, 2020, respectively. Restricted Cash The following table provides a reconciliation of cash and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. June 30, 2020 (unaudited) June 30, 2019 (unaudited) Cash $ 3,617,764 $ 10,013,737 Restricted Cash $ 1,999,998 $ — Total cash and restricted cash shown in the statement of cash flows $ 5,617,762 $ 10,013,737 Amounts included in restricted cash represent those funds related to the May 11, 2020 private placement of 4,444,440 subscription receipts which are currently held in escrow until the subscription receipts are converted into common shares (see Note 5). To convert these subscription receipts to common shares in the Company and thereby satisfy the escrow condition, the Company needs the approval of its shareholders by July 15, 2020 or the funds held in escrow will be refunded to the subscribers. On July 14, 2020 the shareholders approved the private placement. 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, 2020 and March 31, 2020: June 30, 2020 (unaudited) March 31, 2020 Trade receivables, net $ 4,661,614 $ 4,957,081 Less: Allowance for doubtful accounts (40,000 ) (40,000 ) Net accounts receivable $ 4,621,614 $ 4,917,081 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 June 30, 2020 and March 31, 2020, inventory consisted of the following: June 30, 2020 March 31, 2020 (unaudited) Raw materials $ 1,677,331 $ 1,788,868 Finished goods 1,217,031 1,130,992 Total inventory $ 2,894,362 $ 2,919,860 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 variable consideration, including estimated allowances for which provisions are made at the time of sale, and less certain other discounts and allowances. 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 $1,807,030 and $1,431,456 for the quarters ended June 30, 2020 and 2019, respectively. Concentration Risks The Company has 2 major customers that together account for 32% (22% and 10%, respectively) of accounts receivable at June 30, 2020, and 2 customers that together account for 45% (25% and 20%, respectively) of the total revenues earned for the quarter ended June 30, 2020.The Company has 3 vendors that accounted for 55% (27%, 15% and 13% respectively) of purchases for the quarter ended June 30, 2020. The Company had 2 major customers that together accounted for 35% (23% and 12%, respectively) of accounts receivable at June 30, 2019, and 2 customers that together accounted for 40% (22% and 18%, respectively) of the total revenues earned for the quarter ended June 30, 2019.The Company had 3 vendors that accounted for 58% (28%, 16% and 14% respectively) of purchases for the quarter ended June 30, 2019. 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", 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. For the three months ended June 30, 2020 and 2019, respectively, the Company had 2,417,322 and 1,136,675 shares relating to options, 5,559,205 and 1,714,392 shares relating to warrants and nil 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, 2020 and 2019, the Company did not have any financial instruments that are measured on a recurring basis as Level 1, 2 or 3. Recent Accounting Pronouncements 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, 2021, 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 June 30, 2020 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, 2020 | |
Property, Plant and Equipment [Abstract] | |
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, 2020 (unaudited) March 31, 2020 Machinery and Equipment $ 4,317,918 $ 4,249,398 Office Equipment 32,992 32,992 Less: Accumulated Depreciation (3,087,721 ) (2,859,809 ) Fixed Assets, net $ 1,263,189 $ 1,422,581 Depreciation expense for the quarter ended June 30, 2020 and 2019 was $227,911 and $233,940, respectively. |
REVOLVING FINANCING
REVOLVING FINANCING | 3 Months Ended |
Jun. 30, 2020 | |
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 during March, 2020. 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) $7 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, 2022, 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 June 30, 2020 was 7.0%. 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. 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, 2022. 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, 2020. In March, 2020, the Lender agreed to provide the Company a $400,000 Temporary Over Advance ("TOA") under the Credit Facility Agreement. The TOA is to be repaid as follows: (i) the Company shall make five (5) weekly principal payments on the TOA 2 each in the amount of $20,000 commencing on May 18, 2020 and on the first Business Day of each calendar week thereafter through and including June 15, 2020, (ii) the Company shall make ten (10) weekly principal payments on the TOA, each in the amount of $30,000, commencing on June 22, 2020 and on the first Business Day of each calendar week thereafter through and including August 24, 2020 and (iii) repay the remaining principal balance on the TOA, if any, in full on or prior to August 24, 2020. As of June 30, 2020, the balance of the TOA was $240,000. In March, 2020, entered into a Guarantee Agreement (the "Guarantee") with the Lender in order for the Lender to agree to provide the Company the $400,000 TOA under the Credit Agreement. Under the Guarantee, Mr. Guarino personally, absolutely, and unconditionally, jointly and severally, guaranteed the prompt, complete and full payment of the Company's obligations to repay the TOA only, under the Credit Agreement, with the Lender. |
PAYCHECK PROTECTION PROGRAM LOA
PAYCHECK PROTECTION PROGRAM LOAN | 3 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure Abstract | |
