THE ALKALINE WATER COMPANY INC.
~~CONDENSED~~ CONSOLIDATED BALANCE SHEETS
(unaudited)

		June 30, 2023			March 31, 2023
ASSETS
Current assets
Cash	$	414,648		$	1,038,754
Accounts receivable, net		5,059,617			6,520,232
Inventory		5,544,390			5,591,351
Prepaid expenses		2,285,188			2,679,274
Operating lease right-of-use asset - current portion		80,289			122,114

Total current assets		13,384,132			15,951,725

Fixed assets - net		1,804,617			2,058,132
Operating lease right-of-use asset		15,184			20,246

Total assets	$	15,203,933		$	18,030,103

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable	$	12,609,187		$	11,616,247
Accrued expenses		2,406,839			1,996,387
Revolving financing		6,188,332			6,403,447
Notes payable, short-term		1,967,661			3,192,313
Operating lease liability - current portion		89,916			136,214


Total current liabilities		23,261,935			23,344,608

Operating lease liability		16,812			22,223

Total liabilities		23,278,747			23,366,831

Commitments and contingencies (Note 8)

Stockholders' deficit
Preferred stock, $0.001 par value, 100,000,000 shares authorized, 100,000 Series E issued and outstanding on June 30, 2023 and 600,000 Series E issued and outstanding on March 31, 2023 and nil Series S issued and outstanding on June 30, 2023 and 2,227,030 Seires S issued and outstanding on March 31, 2023		100			2,827
Common stock, Class A - $0.001 par value, 13,333,333 shares authorized 10,395,805 and 10,005,379 shares issued and outstanding at June 30, 2023 and March 31, 2023, respectively		10,395			10,005
Discount on Preferred Stock		(8,010	)		(76,898	)
Additional paid in capital		131,912,605			131,805,916
Accumulated deficit		(139,989,904	)		(137,078,578	)


Total stockholders' deficit		(8,074,814	)		(5,336,728	)

Total liabilities and stockholders' deficit	$	15,203,933		$	18,030,103

The accompanying notes are an integral part of these condensed consolidated financial statements.

June 30, 2022 March 31, 2022
ASSETS
Current assets
Cash $ 2,945,924 $ 1,531,062
Accounts receivable, net 8,422,415 7,927,065
Inventory 10,678,339 8,583,664
Prepaid expenses 4,362,972 2,928,085
Operating lease right-of-use asset - current portion 187,545 187,545

Total current assets 26,597,195 21,157,421

Fixed assets - net 1,868,362 1,200,797
Operating lease right-of-use asset 95,473 142,359

Total assets $ 28,561,030 $ 22,500,577

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable $ 11,934,494 $ 10,441,879
Accrued expenses 5,946,778 2,036,739
Revolving financing 6,539,787 7,043,870
Convertible note payable, net of debt discount 3,208,445 2,223,633
PPP loan payable - current portion - -
Operating lease liability - current portion 199,430 174,565

Total current liabilities 27,828,934 21,920,686

Operating lease liability 106,727 178,753

Total liabilities 27,935,661 22,099,439

Commitments and contingencies (Note 8)

Stockholders' equity (deficit)
Preferred stock, $0.001 par value, 100,000,000 shares authorized, 2,227,030 Series S issued and outstanding on June 30, 2022 and 4,453,970 issued and outstanding on March 31, 2022 2,227 4,454
Common stock, Class A - $0.001 par value, 200,000,000 shares authorized 122,121,037 and 110,571,812 shares issued and outstanding at June 30, 2022 and March 31, 2022, respectively 122,121 110,572
Subscription Receivable - (62,388 )
Additional paid in capital 117,510,009 109,864,080
Accumulated deficit (117,008,988 ) (109,515,580 )

Total stockholders' equity 625,369 401,138

Total liabilities and stockholders' equity $ 28,561,030 $ 22,500,577

THE ALKALINE WATER COMPANY INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)

		For the Three Months
		June 30, 2023			June 30, 2022
Net Revenue	$	14,933,785		$	16,318,786

Cost of Goods Sold		11,162,216			13,399,774

Gross Profit		3,771,569			2,919,012

Operating expenses
Sales and marketing expenses		4,614,499			6,346,229
General and administrative		1,574,240			2,863,993

Total operating expenses		6,188,739			9,210,222

Total operating loss		(2,417,170	)		(6,291,210	)

Other (income) expense
Interest expense		(423,768	)		(1,202,198	)

Total other (income) expense		(423,768	)		(1,202,198	)

Net loss	$	(2,840,938	)	$	(7,493,408	)

LOSS PER SHARE (Basic and Diluted)	$	(0.28	)	$	(0.96	)

WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted)		10,293,276			7,844,653

The accompanying notes are an integral part of these condensed consolidated financial statements.

THE ALKALINE WATER COMPANY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(unaudited)

	Preferred Stock					Common Stock			Additional				Discount of					Accumulated
	Number		Par Value			Number	Par Value		Paid-in Capital				Preferred E		Stock Payable			Deficit			Total

Balance, March 31, 2022	4,453,970		$	4,454		7,371,454	$	7,371	$	109,967,281		$	-		$	(62,388	)	$	(109,515,580	)	$	401,138

Common shares issued in connection with offerings						605,572		606		5,205,598						62,388						5,268,592

Stock option exercise						1,130		1		(1	)											-

Preferred stock conversion to common stock and vesting of endorsement shares	(2,226,940	)		(2,227	)	148,469		148		2,229,109												2,227,030

Stock option and RSU-related stock compensation expense						14,778		15		222,002												222,017

Net (loss)																			(7,493,408	)		(7,493,408	)

Balance, June 30, 2022	2,227,030		$	2,227		8,141,403	$	8,141	$	117,623,989		$	-		$	-		$	(117,008,988	)	$	625,369


Balance, March 31, 2023	2,827,030		$	2,827		10,005,379	$	10,005	$	131,805,916		$	(76,898	)	$	-		$	(137,078,578	)	$	(5,336,728	)

Preferred stock conversion to common stock and vesting of endorsement shares	(2,227,030	)		(2,227	)	148,469		148		558,837												556,758

Preferred stock series e conversion to common stock	(500,000	)		(500	)	133,333		133		367												-

Preferred stock series e issuance of dividend in shares						4,598		5		11,078												11,083

Preferred stock series e amortization of discount													68,888						(68,888	)		-

Preferred stock series e dividend accrual																			(1,500	)		(1,500	)

Stock option and RSU-related compensation expense and common shares issued upon conversion of RSUs, net of forfeited stock options						61,438		61		(463,550	)											(463,489	)

Common shares issues in connection with reverse stock split						42,588		43		(43	)											-

Net (loss)																			(2,840,938	)		(2,840,938	)

Balance, June 30, 2023	100,000		$	100		10,395,805	$	10,395	$	131,912,605		$	(8,010	)	$	-		$	(139,989,904	)	$	(8,074,814	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

THE ALKALINE WATER COMPANY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

		For the Three Months
		June 30, 2023			June 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss	$	(2,840,938	)	$	(7,493,408	)

	Adjustments to reconcile net loss to net cash used in operating activities
	Depreciation expense		253,515			187,432
	Shares issued and vested, options and RSU expensed for employee and non-employee services		93,269			2,449,047
	Amortization of debt discount		-			935,102
	Non-cash interest expense		-			49,710
	Non-cash lease expense		(4,822	)		(275	)
	Changes in operating assets and liabilities:
	Accounts receivable		1,460,615			(495,350	)
	Inventory		46,961			(2,094,675	)
	Prepaid expenses and other current assets		394,086			(1,434,887	)
	Accounts payable		992,940			1,492,615
	Accrued expenses		420,035			3,910,039
	Note payable, short-term		(1,224,652	)		-

	NET CASH USED IN OPERATING ACTIVITIES		(408,991	)		(2,494,650	)

CASH FLOWS FROM INVESTING ACTIVITIES
	Purchase of fixed assets		-			(854,997	)


