10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark one)

þ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2013

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                       to                      

Commission File Number: 000-18235

ELDORADO ARTESIAN SPRINGS, INC.

(Exact name of registrant as specified in its charter)

Colorado	84-0907853
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)
1783 Dogwood Street Louisville, Colorado	80027
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (303) 499-1316

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $.001 per share

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o   No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes o   No þ

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes þ  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o  No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   o Accelerated filer   o Non-accelerated filer   o (Do not check if a smaller reporting company) Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No þ

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: $239,114.

As of June 28, 2013, the Issuer had a total of 6,036,091 shares of common stock, $.001 par value, outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Company’s definitive proxy statement for the 2013 Annual Meeting of Stockholders, expected to be held in September 2013, are incorporated by reference into Part III of this Form 10-K.

TABLE OF CONTENTS

PART I		3
Item 1.	Business	3
Item 1A.	Risk Factors	7
Item 1B.	Unresolved Staff Comments	7
Item 2.	Properties	7
Item 3.	Legal Proceedings	7
Item 4.	Mine Safety Disclosures	7
PART II		8
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities	8
Item 6.	Selected Financial Data	8
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	13
Item 8.	Financial Statements and Supplementary Data	13
Item 9.	Change In and Disagreements with Accountants on Accounting and Financial Disclosure	14
Item 9A.	Controls and Procedures	14
Item 9B.	Other Information	15
PART III		16
Item 10.	Directors, Executive Officers and Corporate Governance	16
Item 11.	Executive Compensation	16
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	16
Item 13.	Certain Relationships and Related Transactions, and Director Independence	16
Item 14.	Principal Accountant Fees and Services	16
PART IV		17
Item 15.	Exhibits and Financial Statement Schedules	17

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PART I

Introductory Note. Cautionary Statement Regarding Forward-Looking Information and Risk Factors Certain statements made in this Annual Report on Form 10-K are “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Eldorado to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Eldorado’s plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, availability of debt and equity financing, ability to purchase additional water rights, interest rate fluctuations, labor and marketing costs, operating costs, packaging costs, competition, legal claims and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Eldorado. Although Eldorado believes that its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Eldorado or any other person that the objectives and plans of Eldorado will be achieved. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

All references in this report to “Company,” “we,” “us,” “our,” or “Eldorado” refer to Eldorado Artesian Springs, Inc.

ITEM 1. BUSINESS.

The Company bottles, markets and distributes natural spring water under the Eldorado Artesian Spring Water brand. The Company also markets and distributes organic vitamin charged spring water under the Eldorado Artesian Spring Water brand. The Company distributes to businesses, homes and offices using its own trucks for distribution primarily in Colorado. The Company also distributes directly to regional warehouses for major grocery store chains and distribution companies.

Industry Background

Bottled water is perceived by many consumers as being a healthy, natural beverage, and this perception has driven demand for this product among many consumers. Recently, reports have been released that show that many water systems in America are contaminated with the residual waste of pharmaceutical drugs, caffeine, steroids and countless other chemicals that are nearly impossible for the municipal treatment systems today to eliminate from the water supply. Further fuel to the water market was provided by the rising health consciousness of people in general, as they have turned away from high caloric and alcoholic beverages in favor of products that are perceived as natural and beneficial.

Bottles used for the smaller packaging, typically in sizes 1.5 liters and smaller, are made of polyethylene terephtalate (PET), a premium clear plastic. These bottles are commonly referred to in the beverage industry as PET bottles. The PET market has been driven by manufacturers who sell their water in smaller, more portable sizes, which are sold at retail and intended to fit the active lifestyles of bottled water consumers. The PET category has been the driving force behind the explosive growth in bottled water consumption. It is the most competitive market, dominated by four of the largest food and beverage companies in the world.

While much of the bottled water market is still highly fragmented and controlled by local brands, consolidation is rapidly occurring, as four companies have come to dominate much of the market. Larger multi-national companies have been active in acquisitions of smaller more regional bottled water companies. Coca-Cola (Dasani) and PepsiCo (Aquafina) have both been successful in producing and marketing their own brands, creating much competition for the smaller regional producers that typically have higher costs of production and distribution.

Company Background

The primary business of the Company is the bottling and sale of spring water from springs located in Eldorado Springs, Colorado on property owned by the Company.  In addition to real property, the wells and springs thereon, and water rights, the Company owns a bottling plant in Louisville, Colorado (including a building and bottling equipment), associated containers and equipment, resort buildings, a residential home, and an outdoor swimming pool which are located on the property in Eldorado Springs, Colorado.

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The Company began operations by delivering 5 gallon bottles and renting equipment to homes and offices as well as delivering 1 gallon bottles to retailers. In 1994, the Company introduced the 1.5 liter bottle, which was followed, in 1995, with the 1.0 liter, 0.5 liter and 24 ounce bottles.

The Company bottles the same natural spring water that emanates from the source in Eldorado Springs, Colorado. The Company also utilizes additional high speed bottling equipment that is utilized at the Louisville warehouse. By utilizing high speed equipment, and the additional warehouse, bottling and office space, the Company has been able to realize benefits in increased bottling speeds as well as efficiencies in transporting and storing raw materials and finished goods.

The Company has reacted to consumer demands by adding additional products to its service and delivery operations. In order to handle competition from other companies, the Company added filtration products in July 2003. Currently, the Company services approximately 700 filter accounts.

In October 2005, the Company added coffee products and coffee equipment as products to be delivered off of existing route vehicles. The coffee is provided by Green Mountain Coffee Roasters utilizing their various coffee brands to be delivered by our employees. Coffee has been integrated into the Company’s current distribution channel and is a product that is counter-seasonal to water. The Company obtained the initial customers utilizing leads from the existing account base as well as new customers from sales personnel. The Company expects to continue to grow the coffee sector of the business.

In September 2007, the Company introduced a line of Organic Vitamin Charged spring water. The beverage industry has been influenced by the Enhanced segment of the beverage market. The Company believes the Organic Vitamin Charged spring water will compete based on the organic ingredients, superior taste and brand recognition in the Colorado area where we currently distribute our water products. The Company continues to try and grow the distribution of this product off of existing delivery vehicles as well as through other independent distribution companies.

Water Source and Bottling

When we purchased the Eldorado Springs property in 1983, included in the purchase of the real estate were certain water rights that had been decreed for the water sources located on the property. We have the right to beneficially use the water derived from the sources of water that are the subject of the decreed water rights, unless there is a call being made downstream from our location by a water right that is senior to ours. A senior water right would be obtained by those that applied water to a beneficial use prior to the uses associated with our water sources. Because the Eldorado Springs area was not developed until the early 1900’s there are many senior water rights that could place a call on the stream and unless we have a recognized replacement source of water or a decreed Augmentation Plan we would be forced to stop using the water from our sources.

We had previously enrolled in a replacement water subscription service known as GASP (Groundwater Appropriators of the South Platte) as a means of providing replacement water to the stream system at times when we withdrew water from our sources when we were not in priority. However, during the drought in 2002, GASP was unable to make all of the replacements for which they were obligated. Therefore, the State of Colorado determined that GASP would no longer be a recognized source of replacement water. This determination by the state meant that we would have to obtain other sources of replacement or augmentation water if we continued to withdraw water from our sources while not in priority.

Because demand for our spring water exists on a year round basis, we require a replacement water source that can be delivered to the stream at any time during the year. We were able to purchase shares of stock of the Farmer’s Reservoir and Irrigation Company (FRICO) – Marshall Division. Each share entitles us to the use of a pro rata portion of the water belonging to FRICO as operated pursuant to state regulations that govern what are known as Mutual Ditch Companies. Marshall Reservoir is located in close proximity to our water sources in Eldorado Springs and because the water is stored it is able to be released upon demand to meet our obligations.

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The water represented by our shares in the FRICO system had been historically used for irrigating croplands. This meant that, in addition to obtaining a decreed augmentation plan from the Colorado Water Court, we had to obtain a change of use decree in order to use the water for replacing our withdrawals as part of the Augmentation Plan. The Water Court of the State of Colorado entered a Decree on April 16, 2013 approving the change in water right and the terms and conditions of our Augmentation Plan, subject to the retained jurisdiction clauses normally associated with such actions. The Decree allows us to use the water represented by our FRICO shares as augmentation water to replace our out of priority withdrawals from our springs and other sources. It also established the conditions under which we can add other sources of water to the Plan for use as additional replacement water. It is possible that our ability to withdraw water from our springs in a particular year may be limited if the water associated with our FRICO shares under drought conditions is not sufficient to meet all of our replacement requirements.  Because drought is an ever present possibility in our location, we will continue to seek additional sources of replacement and augmentation water to add to our Augmentation Plan.