PAYCHECK PROTECTION PROGRAM LOAN [Text Block] | NOTE 4 - PAYCHECK PROTECTION PROGRAM LOAN On April 29, 2020, Alkaline 88, LLC (the "Borrower"), a wholly owned subsidiary of the Company, signed a promissory note with MidFirst Bank (the "Lender") in the amount of $325,800, pursuant to the Paycheck Protection Program (the "PPP") under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The promissory note issued by Borrower, matures on April 29, 2022 and bears interest at a rate of 1% per annum. Borrower shall pay principal plus interest accrued under the promissory note in 18 equal monthly installments beginning on October 29, 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Funds from the Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. The Company intends to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 3 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS EQUITY [Text Block] | NOTE 5 - STOCKHOLDERS' EQUITY Preferred Shares On October 7, 2013, the Company amended its articles of incorporation to create 100,000,000 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, The Company 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) the Company achieved 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. Effective as of April 1, 2020, the Company issued an aggregate of 3,400,000 shares of our common stock upon conversion of an aggregate of 3,400,000 shares of our Series D Preferred Stock without the payment of any additional consideration. Of the 3,400,000 shares that the Company issued, 1,500,000 shares were issued to Richard A. Wright, our president, chief executive officer and director, 1,000,000 shares were issued to David A. Guarino, our treasurer, secretary, chief financial officer and director and 900,000 shares were issued to three other individuals, The Company issued these shares pursuant to the exemption from registration under the Securities Act of 1933, as amended provided by Section 4(a)(2) and/or Section 3(a)(9) of the Securities Act of 1933, as amended. Common Shares On April 17, 2020, the Company completed a private placement of 9,750,000 units of our securities at a price of $0.40 per unit for gross proceeds of $3,900,000, of which $1,000,000 was received on March 18,2020 and thus on March 31, 2020, the Company had $1 million as stock payable. Each unit consisted of one share of our common stock and one share purchase warrant, with each share purchase warrant entitling the holder to acquire one additional share of our common stock at a price of $0.50 per share for a period of three years. Of the 9,750,000 units the Company issued: (i) 1,250,000 units were issued pursuant to the exemption from registration under the Securities Act of 1933, as amended provided by Section 4(a)(2) and/or Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended to one investor who is an "accredited investor" within the respective meanings ascribed to that term in Regulation D promulgated under the Securities Act of 1933, as amended; and (ii) 8,500,000 units were issued to 5 non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933, as amended) in an offshore transaction relying on Regulation S and/or Section 4(a)(2) of the Securities Act of 1933, as amended. In connection with this private placement, the Company agreed with each subscriber who purchased these units to prepare and file a registration statement with respect to (i) the shares of our common stock comprising these units and (ii) the shares of our common stock issuable upon exercise of the share purchase warrants comprising these units with the Securities and Exchange Commission within 90 days following the closing of the private placement and agreed to use commercially reasonable efforts to have the registration statement declared effective by the Securities and Exchange Commission as soon as possible. The Company filed the foregoing registration statement on Form S-3 with the SEC on May 27, 2020, and the registration statement was declared effective by the SEC on June 8, 2020. On April 30, 2020, the Company issued an aggregate of 247,000 shares of our common stock to non-employees in consideration for services rendered to our company. The Company issued these shares to 7 U.S. Persons (as that term is defined in Regulation S of the Securities Act of 1933) and in issuing these shares, the Company relied on the exemption from the registration requirements of the Securities Act of 1933 provided by Section 4(a)(2) of the Securities Act of 1933. On April 30, 2020, the Company granted awards of an aggregate of 1,065,000 shares of our common stock as "restricted awards" under our 2020 Equity Incentive Plan to certain directors, officers, employees and consultants. Of these shares, 645,000 vest on the one-year anniversary of the grant date, 200,000 vest as to 50% on the one-year anniversary of the grant date and 50% vest on the second year anniversary of the grant date, 165,000 vest as to one-third on each anniversary of the grant date and 55,000 vest immediately. On April 30, 2020, the Company issued the immediately vested awards, 35,000 to a non-employee, and 20,000 to an employee. The grantees have no rights or privileges as stockholders of our company with respect to the unvested shares including, without limitation, the right to vote such shares and receive all dividends or other distributions paid with respect to such shares. Of these restricted awards granted on April 30, 2020, an award of 200,000 shares of our common stock went to Richard A. Wright, our president, chief executive officer and director, and an award of 100,000 shares of our common stock went to David A. Guarino, our chief financial officer, secretary, treasurer and director. The Company granted these shares as "restricted awards" under our 2020 Equity Incentive Plan. These shares vest on the one-year anniversary