	CASH USED IN INVESTING ACTIVITIES		-			(854,997	)

CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from (repayment of) revolving financing, net		(215,115	)		(504,083	)
	Proceeds from sale of common stock, net		-			5,268,592

	CASH PROVIDED BY FINANCING ACTIVITIES		(215,115	)		4,764,509

NET CHANGE IN CASH			(624,106	)		1,414,862

CASH AT BEGINNING OF PERIOD			1,038,754			1,531,062

CASH AT END OF PERIOD		$	414,648		$	2,945,924

INTEREST PAID		$	423,768		$	215,164

TAXES PAID		$	-		$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

THE ALKALINE WATER COMPANY INC.
~~CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS~~
~~(unaudited)~~

For the Three Months
June 30, 2022 June 30, 2021

Net Revenue $ 16,894,403 $ 14,113,578

Cost of Goods Sold 13,399,774 9,311,011

Gross Profit 3,494,629 4,802,567

Operating expenses
Sales and marketing expenses 6,921,846 7,156,400
General and administrative 2,863,993 4,964,374

Total operating expenses 9,785,839 12,120,774

Total operating loss (6,291,210 ) (7,318,207 )

Other expense
Interest expense (1,202,198 ) (107,419 )

Total other expense (1,202,198 ) (107,419 )

Net loss $ (7,493,408 ) $ (7,425,626 )

LOSS PER SHARE (Basic and Diluted) $ (0.06 ) $ (0.08 )

WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted) 117,518,198 88,342,316

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

~~THE ALKALINE WATER COMPANY~~
~~CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT)~~
~~(unaudited)~~

Preferred Stock Common Stock Additional Subscription Accumulated
Number Par Value Number Par Value Paid-in Capital Receivable Deficit Total

Balance, March 31, 2021 - $ - 87,465,178 $ 87,464 $ 80,857,742 $ - $ (69,931,220 ) $ 11,013,986

Preferred stock issuance 6,681,090 6,681 2,220,350 2,227,031

Common shares issued upon exercise of warrants 1,277,777 1,278 651,499 652,777

Common shares issued to non-employees and employees 855,499 856 39,144 40,000

Stock option and RSU-related stock compensation expense 651,648 651,648

Stock option exercise 162,668 163 48,068 48,231

Net (loss) (7,425,626 ) (7,425,626 )

Balance, June 30, 2021 6,681,090 $ 6,681 89,761,122 $ 89,761 $ 84,468,451 $ - $ (77,356,846 ) $ 7,208,047

Balance, March 31, 2022 4,453,970 $ 4,454 110,571,812 $ 110,572 $ 109,864,080 $ (62,388 ) $ (109,515,580 ) $ 401,138

Common Shares issued in connection with offerings 9,083,574 9,083 5,197,121 62,388 5,268,592

Stock option exercise 16,956 17 (17 ) -

Preferred stock conversion to common stock (2,226,940 ) (2,227 ) 2,227,030 2,227 2,227,030 2,227,030

Stock option and RSU-related compensation expense and common shares issued opun conversion of RSUs 221,665 222 221,795 222,017

Net (loss) (7,493,408 ) (7,493,408 )

Balance, June 30, 2022 2,227,030 $ 2,227 122,121,037 $ 122,121 $ 117,510,009 $ - $ (117,008,988 ) $ 625,369

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

~~THE ALKALINE WATER COMPANY INC.~~
~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS~~
~~(unaudited)~~

For the Three Months
June 30, 2022 June 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (7,493,408 ) $ (7,425,626 )

Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense 187,432 159,015
Shares issued and vested, options and RSU expensed for employee and non-employee services 2,449,047 2,918,680
Amortization of debt discount 935,102 -
Non-cash interest expense 49,710 -
Non-cash lease expense (275 ) 5,084
Changes in operating assets and liabilities:
Accounts receivable (495,350 ) 236,803
Inventory (2,094,675 ) (629,855 )
Prepaid expenses and other current assets (1,434,887 ) (2,028,928 )
Accounts payable 1,492,615 653,199
Accrued expenses 3,910,039 56,315

NET CASH USED IN OPERATING ACTIVITIES (2,494,650 ) (6,055,313 )

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (854,997 ) (61,444 )

CASH USED IN INVESTING ACTIVITIES (854,997 ) (61,444 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (repayment of) revolving financing (504,083 ) 782,699
Proceeds from sale of common stock, net 5,268,592 -
Proceeds for the exercise of warrants, net - 652,777
Proceeds for the exercise of stock options, net - 48,230

CASH PROVIDED BY FINANCING ACTIVITIES 4,764,509 1,483,706

NET CHANGE IN CASH 1,414,862 (4,633,051 )

CASH AT BEGINNING OF PERIOD 1,531,062 9,130,956

CASH AT END OF PERIOD $ 2,945,924 $ 4,497,905

INTEREST PAID $ 215,164 $ 105,197

TAXES PAID $ - $ -

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

~~THE ALKALINE WATER COMPANY INC.~~

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

~~(unaudited)~~

NOTE 1 -NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation - The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The March 31, 2023 balance sheet was derived from audited financial statements. The financial statements include adjustments consisting of normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the financial position of the Company and its results of operations for the interim dates and periods set forth herein. The results for any of the interim periods are not necessarily indicative of the results to be expected for the full year or any other period. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended March 31, 2023.

Nature of Business

The Company offers retail consumers bottled alkaline water in 500-milliliter, 700-milliliter, 1-liter, 1.5 -liter, 2,-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. The Company ~~recently introduced and began selling hemp-derived CBD bottled water under the brand name "Alkaline88CBD™" and~~also sells a line of Alkaline88® Sports Drinks. ~~Our hemp-derived CBD bottled water is 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~~

The consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in U.S. dollars, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission.

Principles of consolidation

The consolidated financial statements include the accounts of The Alkaline Water Company Inc. (a Nevada Corporation) and its wholly owned subsidiary, Alkaline 88, LLC (an Arizona Limited Liability Company). All significant intercompany balances and transactions have been eliminated. The Alkaline Water 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 its Alkaline 88, LLC subsidiary 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~~Stock Split

~~The Company considers all highly liquid instruments~~Effective April 5, 2023, we effected a fifteen for one reverse stock split of our authorized and issued and outstanding shares of common stock. As a result, our authorized common stock has decreased from 200,000,000 shares of common stock, with ~~an original maturity~~a par value of ~~three months or less~~$0.001 per share, to 13,333,333 shares of common stock, with a par value of $0.001 per share, and the number of our issued and outstanding shares of common stock has decreased from approximately 152,149,661 to approximately 10,185,898. Any fractional shares resulting from the reverse stock split will be rounded up to the next nearest whole number. Our authorized preferred stock was not affected by the reverse stock split and continues to be ~~considered cash equivalents. The carrying~~100,000,000 shares of preferred stock, with a par value of these investments approximates fair value. As of the balance sheet date and periodically throughout the period, the Company has maintained balances in various operating accounts in excess of federally insured limits. In addition, the Company has maintained balances in its attorney's client trust account in both C$ 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 $2,945,924 and $1,531,062 in cash at June 30, 2022 and March 31, 2022, respectively.$0.001 per share. (See Note 5 - Common Stock.)

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, ~~2022~~2023 and March 31, ~~2022:~~2023:

		June 30, 2022			March 31, 2022			June 30, 2023			March 31, 2023
Trade receivables, net	$	8,912,415		$	8,397,065		$	6,314,617		$	7,775,232
Less: Allowance for doubtful accounts		(490,000	)		(470,000	)		(1,255,000	)		(1,255,000	)
Net accounts receivable	$	8,422,415		$	7,927,065		$	5,059,617		$	6,520,232

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 3.4.

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 3.4.

