UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 1,
2014
THE ALKALINE WATER COMPANY
INC.
Exact name of registrant as specified in its
charter)
Nevada |
000-55096 |
EIN 99-0367049 |
(State or other jurisdiction |
(Commission |
(IRS Employer |
of incorporation) |
File Number) |
Identification No.) |
7730 E Greenway Road Ste. 203
Scottsdale, AZ
85260
(Address of principal executive offices and Zip
Code)
Registrants telephone number, including area code: (480)
656-2423
Not Applicable
(Former name or former
address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
[ ] Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a -12)
[ ] Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
[ ] Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 2.02 Results of Operations and Financial Condition.
A copy of our news release dated July 1, 2014, announcing
certain financial results of our company for the fourth quarter and year ended
March 31, 2014 is being furnished herewith as Exhibit 99.1
In accordance with General Instruction B.2 of Form 8-K, the
information in this current report on Form 8-K, including Exhibit 99.1, is being
furnished and shall not be deemed to be filed for purposes of Section 18 of
the Securities Exchange Act of 1934 (the Exchange Act), or otherwise
subject to the liabilities of that section, and shall not be incorporated by
reference into any registration statement or other document filed under the
Securities Act of 1933 or the Exchange Act, except as shall be expressly set
forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d)
Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
THE ALKALINE WATER COMPANY INC.
/s/ Richard A.
Wright |
|
Richard A. Wright |
|
Vice President, Secretary, Treasurer and Director |
|
|
|
June 30, 2014 |
|
ALKALINE WATER COMPANY REPORTS FOURTH QUARTER AND FISCAL YEAR
2014 FINANCIAL RESULTS
Store Count More Than Triples
Company
Provides Guidance for First Fiscal Quarter 2015
SCOTTSDALE, AZ (MARKETWIRED July 1, 2014) The Alkaline
Water Company Inc. (OTCBB: WTER) (the "Company"), developers of alkaline
water that is manufactured via an innovative state-of-the-art proprietary
electrolysis beverage process and packaged and sold in 3 liter and 1 gallon
sizes under the trade name Alkaline88, has announced financial results for the
three and twelve months ended March 31, 2014.
Fourth Quarter 2014 Highlights
Fourth quarter 2014 financial results, as compared to fourth
quarter 2013, were as follows:
- Year over year, revenues were $219,295 for the fourth quarter 2014, as
compared to fourth quarter 2013 revenues of $15,110, approximately a 14-fold
increase.
- Operating expenses were $1,179,068, as compared to $152,366 for the
comparable period in 2013. The total for the 2014 period included $632,934 in
non-cash stock compensation charges.
- Net loss for the quarter totaled $(1,163,357), as compared to a net loss
of $(145,282) for the comparable period.
- Store count increased over three-fold from approximately 1,400 stores to
approximately 6,000 stores through the first half of calendar 2014.
- Co-packing plants expanded from 1 to 3 during calendar year 2014.
- Production capacity increased from 13 truckloads a month to over 90 truck
loads a month during calendar 2104.
Management Comment
"The close of our 2014 fiscal year was marked by a significant
increase in our customer store count, which is a direct result of the intense
planning on our national positioning program so that we could be prepared for
the summer months. As indicated previously, we expect a great selling season for
Alkaline88 and tremendous acceptance of our water products in these stores. In
just over a year since we began our distribution efforts, Alkaline88 is now
available in 49 States and the District of Columbia, and we are in 21 out of the
top 75 retailers. Our 21 existing retailers account for about $270 billion in
total annual sales volume in the U.S. market, and with our positioning in their
stores, the visibility of our product is expected to increase dramatically for
consumers, stated Steven Nickolas, President & CEO of the Company.
While we have still plenty of room to grow by increasing our
penetration to new stores, we are also just beginning the sales cycle to many of
the stores to which we are currently selling and expect growth to also come from
continued increases in volume of product to these retailers as well. In
addition, with our recently completed capital raise of $2.6 million and the 2
additional co-packing plants coming online since January 1st 2014,
our production capability to meet our retailer demand has improved
significantly, Mr. Nickolas stated further.
Based on these factors, the Company has issued the following
guidance:
- Sales for first quarter 2015 ending June 30, 2014 is expected to be
greater than the sales for the entire 2014 fiscal year;
- New single serving 700 ML bottle sales are expected to account for
approximately 13% of the sales in the quarter ending June 30, 2014.
- Two additional state of the art alkaline machines are expected to go into
full production during third quarter of calendar 2014, (bringing our total to
five) thereby facilitating production of 80 additional truck loads per month
of product to fulfill anticipated demand.
- A single truck load (depending on product mix) can generate up to $11,000
in additional revenue.
Full-Fiscal Year 2014 Financial Results
In the
description of the results below, the comparable period in 2013 is defined as
Inception (June 19, 2012) to March 31, 2013:
Revenue for the year-ended March 31, 2014 was $552,699, as
compared to $15,110 in the comparable period in 2013. The increase in revenue is
due to increased sell through of our beverage products to retailers.