of the grant date. The grantees have no rights or privileges as a stockholder of our company with respect to the unvested shares including, without limitation, the right to vote such shares and receive all dividends or other distributions paid with respect to such shares. The total fair value of the 1,065,000 shares of the Company’s common stock granted as “restricted awards” is $1,065,000, based upon the $1.00 per share closing price of the Company’s common stock on the NASDAQ stock exchange on April 29, 2020. The Company’s total stock compensation expense on account of these 1,065,000 shares of its common stock granted as “restricted awards” for the three-month period ending June 30, 2020 was $188,333. An additional expense will be recognized of $600,000 will be recognized in the year ended March 31, 2021 for a total of $788,333 expense in the fiscal year ended March 31, 2021. Additional expense will be recognized in the next 3 fiscal years of $208,750, $63,333 and $4,583, respectively. On May 11, 2020, the Company completed a private placement of 4,444,440 subscription receipts at a price of $0.45 per subscription receipt for total gross proceeds of $1,999,998, which is being held in escrow until the subscription receipts are converted into common shares. To convert these subscription receipts to common shares in the Company and thereby satisfy the escrow condition, the Company needs the approval of its shareholders by July 15, 2020 or the funds held in escrow will be refunded to the subscribers. As of June 30, 2020, the Company has recognized the $1,999,998 as restricted cash and recognized the same amount as stock payable on the financial statements. On July 14, 2020 after receiving the Shareholder Approval, the Company issued 4,444,440 units of our company upon conversion such subscription receipts issued pursuant to the foregoing private placement completed on May 11, 2020. Accordingly, gross proceeds of $1,999,998, previously held in escrow, have been released to our company. Each unit consists of one share of our common stock and one transferable share purchase warrant, for no additional consideration. Each warrant will entitle the holder thereof to acquire one share of our common stock until May 11, 2023 at a price of $0.55 per share. In the event that our common stock has a closing price on the TSX Venture Exchange (or such other exchange on which our common stock may be traded at such time) of $1.75 or greater per share for a period of 20 consecutive trading days at any time from the closing date of the private placement, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof (by disseminating a news release advising of the acceleration of the expiry date of the warrants) and, in such case, the warrants will expire on the thirtieth day after the date of such notice. The proceeds of the private placement are expected to be used to fund our company's general working capital and expansion of production capacity. Of the 4,444,440 units the Company issued: (i) 444,443 units were issued pursuant to the exemption from registration under the Securities Act of 1933, as amended provided by Section 4(a)(2) and/or Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended to three investors, each of who is an "accredited investor" within the meaning ascribed to that term in Regulation D promulgated under the Securities Act of 1933, as amended; and (ii) 3,999,997 units were issued to three non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933, as amended) in an offshore transaction relying on Regulation S and/or Section 4(a)(2) of the Securities Act of 1933, as amended. In connection with the private placement, the Company agreed with each subscriber who purchased these subscription receipts to prepare and file a registration statement with respect to (i) the shares of our common stock comprising these subscription receipts and (ii) the shares of our common stock issuable upon exercise of the share purchase warrants comprising these subscription receipts with the Securities and Exchange Commission within 30 days following the satisfaction of the Release Condition and agreed to use commercially reasonable efforts to have the registration statement declared effective by the Securities and Exchange Commission as soon as possible. The Company filed the foregoing registration statement on Form S-3 with the SEC on May 27, 2020, and the registration statement was declared effective by the SEC on June 8, 2020. Effective as of May 22, 2020, the Company issued 170,000 shares of our common stock to non-employees in consideration for services to be rendered to our company. The Company issued these shares to one U.S. person (as that term is defined in Regulation S of the Securities Act of 1933) and in issuing these shares, the Company relied on the exemption from the registration requirements of the Securities Act of 1933 provided by Section 4(a)(2) of the Securities Act of 1933. |
OPTIONS AND WARRANTS
OPTIONS AND WARRANTS | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