As of June 30, ~~2022~~2023 and March 31, ~~2022,~~2023, inventory consisted of the following:

June 30, 2022 March 31, 2022
Raw materials $ 6,755,208 $ 3,848,750
Finished goods 3,923,131 4,734,914
Total inventory $ 10,678,339 $ 8,583,664

		June 30, 2023		March 31, 2023
Raw materials	$	3,405,609	$	3,661,144
Finished goods		2,138,781		1,930,207
Total inventory	$	5,544,390	$	5,591,351

~~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 or the lease term, whichever is shorter. The Company evaluated its property and equipment for impairment and concluded for the quarter ended June 30, 2022, there was no impairment.

~~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

We recognize revenue when our performance obligations are satisfied. Our primary performance 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 requires 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 records it as reduction in revenue. The amounts are not considered material. The Company's bottled water product represents substantially all revenue for all periods presented.

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 ~~$3,813,376~~$3,104,780 and ~~$2,906,900~~$3,813,376 (which are not included in revenue) for the quarter ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales, primarily include consideration given to the Company's retail customers or distributors including, but not limited to the following: (a) discounts granted off list prices to support price promotions to end-consumers by retailers; (b) ~~reimbursements given~~discounts to the Company's distributors for agreed portions of their promotional ~~spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;~~discounts to retailers; and (c) the Company's agreed share of ~~slotting, shelf space~~in-store activities and other promotional allowances and ~~other~~various fees ~~given~~charged to the Company directly toby its retailers, club stores and/or ~~wholesalers;~~wholesalers. The Company's promotional allowance programs with its retailers or distributors are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one ~~year.~~month. The ~~Company's~~accrual for promotional ~~and other allowances are calculated~~incentives is based on ~~various programs with retailers and~~expected chargebacks from customers or distributors and ~~accruals are established at the time~~typically deducted from invoices within 30 days of ~~initial product sale~~being earned. Historically, adjustments to our estimated accrual for ~~the Company's anticipated liabilities. The Company believes that adequate provision has~~customers' allowances have not been ~~made for cash discounts, returns and spoilage based on the Company's historical experience.~~significant.

Disaggregated Net Revenues

The following table reflects disaggregated net revenue by sales channel for the years ended June 30, ~~2022~~2023 and June 30, ~~2021~~2022 are as follows:

		June 30, 2023		June 30, 2022
Retailers	$	9,255,018	$	10,582,084
Distributors		5,595,816		5,442,469
Ecommerce/Other		82,951		294,233
Total Net Revenue	$	14,933,785	$	16,318,786

June 30, 2022 June 30, 2021
Retailers $ 10,955,349 $ 9,404,681
Distributors 5,634,443 4,536,003
Ecommerce/Other 304,611 172,914
Total Net Revenue $ 16,894,403 $ 14,113,578

Concentration Risks

The Company has 1 major customer that account for 14% of accounts receivable at June 30, 2023, and 3 customers that together account for 37% (15%, 12% and 10%, respectively) of the total revenues earned for the quarter ended June 30, 2023. The Company has 1 vendors that account for 24% of purchases for the quarter ended June 30, 2023.

The Company had 2 major customers that ~~account~~accounted for 25% (13% and 12% respectively) of accounts receivable at June 30, 2022, and 2 customers that together ~~account~~accounted for 31% (18% and 13%, respectively) of the total revenues earned for the quarter ended June 30, 2022. The Company ~~has~~had 2 vendors that accounted for 48% (31%, and 17% respectively) of purchases for the quarter ended June 30, 2022.

Correction of Previously Issued Financial Statements

The ~~Company had 1 major customer that accounted~~accompanying condensed consolidated statement of operations for 12% of accounts receivable at June 30, 2021, and 2 customers that together accounted for 36% (20% and 16%, respectively) of the total revenues earned for the quarter ended June 30, 2021. The Company had 2 vendors that accounted for 43% (27%, and 16% respectively) of purchases for the quarter ended June 30, 2021.

~~Income Taxes~~

~~In accordance with ASC 740 "~~~~Accounting for Income Taxes~~", the provision for income taxes is computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not 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,~~March 31, 2022 has been corrected for an adjustment to reclassify Sales and ~~2021, respectively,~~marketing expenses of $575,617 as a reduction of Net revenue as such amounts were related to consideration payable to a customer which the Company determined was not for distinct goods or services received. The Company assessed the materiality of the misstatement quantitatively and qualitatively and has concluded that the correction of the classification error is immaterial to the consolidated financials taken as a whole. As a result of the correction, Net Revenue decreased from $16,894,403 to $16,318,786 and Sales and marketing expenses decreased from $6,921,846 to $6,346,229. The correction had ~~4,518,132~~no impact on Total operating loss and 3,897,897 shares relating to options, NaN and 4,761,690 shares relating to warrants and NaN and 2,227,030 convertible preferred shares that were not included in the diluted earnings per share calculation because they were antidilutive.Net loss.

Business Segments

The Company operates ~~on one~~as a single operating segment for the purposes of presenting financial information and evaluating performance. As such, the accompanying consolidated financial statements present financial information in ~~one geographic location -~~a format that is consistent with the ~~United States of America and; therefore, segment~~internal financial information ~~is not presented.~~used by management.

Recent Accounting Pronouncements

~~Standards Recently Adopted~~

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. The Company believes that the impact of adopting this standard will not have a material effect on its financial statements.

The Company has evaluated ~~other~~ recent accounting pronouncements through June 30, ~~2022~~2023 and believes that none of them will have a material effect on our consolidated financial statements.

NOTE 7 - LEASES

As of October 1, 2020, the company entered into a lease for 9,166 square feet of corporate office and warehouse space from a third party through September 2023 at a rate of $10,083 per month for the first twelve months, then at a rate of $10,385 for the next 12 months, and $10,697 for the final 12 months of the lease. The Company determined this lease was an operating lease under ASC 842 and using an interest rate of 7%, the Company determined that the ROU for this lease was $337,932 and the lease liability for this lease was $337,932, at inception of this lease, respectively. Previously, the Company leased its corporate office space with a size of 3,352 square feet leased from a third party which leased through November 2020 at the current rate of $7,891 per month.

As of November 1, 2020, the company entered into a lease for 2,390 square feet of corporate office space from a third party through January 2024 at a rate of $5,280 per month for the first twelve months starting January 2021, then at a rate of $5,377 for the next 12 months, and $5,497 for the final 13 months of the lease. The Company determined this lease was an operating lease under ASC 842 and using an interest rate of 7%, the Company determined that the ROU for this lease was $177,629 and the lease liability for this lease was $177,629, at inception of this lease, respectively.

As of April 1, 2022, the Company entered into a lease for 1,520 square feet of warehouse space from a third party through March 2025 at a rate of $1,812 per month for the first twelve months, then at a rate of $1,867 per month for the last next twelve months and then at a rate of $1,923 for the last twelve months. The Company determined this lease was an operating lease under ASC 842 and using an interest rate of 7%, the Company determined that the ROU for this lease was $60,737 and the lease liability for this lease was $60,737, at inception of this lease, respectively.

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, ~~2022~~2023 was ~~$65,169~~$52,791 and for the three months ended June 30, ~~2021~~2022 was ~~$100,915.~~$65,169.

Operating Leases:		June 30, 2023
Operating lease right-of-use asset - current portion	$	80,289
Operating lease right-of-use asset - non-current portion		15,184

Total Operating lease right-of-use asset	$	95,473

Operating lease liability - current portion	$	89,916
Operating lease liability - non-current portion		16,812

Total Operating lease liability	$	106,728

Weighted average remaining lease term (in years):
Operating leases		0.9

Weighted average discount rate:
Operating leases		7%

Operating Leases: June 30, 2022
Operating lease right-of-use asset - current portion $ 187,545
Operating lease right-of-use asset - non-current portion 95,473

Total Operating lease right-of-use asset $ 283,018

Operating lease liability - current portion $ 199,430
Operating lease liability - non-current portion 106,727

Total Operating lease liability $ 306,157

Weighted average remaining lease term (in years):
Operating leases 1.6

Weighted average discount rate:
Operating leases 7%

Maturities of undiscounted lease liabilities as of June 30, ~~2022~~2023 are as follows:

	Operating Leases
Year ending March 31, ~~2023~~	~~160,404~~
~~Year ending March 31,~~ 2024	~~141,552~~87,371
Year ending March 31, 2025	~~23,074~~23,075
Total lease payments	~~325,030~~110,446
Less: Imputed interest	(~~18,873~~3,718	)
Total lease obligations	~~306,157~~106,728

NOTE 8 - COMMITMENTS AND CONTINGENCIES

The Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. The Company does not believe that the disposition of matters that are pending or asserted will have a material effect on its consolidated financial statements.