Products

The Company is principally in the business of selling bottled artesian spring water.  Sales of the Company's water have historically been made by selling five gallon and three gallon bottles of water directly to homes and businesses, retail grocery stores and distributors located in Colorado. The Company also sells its water at wholesale to retail food stores (grocery chains), by packaging the water into smaller, more convenient sizes which are suitable for retail distribution. The Company rents coolers to customers to dispense the bottled water. The Company also rents and sells filtration equipment to customers for home and office accounts. The Company added coffee and coffee equipment to its product mix delivered to customers from route delivery vehicles. The coffee is packaged by Green Mountain Coffee Roasters and is delivered by the Company’s employees. The Company’s water bottling operation accounted for approximately 98% of the Company’s revenues for the fiscal year ended March 31, 2013. The Company added a line of organic vitamin charged spring water to the product line and those products were available for distribution in September 2007. Additionally, in Eldorado Springs, the Company owns and operates a resort on its property during the summer months and rents a single-family home.

Sales and Distribution

Home/Commercial Delivery Business

Direct delivery of bottled water to homes and businesses has historically been the focus of the Company’s business. The Company’s bottled water delivery business primarily consists of the sale of five gallon and three gallon containers of water to customers who lease water dispensers from the Company.  The Company delivers these bottles directly to customers using trucks owned or leased by the Company.    The Company’s delivery sales are made primarily in the Denver/Boulder, Colorado metropolitan area (but also in selected other cities along the front range). As of March 31, 2013, the Company had approximately 14,400 active delivery accounts, and the delivery business currently accounts for roughly 62% of the Company's revenues. Of the five and three gallon accounts, approximately 50% were home accounts and 50% were commercial accounts.

PET Packaging/Retail Distribution Business

The PET business consists principally of the wholesale distribution of the Company’s PET products to grocery store chains with operations primarily in Colorado.  The Company uses its own trucks to deliver its PET water products to grocery customers’ warehouses in the Denver metropolitan area.  From there, the water is shipped to customers’ grocery stores throughout Colorado.  In addition, because some of the grocery customers’ warehouse distribution extends beyond the State of Colorado, the Company receives some distribution at these customers’ grocery stores located in New Mexico, Wyoming, Kansas, Utah, Oklahoma and Texas.

Marketing

The Company focuses on three major areas in marketing its products: five gallon and three gallon sales, small package products, and brand name recognition.

The five gallon and three gallon products are primarily sold through the acquisition of new accounts attracted by personal sales representatives at local events strategically located throughout the area. The efforts of the staff are augmented by yellow pages, the Company’s web site, radio, and occasional television advertisements and by product donation to local events.

The smaller packages and the organic vitamin charged spring water, which are sold principally through retail chain stores, are effectively marketed by using point of purchase inducements to gain new trial customers, usually in the form of discounts in price in conjunction with signage.

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The Company attempts to build brand name awareness by sponsoring or participating in many local events. The Company has been a sponsor of many races and events including the Bolder Boulder 10K race, the Eldorado Springs Cancer Research Run, the Taste of Colorado and many other local events.

Supplies

Water bottled by the Company comes from springs located on the Company's property in Eldorado Springs, Colorado which have been flowing for many years.  While the Company could lose rights to the spring water, the Company does not foresee any disruption in the flow of the spring water. The Company currently sources all of its raw materials from outside vendors. Suppliers of the bottles have experienced seasonal shortages resulting from resin shortages. Changes in the supply of the bottles can affect the prices. The Company tries to mitigate possible shortages by maintaining sufficient inventory safety stocks so as not to interrupt production.

Seasonality

Sales tend to be mildly seasonal in the bottled water business. A ten to fifteen percent differential in sales is normally experienced between the peak summer months from May to September and the low winter months from November to March. As a result, revenues tend to be highest in the Company’s first and second fiscal quarters, and somewhat lower in the third and fourth fiscal quarters.

Competition

The bottled water industry has numerous competitors.  Generally, the industry is made up of a few large companies (who own multiple brands), smaller companies whose products are distributed only on a regional or local basis and some private label brands. The Company's competitors include more diversified corporations having substantially greater assets and larger sales organizations than the Company, as well as other small firms. The Company's competitors in the local Denver/Boulder area for home and office delivery include Deep Rock and Sierra Springs. The Company also competes in the retail area for the smaller PET packages and the organic vitamin charged spring water with products including Aquafina, Arrowhead, Evian, Deep Rock, Dasani, Vitamin Water, Propel, Snapple and various private label brands.  The Company is a smaller regional company compared to the competitors as most of the Company’s products are sold in Colorado. The Company competes on the basis of product quality, customer service, and price.  The Company believes that the products' superior taste, competitive pricing and attractive packaging are significant factors in maintaining the Company's competitive position.

Government Regulation

The Company's bottling operations are subject to regulation by the U.S. Food and Drug Administration and the Colorado Department of Public Health and Environment Consumer Protection Division. Weekly product and source bacteriological tests are required, and annual inspections are performed.

The Company is also subject to regulation under the Colorado Primary Drinking Water Regulations and the United States Safe Drinking Water Act.  These regulations pertain to the operation of the water utility system owned by the Company that services the town of Eldorado Springs.  These regulations are administered by the State of Colorado Health Department Drinking Water Division and regular periodic testing is required for this operation.

The Company operates a swimming pool that is also subject to regulation by the State of Colorado.  These regulations are administered by the Boulder County Health Department and require periodic daily testing and agency inspections.

It is the Company's understanding that it is in compliance with these regulations as communicated by representatives of the responsible local agencies. Compliance with the standards and regulations above do not require material expenditures.

Employees

As of March 31, 2013, the Company had 68 full-time employees. During the summer months, the Company employs approximately 14 seasonal employees for the operation of the pool.

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ITEM 1A. RISK FACTORS.

As a smaller reporting company, this item is not required.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

ITEM 2. PROPERTIES.

The Company owns property in two locations.

Eldorado Springs, Colorado

The Company owns approximately 42 acres of land in Eldorado Springs, Colorado.  The buildings owned by the Company at this location total approximately 12,000 square feet. The Company uses this warehouse space for the fill station for the spring water as well as for storage of products from time to time. The Company also continues to use office space next to the warehouse. As part of the property in Eldorado Springs, the Company owns the wells and springs thereon and certain water rights.  The Company owns an outdoor swimming pool that is operated during the summer months. Virtually all of the Company's property in Eldorado Springs is pledged as collateral on Company loan balances.

Louisville, Colorado

In August 2001, the Company purchased a new facility in Louisville, Colorado located approximately 10 miles from Eldorado Springs.  This facility is approximately 40,000 square feet. The Company utilizes approximately 9,000 square feet for office space for its corporate headquarters. The facility also serves as the bottling facility and warehouse space for raw and finished materials. The building sits on 6.6 acres owned by the Company. The facility is financed through traditional bank financing.

ITEM 3. LEGAL PROCEEDINGS.

There are no material pending legal proceedings to which the Company is a party or to which any of it properties are subject.

ITEM 4. Mine Safety Disclosures

Not applicable.

7

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market Price of Common Stock

The Company’s common stock is traded in the over-the-counter market on the Nasdaq’s OTC Bulletin Board (“OTCBB”) under the symbol “ELDO.”  Corporate Stock Transfer is the Company’s transfer agent and registrar, and is able to respond to inquiries from stockholders on its website: www.corporatestock.com or at its mailing address: 3200 Cherry Creek Drive South, Suite #430, Denver, CO 80209. The quotations presented below reflect inter-dealer prices, without retail mark-up, mark-down or commissions and may not necessarily represent actual transactions. The following table sets forth, for the periods shown, high and low sales prices of our common stock, as quoted by the OTCBB:

Fiscal Year 2013	High		Low
Fourth Quarter through March 31, 2013	$	0.83	$	0.22
Third Quarter through December 31, 2012	$	0.53	$	0.12
Second Quarter through September 30, 2012	$	0.53	$	0.10
First Quarter through June 30, 2012	$	0.19	$	0.08
Fiscal Year 2012	High		Low
Fourth Quarter through March 31, 2012	$	0.35	$	0.15
Third Quarter through December 31, 2011	$	0.51	$	0.10
Second Quarter through September 30, 2011	$	0.55	$	0.05
First Quarter through June 30, 2011	$	0.50	$	0.35

The last price at which the Company’s common stock was sold was $0.63 on June 11, 2013.