OPTIONS AND WARRANTS [Text Block] | NOTE 6 - OPTIONS AND WARRANTS On April 3, 2020, granted an aggregate of 2,737,000 stock options to certain directors, officers, consultants and employees for the purchase of up to 2,737,000 shares of our common stock pursuant to our 2018 Stock Option Plan. Each stock option is exercisable at a price of $0.53 per share until April 2, 2030. Of these stock options, 1,217,000 vest as to 50% on the grant date and 50% on the one-year anniversary of the grant date, 640,000 vest as to one-third on the grant date and one-third on each anniversary of the grant date and 880,000 vest as to one-third on each anniversary of the grant date. T granted the stock options to 31 U.S. Persons and 3 non U.S. Persons (as that term is defined in Regulation S of the Securities Act of 1933) and in issuing securities relied on the registration exemption provided for in Regulation S and/or Section 4(a)(2) of the Securities Act of 1933. Of these options, 250,000 were granted to Richard A. Wright, our president, chief executive officer and director, and 150,000 were granted to David A. Guarino, our chief financial officer, secretary, treasurer and director. These stock options are exercisable at the exercise price of $0.53 per share until April 2, 2030. The stock options vest as to 50% on the date of grant and 50% on the one-year anniversary of the date of grant. The fair value of each of the 2,737,000 stock options issued was calculated as $0.53 per share, which was the Black-Scholes valuation as of the grant date, corresponding to a total fair value of $1,450,610 for these options. The Company’s total stock compensation expense for the three-month period ending June 30, 2020 was $565,093 related to the 2018 Stock Option Plan and $54,202 related to the 2013 Stock Option Plan. An additional expense of $582,845 will be recognized in the year ended March 31, 2021 for a total of $1,147,938 in stock compensation expense in the fiscal year ended March 31, 2021. Additional stock compensation expense will be recognized in fiscal years 2022, 2023 and 2024 of $235,342, $63,011 and $4,319, respectively. In connection with the above grant, the Company repriced a total of 600,900 stock options originally issued on April 28, 2017 from their original exercise price of $1.29 to $0.53, resulting in an additional stock compensation expense of $42,664. Effective as of April 29, 2020, issued an aggregate of 116,000 shares of our common stock upon exercise of stock options for gross proceeds of $61,480. Effective as of May 20, 2020, issued an aggregate of 287,666 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of $0.90 per share for aggregate gross proceeds of $258,899. T issued 121,000 of these shares to four non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933) in an offshore transaction relying on Regulation S and/or Section 4(a)(2) of the Securities Act of 1933. T issued 166,666 of these shares to one U.S. person (as that term is defined in Regulation S of the Securities Act of 1933) relying on the exemptions from the registration requirements of the Securities Act of 1933 provided by Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506 promulgated under the Securities Act of 1933. |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES [Text Block] | NOTE 7 - 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 $7,891 per month. The Company extended its short-term lease for a warehouse, originally due to expire on March 31, 2020 to March 2021, thus the Company adopted ASC 842 for this lease at the time of the extension in January 2020. The lease rate for the extension was $ 3,938 per month starting April 1, 2020. 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, 2020 was $34,754 Operating Leases: June 30, 2020 Operating lease right-of-use asset - current portion $ 56,440 Operating lease right-of-use asset - non-current portion —0— Total Operating lease right-of-use asset $ 56,440 Operating lease liability - current portion $ 66,235 Operating lease liability - non-current portion —0— Total Operating lease liability $ 66,235 Weighted average remaining lease term (in years): Operating leases 0.7 Weighted average discount rate: Operating leases 7.0 % Maturities of undiscounted lease liabilities as of June 30, 2020 are as follows: Operating Leases Year ending March 31, 2021 67,002 Total lease payments 67,002 Less: Imputed interest (1,499 ) Total lease obligations 65,503 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 3 Months Ended |
Jun. 30, 2020 | |
Risks And Uncertainties Abstract | |
RISKS AND UNCERTAINTIES [Text Block] | NOTE 8 – RISKS AND UNCERTAINTIES In December 2019, a novel strain of COVID-19 was reported in China. Since then, the COVID-19 has spread globally including across North America and the United States. The spread of COVID-19 from China to other countries has resulted in the World Health Organization (WHO) declaring the outbreak of COVID-19 as a “pandemic,” or a worldwide spread of a new disease, on March 11, 2020. Specifically, the Company cautions that our business could be materially and adversely affected by the risks, or the public perception of the risks, related to the outbreak of COVID-19. To date, the Company has managed to operate successfully throughout the pandemic without any material disruptions to our supply chain. Although retailers which carry our products may be considered essential businesses and therefore be allowed to remain operational, they may experience significantly reduced demand. The risk of a pandemic, or public perception of the risk, could cause customers to avoid public places, including retail properties, and could cause temporary or long-term disruptions in our supply chains and/or delays in the delivery of our inventory to our customers. Further, such risks could also adversely affect retail customers’ financial condition, resulting in reduced spending on our products, which are marketed as premium products. “Shelter-in-place” or other such orders by governmental entities could also disrupt our operations, if our employees or the employees of our sourcing partners who cannot perform their responsibilities from home, are not able to report to work. Risks related to an epidemic, pandemic or other health crisis, such as COVID-19, could also lead to the complete or partial closure of one or more of our co-packing facilities or operations of our sourcing partners. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | NOTE 9 - SUBSEQUENT EVENTS On July 13, 2020, The Company held a special meeting of our stockholders. At the meeting, our stockholders: (a) approved the April 17, 2020 private placement and the issuance of all securities thereunder; and (b) approved the May 11, 2020 private placement and the issuance of all securities thereunder (collectively, the "Shareholder Approval"). Due to the approval of the May 11, 2020 private placement, the amount held in escrow of $1,999,998 was released to the Company on July 14, 2020. Effective as of July 13, 2020, the Company issued an aggregate of 188,081 shares of our common stock upon exercise of stock options. Effective as of July, 17, 2020, the Company issued an aggregate of 18,779 shares of our common stock to a non-employee in consideration for services rendered to our company Effective as of July 28, 2020, the Company issued 81,400 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of CDN$2.90 per share for gross proceeds of CDN$236,060. Effective as of August 5, 2020, the Company issued 7,999 shares of our common stock upon exercise of our common stock purchase warrants with an exercise price of CDN$2.90 per share for gross proceeds of CDN$23,197. Effective as of August 6, 2020, the Company issued an aggregate of 48,158 shares of our common stock upon exercise of stock options. |
NATURE OF BUSINESS AND SUMMAR_2
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business [Policy Text Block] | Nature of Business 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. In addition to its bottled alkaline water, the Company also offers retail consumers flavor infused bottled water in the 500-milliliter size in seven flavors: Raspberry, Watermelon, Lemon, Lemon Lime, Peach Mango, Blood Orange, and Cucumber Mint. The Company recently introduced and began selling hemp-derived CBD topical and ingestible products under the brand name “A88CBD™”. Our hemp-derived CBD products are produced and sold in compliance with the Agriculture Improvement Act of 2018 (also known as the 2018 Farm Bill, Public Law 115-334). |
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 August 13, 2020, 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, 2020 and 2019 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, 2020 and 2019 is unaudited. The condensed consolidated balance sheet at March 31, 2020 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 five wholly owned subsidiaries: A88 Infused Beverage Division Inc. (a Nevada Corporation), A88 International, Inc. (a Nevada Corporation), A88 Infused Products Inc. (a Nevada Corporation), AWC Acquisition Company 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 Infused Products Inc., A88 International, Inc., AWC Acquisition Company 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. In addition, the Company has maintained balances in its attorney’s client trust account in both C$ and US$. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible. The Company had $3,617,764 and $4,561,682 in cash at June 30, 2020 and March 31, 2020, respectively. |
Restricted Cash [Policy Text Block] | Restricted Cash The following table provides a reconciliation of cash and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows. June 30, 2020 (unaudited) June 30, 2019 (unaudited) Cash $ 3,617,764 $ 10,013,737 Restricted Cash $ 1,999,998 $ — Total cash and restricted cash shown in the statement of cash flows $ 5,617,762 $ 10,013,737 Amounts included in restricted cash represent those funds related to the May 11, 2020 private placement of 4,444,440 subscription receipts which are currently held in escrow until the subscription receipts are converted into common shares (see Note 5). To convert these subscription receipts to common shares in the Company and thereby satisfy the escrow condition, the Company needs the approval of its shareholders by July 15, 2020 or the funds held in escrow will be refunded to the subscribers. On July 14, 2020 the shareholders approved the private placement. |
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, 2020 and March 31, 2020: June 30, 2020 (unaudited) March 31, 2020 Trade receivables, net $ 4,661,614 $ 4,957,081 Less: Allowance for doubtful accounts (40,000 ) (40,000 ) Net accounts receivable $ 4,621,614 $ 4,917,081 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 June 30, 2020 and March 31, 2020, inventory consisted of the following: June 30, 2020 March 31, 2020 (unaudited) Raw materials $ 1,677,331 $ 1,788,868 Finished goods 1,217,031 1,130,992 Total inventory $ 2,894,362 $ 2,919,860 |
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 variable consideration, including estimated allowances for which provisions are made at the time of sale, and less certain other discounts and allowances. 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 $1,807,030 and $1,431,456 for the quarters ended June 30, 2020 and 2019, respectively. |
Concentration Risks [Policy Text Block] | Concentration Risks The Company has 2 major customers that together account for 32% (22% and 10%, respectively) of accounts receivable at June 30, 2020, and 2 customers that together account for 45% (25% and 20%, respectively) of the total revenues earned for the quarter ended June 30, 2020.The Company has 3 vendors that accounted for 55% (27%, 15% and 13% respectively) of purchases for the quarter ended June 30, 2020. The Company had 2 major customers that together accounted for 35% (23% and 12%, respectively) of accounts receivable at June 30, 2019, and 2 customers that together accounted for 40% (22% and 18%, respectively) of the total revenues earned for the quarter ended June 30, 2019.The Company had 3 vendors that accounted for 58% (28%, 16% and 14% respectively) of purchases for the quarter ended June 30, 2019. |
