Alkaline Water Comp Inc (WTER)

[jupp]

Management Comment

“The fiscal year 2015 was highlighted by the rapid expansion of the number of top retailers that are now selling Alkaline88. As of the end of our 2015 fiscal year, we are now in over 16,000 stores, in 34 of the top 75 retailers in the country and in all 50 states. We are now the number one selling alkaline water in Southern California. The acceptance of our brand by consumers has been tremendous,” stated Mr. Steven Nickolas, President and CEO of the Company.

“To meet this demand we have increased our production capacity threefold over the prior year by adding new co-packing plants and machinery throughout the country. This increase in capacity should soon allow us to produce and sell up to $2,000,000 of water wholesale per month. We have also further expanded our product line to include single serving 500 mL, 700 mL, and 1 L bottles to be sold along with our original bulk size 3 L and 1-gallon products. We see the expansion of the single serving as a significant part of our growth going forward.

We are extremely excited about our growth potential for 2016 as we continue to expand into new retailers. Most recently, we announced sales to Safeway and have just completed a successful roadshow with Costco in Northern California. We believe that our national expansion will result in significant growth opportunities in 2016,” Nickolas further stated.

Based on these factors, the Company has issued the following guidance:

• We expect to be cash-flow breakeven by the third-quarter fiscal 2016.
• We expect revenue in excess of $10,000,000 for fiscal year ending March 31, 2016.
• We expect to be selling in over 25,000 stores nationwide by the end of fiscal year 2016.
• We expect fourth quarter profitability during fiscal year end 2016.

www.sec.gov/Archives/edgar/data/1532390/000106299315003861/exhibit99-1.htm