Holders

The Company had 142 record owners of its common stock as of June 28, 2013.

Dividends

No dividends have been declared or paid to date on the Company's common stock, and the Company does not anticipate paying dividends in the foreseeable future. The Company follows a policy of cash preservation for future use in the business.

Recent Sales of Unregistered Securities

During the year ended March 31, 2013, we did not have any sales of securities in transactions that were not registered under the Securities Act of 1933, as amended, that have not been reported in a Form 8-K or Form 10-Q.

ITEM 6. SELECTED FINANCIAL DATA

As a smaller reporting company, this item is not required.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following Management’s Discussion and Analysis (MD&A) is intended to help the reader understand our Company. The MD&A should be read in conjunction with our consolidated financial statements and accompanying notes. The MD&A includes the following sections:

●   Forward Looking Statements

●   Business Overview

●   Results of Operations – Year Ended March 31, 2013 Compared to Year Ended March 31, 2012

●   Liquidity and Capital Resources

●   Critical Accounting Issues

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Forward Looking Statements

This filing contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements include the plans and objectives of management for future operations, including plans and objectives relating to services offered by and future economic performance of the Company.

The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties that might adversely affect the Company’s operating results in the future in a material way. Such risks and uncertainties include but are not limited to the following: availability of debt and equity financing, ability to purchase additional water rights, interest rate fluctuations, effects of regional economic and market conditions, labor and marketing costs, operating costs, packaging costs, intensity of competition and legal claims.

Business Overview

Eldorado Artesian Springs, Inc. is a Colorado based company that is primarily involved in the bottling and marketing of natural artesian spring water. The spring is located in the foothills of the Colorado Rocky Mountains and is surrounded by thousands of acres of state and city park land. The water rises up through many layers of sandstone under its own artesian pressure. Currently, the Company’s operations consist of its home/commercial delivery business (5 and 3 gallon bottles) and its PET (polyethylene terephtalate, a premium clear plastic container) consumer business. The Company also has an organic vitamin charged spring water that is distributed locally off of the Company’s vehicles as well as to regional distribution facilities. The Company’s business includes the sales and rental of filtration and coffee dispensing equipment as well as the sale of coffee. During the summer months, the Company owns and operates a public swimming pool on its property and rents a single-family home on the property year round.

The Company’s headquarters and bottling facility consists of a total of approximately 40,000 square feet in Louisville, Colorado. The water is transported to the facility in stainless steel tanker trucks. Once at the bottling plant, the water is then transferred into stainless steel holding tanks until it is used for bottling.

Results of Operations

Performance Overview – Recent Trends

For the fiscal year ended March 31, 2013, the Company reported an increase in overall revenue of 7%. The increase in revenue was due to overall increase in unit volumes across all categories. The number of home and office accounts increased for the fiscal year ended March 31, 2013 and the total units for many products increased to the retail establishments.

The Company continues to utilize advertising and promotional budgets to help promote various products. The Company has been pursuing ways to offer more sizes of the products off of our own delivery vehicles to increase sales to existing customers.

Overall operating expenses increased 7.4% for the year ended March 31, 2013 as compared to the same period ended March 31, 2012. Operating expenses increased slightly from 68% of sales for the fiscal year ended March 31, 2012 to 68.3% of sales for the fiscal year ended March 31, 2013.

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The Company believes that we are in a position to continue to grow in the markets we presently service by offering additional products and utilizing advertising and promotional budgets for promoting the products.  We will continue to pursue additional business in new and emerging markets.  In addition, we continue to look for ways to decrease operating costs in order to maintain profitability in the future.

Year Ended March 31, 2013 Compared to Year Ended March 31, 2012

Sales

Sales for the year ended March 31, 2013 were $9,875,000 compared to $9,227,182 for the same period ended March 31, 2012, an increase of 7%.

Sales of the products used in the delivery to homes and offices which include 5 and 3 gallons bottles as well as the dispenser units were 57.4% of sales and increased from $5,076,936 for fiscal year 2012 to $5,664,496 for fiscal year 2013, an increase of $587,560 or 11.6%. Total units of 5 and 3 gallon products increased 9.6% from the fiscal year ended March 31, 2012 to the fiscal year ended March 31, 2013 while the average selling price decreased approximately 1%. Total revenues for equipment rentals increased 42.5% from the fiscal year ended March 31, 2012 to the fiscal year ended March 31, 2013. The Company increased the average rental price per unit for the dispenser units. The Company continues to look for additional products to distribute to existing and new customers to increase sales off of existing route vehicles. The Company began offering purified drinking water in the 5 gallon bottles for delivery off of existing route vehicles as a lower cost alternative for customers.

The Company increased filter rental and sales from $196,339 in fiscal year 2012 to $241,627 in fiscal year 2013, an increase of $45,288 or 23.1%. Consumers looking for ways to decrease expenses and are substituting filtration units for the 5 and 3 gallon products. The Company also sells coffee and coffee equipment from our existing route vehicles. Sales for coffee, coffee equipment and accessories increased from $181,682 for the fiscal year ended March 31, 2012 compared to $258,394 for the fiscal year ended March 31, 2013.

Sales of the Company’s PET products (.5 liter to 1.5 liter sizes), including private label products, represented 17.6% of sales for fiscal year 2013 and 16.9% of sales for fiscal year 2012 or $1,737,713 and $1,554,938, respectively. This represented an increase of 11.8%. The Company’s gallon size products were 15.1% of sales or $1,490,169 in fiscal year 2013 compared to 13% of sales or $1,202,580 in fiscal year 2012, an increase of 23.9%. The Company had been providing private label one gallon purified water to one of the largest retailers in the country. As of February 2012, the Company was no longer providing the private label product. However, the Company began providing one gallon branded spring water to the same retailer.

In 2008, the Company began introducing an organic vitamin charged spring water for distribution off of existing route vehicles as well as through major distributors. The product is now available throughout Colorado and in portions of surrounding states. The line of organic vitamin charged spring water is available in Vitamin Cottage, King Soopers (Kroger stores), Costco and Whole Foods. Additionally, the product is available to more than 2,000 other retail outlets, convenience stores and on-premise locations by UNFI and US Food Service distributors. Total gross sales for the organic vitamin charge spring water were $140,443 for the fiscal year 2013 compared to $158,278 for the fiscal year 2012.

Gross Profit/Cost of Goods Sold

Cost of goods sold for fiscal year 2013 were $2,382,806, or 24.1% of sales, compared to $2,492,881, or 27% of sales for fiscal year 2012. Gross profit increased from $6,734,301 or 73% of sales for fiscal year 2012 to $7,492,194 or 75.9% of sales for fiscal year 2012. Overall, gross profit increased 11.3% from the fiscal year ended March 31, 2012.

Cost of goods for the home and office products were $375,787, or 6.6% of 5 and 3 gallon sales for fiscal year 2013, compared to $367,596, or 7.2% of 5 and 3 gallon sales for fiscal year 2012. Cost of goods for the Eldorado brand 1 gallon products were $719,620, or 48.3% of 1 gallon sales for fiscal year 2013, compared to $558,881, or 46.5% of 1 gallon sales for fiscal year 2012. Cost of goods for the PET products were $857,151, or 49.3% of sales for fiscal year 2013, compared to $791,342, or 50.9% of sales for fiscal year 2012. Recently, the cost of goods for the bottles and packaging of the gallon and PET products has decreased resulting in increased gross margin for these categories.

Operating Expenses

Total operating expenses increased to $6,740,602 in fiscal year 2013 from $6,275,016 in fiscal year 2012, an increase of $465,586 or 7.4%. Of the total operating expenses, salaries and related expenses increased to $3,422,318 in fiscal year 2013, or 34.7% of sales, from $3,211,621 in fiscal year 2012, or 34.8% of sales. The increase in salaries and related expenses is due to the increase in overall revenues for the fiscal year 2013.