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", 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. For the three months ended June 30, 2020 and 2019, respectively, the Company had 2,417,322 and 1,136,675 shares relating to options, 5,559,205 and 1,714,392 shares relating to warrants and nil |
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, 2020 and 2019, 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 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, 2021, 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 June 30, 2020 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, 2020 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of cash and restricted cash [Table Text Block] | June 30, 2020 (unaudited) June 30, 2019 (unaudited) Cash $ 3,617,764 $ 10,013,737 Restricted Cash $ 1,999,998 $ — Total cash and restricted cash shown in the statement of cash flows $ 5,617,762 $ 10,013,737 |
Schedule of Accounts Receivable [Table Text Block] | June 30, 2020 (unaudited) March 31, 2020 Trade receivables, net $ 4,661,614 $ 4,957,081 Less: Allowance for doubtful accounts (40,000 ) (40,000 ) Net accounts receivable $ 4,621,614 $ 4,917,081 |
Schedule of Inventory, Current [Table Text Block] | June 30, 2020 March 31, 2020 (unaudited) Raw materials $ 1,677,331 $ 1,788,868 Finished goods 1,217,031 1,130,992 Total inventory $ 2,894,362 $ 2,919,860 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment [Table Text Block] | Fixed assets consisted of the following at: June 30, 2020 (unaudited) March 31, 2020 Machinery and Equipment $ 4,317,918 $ 4,249,398 Office Equipment 32,992 32,992 Less: Accumulated Depreciation (3,087,721 ) (2,859,809 ) Fixed Assets, net $ 1,263,189 $ 1,422,581 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense [Table Text Block] | Operating Leases: June 30, 2020 Operating lease right-of-use asset - current portion $ 56,440 Operating lease right-of-use asset - non-current portion —0— Total Operating lease right-of-use asset $ 56,440 Operating lease liability - current portion $ 66,235 Operating lease liability - non-current portion —0— Total Operating lease liability $ 66,235 Weighted average remaining lease term (in years): Operating leases 0.7 Weighted average discount rate: Operating leases 7.0 % |
Schedule of Maturities of Undiscounted Lease Liabilities [Table Text Block] | Operating Leases Year ending March 31, 2021 67,002 Total lease payments 67,002 Less: Imputed interest (1,499 ) Total lease obligations 65,503 |
NATURE OF BUSINESS AND SUMMAR_4
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | May 11, 2020shares | Apr. 17, 2020shares | Jun. 30, 2020USD ($)customersvendorsshares | Jun. 30, 2019USD ($)customersvendorsshares | Mar. 31, 2020USD ($) |
Cash | $ | $ 3,617,764 | $ 10,013,737 | $ 4,561,682 | ||
Selling expenses | $ | $ 1,807,030 | $ 1,431,456 | |||
Number of convertible preferred stock, shares issued upon conversion | 1,500,000 | ||||
Private Placement [Member] | |||||
Number of units issued | 4,444,440 | 9,750,000 | |||
Accounts Receivable [Member] | |||||
Number of major customers | customers | 2 | 2 | |||
Concentration Risk, Percentage | 32.00% | 35.00% | |||
Accounts Receivable [Member] | Customer 1 [Member] | |||||
Concentration Risk, Percentage | 22.00% | 23.00% | |||
Accounts Receivable [Member] | Customer 2 [Member] | |||||
Concentration Risk, Percentage | 10.00% | 12.00% | |||
Revenues [Member] | |||||
Number of major customers | customers | 2 | 2 | |||
Concentration Risk, Percentage | 45.00% | 40.00% | |||
Revenues [Member] | Customer 1 [Member] | |||||
Concentration Risk, Percentage | 25.00% | 22.00% | |||
Revenues [Member] | Customer 2 [Member] | |||||
Concentration Risk, Percentage | 20.00% | 18.00% | |||
Purchases [Member] | |||||
Number of major vendors | vendors | 3 | 3 | |||
Concentration Risk, Percentage | 55.00% | 58.00% | |||
Purchases [Member] | Vendor 1 [Member] | |||||
Concentration Risk, Percentage | 27.00% | 28.00% | |||
Purchases [Member] | Vendor 2 [Member] | |||||
Concentration Risk, Percentage | 15.00% | 16.00% | |||
Purchases [Member] | Vendor 3 [Member] | |||||
Concentration Risk, Percentage | 13.00% | 14.00% | |||
Employee Stock Option [Member] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,417,322 | 1,136,675 | |||
Warrant [Member] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 5,559,205 | 1,714,392 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 227,911 | $ 233,940 |
REVOLVING FINANCING (Narrative)
REVOLVING FINANCING (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2020 | Jun. 22, 2020 | May 18, 2020 | Mar. 31, 2020 | |
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) $7 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, 2020 was 7.0%. | |||
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% | |||
Temporary Over Advance | $ 240,000 | |||
Mr. David Guarino [Member] | ||||
Temporary Over Advance | $ 400,000 | |||
Lender [Member] | ||||
Temporary Over Advance | $ 400,000 | |||
Temporary Over Advance, Weekly Principal Payments | $ 30,000 | $ 20,000 |
PAYCHECK PROTECTION PROGRAM L_2
PAYCHECK PROTECTION PROGRAM LOAN (Narrative) (Details) - Promissory Note [Member] | Apr. 29, 2020USD ($) |
Short-term Debt [Line Items] | |
Amount of promissory note | $ 325,800 |
Maturity date of promissory note | Apr. 29, 2022 |
Interest rate on promissory note | 1.00% |
Payment term of promissory note | Borrower shall pay principal plus interest accrued under the promissory note in 18 equal monthly installments beginning on October 29, 2020. |
STOCKHOLDERS EQUITY (Narrative)