NOTE 9 - SUBSEQUENT EVENTS

~~Private Placement~~

On July ~~25, 2022,~~12, 2023, the Company entered into ~~debt~~a settlement agreement and ~~subscription agreements~~stipulation ("Settlement Agreement") with 4 creditors, and the Company issued units to three creditors and special warrants to one creditor in settlement of debt in an aggregate of $3,869,962 (principal of $3,800,000 and accrued and unpaid interest of $69,962) owing the creditorsSilverback Capital Corporation ("Silverback") in connection with ~~certain convertible notes.~~

~~Effective as~~the settlement of ~~July 25, 2022,~~$1,809,256.03 of bona fide obligations the Company ~~issued~~owed to certain of its creditors. The Settlement Agreement was subject to a fairness hearing, and on September 6, 2023, the Circuit Courts within the Twelfth Judicial Circuit of Palm Beach County, Florida held a fairness hearing and, on September 12, 2023 entered an aggregate of 9,633,616 units of our company at a deemed price of $0.37 per unit to three creditors. Each unit was comprised of one share of common stock and one warrant. Each warrant entitled the holder to purchase an additional share of our common stock at a price of $0.44 per share for a period of three years. As a conditionorder granting approval of the ~~debt settlement, each of~~Settlement Agreement. If the ~~creditors who has received the units has agreed to immediately exercise the creditor's respective warrants. Accordingly, the creditors exercised warrants for an aggregate of $4,238,791~~ ~~(of which approximately $3 million was received as of June 30, 2022 and recorded as an accrued liability of~~Settlement Agreement is satisfied in full, the Company ~~pending~~shall reduce the ~~closing of this~~Company's debt ~~settlement transaction)resulting~~obligations equal to $1,809,256.03 in ~~an aggregate of an additional 9,633,616~~exchange for 30,000 common shares ~~of our common stock being issued~~ to ~~such creditors.~~

Effective as of July 25, 2022, we issued 825,738 special warrants at a deemed price of $0.37 per special warrant to one creditor. Each special warrant is automatically exercisable (without payment of any further consideration and subject to customary anti-dilution adjustments) into units on the date that is the earlier of: (i) the date that is three business days following the date on which our company obtains a receipt from the British Columbia Securities Commission for a (final) short form prospectus qualifying the distribution of the units issuable upon exercise of the special warrants, and (ii) the date that is four months and one day after the issuance of the special warrants. Each unit will be comprised of one share of common stock and one warrant. Each warrant will entitle the holder to purchase an additional share of our common stock at a price of $0.44 per share. As consideration for the debt settlementcover Silverback's expenses and the issuance of ~~the special warrants, the creditor agreed to exercise the warrants immediately upon automatic exercise~~settlement shares of the ~~special warrants by payment~~Company's common stock pursuant to the terms of ~~$363,325, which amount~~section 3(a)(10) of the Securities Act of 1933, in multiple tranches, at a price that is ~~held in trust by~~seventy percent (70%) of the ~~creditor's lawyers until~~average of the ~~automatic exercise date, for an additional 825,735 shares~~three lowest bid prices during the ten (10) trading days immediately preceding the delivery of ~~our~~such tranche. At no time may Silverback beneficially own more than 4.99% of the Company's outstanding common stock.

~~Employment Agreement with Frank Lazaran~~

~~On July 29, 2022, The~~As of September 20, 2023, the Company ~~entered into an employment agreement with Frank Lazaran, our president, chief executive officer and director. Pursuant~~issued 500,000 shares of WTER common stock, to ~~the terms~~be valued at 70% of the ~~employment agreement, we have agreed to pay Mr. Lazaran US$275,000 annually or such other amount as may be determined by our board of directors from time to time, commencing on~~three lowest bid prices during the ~~Effective Date.~~

~~In addition, subject to compliance with all applicable laws and~~ten (10) trading days immediately preceding the rules of any stock exchange on which our common stock is listed, we have agreed to grant to Mr. Lazaran an aggregate of 1,000,000 shares (the "Restricted Award Shares") of our common stock as "restricted awards" under our 2020 equity incentive plan and any successor equity incentive plan (collectively, the "Plan") and non-qualified stock options under the Plan to purchase an aggregate of 1,000,000 shares of our common stock on the following terms: (i) 500,000 of the Restricted Award Shares were granted on July 29, 2022 (the "First Grant Date") and these Restricted Award Shares vested immediately; (ii) the other 500,000 Restricted Award Shares will be granted as soon as reasonably practicable following the our stockholder approval of the amendment to the Plan or otherwise to allow the grantdelivery of such Restricted Award (the "Second Grant Date") and these Restricted Award Shares will vest on the six month anniversary of the First Grant Date, provided, however, if we do not obtain the stockholder approval by June 3, 2023, such Restricted Award Shares will not be granted and we will have no further obligation with respect to such Restricted Award Shares; (iii) the stock options were granted on July 29, 2022 (the "Option Grant Date"); (iv) the exercise price for the stock options is $0.428 per share; (v) the stock options will vest in two equal annual installments, with the first 500,000 stock options vesting on the one year anniversary of the Option Grant Date and the second 500,000 stock options vesting on the second anniversary of the Option Grant Date; and (vi) vested stock options may be exercised for up to ten years from the Option Grant Date.shares.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This report contains "forward-looking statements." All statements other than statements of historical fact are "forward-looking statements" for purposes of applicable securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "could," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward- looking statements, which speak only as of the dates on which they are made. Except as required by applicable law, including the securities laws of the United States and Canada, we do not intend, and undertake no obligation, to update any forward-looking statement.

Although we believe the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to:

• lack of working capital;

• inability to raise additional financing;

• the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require our management to make estimates about matters that are inherently uncertain;

• deterioration in general or regional economic conditions;

• adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations;

• inability to efficiently manage our operations;

• inability to achieve future sales levels or other operating results; and

• the unavailability of funds for capital expenditures.

Our financial statements are stated in United States Dollars ($ or US$) unless otherwise stated and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this quarterly report, unless otherwise specified, all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report on Form 10-Q, the terms "we", "us" "our", the "Company" and "Alkaline" refer to The Alkaline Water Company Inc., a Nevada corporation, and its wholly owned subsidiary Alkaline 88, LLC (an Arizona Limited Liability Company), unless otherwise specified.

~~COVID-19~~

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, we have 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.

Inflationary Pressure

We have seen significant margin contraction as a result of inflationary pressures over the last 12 months. We've taken a number of steps that will allow us to increase our margins in the year ended March 31, ~~2023.~~2024. These steps include (1) an approximate 9% across the board price increase (effective across all banners for the entire fiscal ~~2023)~~2024); (2) a potential leveling off or small reduction in freight costs due to the geographic distribution of our new co-packers and suppliers; and (3) our buying power allowing us to lock in price breaks on raw materials over the next 12 months.