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Administrative and general expenses increased 6.3% to $1,707,923 for fiscal year 2013 as compared to $1,607,173 for fiscal year 2012. The Company has experienced increased costs for health insurance for its employees. Additionally, the Company had additional costs related to professional fees related to water rights negotiations.

Delivery expenses increased from $769,422 for fiscal year 2012 to $876,644 for fiscal year 2013, an increase of 13.9%. Truck maintenance and leased equipment fees increased over the previous fiscal year as the Company entered into agreements for additional vehicles and had repair costs for damage to the leased vehicles that were taken out of service.

Advertising and promotion expenses increased 5.6% for fiscal year 2013 compared to fiscal year 2012.  Advertising and promotion expenses were 2.2% and 2.3% of sales, respectively for both fiscal year 2013 and 2012.

Depreciation and amortization increased 7.4% for fiscal year 2013 as compared to fiscal year 2012. Depreciation and amortization was 5.2% of sales for fiscal year 2012 and 2013. The Company has purchased more equipment for use with the home and office delivery accounts resulting in an increase in the depreciation expense.

Interest, Taxes, Other Income and Other Expenses

For the year ended March 31, 2013, interest income increased 14.7% to $2,249 as compared to $1,960 for the same period ended March 31, 2012.

Interest expense for the year ended March 31, 2013 decreased 26.3% to $255,333 as compared to $345,263 for the year ended March 31, 2012 due to the refinancing of the outstanding debt.

For the fiscal year ended March 31, 2013, the Company recorded net income tax benefit of $13,406 against our pretax income of $498,508 and released the valuation allowance. For the fiscal year ended March 31, 2012, the Company recorded income tax expense of $24,191 against our pretax book income of $115,982 as a valuation allowance was recorded on our outstanding deferred tax assets due to uncertainty of realization, a 21% effective tax rate.

The Company had net income after taxes of $511,914 in fiscal year 2013 compared to net income of $115,982 for fiscal year 2012.

Liquidity and Capital Resources

Trade accounts receivable for the year ended March 31, 2013 were 6.6% more than at year ended March 31, 2012.  This resulted from the increase in overall revenue. Days sales outstanding was approximately 37 days for March 31, 2013 and 2012.

Cash flows from operating activities had a net inflow of $1,037,067 for fiscal year 2013. The cash provided by operating activities represents an increase of $581,114 from fiscal year 2012. The largest reconciling item between net income and net cash flow from operations was the $513,829 of depreciation and amortization.  The change in operating activities also resulted from the change in accounts payable and net income. The Company anticipates that cash flow from operations will be available to fund existing obligations for expected cash requirements over the next year.

Cash flows from investing activities resulted in a net outflow of $272,846 for fiscal year 2013.  This total represents expenditures on equipment for additional electric water coolers, filtration equipment and coffee dispensing equipment that are rented to delivery customers.

Cash flows from financing activities resulted in a net outflow of $533,258 for fiscal year 2013.  In November 2012, the Company paid off the balance on a line of credit in the amount of $370,051.

The Company’s cash balance at March 31, 2013 increased to $480,546 by a net amount of $230,463 from $250,083 at March 31, 2012.

11

The Company has a line of credit with ANB Bank in the amount of $750,000. As of March 31, 2013, the Company did not have a balance on the line of credit. The line of credit is subject to certain borrowing base requirements, requires monthly interest payments calculated at Prime plus 1% with a minimum rate of 5.5%. The borrowing base was $750,000 as of March 31, 2013. The line includes certain reporting and financial covenants, is cross-collateralized by accounts receivable and inventory and is guaranteed by three company executives. The line has a maturity date of December 27, 2013.

On February 2, 2012, the Company entered into three separate loan agreements to refinance the existing debt that was due within the next 12 months and had previously been classified as current debt.  The Company entered into a Commercial Loan Agreement (the “First ANB Loan Agreement”) with ANB Bank (the “Bank”).  Under the First ANB Loan Agreement, the Company received proceeds of $2,815,892 from the Bank pursuant to a promissory note (“Note 1”). The proceeds were used to refinance an existing note on the Company’s property in Louisville, Colorado. The terms of Note 1 include a fixed interest rate of 5.5% for five years with monthly payments of approximately $19,500 which includes principal and interest. The interest rate will remain fixed at 5.5% until February 2, 2017 after which time it may change. The interest rate will be based on the Prime Rate plus 2.00%. The interest rate may change February 2, 2017 and every 5 years thereafter.  A single “balloon payment” of the entire unpaid balance of principal and interest will be due on February 2, 2022. The Company entered into a separate Commercial Loan Agreement (the “Second ANB Loan Agreement”) with ANB Bank (the “Bank”).  Under the Second ANB Loan Agreement, the Company received proceeds of $1,415,216 from the Bank pursuant to a promissory note (“Note 2”). The proceeds were used to refinance an existing note on the Company’s property in Eldorado Springs, Colorado. The terms of Note 2 include a fixed interest rate of 6.0% on the unpaid principal beginning March 2, 2012. The unpaid principal and accrued interest was due on May 2, 2012.

The Company also entered into a Commercial Loan Agreement (the “SBA Loan Agreement”) with the U.S. Small Business Administration (the “SBA”).  Under the SBA Loan Agreement, the Company received proceeds of $1,457,000 from the SBA pursuant to a Note (“Note 3”). The proceeds were used to refinance Note 2 under the Second ANB Loan Agreement as described above. The terms of Note 3 include a fixed interest rate that was determined by the SBA debenture sale in April 2012. The effective rate for Note 3 is 4.951% for the full 20 year term.  The monthly payment will be approximately $10,000. The first payment was due on May 2, 2012. Note 3 maturity date is April 1, 2032.

Under the First ANB Loan Agreement, the Second ANB Loan Agreement, and the SBA Loan Agreement, (collectively, the “Loan Agreements”) the Company granted the Bank security interests in the leases and rents on the property in Eldorado Springs, Colorado and Louisville, Colorado as well as deeds of trust for the same properties in Eldorado Springs and Louisville. The Loan Agreements specify events of default customary to facilities of its type, including any non-payment of principal, interest or other amounts, misrepresentation of representations and warranties, violation of covenants, certain events of bankruptcy or insolvency, certain material judgments, seizure of assets, or other material adverse changes. Upon the occurrence of an event of default, the payments by the Company of all of its outstanding obligations may be accelerated, and ANB Bank and the SBA commitments under the Loan Agreements may be terminated. The Loan Agreements are also guaranteed by three company executives. The Loan Agreements also include certain performance and reporting covenants.

Contractual Obligations and Commitments

The following table sets forth our contractual commitments as of March 31, 2013:

Fiscal Year End	Long-Term Debt  and Capital Leases		Operating Lease		Total
2014	$	195,666	$	298,092	$	493,758
2015		189,281		274,749		464,030
2016		167,279		253,092		420,371
2017		160,783		226,720		387,503
Thereafter		3,533,071		226,576		3,759,647
Total	$	4,246,080	$	1,279,229	$	5,525,309

Please refer to notes 4, 5, 7 and 8 in the Consolidated Financial Statements for more information regarding the Company’s future cash commitments.

12

Impact of Inflation

The Company believes that the results are not dependent upon moderate changes in inflation rates.

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This pronouncement was issued to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This pronouncement is effective for reporting periods beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact to our consolidated financial position, results of operations or cash flows.

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This pronouncement was issued to address implementation issues about the scope of Accounting Standards Update No. 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. This pronouncement is effective for reporting periods beginning on or after January 1, 2013. We do not anticipate the adoption of ASU 2013-01 to have a material impact to the consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, ‘Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This pronouncement was issued to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (i.e. inventory) instead of directly to income or expense in the same reporting period. This pronouncement is effective prospectively for reporting periods beginning after December 15, 2012. We do not anticipate the adoption of ASU 2013-02 to have a material impact to the consolidated financial position, results of operations or cash flows.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, this item is not required.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements of the Company, including the notes thereto, and the report of the independent registered public accounting firm, are included in this Annual Report and begin on page F-1.

13

Table of Contents

	Page
Report of Independent Registered Public Accounting Firm		F-1
Financial Statements
Balance Sheets		F-2
Statements of Operations		F-3
Statement of Changes in Stockholders' Equity		F-4
Statements of Cash Flows		F-5
Notes to Financial Statements		F-6

14

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Eldorado Artesian Springs, Inc.