STOCKHOLDERS EQUITY (Narrative) (Details) - USD ($) | May 11, 2020 | May 22, 2020 | Apr. 30, 2020 | Apr. 17, 2020 | Mar. 18, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Nov. 02, 2017 | May 03, 2017 | Oct. 07, 2013 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Restricted Cash | $ 1,999,998 | |||||||||
Stock Payable | 1,999,998 | $ 1,000,000 | ||||||||
Non-employees [Member] | 7 U.S. Person [Member] | ||||||||||
Stock Issued During Period, Shares, Issued for Services (shares) | 247,000 | |||||||||
Non-employees [Member] | One non-U.S. persons [Member] | ||||||||||
Stock Issued During Period, Shares, Issued for Services (shares) | 170,000 | |||||||||
2020 Equity Incentive Plan [Member] | ||||||||||
Number of restricted common stock shares granted | 1,065,000 | |||||||||
Amount of restricted stock issued during period for services | $ 1,065,000 | |||||||||
Price per share | $ 1 | |||||||||
Stock compensation expense fiscal year | 188,333 | |||||||||
Stock compensation expense fiscal year 2021 | 600,000 | |||||||||
Total stock compensation expense | 788,333 | |||||||||
Stock compensation expense next 1 fiscal year | 208,750 | |||||||||
Stock compensation expense next 2 fiscal year | 63,333 | |||||||||
Stock compensation expense next 3 fiscal year | $ 4,583 | |||||||||
2020 Equity Incentive Plan [Member] | Richard A. Wright | ||||||||||
Number of restricted common stock shares granted | 200,000 | |||||||||
2020 Equity Incentive Plan [Member] | David A. Guarino [Member] | ||||||||||
Number of restricted common stock shares granted | 100,000 | |||||||||
2020 Equity Incentive Plan [Member] | Non-employees [Member] | ||||||||||
Number of restricted common stock shares granted | 35,000 | |||||||||
2020 Equity Incentive Plan [Member] | Employees [Member] | ||||||||||
Number of restricted common stock shares granted | 20,000 | |||||||||
2020 Equity Incentive Plan [Member] | Vest on one year anniversary of grant date [Member] | ||||||||||
Number of restricted common stock shares granted | 645,000 | |||||||||
2020 Equity Incentive Plan [Member] | Vest as to 50% on the one-year anniversary of the grant date and 50% vest on second year anniversary of grant date [Member] | ||||||||||
Number of restricted common stock shares granted | 200,000 | |||||||||
2020 Equity Incentive Plan [Member] | Vest as to one-third on each anniversary of the grant date [Member] | ||||||||||
Number of restricted common stock shares granted | 165,000 | |||||||||
2020 Equity Incentive Plan [Member] | Vest Immediately [Member] | ||||||||||
Number of restricted common stock shares granted | 55,000 | |||||||||
Private Placement [Member] | ||||||||||
Number of units issued | 4,444,440 | 9,750,000 | ||||||||
Proceeds from Issuance of Private Placement | $ 1,999,998 | $ 3,900,000 | ||||||||
Units issued, price per unit | $ 0.45 | $ 0.40 | ||||||||
Private placement, description | Each unit consists of one share of our common stock and one transferable share purchase warrant, for no additional consideration. Each warrant will entitle the holder thereof to acquire one share of our common stock until May 11, 2023 at a price of $0.55 per share. In the event that our common stock has a closing price on the TSX Venture Exchange (or such other exchange on which our common stock may be traded at such time) of $1.75 or greater per share for a period of 20 consecutive trading days at any time from the closing date of the private placement | Each unit consisted of one share of our common stock and one share purchase warrant, with each share purchase warrant entitling the holder to acquire one additional share of our common stock at a price of $0.50 per share for a period of three years. | ||||||||
Private Placement [Member] | Investor [Member] | ||||||||||
Number of units issued | 1,250,000 | |||||||||
Private Placement [Member] | 5 non-U.S. persons [Member] | ||||||||||
Number of units issued | 8,500,000 | |||||||||
Private Placement [Member] | Three Accredited Investors [Member] | ||||||||||
Number of units issued | 444,443 | |||||||||
Private Placement [Member] | Three non-U.S. persons [Member] | ||||||||||
Number of units issued | 3,999,997 | |||||||||
Common Stock [Member] | ||||||||||
Stock Issued During Period, Shares, Issued for Services (shares) | 20,000 | |||||||||
Number of shares issued in consideration for Merger | 9,750,000 | |||||||||
Number of common stock shares issued upon conversion | 3,400,000 | |||||||||
Amount of common stock shares issued upon conversion | $ 3,400 | |||||||||
Common Stock [Member] | Private Placement [Member] | ||||||||||
Proceeds from Issuance of Private Placement | $ 1,000,000 | |||||||||
Richard A. Wright [Member] | ||||||||||
Number of common stock shares issued upon conversion | 1,500,000 | |||||||||
David A. Guarino [Member] | ||||||||||
Number of common stock shares issued upon conversion | 1,000,000 | |||||||||
Three other individuals [Member] | ||||||||||
Number of common stock shares issued upon conversion | 900,000 | |||||||||
Series D Preferred Stock [Member] | ||||||||||
Preferred stock, shares authorized | 5,000,000 | 3,000,000 | ||||||||
Terms of conversion of Preferred Stock, consolidated revenue threshold | $ 40,000,000 | |||||||||
Number of shares converted | 3,400,000 |
OPTIONS AND WARRANTS (Narrative
OPTIONS AND WARRANTS (Narrative) (Details) - USD ($) | Apr. 29, 2020 | Apr. 03, 2020 | May 20, 2020 | Apr. 28, 2017 | Jun. 30, 2020 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options exercised | 116,000 | |||||
Proceeds from Stock Options Exercised | $ 61,480 | $ 61,480 | ||||
Class of Warrant or Right, Exercises in Period | 287,666 | |||||
Weighted-Average Exercise Price, Exercised | $ 0.90 | |||||
Proceeds from warrants exercised | $ 258,899 | 258,899 | $ 1,180,486 | |||
2018 Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options granted | 2,737,000 | |||||