Results of Operations

Our results of operations for the three months ended June 30, ~~2022~~2023 and June 30, ~~2021~~2022 are as follows:

		For the three months ended June 30, 2022			For the three months ended June 30, 2021			For the three months ended June 30, 2023			For the three months ended June 30, 2022
Revenue	$	16,894,403		$	14,113,578		$	14,933,785		$	16,318,786
Cost of goods sold		13,399,774			9,311,011			11,162,216			13,399,774
Gross profit	$	3,494,629		$	4,802,567		$	3,771,569		$	2,919,012
Net Loss	$	(7,493,408	)	$	(7,425,626	)	$	(2,840,938	)	$	(7,493,408	)

Revenue and Cost of Goods Sold

We had revenue from sales of our product for the three months ended June 30, ~~2022~~2023 of ~~$16,894,403~~$14,933,785 as compared to ~~$14,113,578~~$16,318,786 for the three months ended June 30, ~~2021, an increase~~2022, a decrease of ~~20%~~8%. The ~~increase~~decrease in sales is due to the expanded ~~distribution~~promotional allowances of our products to ~~additional~~ retailers throughout the country. We distribute our product through several channels. We sell through large national distributors (UNFI, KeHe, C&S, and Core-Mark), which together represent over 150,000 retail outlets. We also sell our product directly to retail clients, including convenience stores, natural food products stores, large ethnic markets and national retailers. Some examples of retail clients are: Walmart, CVS, Sam's Club, Family Dollar, Albertson/Safeway, Kroger companies, Schnucks, Smart & Final, Jewel-Osco, Sprouts, Bashas', Stater Bros. Markets, Unified Grocers, Bristol Farms, Publix, Vallarta, Superior Foods, Ingles, Shaw's, Raley's, Harris Teeter, Festival Foods, HEB and Brookshire's.

Cost of goods sold is comprised of production costs, shipping and handling costs. For the three months ended June 30, ~~2022,~~2023, we had cost of goods sold of ~~$13,399,774,~~$11,162,216, or ~~79%~~75% of revenue, as compared to cost of goods sold of ~~$9,311,011~~$13,399,774 or ~~66%~~82% of revenue, for the three months ended June 30, ~~2021.~~2022. The ~~increase~~decrease in cost of goods sold is due to ~~increased~~decreased raw material ~~costs and increased freight costs to our co-packers.~~

~~Expenses~~costs.

Expenses

Our operating expenses for the three months ended June 30, ~~2022~~2023 and June 30, ~~2021~~2022 are as follows:

		For the three months ended June 30, 2022		For the three months ended June 30, 2021		For the three months ended June 30, 2023		For the three months ended June 30, 2022
Sales and marketing expenses	$	6,921,846	$	7,156,400	$	4,614,499	$	6,346,229
General and administrative expenses		2,863,993		4,964,373		1,574,240		2,863,993
Total operating expenses	$	9,785,839	$	12,120,774	$	6,188,739	$	9,210,222

For the three months ended June 30, ~~2022,~~2023, our total operating expenses were ~~$9,785,839~~$6,188,739 as compared to ~~$12,120,774~~$9,210,222 for the three months ended June 30, ~~2021.~~2022.

For the three months ended June 30, ~~2022,~~2023, the total included ~~$6,951,846 of sales and marketing expenses. For the three months ended June 30, 2021 the total included $7,156,400~~$4,614,499 of sales and marketing expenses. Compared to the three months ended June 30, ~~2021,~~2022, sales and marketing expenses for the three months ended June 30, ~~2022~~2023 decreased due to lower freight costs to our customers of approximately $0.7 million, lower advertising and promotion of approximately ~~$0.2~~$0.3 million, and lower professional fees of approximately ~~$0.6~~0.5 million.

For the three months ended June 30, 2023, general and administrative expenses of $1,574,240 consisted primarily of approximately $0.4 million ~~offset by an increase~~ of ~~freight to our customers in the amount~~professional fees, media fees and legal fees, and approximately $1.1 million of ~~$0.9 million.~~

wages and wage related expenses. For the three months ended June 30, 2022, general and administrative expenses of $2,863,993, consisted primarily of approximately $0.4 million of professional fees, media fees and legal fees ~~stock compensation expense of approximately $0.2 million~~ and approximately ~~$2.0~~$1.8 million of wages and wage related expenses. For the three months ended June 30, 2021, general and administrative expenses of $4,964,374, consisted primarily of approximately $2.6 million of professional fees, media fees and legal fees, stock compensation expense of approximately $1.1 million and approximately $1.0 million of wages and wage related expenses.

Liquidity and Capital Resources

Working Capital

		June 30, 2022			March 31, 2022			June 30, 2023			March 31, 2023
Current assets	$	26,597,195		$	21,157,421		$	13,384,132		$	15,951,725
Current liabilities		27,828,934			21,920,686			23,261,935			23,344,608
Working capital	$	(1,231,739	)	$	(763,265	)	$	(9,877,803	)	$	(7,392,883	)

Current Assets

Current assets as of June 30, ~~2022~~2023 and March 31, ~~2022~~2023 primarily include ~~$2,945,924~~$414,648 and ~~$1,531,062~~$1,038,754 in cash, ~~$8,422,415~~$5,059,617 and ~~$7,927,065~~$6,520,232 in accounts receivable and ~~$10,678,339~~$5,544,390 and ~~$8,583,664~~$5,591,351 in inventory, respectively.

Current Liabilities

Current liabilities as of June 30, ~~2022~~2023 and March 31, ~~2022~~2023 primarily include ~~$11,934,494~~$12,609,187 and ~~$10,441,879~~$11,616,247 in accounts payable, revolving financing of ~~$6,539,787~~$6,188,332 and ~~$7,043,870,~~$6,403,447, and accrued expenses of ~~$5,946,778~~$2,406,839 and ~~$2,036,736,~~$1,996,387, respectively. The increase in accrued expenses during the three-month period ending June 30, 2022 is primarily due to approximately $3 million of proceeds received early by the Company as of June 30, 2022 for warrants exercised by third parties as part of the debt settlement transaction that did not close until July 25, 2022 as detailed below.

Cash Flow

Our cash flows for the three months ended June 30, ~~2022~~2023 and June 30, ~~2021~~2022 are as follows:

		For the three months ended June 30, 2022			For the three months ended June 30, 2021			For the three months ended June 30, 2023			For the three months ended June 30, 2022
Net Cash used in operating activities	$	(2,494,650	)	$	(6,055,313	)	$	(408,991	)	$	(2,494,650	)
Net Cash used in investing activities		(854,997	)		(61,444	)		(-0-	)		(854,997	)
Net Cash provided by financing activities		4,764,509			1,483,706
Net Cash provided/(used) by financing activities								(215,115	)		4,764,509
Net increase (decrease) in cash	$	1,414,862		$	(4,633,051	)	$	(624,106	)	$	1,414,862

Operating Activities

Net cash used in operating activities was ~~$2,494,650~~$408,991 for the three months ended June 30, ~~2022,~~2023, as compared to ~~$6,055,313~~$2,494,650 used in operating activities for the three months ended June 30, ~~2021.~~2022. The decrease in net cash used in operating activities was primarily due to the ~~receipt~~reduction in net loss after adjustments to reconcile net income to net cash in the amount of ~~approximately $3 million for the exercise of warrants that were not exercised until July 25, 2022 (see below Financing Activities Subsequent to June 30, 2022).~~$1.3 million.

Investing Activities

Net cash used in investing activities was ~~$854,997~~$-0- for the three months ended June 30, ~~2022,~~2023, as compared to ~~$61,444~~$854,997 used in investing activities for the three months ended June 30, ~~2021.~~2022. The ~~increase in net~~ cash used in investing activities for the three months ended June 30, 2022 was primarily due to the purchase of equipment for 2 new co-packing plants and the purchase of a new model for our 1-gallon bottle.