Louisville, Colorado

We have audited the accompanying balance sheets of Eldorado Artesian Springs, Inc. (“the Company”) as of March 31, 2013 and 2012 and the related statements of income, changes in stockholders' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).   Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Eldorado Artesian Springs, Inc. as of March 31, 2013 and 2012, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

EKS&H, LLLP

June 28, 2013

Boulder, Colorado

F-1

Balance Sheets

	March 31, 2013		March 31, 2012
Assets
Current assets
Cash	$	480,546	$	250,083
Accounts receivable - trade, net		1,007,197		944,807
Inventories		420,048		336,671
Prepaid expenses and other		41,290		49,748
Deferred tax asset		29,648		-
Total current assets		1,978,729		1,581,309
Non-current assets
Property, plant and equipment, net		3,613,629		3,738,335
Investments		361,196		361,196
Water rights, net		71,675		71,675
Deposits		108,204		108,204
Other, net		123,896		95,297
Total non-current assets		4,278,600		4,374,707
Total assets	$	6,257,329	$	5,956,016

Liabilities and Stockholders' Equity

Current liabilities
Accounts payable	$	415,442		$	237,591
Accrued expenses		269,016			326,971
Income taxes payable		8,767			-
Customer deposits		104,926			80,874
Line of credit		-			370,051
Current portion of capital lease obligations		49,341			26,321
Current portion of long-term debt		146,325			126,583
Total current liabilities		993,817			1,168,391
Non-current liabilities
Deferred tax liability		7,475			-
Capital lease obligations, less current portion		45,591			16,531
Long-term debt, less current portion		4,004,823			4,097,506
Total non-current liabilities		4,057,889			4,114,037
Total liabilities		5,051,706			5,282,428
Commitments and contingency
Stockholders' equity
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; 0  shares issued and outstanding		-			-
Common stock, par value $.001 per share; 50,000,000 shares authorized; 6,036,091 (2013 and 2012) issued and outstanding		6,036			6,036
Additional paid-in capital		1,693,738			1,673,617
Accumulated deficit		(494,151	)		(1,006,065	)
Total stockholders' equity		1,205,623			673,588
Total liabilities and stockholders' equity	$	6,257,329		$	5,956,016

See notes to financial statements

F-2

Statements of Operations

	For the Years Ended
	March 31,
	2013			2012
Revenues
Water and related	$	9,694,518		$	9,059,764
Resort operations		180,482			167,418
Total revenues		9,875,000			9,227,182
Cost of goods sold		2,382,806			2,492,881
Gross profit		7,492,194			6,734,301
Operating expenses
Salaries and related expenses		3,422,318			3,211,621
Administrative and general		1,707,923			1,607,173
Delivery		876,644			769,422
Advertising and promotions		219,888			208,226
Depreciation and amortization		513,829			478,574
Total operating expenses		6,740,602			6,275,016
Income from operations		751,592			459,285
Other income (expense)
Gain on the sale of property		-			-
Interest income		2,249			1,960
Interest expense		(255,333	)		(345,263	)
Total other expense		(253,084	)		(343,303	)
Income before income taxes		498,508			115,982
Income tax (expense)  benefit
Current		(8,767	)		24,191
Deferred		22,173			(24,191	)
Total income tax (expense)  benefit		13,406			-
Net income available to common shareholders	$	511,914		$	115,982
Basic and diluted weighted average common shares outstanding		6,036,091			6,036,091
Basic and diluted income per common share	$	0.08		$	0.02

See notes to financial statements

F-3

Statement of Changes in Stockholders' Equity

For the Years Ended March 31, 2013 and 2012

	Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			Equity
Balance - March 31, 2011		6,036,091	$	6,036	$	1,653,496	$	(1,122,047	)	$	537,485
Stock options issued to employees		-		-		20,121		-			20,121
Net income		-		-		-		115,982			115,982
Balance - March 31, 2012		6,036,091	$	6,036	$	1,673,617	$	(1,006,065	)	$	673,588
Stock options issued to employees		-		-		20,121		-			20,121
Net income		-		-		-		511,914			511,914
Balance - March 31, 2013		6,036,091	$	6,036	$	1,693,738	$	(494,151	)	$	1,205,623

See notes to financial statements

F-4

Statements of Cash Flows

	For the Years Ended
	March 31,
	2013			2012
Cash flows from operating activities
Net income	$	511,914		$	115,982
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		513,829			478,574
Deferred income taxes		(22,173	)		-
Stock based compensation		20,121			20,121
Changes in assets and liabilities
Accounts receivable		(62,390	)		103,739
Inventories		(83,377	)		31,526
Prepaid expenses and other		6,428			(41,568	)
Deposits		-			39,996
Accounts payable		177,851			(265,575	)
Accrued expenses		(57,955	)		(8,609	)
Income taxes payable		8,767			-
Customer deposits		24,052			(18,233	)
Net cash provided by operating activities		1,037,067			455,953
Cash flows from investing activities
Purchases of property and equipment		(272,846	)		(217,191	)
Net cash used in investing activities		(272,846	)		(217,191	)
Cash flows from financing activities
Payments on line of credit		(370,051	)		-
Payments on long-term debt and capital leases		(180,238	)		(67,881	)
Borrowings on long-term obligations		16,531			-
Net cash used in financing activities		(533,758	)		(67,881	)
Net increase in cash		230,463			170,881
Cash – beginning of year		250,083			79,202
Cash - end of year	$	480,546		$	250,083

Supplemental disclosure of cash flow information

Cash paid during the year for interest was $255,333 (2013) and $345,263 (2012).

Cash paid during the year for income taxes was $0 (2013 and 2012).

The Company acquired $101,062 (2013) and $0 (2012) in fixed assets through capital leases.

In May 2012, the Company obtained an SBA loan in the amount of $1,457,000 of which $1,415,216 was used to pay off a short term note with a bank and $41,784 represents loan fees which is included in other long term assets in the accompanied balance sheet.

In April 2011, the Company capitalized equipment with a deposit of $31,245.

See notes to financial statements

F-5

Note 1 - Description of Business and Summary of Significant Accounting Policies

Eldorado Artesian Springs, Inc., (the "Company"), is a Colorado corporation which primarily sells bottled Artesian spring water from springs located in Eldorado Springs, Colorado and rents water dispensers.  The Company also sells a line of Organic Vitamin Charged Spring Water to retail stores. The Company rents housing, and during the summer months, it operates a natural Artesian spring pool. The Company's bottling and distribution facility is located in Louisville, Colorado.

Concentrations of Credit Risk

The Company maintains cash in bank accounts that may, at times, exceed FDIC insurance limits.  Financial instruments potentially subjecting the Company to concentrations of credit risk consist primarily of accounts receivable.  The Company grants credit to customers located primarily in Colorado.  The Company periodically performs credit analysis and monitors the financial condition of its clients in order to minimize credit risk.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. At March 31, 2013 and 2012, the Company did not have any cash equivalents.

Accounts Receivable

The Company extends unsecured credit to its customers in the ordinary course of business. The Company considers a reserve for doubtful accounts based on the creditworthiness of the customer. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical performance that is tracked by the Company on an ongoing basis.

Inventories

Inventories consist of direct costs which are primarily made up of water bottles and packaging and are stated at the lower of cost or market, determined using the first-in, first-out method (FIFO).

Deposits

Deposits consist primarily of deposits related to the purchase of equipment.

Property, Plant and Equipment

Property, plant and equipment are stated at cost.  Machinery, equipment, furniture and fixtures are depreciated using various methods over their estimated useful lives, ranging from 3 to 7 years.  Buildings and improvements are depreciated using the straight-line method over the estimated useful lives for owned assets, ranging from 15 to 39 years.  Depreciable lives on leasehold improvements are the shorter of the lease term or the useful life. Capital leased assets amortize over the estimated useful life or related lease term.

Investments

The Company owns investments of capital stock in an investee. This investment entitles the Company to an equal pro rata share of this investee’s irrigation system. As the ownership represents less than 20% ownership of the Company the value of this investment is stated at cost and evaluated for impairment if there are indications of such.

Water Rights

Water rights are recorded at cost. As water rights have an indefinite life, no amortization is recognized.