The Companys gross profit, as a percentage of revenue for the
year, was 25.5% compared to 46.9% for the same period in 2013. The decrease in
gross profit margin was due to increased shipping costs incurred from the
Companys two existing co-packing facilities based on the expansion of the
Companys sales to national retailers. As the Company attempts to expand the
number of co-packing facilities in certain geographic areas closer to its
customers distribution points, it expects its shipping costs to decline.
General and administrative expenses were $4,421,353 for the
year, as compared to $284,580 for the comparable period. The increase in
expenses is due to the expansion of the Companys operations and other non-cash
charges including $2,225,736 of stock option compensation expense, $426,555 in
stock compensation expense and $541,158 of professional fees. The Companys
stock and stock option compensation expense was incurred as a part of the
issuance of certain stock options and stock grants to employees and key
consultants to develop the Companys business. Although a non-cash expense, the
value of such issuances had a material impact on general and administrative
expenses for the year ended March 31, 2014. For the period from inception (June
19, 2012) to March 31, 2013, (as it was prior to the acquisition of Alkaline
Water Corp.) the Company had nominal operations and expenditures, consisting
mainly of professional fees and rent, were significantly less to support the
Companys business at that time.
Net loss for the year ended March 31, 2014 was $(4,229,513)
compared to a loss of $(283,388) for the comparable period in 2013. Included in
the net loss was stock option compensation expense, stock compensation expense
and professional fees totaling $3,193,449.
Additional details of the Company's business, finances,
appointments and agreements can be found as part of the Company's continuous
public disclosure as a reporting issuer with the Securities and Exchange
Commission ("SEC") available at www.sec.gov.
For more information, visit our website at www.thealkalinewaterco.com.
The Alkaline Water Company, Inc. (OTCBB: WTER) has
developed an innovative, state of the art, proprietary electrolysis process that
produces healthy alkaline water for a balanced lifestyle. The Company is focused
on the business of distributing and marketing for retail the sale of its
cost-effectively packaged Alkaline88 water beverage products. Visit us at:
www.thealkalinewaterco.com.
About Alkaline Water Products
Alkaline88's premier
alkaline water is an 8.8 pH balanced bottled alkaline drinking water enhanced
with trace minerals and electrolytes. The product offers consumers
the unique opportunity to purchase alkaline water in conveniently packaged three
liter and one gallon sizes (plus 700ml in select markets). The Alkaline Water
Company Inc. is currently in the midst of a national mass-market expansion
program, where the product is already available for consumer sales at a growing
number of major retail locations across many parts of the United States. Learn
more about the science behind alkaline water by visiting www.thealkalinewaterco.com.
Notice Regarding Forward-Looking Statements
This
news release contains "forward-looking statements." Statements in this press
release that are not purely historical are forward-looking statements and
include any statements regarding beliefs, plans, expectations or intentions
regarding the future. Such forward-looking statements include, among other
things, the Company's expectation of a great selling season for Alkaline88 and
tremendous acceptance of the Companys water products in the stores; the
Companys statement that the visibility of the Companys product is expected to
increase dramatically for consumers; the Companys statement that the Company
has still plenty of room to grow by increasing its penetration to new stores and
the Companys expectation that growth to come from continued increases in volume
of product to the retailers; the Companys guidance relating to the sales for
first quarter 2015 ending June 30, 2014, the percentage of single serving 700 ML
bottle sales in the sales in the quarter ending June 30, 2014, and the
expectation that two additional alkaline machines will go into full production
during third quarter of calendar 2014, thereby facilitating production of 80
additional truck loads per month of product to fulfil anticipated demand and a
single truck load can generate up to $11,000 in additional revenue. Actual
results could differ from those projected in any forward-looking statements due
to numerous factors. Such factors include, among others, the inherent
uncertainties associated with developing new products and operating as a
development stage company, changes in customer demand, the extent to which we
are successful in gaining new long-term relationships with retailers or
retaining existing ones, our ability to raise the additional funding we will
need to continue to pursue our business and product development plans,
competition in the industry in which we operate and market conditions. These
forward-looking statements are made as of the date of this news release, and we
assume no obligation to update the forward-looking statements, or to update the
reasons why actual results could differ from those projected in the
forward-looking statements, except as required by applicable law, including the
securities laws of the United States. Although we believe that any beliefs,
plans, expectations and intentions contained in this press release are
reasonable, there can be no assurance that any such beliefs, plans, expectations
or intentions will prove to be accurate. Investors should consult all of the
information set forth herein and should also refer to the risk factors
disclosure outlined in the reports and other documents we file with the SEC,
available at www.sec.gov.
Contact:
WTER Investor Relations
Phone: (480)
656-2423
Email: investors@thealkalinewaterco.com
Website: www.thealkalinewaterco.com
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