Financing Activities

Net cash ~~provided~~used by financing activities for the three months ended June 30, ~~2022~~2023 was ~~$4,764,509,~~$215,115, as compared to ~~$1,483,706~~net cash provided by financing activities in the amount of $4,764,509 for the three months ended June 30, ~~2020.~~2022. The ~~increase~~decrease in net cash provided ~~by financing activities~~ was ~~primarily to due~~a result of no proceeds from the sale of common stock, ~~in the amount of $5.2 million~~net in the three months ended June 30, ~~2022.~~

~~Financing Activities Subsequent~~2023 compared to ~~June 30, 2022~~

~~We entered into debt settlement and subscription agreements with four creditors, and we issued units to three creditors and special warrants to one creditor in settlement~~approximately $5.3 million of ~~debt in an aggregate of $3,869,962 (principal of $3,800,000 and accrued and unpaid interest of $69,962) owing~~proceeds from the ~~creditors in connection with certain convertible notes.~~

~~Effective as of July 25, 2022, we issued an aggregate of 9,633,616 units of our company at a deemed price of $0.37 per unit to three creditors. Each unit was comprised of one share~~sale of common stock, ~~and one warrant. Each warrant entitled~~net in the ~~holder to purchase an additional share of our common stock at a price of $0.44 per share for a period of~~ three years. As a condition of the debt settlement, each of the creditors who has received the units has agreed to immediately exercise the creditor's respective warrants. Accordingly, the creditors exercised warrants for an aggregate of $4,238,791 (of which approximately $3 million was received as ofmonths ended June 30, 2022 and recorded as an accrued liability of the Company pending the closing of this debt settlement transaction) resulting in an aggregate of an additional 9,633,616 shares of our common stock being issued to such creditors.

Effective as of July 25, 2022, we issued 825,738 special warrants at a deemed price of $0.37 per special warrant to one creditor. Each special warrant is automatically exercisable (without payment of any further consideration and subject to customary anti-dilution adjustments) into units on the date that is the earlier of: (i) the date that is three business days following the date on which our company obtains a receipt from the British Columbia Securities Commission for a (final) short form prospectus qualifying the distribution of the units issuable upon exercise of the special warrants, and (ii) the date that is four months and one day after the issuance of the special warrants. Each unit will be comprised of one share of common stock and one warrant. Each warrant will entitle the holder to purchase an additional share of our common stock at a price of $0.44 per share. As consideration for the debt settlement and the issuance of the special warrants, the creditor agreed to exercise the warrants immediately upon automatic exercise of the special warrants by payment of $363,325, which amount is held in trust by the creditor's solicitors until the automatic exercise date, for an additional 825,735 shares of our common stock.2022.

Cash Requirements

Our ability to operating as a going concern is dependent on obtaining adequate capital to fund operating losses until we become profitable. We announced on July 9, 2022 that we have begun implementing a combination of cost-reduction measures and margin enhancements. The cost reduction measures include a) organizational restructuring; b) reductions in professional services; and c) reductions in marketing and promotional expenses and the margin enhancements will include a) packaging changes; b) improved manufacturing efficiencies; c) pricing and promotional optimization; and d) decreases in freight costs due to an enhanced distribution network.

Our cash on hand, plus the implementation of our cost-reduction and margin enhancement strategy, anticipated ~~warrant exercises, our line of credit and the sales agreement with Roth Capital Partners, LLC~~financing or equity offerings is planned to fund our current planned operations and capital needs. However, if our current plans change or are accelerated, ~~or we choose to increase our production capacity,~~ we may seek to sell additional equity or debt securities or obtain additional credit facilities, including seeking investments from strategic investors. The sale of additional equity securities will result in dilution to our stockholders. The incurrence of indebtedness will result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict our operations or modify our plans to grow the business. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, will limit our ability to expand our business operations and could harm our overall business prospects.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to our stockholders.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain "disclosure controls and procedures", as that term is defined in Rule 13a-15(e), promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company's reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and our principal financial officer to allow timely decisions regarding required disclosure.

As required by paragraph (b) of Rules 13a-15 under the Securities Exchange Act of 1934, our management, with the participation of our principal executive officer and our principal financial officer, evaluated our company's disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our management concluded that as of the end of the period covered by this quarterly report on Form 10-Q, our disclosure controls and procedures were not effective. The ineffectiveness of our disclosure controls and procedures was due to the material weaknesses in our internal control over financial reporting disclosed in our annual report on Form 10-K for the fiscal year ended March 31, ~~2022.~~2023.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the fiscal quarter ended June 30, ~~2022~~2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II-OTHER INFORMATION

Item 1. Legal Proceedings

We know of no material pending legal proceedings to which our company or any of our subsidiaries is a party or of which any of our properties, or the properties of any of our subsidiaries, is the subject. In addition, we do not know of any such proceedings contemplated by any governmental authorities.

We know of no material proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder is a party adverse to our company or any of our subsidiaries or has a material interest adverse to our company or any of our subsidiaries.

Item 1A. Risk Factors

Information regarding risk factors appears in our Annual Report on Form 10-K filed on ~~July 14, 2022.~~August 17, 2023. There have been no material changes since ~~July 14, 2022~~August 17, 2023 from the risk factors disclosed in that Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~Since~~Except as disclosed below, since the beginning of our fiscal quarter ended June 30, ~~2022,~~2023, we have not sold any equity securities that were not registered under the Securities Act of 1933 that were not previously reported in a current report on Form 8-K.

On July ~~29, 2022,~~12, 2023, we ~~granted Frank Lazaran,~~entered into a settlement agreement and stipulation ("Settlement Agreement") with Silverback Capital Corporation ("Silverback") in connection with the settlement of $1,809,256.03 of bona fide obligations we owed to certain of our ~~president, chief executive officer~~creditors. The Settlement Agreement was subject to a fairness hearing, and ~~director,~~on September 6, 2023, the Circuit Courts within the Twelfth Judicial Circuit of Palm Beach County, Florida held a fairness hearing and, on September 12, 2023 entered an ~~award~~order granting approval of the Settlement Agreement. If the Settlement Agreement is satisfied in full, we must reduce our debt obligations equal to $1,809,256.03 in exchange for 30,000 common shares to cover Silverback's expenses and the issuance of settlement shares of our common stock pursuant to the terms of section 3(a)(10) of the Securities Act of 1933, in multiple tranches, at a price that is seventy percent (70%) of the average of the three lowest bid prices during the ten (10) trading days immediately preceding the delivery of such tranche. At no time may Silverback beneficially own more than 4.99% of our outstanding common stock.

As of September 20, 2023, we issued 500,000 shares of our common stock, as a "restricted award" under the employment agreement dated July 29, 2022 with Mr. Lazaran and our 2020 equity incentive plan. These shares vested as of July 29, 2022. On July 29, 2022, we granted Mr. Lazaran stock options to ~~purchase 1,000,000 shares of our common stock pursuant the employment agreement and our 2020 equity incentive plan. Each stock option is exercisable~~be valued at ~~a price of $0.428 per share until July 29, 2032. The stock options will vest as to 50% on each anniversary~~70% of the ~~grant date. We granted~~three lowest bid prices during the ~~awards~~ten (10) trading days immediately preceding the delivery of these shares and stock options to one U.S. Person (as that term is defined in Regulation S of the Securities Act of 1933) and in granting these awards we relied on the registration exemption provided for in Section 4(a)(2) of the Securities Act of 1933.such shares.

Item 3. Defaults Upon Senior Securities

~~None.~~On February 1, 2017, we entered into a credit and security agreement (the "Credit Agreement") with SCM Specialty Finance Opportunities Fund, L.P. ("SCM" or "Lender"), which subsequently changed its name to CNH Finance Fund I, L.P. and then to eCapital Healthcare Corp. The Credit Agreement provides our company with a revolving credit facility (the "Revolving Facility"), the proceeds of which are to be used to repay existing indebtedness of our company, transaction fees incurred in connection with the Credit Agreement and for the working capital needs of our company.

Under the terms of the Credit Agreement, SCM has agreed to make cash advances to our company in an aggregate principal at any one time outstanding not to exceed the lesser of (i) $10 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). The advanced under the credit agreement as of June 30, 2023 was $6,064,975.

The Credit Agreement expired on September 14, 2023.

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, 2023 was 16.5%.

To secure the payment and performance of the obligations under the Credit Agreement, we granted to SCM a continuing security interest in all of our assets and agreed to a lockbox account arrangement in respect of certain eligible receivables.