F-6

Other Assets

Other assets consist of loan fees and other costs which have been recorded at cost and are being amortized using the effective interest method over the term of the loan. The Company expects to amortize approximately $14,000 each year for the next ten years.

Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered.  The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were deemed necessary during the fiscal years 2013 and 2012.

Customer Deposits

Customer deposits consist primarily of deposits on bottles and equipment.

Stock Based Compensation

The Company accounts for stock-based compensation arrangements for employees and recognizes compensation expense for share-based awards based on the grant date estimated fair value of the awards using the Black Scholes option pricing model.  Compensation expense for all share-based awards is recognized in earnings over the requisite service period (generally the vesting period).  The Company records compensation expense related to non-employees over the service periods commensurate with the services provided.  Compensation expense recorded during fiscal year 2013 and 2012 was $20,121 each year.

Basic and Diluted Loss Per Common Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

Potentially dilutive common shares and outstanding options and warrants which have been excluded from the computation of diluted income per share as of March 31, 2013 and 2012 were 104,000 and 111,000, respectively, because their effect would have been antidilutive.

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash, receivables, accounts payable and accrued expenses approximated fair value as of March 31, 2013, because of the relatively short maturity of these instruments.

Revenue Recognition

Revenue is recognized on the sale of products as customer shipments are made.  Returns are estimated and recorded at the time of sale.  Rental revenue is recognized on a monthly basis upon commencement of the lease agreement. Water utility revenue is recognized on a monthly basis based upon the monthly contracted rate.

Shipping Costs

Shipping costs for materials used in the final products are included in the cost of goods. Shipping costs for products delivered to customers are included in total operating expenses.

Promotional Expense – Consideration to Vendors

The Company recognizes certain promotional expense as a reduction in revenues. These costs included off invoice discounts to resellers and promotions for customers.

F-7

Advertising Costs

The Company expenses advertising costs as incurred.  Advertising expense for the years ended March 31, 2013 and 2012 were $219,888 and $208,226, respectively.

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, disclosures 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 from those estimates.

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This pronouncement was issued to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This pronouncement is effective for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact to our consolidated financial position, results of operations or cash flows.

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This pronouncement was issued to address implementation issues about the scope of Accounting Standards Update No. 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. This pronouncement is effective for reporting periods beginning on or after January 1, 2013. We do not anticipate the adoption of ASU 2013-01 to have a material impact to the consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, ‘Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This pronouncement was issued to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (i.e. inventory) instead of directly to income or expense in the same reporting period. This pronouncement is effective prospectively for reporting periods beginning after December 15, 2012. We do not anticipate the adoption of ASU 2013-02 to have a material impact to the consolidated financial position, results of operations or cash flows.

Note 2 - Balance Sheet Disclosures

Accounts receivable consist of the following:

	March 31, 2013			March 31, 2012
Accounts receivable
Accounts receivable	$	1,087,197		$	1,024,807
Allowance for doubtful accounts		(80,000	)		(80,000	)
	$	1,007,197		$	944,807

F-8

Property, plant and equipment consist of the following at:

	March 31, 2013			March 31, 2012
Property, plant and equipment
Land	$	1,000,263		$	1,000,263
Buildings and improvements		4,442,756			4,415,980
Machinery and equipment		5,844,738			5,497,607
Office furniture and fixtures		329,391			329,391
		11,617,148			11,243,241
Less accumulated depreciation and amortization		(8,003,519	)		(7,504,906	)
	$	3,613,629		$	3,738,335

Depreciation expense for the fiscal year ended March 31, 2013 and 2012 was $498,614 and $476,679.

Accrued expenses consist of the following at:

	March 31, 2013		March 31, 2012
Accrued expenses
Accrued payroll and taxes	$	128,914	$	117,183
Accrued property taxes		110,000		182,154
Accrued sales taxes		30,102		27,634
	$	269,016	$	326,971

Note 3 - Long-Term Debt

Long-term debt is as follows:

	March 31, 2013			March 31, 2012
Note payable to a bank with interest fixed at 5.5% until February 2017, at which time the interest rate may change. The note calls for monthly principal and interest payments of $19,495 with unpaid principal and interest due February 2, 2022. The note is cross-collateralized with the line of credit and backed by substantially all assets of the Company and guaranteed by three stockholders and officers of the Company.  The note is subject to certain restrictive covenants.	$	2,730,449		$	2,808,873
Note payable to a bank with an effective interest rate of 4.951% for the full 20 year term. The note calls for monthly principal and interest payments of $10,088 effective May 1, 2012 and matures in April 2032. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	$	1,405,019		$	1,415,216
Note payable to a bank with interest fixed at 6% until October 2017. The note calls for monthly principal and interest payments of $349 effective October 2012. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	$	15,680		$	-
		4,151,148			4,224,089
Less current portion		(146,325	)		(126,583	)
	$	4,004,823		$	4,097,506

F-9

Maturities of Long-Term Debt Obligations:

Year Ending March 31,
2014	$	359,183
2015		359,183
2016		357,791
Thereafter		3,680,946
Total payments		4,757,103
Amount representing interest		(605,955	)
Net payments		4,151,148
Less current portion		(146,325	)
Long-term debt obligation	$	4,004,823

Note 4 – Line of Credit

The Company has a line of credit with ANB Bank in the amount of $750,000. As of March 31, 2013, the Company did not have a balance on the line of credit. The line of credit is subject to certain borrowing base requirements, requires monthly interest payments calculated at Prime plus 1% with a minimum rate of 5.5%. The borrowing base was $750,000 as of March 31, 2013. The line includes certain reporting and financial covenants, is cross-collateralized by substantially all assets of the Company and is guaranteed by three company executives. The line has a maturity date of December 27, 2013.

Note 5 - Capital Leases

The Company acquired assets under the provisions of a long-term lease.  For financial reporting purposes, minimum lease payments relating to the assets have been capitalized.  The leases have various expiration dates between October 2013 and February 2020.  Amortization of the leased property is included in depreciation expense.

The assets under capital lease have cost and accumulated amortization as follows:

	March 31,
	2013
Cost	$	177,225
Less accumulated amortization		(38,029	)
	$	139,196

Maturities of capital lease obligations are as follows:

Year Ending March 31,
2014	$	55,861
2015		38,808
2016		9,702
Total minimum lease payments		104,371
Amount representing interest		(9,439	)
Present value of net minimum lease payments		94,932
Less current portion		(49,341	)
Long-term capital lease obligation	$	45,591

F-10

Note 6 - Income Taxes

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns.  Deferred tax liabilities and assets are determined based on the differences between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse.  The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that are not expected to be realized based on available evidence. Net operating losses in the amount of approximately $70,000 for federal and $735,000 for state and begin to expire in 2031 and 2028.

The Company is subject to income taxes in the U.S. federal jurisdiction, and various state and local jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. In the United States, the tax years 2009-2012 remain open to examination by the federal Internal Revenue Service and the tax years 2008-2012 remain open for various state taxing authorities. The Company has not taken any uncertain tax positions.  The net current and long-term deferred tax assets and liabilities in the accompanying balance sheet include the following:

	March 31, 2013			March 31, 2012
Current deferred tax asset	$	29,648		$	-
Current deferred tax liability		-			-
Net current deferred tax asset	$	29,648		$	-
Long-term deferred tax asset, net of valuation allowance	$	61,364		$	-
Long-term deferred tax liability		(68,839	)		-
Net long-term deferred tax liability, net of valuation allowance	$	(7,475	)	$	-

Temporary differences giving rise to the net deferred tax asset are as follows:

Allowance for doubtful accounts	$	29,648		$	29,648
Property and equipment		(68,839	)		630
Deductible stock compensation		-			9,914
Net operating loss and credits		61,364			212,078
Valuation allowance		-			(252,270	)
	$	22,173		$	-

The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net income compared to the income tax (benefit) expense in the statements of income:

	For the Years Ended
	March 31,
	2013			2012
Federal income taxes computed at statutory rate	$	169,493		$	39,434
State income taxes		25,581			4,820
Stock based compensation		6,841			6,841
Other		13,481			(26,904	)
Valuation allowance		(228,802	)		(24,191	)
	$	(13,406	)	$	-

F-11

Note 7 – Commitments and Contingency

Operating Leases

The Company leases delivery trucks, vehicles, equipment and property under non-cancelable operating leases.  Rent expense for these leases was $415,812 and $368,459 for the years ended March 31, 2013 and 2012, respectively.

