The Alkaline Water Company Reports 62% Year-Over-Year Drop in Net Loss in First Quarter of Fiscal Year 2024, Continues Significant Steps Toward Profitability

Net Loss Per Share Improves by 71% Year-Over-Year

Company Now Current with All SEC filings

(All dollar amounts in this release are unaudited and in U.S. dollars)

The Alkaline Water Company Inc. (NASDAQ:WTER) (the "Company"), the country's largest independent Alkaline water company, today announced its results for the quarter ended June 30, 2023 that continue to show the execution of its pathway to profitability. The Company reported a net loss of ($2,840,938), a 62% improvement year-over-year with net loss per share improving by 71% year-over-year. The corresponding Form 10-Q will be filed with the SEC on or before September 25, 2023, and can be accessed on the investor relations section of the Company's website at ir.theAlkalinewaterco.com.

The Company, the proud producer of Deliciously Smooth™ Alkaline88^®, one of the nation's best-selling alkaline water brands, provides certain financial highlights and management commentary:

First Quarter of Fiscal 2024 Financial Performance (all amounts in U.S. dollars):

• Revenue: Down 8% Year-over-Year (YoY) to $15 MM.
• Gross Profit Margin: Improved by 733 basis points YoY to 25%.
• Total Operating Expenses (OpEx): Decreased by over $3 million YoY.
• Net Cash Used in Operating Activities: Improved 84% YoY, from ($2.5MM) to ($408K).

"During the first quarter of our fiscal year 2024, we continued to show strong improvement in our operating results as we execute our previously detailed pathway to profitability," stated Frank Chessman, President and CEO of The Alkaline Water Company. "This achievement, highlighted by our 733 basis point improvement in gross profit margin, reflects the strength of the Alkaline88^® brand, the hard work of our team, and the loyalty of our customers. I am also pleased to report that the Company is now current with all of its filing requirements with the SEC, and certain internal improvements have been implemented to ensure timely filings going forward," concluded Mr. Chessman.

Note on Reverse Split:

Effective April 5, 2023, The Company effected a one for fifteen reverse stock split of its authorized, issued and outstanding shares of common stock. As a result, the Company's authorized common stock has decreased from 200,000,000 shares of common stock, with a par value of $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 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 were rounded up to the next nearest whole number.

Accordingly, all share and per-share amounts referenced above for the current period and prior periods have been adjusted to reflect the reverse stock split.

About The Alkaline Water Company:

The Alkaline Water Company is the Clean Beverage^® company making a difference in the water you drink and the world we share.

Founded in 2012, The Alkaline Water Company (NASDAQ:WTER) is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88®, is a leading premier alkaline water brand available in bulk and single-serve sizes along with eco-friendly aluminum packaging options. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH alkaline drinking water with trace minerals and electrolytes and boasts our trademarked "Clean Beverage" label.

To purchase The Alkaline Water Company's products online, visit us at www.alkaline88.com.

To learn more about The Alkaline Water Company, please visit www.thealkalinewaterco.com or connect with us on Facebook, Twitter, Instagram, or LinkedIn.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements." Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the following: the statements relating to the Company's pathway to profitability, including the statement that the Company continues to make significant steps towards profitability; the statement that the Company continues the execution of its pathway to profitability; the statement that the Company continued to show strong improvement in its operating results as it executes on its pathway to profitability; the statement that the Company's improved gross profit margin is a result of the Company's execution on its pathway to profitability; the statement that the Company's improved gross profit margin reflects the strength of the Alkaline88® brand, the hard work of the Company's team and the loyalty of the Company's customers; and the statement that certain internal improvements have been implemented to ensure timely financial and regulatory filings going forward.

The material assumptions supporting these forward-looking statements include, among others, that the Company's cost-saving and margin enhancement measures will be fully implemented and, once implemented, they will be effective to reduce the Company's annual expense and enhance the Company's margin to the extent anticipated by the Company; that the Company's burn rate to reach the level anticipated by the Company as a result of the Company's proactive reduction in its monthly burn rate; that the demand for the Company's products will continue to significantly grow; that the past production capacity of the Company's co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company's products; that there will be an expansion into new national and regional grocery retailers; that there will be an expansion into new e-commerce, home delivery, convenience, and healthy food channels; that there will not be interruptions on production of the Company's products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company's products; and that the Company will be able to obtain additional capital to meet the Company's growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company's sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply-chain interruption due to factors beyond the Company's control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company's ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; and competition in the industry in which the Company operates and market conditions. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov.

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