RISKS for Alkaline Water and reasons for the share price to go lower! Most likely a Notice from NASDAQ.
The company may not reach the sales levels we expect, causing losses to be greater than we estimate.
The company’s gross margin expansion may not meet our expectations.
Operating costs as a percent of revenue may continue to be too high to allow the company to reach
profitability.
The marketing campaign built around Shaquille O’Neal may not produce the desired lift to revenue.
The company has received notice from NASDAQ that it does not meet its listing requirements; a de-listing of
the shares would likely have a very negative impact on the share price. Management is currently examining
remediation of the listing deliquencies.
If losses are greater than expected, the company may need more capital than is accessible from current
sources. Indeed, our current financial model assumes a level of borrowing in 2023 that exceeds current
debt facilities, suggesting that either its borrowing capacity needs to increase, or additional equity capital
will need to be raised.