Future minimum lease payments under these leases are approximately as follows:

Year Ending March 31,
2014	$	298,092
2015		274,749
2016		253,092
2017		226,720
Thereafter		226,576
	$	1,279,229

Renewable Energy Service Agreement

On June 11, 2009, the Company entered into a twenty year renewable energy service agreement with Eldorado Springs Solar, LLC, an unrelated third party, to design, install, own, operate and maintain a solar electricity generating system at our property in Louisville, Colorado. The Company will purchase all of the solar electricity generated by the system which will provide approximately 50% of the electricity needs at the facility in Louisville, Colorado. The agreement provides a guaranteed energy rate schedule for 10 years with a reset rate in year eleven for the electric cost. If the Company was to terminate the agreement the Company would be required to pay a termination penalty. As of March 31, 2013, this penalty would be approximately $350,000. The Company also has the option to purchase and take title to the system starting in year eleven. During the fiscal year ended March 31, 2013, the Company expensed approximately $10,500 in utility costs under this agreement.

Note 8 – Contingency

When we purchased the Eldorado Springs property in 1983, included in the purchase of the real estate were certain water rights that had been decreed for the water sources located on the property. We have the right to beneficially use the water derived from the sources of water that are the subject of the decreed water rights, unless there is a call being made downstream from our location by a water right that is senior to ours. A senior water right would be obtained by those that applied water to a beneficial use prior to the uses associated with our water sources. Because the Eldorado Springs area was not developed until the early 1900’s there are many senior water rights that could place a call on the stream and unless we have a recognized replacement source of water or a decreed Augmentation Plan we would be forced to stop using the water from our sources.

We had previously enrolled in a replacement water subscription service known as GASP (Groundwater Appropriators of the South Platte) as a means of providing replacement water to the stream system at times when we withdrew water from our sources when we were not in priority. However, during the drought in 2002, GASP was unable to make all of the replacements for which they were obligated. Therefore, the State of Colorado determined that GASP would no longer be a recognized source of replacement water. This determination by the state meant that we would have to obtain other sources of replacement or augmentation water if we continued to withdraw water from our sources while not in priority.

Because demand for our spring water exists on a year round basis, we require a replacement water source that can be delivered to the stream at any time during the year. We were able to purchase shares of stock of the Farmer’s Reservoir and Irrigation Company (FRICO) – Marshall Division. Each share entitles us to the use of a pro rata portion of the water belonging to FRICO as operated pursuant to state regulations that govern what are known as Mutual Ditch Companies. Marshall Reservoir is located in close proximity to our water sources in Eldorado Springs and because the water is stored it is able to be released upon demand to meet our obligations.

F-12

The water represented by our shares in the FRICO system had been historically used for irrigating croplands. This meant that, in addition to obtaining a decreed augmentation plan from the Colorado Water Court, we had to obtain a change of use decree in order to use the water for replacing our withdrawals as part of the Augmentation Plan. The Water Court of the State of Colorado entered a Decree on April 16, 2013 approving the change in water right and the terms and conditions of our Augmentation Plan, subject to the retained jurisdiction clauses normally associated with such actions. The Decree allows us to use the water represented by our FRICO shares as augmentation water to replace our out of priority withdrawals from our springs and other sources. It also established the conditions under which we can add other sources of water to the Plan for use as additional replacement water. It is possible that our ability to withdraw water from our springs in a particular year may be limited if the water associated with our FRICO shares under drought conditions is not sufficient to meet all of our replacement requirements.  Because drought is an ever present possibility in our location, we will continue to seek additional sources of replacement and augmentation water to add to our Augmentation Plan.

Note 9 - Stockholders' Equity

Stock Options

The Company has a qualified stock plan, the 2008 Incentive Stock Plan, pursuant to which 2,000,000 shares were reserved for issuance.  As of March 31, 2013, 1,950,000 shares were available for future grant.  Additionally, the Company previously had a qualified stock plan, the 1997 Stock Option Plan, which expired in 2007, pursuant to which 875,000 shares were reserved for issuance.  As of March 31, 2013, 54,000 shares were reserved for issuance pursuant to outstanding grants and no shares were available for future grant as the plan has expired.  The 2008 Incentive Stock Plan and the 1997 Stock Option Plan, referred to herein as the Plans, and the shares issuable there under, are both registered on Form S-8 with the Securities and Exchange Commission.  The Plans provide for the grant of options and other equity based awards to employees, directors and consultants of the Company and are administered by the Company’s Board of Directors.

The following table presents the activity for options outstanding:

				Weighted
				Average
	Stock			Exercise
	Options			Price
Outstanding - March 31, 2011		226,000		$	1.47
Granted		-			-
Forfeited/canceled		(115,000	)		1.40
Exercised		-			-
Outstanding - March 31, 2012		111,000			1.55
Granted		-			-
Forfeited/canceled		(7,000	)		1.20
Exercised		-			-
Outstanding - March 31, 2013		104,000		$	1.57

The following table presents the composition of options outstanding and exercisable:

		Options Outstanding						Options Exercisable
Exercise Prices		Number		Price*		Life*		Number		Price*
$	0.875		15,000	$	0.875		1.42		15,000	$	0.875
	1.00		9,000		1.00		1.08		9,000		1.00
	1.65		14,000		1.65		3.09		14,000		1.65
	1.75		16,000		1.75		4.09		16,000		1.75
	1.80		50,000		1.80		5.05		40,000		1.80
Total - March 31, 2013			104,000	$	1.57		3.77		94,000	$	1.54

*Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, in years, respectively.

Compensation expense recorded during the years ended March 31, 2013 and 2012 for options granted under the 2008 and 1997 Incentive Stock Plan was $20,121 and $20,121.  As of March 31, 2013 all options granted under the 1997 Incentive Stock plan were fully vested and 40,000 of the 50,000 options were fully vested under the 2008 Incentive Stock Plan.

Note 10 - Employee Benefit Plan

The Company has adopted a 401(k) profit sharing plan for its employees.  Employees become eligible to participate in the plan once they have completed one year of service and have reached 21 years of age.  Contributions by the Company and employees vest immediately.  The Company matches 100% of employee’s contributions up to 3% of the employee’s gross pay.  The Company matched approximately $43,100 for the year ended March 31, 2013 and $43,200 for the year ended March 31, 2012.  No discretionary profit sharing contributions were approved by the Board of Directors for the years ended March 31, 2013 and 2012.

F-13

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness Of Disclosure Controls And Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports 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 management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management's control objectives.

With the participation of management, our principal executive officer and principal financial officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.  In consultation with Ehrhardt Keefe Steiner & Hottman, PC, our independent registered public accounting firm, management has identified a control deficiency that it believes constitutes a material weakness in our internal control over financial reporting.  The material weakness relates to our lack of technical expertise regarding complex accounting matters associated with certain income tax calculations. Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective in ensuring that material information required to be disclosed is included in the reports that we file with the Securities and Exchange Commission.

Management's Annual Report On Internal Control Over Financial Reporting

Our management, under the supervision of our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures of Company assets are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of Company assets that could have a material effect on our financial statements would be prevented or detected on a timely basis. Because of the inherent limitations of internal control over financial reporting, misstatements may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management, with the participation of our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting as of March 31, 2013. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), referred to as the Internal Control—Integrated Framework. Based on this assessment, management, with the participation of our principal executive officer and principal financial officer, has determined that we did not maintain effective internal controls over financial reporting as of March 31, 2013.  Management has identified a material weakness in the operation of our internal controls over financial reporting as it relates to the lack of technical expertise regarding complex accounting matters associated with certain income tax calculations.  A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

14

This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Annual Report on Form 10-K.

Remediation Of Material Weaknesses in Internal Control Over Financial Reporting

In light of the conclusion that our internal control over financial reporting was not effective, our management is in the process of implementing a plan intended to remediate such ineffectiveness and to strengthen our internal controls over financial reporting through the implementation of certain remedial measures, including obtaining the assistance of experienced financial personnel to enhance our financial reporting capabilities and assist our principal financial officer as the need arises.

Changes In Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. As described above, in the future we intend to obtain the assistance of experienced financial personnel to enhance our financial reporting capabilities.

ITEM 9B. OTHER INFORMATION

None.

