Legal Proceedings
−Removed: Our company was a nominal defendant in a lawsuit filed on April
−Removed: 6, 2017 by Steven P.
−Removed: Nickolas derivatively on behalf of our company against
−Removed: Wright, David Guarino, and Aaron Keay (current directors of our
−Removed: company), and Daniel Lorey (current employee of our company) and our companys
−Removed: former accounting firm, Seale & Beers, LLC.
−Removed: The lawsuit was pending in the
−Removed: Maricopa County, Arizona, Superior Court, Steven P.
−Removed: Nickolas, derivatively on
−Removed: behalf of the Alkaline Water Company, v.
−Removed: Wright, et al. cause number
−Removed: CV2017-005488 (the Derivative Action).
−Removed: Nickolas alleged a range of conduct
−Removed: including breach of fiduciary and general duties owed to our company.
−Removed: these allegations were first raised by Mr.
−Removed: Nickolas in August, 2016 and, at that
−Removed: time, our company appointed an independent director, Mr.
−Removed: Keay, to conduct an
−Removed: investigation of the allegations.
−Removed: Keay conducted the investigation and
−Removed: concluded that the claims were without merit.
−Removed: Though our company was a nominal
−Removed: defendant in this action, our company believes the claims in the action were
−Removed: baseless and denied the claims.
−Removed: This lawsuit against all of the parties,
−Removed: including our company as a nominal defendant, was dismissed with prejudice
−Removed: pursuant a Settlement Agreement and Mutual Release of Claims dated October 31,
−Removed: 2017 with Steven P.
−Removed: Nickolas, the Nickolas Family Trust, Water Engineering
−Removed: Solutions, LLC and Enhanced Beverages, LLC, companies and trust that are
−Removed: controlled or owned by Mr.
−Removed: Nickolas, and McDowell 78, LLC and Wright Investments
−Removed: Group, LLC, a company controlled or owned by Richard A.
Our company was named as a defendant in a lawsuit filed on
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responded, denying any liability to Mr.
−Removed: The arbitration has been set for a
−Removed: three day hearing on October 8 to 10, 2018.
−Removed: Our company intends to defend the
−Removed: claim vigorously.
+Added: Horn and the matter is currently in the
+Added: discovery phase.
+Added: The arbitration has been set for a three day hearing on October
+Added: 8 to 10, 2018.
+Added: Our company intends to defend the claim vigorously.
Except as detailed above, we know of no material pending legal
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subsidiaries.
−Removed: Risk Factors.
Information regarding risk factors appears in our Annual Report
−Removed: on Form 10-K filed on July 14, 2017.
+Added: on Form 10-K filed on June 29, 2018.
There have been no material changes since
−Removed: July 14, 2017 from the risk factors disclosed in that Form 10-K.
−Removed: Unregistered Sales of Equity Securities and Use of
+Added: June 29, 2018 from the risk factors disclosed in that Form 10-K.
+Added: Unregistered Sales of Equity Securities and
+Added: Use of Proceeds
Defaults Upon Senior Securities
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.