We agreed to pay to SCM 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. We also agreed to pay SCM 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. We 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 Credit Agreement expired on September 14, 2023 and while we are in discussions with SCM, there is an event of default due to the expiration of the agreement), the making of a material misrepresentation to SCM, the rendering of certain judgments or decrees against our 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 amount of the owed under the Credit Agreement as of September 20, 2023 was $4,865,545.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

~~None.~~See Item 2 of Part II of this quarterly report on Form 10-Q for the information responsive to this item.

Item 6. Exhibits

Exhibit Number	Description
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference from our Form S-1 Registration Statement, filed on October 28, 2011)
3.2	Certificate of Change (incorporated by reference from our Quarterly Report on Form 10-Q, filed on August 13, 2013)
3.3	Articles of Merger (incorporated by reference from our Quarterly Report on Form 10-Q, filed on August 13, 2013)

3.4	Certificate of Amendment to Articles of Incorporation (incorporated by reference from our Current Report on Form 8-K, filed on October 11, 2013)
3.5	Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on October 11, 2013)
3.6	Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on November 12, 2013)
3.7	Certificate of Change (incorporated by reference from our Current Report on Form 8-K, filed on December 30, 2015)
3.8	Certificate of Amendment to Articles of Incorporation (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)
3.9	Certificate of Amendment to Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)
3.10	Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on April 5, 2016)
3.11	Certificate of Withdrawal of Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on April 4, 2017)
3.12	Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on May 4, 2017)
3.13	Certificate of Amendment to Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on November 6, 2017)
3.14	Certificate of Withdrawal of Certificate of Designation (incorporated by reference from our Quarterly Report on Form 10-Q, filed on November 20, 2017)
3.15	Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on May 19, 2021)
3.16	Certificate of Designation (incorporated by reference from our Current Report on Form 8-K, filed on November 23, 2022)
3.17	Certificate of Change (incorporated by reference from our Current Report on Form 8-K, filed on April 5, 2023)
3.18	Amended and Restated Bylaws (incorporated by reference from our Current Report on Form 8-K, filed on October 15, 2018)
(10)	Material Contracts
10.1	Contract Packer Agreement dated November 14, 2012 between Alkaline 84, LLC and AZ Bottled Water, LLC (incorporated by reference from our Current Report on Form 8-K, filed on June 5, 2013)
10.2	Contract Packer Agreement dated October 7, 2013 with White Water, LLC (incorporated by reference from our Quarterly Report on Form 10-Q, filed on November 13, 2013)
10.3	Manufacturing Agreement dated August 15, 2013 with Water Engineering Solutions, LLC (incorporated by reference from our Registration Statement on Form S-1, filed on November 27, 2013)
10.4	Equipment Lease Agreement dated January 17, 2014 (incorporated by reference from our Current Report on Form 8-K, filed on January 27, 2014)
10.5	Revolving Accounts Receivable Funding Agreement dated February 20, 2014 (incorporated by reference from our Current Report on Form 8-K, filed on February 25, 2014)
10.6	Form of Securities Purchase Agreement dated as of April 28, 2014, between The Alkaline Water Company Inc. and the purchasers named therein (incorporated by reference from our Current Report on Form 8-K, filed on May 6, 2014)

10.7	Form of Common Stock Purchase Warrant (incorporated by reference from our Current Report on Form 8-K, filed on May 6, 2014)
10.8	Form of Placement Agent Common Stock Purchase Warrant (incorporated by reference from our Current Report on Form 8-K, filed on May 6, 2014)
10.9	Amendment #1 dated February 12, 2014 to Equipment Lease Agreement (incorporated by reference from our Quarterly Report on Form 10-Q, filed on August 13, 2014)
10.10	Equipment Sale/Lease Back Agreement dated April 2, 2014 (incorporated by reference from our Quarterly Report on Form 10-Q, filed on August 13, 2014)
10.11	Agreement dated August 12, 2014 with H.C. Wainwright & Co., LLC (incorporated by reference from our Current Report on Form 8-K, filed on August 21, 2014)
10.12	Form of Warrant Amendment Agreement (incorporated by reference from our Current Report on Form 8-K, filed on August 21, 2014)
10.13	Form of Common Stock Purchase Warrant (incorporated by reference from our Current Report on Form 8-K, filed on August 21, 2014)
10.14	Form of Warrant Amendment Agreement (incorporated by reference from our Current Report on Form 8-K, filed on October 9, 2014)
10.15	Form of Common Stock Purchase Warrant (incorporated by reference from our Current Report on Form 8-K, filed on October 9, 2014)
10.16	Master Lease Agreement dated October 28, 2014 with Veterans Capital Fund, LLC (incorporated by reference from our Current Report on Form 8-K, filed on November 4, 2014)
10.17	Warrant Agreement dated October 28, 2014 with Veterans Capital Fund, LLC (incorporated by reference from our Current Report on Form 8-K, filed on November 4, 2014)
10.18	Registration Rights Agreement dated October 28, 2014 with Veterans Capital Fund, LLC (incorporated by reference from our Current Report on Form 8-K, filed on November 4, 2014)
10.19	Form of Amending Agreement to Stock Option Agreement (incorporated by reference from our Current Report on Form 8-K, filed on November 4, 2014)
10.20	Securities Purchase Agreement dated as of May 11, 2015 with Assurance Funding Solutions LLC (incorporated by reference from our Annual Report on Form 10-K, filed on July 14, 2015)
10.21	Secured Term Note dated May 2015 issued to Assurance Funding Solutions LLC (incorporated by reference from our Annual Report on Form 10-K, filed on July 14, 2015)
10.22	General Security Agreement dated as of May 11, 2015 with Assurance Funding Solutions LLC (incorporated by reference from our Annual Report on Form 10-K, filed on July 14, 2015)
10.23	Securities Purchase Agreement dated as of August 20, 2015 with Assurance Funding Solutions LLC (incorporated by reference from our Quarterly Report on Form 10-Q, filed on November 23, 2015)
10.24	Secured Term Note dated August 20, 2015 issued to Assurance Funding Solutions LLC (incorporated by reference from our Quarterly Report on Form 10-Q, filed on November 23, 2015)
10.25	General Security Agreement dated as of August 20, 2015 with Assurance Funding Solutions LLC (incorporated by reference from our Quarterly Report on Form 10-Q, filed on November 23, 2015)
10.26	Loan Agreement dated November 30, 2015 with Neil Rogers (incorporated by reference from our Current Report on Form 8-K, filed on December 4, 2015)
10.27	Promissory Note dated November 30, 2015 issued to Neil Rogers (incorporated by reference from our Current Report on Form 8-K, filed on December 4, 2015)
10.28	Escrow Agreement dated November 30, 2015 with Neil Rogers and Escrow Agent (incorporated by reference from our Current Report on Form 8-K, filed on December 4, 2015)
10.29	2013 Equity Incentive Plan (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)
10.30	Loan Agreement dated January 25, 2016 with Turnstone Capital Inc. (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)
10.31	Promissory Note dated January 25, 2016 issued to Turnstone Capital Inc. (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)
10.32	Escrow Agreement dated January 25, 2016 with Turnstone Capital Inc. and Escrow Agent (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)
10.33	Amendment Agreement dated January 25, 2016 with Neil Rogers (incorporated by reference from our Current Report on Form 8-K, filed on January 25, 2016)