Exercise price of stock option granted | $ 0.53 | $ 1.29 | ||||
Fair value of stock options issued | $ 1,450,610 | |||||
Stock compensation expense fiscal year | 565,093 | |||||
Stock compensation expense fiscal year 2021 | 582,845 | |||||
Total stock compensation expense | 1,147,938 | |||||
Stock compensation expense next 1 fiscal year | 235,342 | |||||
Stock compensation expense next 2 fiscal year | 63,011 | |||||
Stock compensation expense next 3 fiscal year | $ 4,319 | |||||
Number of stock options repriced | 600,900 | |||||
Additional stock compensation expense | $ 42,664 | |||||
2018 Stock Option Plan [Member] | Vest as to 50% on the grant date and 50% on the one-year anniversary of the grant date [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options granted | 1,217,000 | |||||
2018 Stock Option Plan [Member] | Vest as to one-third on the grant date and one-third on each anniversary of the grant date [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options granted | 640,000 | |||||
2018 Stock Option Plan [Member] | Vest as to one-third on each anniversary of the grant date [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options granted | 880,000 | |||||
2013 Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock compensation expense fiscal year | $ 54,202 | |||||
Richard A. Wright | 2018 Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options granted | 250,000 | |||||
Exercise price of stock option granted | $ 0.53 | |||||
David A. Guarino [Member] | 2018 Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options granted | 150,000 | |||||
Exercise price of stock option granted | $ 0.53 | |||||
Four non-U.S. persons [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Class of Warrant or Right, Exercises in Period | 121,000 | |||||
One non-U.S. persons [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Class of Warrant or Right, Exercises in Period | 166,666 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 3 Months Ended | |
Jun. 30, 2020USD ($)ft² | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Area of property under operating lease | ft² | 3,352 | |
Lease and rent expense per month | $ 7,891 | |
Lease rate for extension | 3,938 | |
Operating Lease expense | $ 34,754 | $ 22,072 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) | Aug. 06, 2020shares | Aug. 05, 2020CAD ($)$ / sharesshares | Jul. 14, 2020CAD ($) | Jul. 13, 2020shares | Apr. 29, 2020shares | Jul. 28, 2020CAD ($)$ / sharesshares | Jul. 17, 2020shares | May 20, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Subsequent Event [Line Items] | ||||||||||
Number of stock options exercised | 116,000 | |||||||||
Number of common stock shares issued upon exercise of common stock purchase warrants | 287,666 | |||||||||
Weighted-Average Exercise Price, Exercised | $ / shares | $ 0.90 | |||||||||
Proceeds from warrants exercised | $ | $ 258,899 | $ 258,899 | $ 1,180,486 | |||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of stock options exercised | 48,158 | 188,081 | ||||||||
Number of common stock shares issued upon exercise of common stock purchase warrants | 7,999 | 81,400 | ||||||||
Weighted-Average Exercise Price, Exercised | $ / shares | $ 2.90 | $ 2.90 | ||||||||
Proceeds from warrants exercised | $ | $ 23,197 | $ 236,060 | ||||||||
Subsequent Event [Member] | Non-employees [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock issued during period for services | 18,779 | |||||||||
Subsequent Event [Member] | Private Placement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Proceeds released from escrow | $ | $ 1,999,998 |
NATURE OF BUSINESS AND SUMMAR_5
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of reconciliation of cash and restricted cash (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash | $ 3,617,764 | $ 4,561,682 | $ 10,013,737 | |
Restricted Cash | 1,999,998 | |||
Total cash and restricted cash shown in the statement of cash flows | $ 5,617,762 | $ 4,561,682 | $ 10,013,737 | $ 11,032,451 |
NATURE OF BUSINESS AND SUMMAR_6
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Trade receivables, net | $ 4,661,614 | $ 4,957,081 |
Less: Allowance for doubtful accounts | (40,000) | (40,000) |
Net accounts receivable | $ 4,621,614 | $ 4,917,081 |
NATURE OF BUSINESS AND SUMMAR_7
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Schedule of Inventory, Current (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Raw materials | $ 1,677,331 | $ 1,788,868 |
Finished goods | 1,217,031 | 1,130,992 |
Total inventory | $ 2,894,362 | $ 2,919,860 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Less: Accumulated Depreciation | $ (3,087,721) | $ (2,859,809) |
Property and Equipment, net | 1,263,189 | 1,422,581 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment | 4,317,918 | 4,249,398 |
Office Equipment [Member] | ||
Property, Plant and Equipment | $ 32,992 | $ 32,992 |
LEASES - Schedule of Operating
LEASES - Schedule of Operating Leases (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use asset - current portion | $ 56,440 | $ 87,393 |
Operating lease right-of-use asset - non-current portion | 0 | |
Total Operating lease right-of-use asset | 56,440 | |
Operating lease liability | 66,235 | $ 99,389 |
Operating lease liability - non-current portion | 0 | |
Total Operating lease liability | $ 66,235 | |
Weighted average remaining lease term (in years): Operating leases | 8 months 12 days | |
Weighted average discount rate: Operating leases | 7.00% |
LEASES - Schedule of maturities
LEASES - Schedule of maturities of undiscounted lease liabilities (Details) | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Year ending March 31, 2021 | $ 67,002 |
Total lease payments | 67,002 |
Less: Imputed interest | 1,499 |
Total lease obligations | $ 65,503 |