The Alkaline Water pany (WTER) - 2022 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended September 30, 2021, was $15,255,765, a 50% increase from $10,160,552 for the same period in 2020[85] - Revenue for the six months ended September 30, 2021, was $29,369,343, a 24% increase from $23,592,862 for the same period in 2020[91] Cost of Goods Sold - Cost of goods sold for the three months ended September 30, 2021, was $10,091,415, representing 66% of revenue, compared to 64% for the same period in 2020[87] - Cost of goods sold for the six months ended September 30, 2021, was $19,402,426, or 66% of revenue, compared to 64% for the same period in 2020[93] Operating Expenses - Total operating expenses for the three months ended September 30, 2021, were $15,372,626, up from $7,881,983 in 2020[88] - Total operating expenses for the six months ended September 30, 2021, were $27,493,400, compared to $15,550,131 in 2020[94] Net Loss - Net loss for the three months ended September 30, 2021, was $10,378,473, compared to a net loss of $4,361,628 in 2020[85] - Net cash used in operating activities increased to $18,730,426 for the six months ended September 30, 2021, compared to $8,111,516 for the same period in 2020, primarily due to a net loss increase of approximately $8.3 million and higher accounts receivable and inventory[101] Cash Flow - Net cash used in operating activities for the six months ended September 30, 2021, was $(18,730,426), compared to $(8,111,516) in 2020[100] - Net cash used in investing activities rose to $315,408 for the six months ended September 30, 2021, up from $90,109 in the prior year, driven by increased purchases of fixed assets[102] - Net cash provided by financing activities was $20,333,943 for the six months ended September 30, 2021, compared to $7,616,820 for the same period in 2020, mainly due to an increase in proceeds from the exercise of warrants by approximately $7.7 million and $5.2 million from revolver financing[103] Financial Position - Current assets as of September 30, 2021, were $30,626,644, up from $23,271,259 as of March 31, 2021[97] - Working capital as of September 30, 2021, was $13,718,158, compared to $10,027,218 as of March 31, 2021[97] Future Financing - The company has entered into a sales agreement to offer and sell up to $20,000,000 in shares of common stock, with a commission of 3.0% on gross proceeds from each sale[104] - The company believes that cash on hand, along with anticipated warrant exercises, will adequately fund operations and capital needs for the next 12 months, but may seek additional equity or debt financing if plans change[105] Off-Balance Sheet Arrangements - There are no off-balance sheet arrangements that materially affect the company's financial condition or operations[106]