Alkaline Water Comp Inc (WTER)

[mentalist]

Nightmare DD research. from the 10Q Feb 2017

Source https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11855716

On December 30, 2015, the Company affected a fifty for one reverse stock split of its authorized and issued and outstanding shares of common stock. As a result, the authorized common stock has decreased from 1,125,000,000 shares of common stock, with a par value of $0.001 per share, to 22,500,000 shares of common stock, with a par value of $0.001 per share. All shares and per share amounts have been retroactively restated to reflect such split.

On January 21, 2016, stockholders of our company approved, by written consents, an amendment to the articles of incorporation of our company to increase the number of authorized shares of our common stock from 22,500,000 to 200,000,000.

As a result, the Company incurred accumulated net losses from Inception (June 19, 2012) through the period ended December 31, 2016 of ($22,721,615). In addition, the Company’s development activities since inception have been financially sustained through debt and equity financing.

On March 4, 2016, the Company completed the offering and sale of an aggregate of 9,000,000 shares of our common stock and warrants to purchase an aggregate of 4,500,000 shares of our common stock, for aggregate gross proceeds of $2,970,000. Each share of common stock the Company sold in the offering was accompanied by one-half of a warrant to purchase one share of common stock at an exercise price of $0.50 per share for a period of two years from the date of issuance. Each share of common stock and accompanying one-half of one warrant was sold at a price of $0.33.

Current Liabilities

Current liabilities as of December 31, 2016 and March 31, 2016 primarily relate to $953,588 and $847,452 in accounts payable, revolving financing of $532,020 and $475,273, note payables of $46,046 and $324,368, current portion of capital leases of $188,303 and $243,623 and accrued expenses of $375,527 and $251,613 respectively.

Loan Facility Agreement with Turnstone Capital Inc.

On September 20, 2016, we entered into a loan facility agreement (the “Loan Agreement” ) with Turnstone Capital Inc. ( “Turnstone” ), whereby Turnstone agreed to make available to our company a loan in the aggregate principal amount of $1,000,000 (the “Loan Amount” ). Pursuant to the Loan Agreement, Turnstone agreed to make one or more advances of the Loan Amount to our company as requested from time to time by our company in an amount to be agreed upon by our company and Turnstone (each, an “Advance” ), provided that Turnstone has the option to provide an additional Advances of up to $500,000 for the purchase of equipment by our company.

On September 20, 2016, Turnstone made the first Advance in the amount of $250,000 to our company. As of December 31, 2016, the amount outstanding under the Loan Agreement was $750,000.