10.34	Employment Agreement dated effective March 1, 2016 with Steven P. Nickolas (incorporated by reference from our Current Report on Form 8-K, filed on April 5, 2016)
10.35	Employment Agreement dated effective March 1, 2016 with Richard A. Wright (incorporated by reference from our Current Report on Form 8-K, filed on April 5, 2016)
10.36	Form of Promissory Note and Warrant Exchange Agreement (incorporated by reference from our Current Report on Form 8-K, filed on June 16, 2016)
10.37	Loan Facility Agreement dated September 20, 2016 with Turnstone Capital Inc. (incorporated by reference from our Current Report on Form 8-K, filed on September 22, 2016)
10.38	Credit and Security Agreement dated February 1, 2017 with SCM Specialty Finance Opportunities Fund, L.P. (incorporated by reference from our Current Report on Form 8-K, filed on February 7, 2017)
10.39	Payoff Agreement dated February 1, 2017 with Gibraltar Business Capital, LLC (incorporated by reference from our Current Report on Form 8-K, filed on February 7, 2017)
10.40	Form of Stock Option Agreement (incorporated by reference from our Current Report on Form 8-K, filed on May 4, 2017)
10.41	Settlement Agreement and Mutual Release of Claims dated October 31, 2017 with Steven P. Nickolas, Nickolas Family Trust, Water Engineering Solutions, LLC, Enhanced Beverages, LLC, McDowell 78, LLC and Wright Investments Group, LLC (incorporated by reference from our Current Report on Form 8-K, filed on November 6, 2017)
10.42	Exchange Agreement and Mutual Release of Claims dated November 8, 2017 with Ricky Wright (incorporated by reference from our Current Report on Form 8-K, filed on November 14, 2017)
10.43	Stock Option Forfeiture & General Release dated November 8, 2017 by Ricky Wright and Sharon Wright (incorporated by reference from our Current Report on Form 8-K, filed on November 14, 2017)
10.44	Form of Warrant Amendment Agreement (incorporated by reference from our Current Report on Form 8-K, filed on February 22, 2018)
10.45	Form of Common Stock Purchase Warrant (incorporated by reference from our Current Report on Form 8-K, filed on March 5, 2018)
10.46	2018 Stock Option Plan (incorporated by reference from our Current Report on Form 8-K, filed on April 25, 2018)
10.47	Form of Subscription Agreement (incorporated by reference from our Current Report on Form 8-K filed on May 31, 2018)
10.48	Form of Subscription Agreement (incorporated by reference from our Current Report on Form 8-K filed on October 3, 2018)
10.49	Underwriting Agreement, dated March 8, 2019, by and between The Alkaline Water Company Inc. and Canaccord Genuity LLC, as representative of the underwriters named therein (incorporated by reference from our Current Report on Form 8-K, filed on March 11, 2019)
10.50	Employment Agreement dated April 25, 2019 with Ronald DaVella (incorporated by reference from our Current Report on Form 8-K filed on May 3, 2019)
10.51	Sixth Amendment to Credit and Security Agreement dated June 27, 2019 with CNH Finance Fund I, L.P. (incorporated by reference from our Annual Report on Form 10-K filed on July 1, 2019)
10.52	Agreement and Plan of Merger, dated as of September 9, 2019 among The Alkaline Water Company Inc., AQUAhydrate, Inc. and AWC Acquisition Company Inc. (incorporated by reference from our Current Report on Form 8-K filed on September 12, 2019)
10.53	Amendment to the Agreement and Plan of Merger, dated as of October 31, 2019 among The Alkaline Water Company Inc., AQUAhydrate, Inc. and AWC Acquisition Company Inc. (incorporated by reference from our Current Report on Form 8-K filed on November 6, 2019)
10.54	Form of Subscription Agreement (incorporated by reference from our Current Report on Form 8-K filed on April 20, 2020)
10.55	2020 Equity Incentive Plan (incorporated by reference from our Current Report on Form 8-K filed on April 28, 2020)
10.56	Form of Subscription Agreement (incorporated by reference from our Current Report on Form 8-K filed on May 13, 2020)
10.57	Sales Agreement, dated as of February 22, 2021, by and between The Alkaline Water Company Inc. and Roth Capital Partners, LLC** (incorporated by reference from our Current Report on Form 8-K filed on February 23, 2021)

10.58	Form of Subscription Agreement (incorporated by reference from our Current Report on Form 8-K filed on March 2, 2021)
10.59	Endorsement Agreement executed May 12, 2021 by The Alkaline Water Company Inc. and ABG-Shaq, LLC (incorporated by reference from our Current Report on Form 8-K filed on May 13, 2021)
10.60	Form of Subscription Agreement (incorporated by reference from our Current Report on Form 8-K filed on July 6, 2021)
10.61	Employment Agreement dated effective April 25, 2022 with Richard A. Wright (incorporated by reference from our Current Report on Form 8-K filed on April 29, 2022)
10.62**	Underwriting Agreement, dated May 4, 2022, between The Alkaline Water Company Inc. and Aegis Capital Corp. (incorporated by reference from our Current Report on Form 8-K filed on May 6, 2022)
10.63	Separation Agreement & Release of All Claims dated June 2, 2022 by and between Richard Wright, The Alkaline Water Company Inc. and Alkaline 88, LLC (incorporated by reference from our Current Report on Form 8-K filed on June 2, 2022)
10.64*10.64	Employment Agreement dated July 29, 2022 with Frank Lazaran (incorporated by reference from our Quarterly Report on Form 10-Q filed on August 15, 2022)
~~(31)~~10.65	Employment Agreement dated as of November 16, 2022 with David Guarino (incorporated by reference from our Current Report on Form 8-K filed on November 17, 2022)
10.66	Employment Agreement dated as of November 16, 2022 with Frank Chessman (incorporated by reference from our Quarterly Report on Form 10-Q filed on February 28, 2023)
10.64	Employment Agreement dated July 29, 2022 with Frank Lazaran (incorporated by reference from our Quarterly Report on Form 10-Q filed on August 15, 2022)
10.65*	Settlement Agreement and Stipulation dated July 12, 2023 with Silverback Capital Corporation
(31)	Rule 13a-14 Certifications
31.1*	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
31.2*	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
(32)	Section 1350 Certifications
32.1*	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002
32.2*	Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002
(101)	Interactive Data File
101.INS*	INS XBRL Instance Document-the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Filed herewith.

**Non-material schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits upon request by the SEC.

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, thereunto duly authorized.

	THE ALKALINE WATER COMPANY INC.

Date: September 22, 2023	By:
~~Date: August 15, 2022~~	~~By:~~	/s/ Frank ~~Lazaran~~Chessman
		Frank ~~Lazaran~~Chessman
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: ~~August 15, 2022~~September 22, 2023	By:	/s/ David A. Guarino
		David A. Guarino
		Chief Financial Officer and Treasurer
		(Principal Financial Officer and Principal
		Accounting Officer)

Nevada	99-0367049
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

8541 E. Anderson Drive, Suite 100, Scottsdale, AZ	85255
(Address of principal executive offices)	(Zip Code)

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered

Common stock, par value $0.001 per share	WTER	The Nasdaq Stock Market LLC

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [X]	Smaller reporting company [X]
	Emerging growth company [ ]

Fixed assets consisted of the following at:		June 30, 2022			March 31, 2022			June 30, 2023			March 31, 2023
Machinery and Equipment	$	5,621,300		$	4,766,303		$	6,523,778		$	6,523,778
Office Equipment		55,439			55,439			55,439			55,439
Less: Accumulated Depreciation		(3,808,377	)		(3,620,945	)		(4,774,600	)		(4,521,085	)
Fixed Assets, net	$	1,868,362		$	1,200,797		$	1,804,617		$	2,058,132

		For the Three Months
		June 30, 2022			June 30, 2021

Net Revenue	$	16,894,403		$	14,113,578

Cost of Goods Sold		13,399,774			9,311,011

Gross Profit		3,494,629			4,802,567

Operating expenses
Sales and marketing expenses		6,921,846			7,156,400
General and administrative		2,863,993			4,964,374

Total operating expenses		9,785,839			12,120,774

Total operating loss		(6,291,210	)		(7,318,207	)

Other expense
Interest expense		(1,202,198	)		(107,419	)

Total other expense		(1,202,198	)		(107,419	)

Net loss	$	(7,493,408	)	$	(7,425,626	)

LOSS PER SHARE (Basic and Diluted)	$	(0.06	)	$	(0.08	)

WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted)		117,518,198			88,342,316

		June 30, 2022		March 31, 2022
Raw materials	$	6,755,208	$	3,848,750
Finished goods		3,923,131		4,734,914
Total inventory	$	10,678,339	$	8,583,664