15

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

The required information for this item is incorporated by reference to the Company’s Proxy Statement for the 2013 Annual Meeting of Shareholders, since such Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after the end of the Company’s fiscal year pursuant to Regulation 14A.

The Company’s Board of Directors has adopted a code of ethics to provide guidance on maintaining the Company’s commitment to being honest and ethical in its business endeavors. The code of ethics applies to the Company’s directors, executive officers and employees and covers a wide range of business practices, procedures and basic principles regarding corporate and personal conduct. The Company undertakes to provide without charge, upon request, a copy of the code of ethics. A request for the code of ethics can be made in writing to the Company’s Chief Financial Officer, Eldorado Artesian Springs, Inc., 1783 Dogwood Street, Louisville, CO 80027.

ITEM 11. EXECUTIVE COMPENSATION

The required information for this item is incorporated by reference to the Company’s Proxy Statement for the 2013 Annual Meeting of Shareholders, since such Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after the end of the Company’s fiscal year pursuant to Regulation 14A.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The required information for this item is incorporated by reference to the Company’s Proxy Statement for the 2013 Annual Meeting of Shareholders, since such Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after the end of the Company’s fiscal year pursuant to Regulation 14A.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The required information for this item is incorporated by reference to the Company’s Proxy Statement for the 2013 Annual Meeting of Shareholders, since such Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after the end of the Company’s fiscal year pursuant to Regulation 14A.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The required information for this item is incorporated by reference to the Company’s Proxy Statement for the 2013 Annual Meeting of Shareholders, since such Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after the end of the Company’s fiscal year pursuant to Regulation 14A.

16

PART IV

ITEM 15. EXHIBITS

(a)   Documents Filed as Part of this Report

(1)   Financial Statements.  The financial statements of Eldorado Artesian Springs, Inc., which are listed on the Table of Contents to Financial Statements appearing on page 16 of this Annual Report.

(2)   Financial Statement Schedules.   All schedules for which provision is made in the applicable accounting regulations of the SEC are omitted because of the absence of conditions under which they are required or because the required information is included in the financial statements and related notes thereto.

(3)   Exhibits.   The following is a list of exhibits filed as part of this Annual Report on Form 10-K.

Exhibit No.	Description	Location
3.1	Articles of Incorporation and Bylaws	Incorporated by reference to Exhibit 3 to the Registration Statement (No. 33-6738-D)
3.2.	Amended Articles of Incorporation	Incorporated by reference to Exhibit 3.1 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 1998

3.3	Amended and Restated Articles of Incorporation	Incorporated by reference to Exhibit 3.1 to Eldorado’s Form SB-2/A (Registration Statement No.  333-68553) filed with the Securities and Exchange Commission on November 21, 2000
3.4	Amended and Restated Bylaws	Incorporated by reference to Exhibit 3.2 to Eldorado’s Form SB-2/A (Registration Statement No. 333-68553) filed with the Securities and Exchange Commission on July 2, 1999
10.1*	1997 Stock Option Plan	Incorporated by reference to Exhibit 10.1 to Registration Statement No. 333-68553
10.2	Promissory Note with First National Bank of Boulder County dated June 27, 1997	Incorporated by reference to Exhibit 10.2 to Registration Statement No. 333-68553
10.3	Deed of Trust dated June 27, 1997	Incorporated by reference to Exhibit 10.3 to Registration Statement No. 333-68553
10.4	Small Business Administration Note – U.S. Bank, August 21, 2001	Incorporated by reference to Exhibit 10.4 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.5	U.S. Bank, August 21, 2001 Deed of Trust	Incorporated by reference to Exhibit 10.5 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.6	U.S. Small Business Administration Note – Bank of West August 21, 2001	Incorporated by reference to Exhibit 10.6 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.7	Bank of West, August 21, 2001, Deed of Trust	Incorporated by reference to Exhibit 10.7 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003

17

10.8	Contract to Buy and Sell Real Estate (Commercial)	Incorporated by reference to Exhibit 10.1 to Eldorado’s Form 10-QSB for the quarter ended September 30, 2001
10.9	Contract to Buy and Sell Real Estate (Residential)	Incorporated by reference to Exhibit 10.2 to Eldorado’s Form 10-QSB for the quarter ended September 30, 2001
10.10	Contract to Buy and Sell Real Estate (Residential)	Incorporated by reference to Exhibit 10.3 to Eldorado’s Form 10-QSB for the quarter ended September 30, 2001
10.11	Note receivable – Doug Larson	Incorporated by reference to Exhibit 10.8 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.12	Doug Larson – Pledge agreement	Incorporated by reference to Exhibit 10.9 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.13	Note receivable – Kevin Sipple	Incorporated by reference to Exhibit 10.10 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.14	Kevin Sipple – Pledge agreement	Incorporated by reference to Exhibit 10.11 to Eldorado’s Form 10-KSB for the fiscal year ended March 31, 2003
10.15	Management Consulting and Finders Agreement, dated as of January 4, 2005, by and between the Company and Capital Merchant Bank, LLC	Incorporated by reference to Exhibit 10.1 to Eldorado’s Form 8-K filed with the Securities and Exchange Commission on January 11, 2005
10.16	Warrant to Purchase Shares of Common Stock, dated January 4, 2005	Incorporated by reference to Exhibit 10.2 to Eldorado’s Form 8-K filed with the Securities and Exchange Commission on January 11, 2005
10.17	Water Lease Agreement with Denver Wells, LLC dated August 31, 2006	Incorporate by reference to Exhibit 10.14 to Eldorado’s Form 8-K filed with the Securities and Exchange Commission on October 4, 2006
10.18	Commercial Loan Agreement with American National Bank dated February 20, 2007	Incorporated by reference to Exhibit 10.18 to Eldorado’s Form 10-KSB filed with the Securities and Exchange Commission on June 26, 2007
10.19	Commercial Loan Agreement with American National Bank dated October 11, 2007	Incorporated by reference to Exhibit 10.1 to Eldorado’s Form 10-QSB filed with the Securities and Exchange Commission on November 14, 2007
10.20	Purchase and Sale Agreement with Farmers Reservoir and Irrigation Company Marshall Lake Division Shares dated February 28, 2007	Incorporated by reference to Exhibit 10.20 to Eldorado’s Form 10-QSB filed with the Securities and Exchange Commission on November 14, 2007

18

10.21	Purchase and Sale Agreement with Farmers Reservoir and Irrigation Company Marshall Lake Division Shares dated August 2, 2007	Incorporated by reference to Exhibit 10.21 to Eldorado’s Form 10-QSB filed with the Securities and Exchange Commission on November 14, 2007
10.22	Water Use Agreement with the City of Louisville, Colorado dated October 16, 2007	Incorporated by reference to Exhibit 10.22 to Eldorado’s Form 8-K filed with the Securities and Exchange Commission on November 21, 2007
10.23	Purchase and Sale Agreement with Farmers Reservoir and Irrigation Company Marshall Lake Division Shares dated March 21, 2008	Incorporated by reference to Exhibit 10.23 to Eldorado’s Form 10-KSB filed with the Securities and Exchange Commission on June 27, 2008
10.24*	2008 Incentive Stock Plan	Incorporated by reference to Annex A to Eldorado’s Definitive Proxy Statement on Schedule 14A for the Annual meeting of Shareholders held on August 26, 2008
10.25	First Amendment to Water Lease Agreement dated July 15, 2008	Incorporated by reference to Exhibit 10.24 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on August 1, 2008
10.26	Commercial Loan Agreement with American National Bank dated March 17, 2009 (including Debt Modification Agreement dated March 17, 2009)	Incorporated by reference to Exhibit 10.26 to Eldorado’s Form 10-K filed with the Securities and Exchange Commission on June 29, 2009.
10.27	Commercial Loan Agreement with ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.1 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.28	Promissory Note between Eldorado Artesian Springs, Inc. and ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.2 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.29	Deeds of Trust between Eldorado Artesian Springs, Inc. and ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.3 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.30	Agreement to Provide Insurance between Eldorado Artesian Springs, Inc. and ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.4 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.31	Commercial Loan Agreement with ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.5 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.32	Promissory Note between Eldorado Artesian Springs, Inc. and ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.6 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.33	Deeds of Trust between Eldorado Artesian Springs, Inc. and ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.7 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.34	Agreement to Provide Insurance between Eldorado Artesian Springs, Inc. and ANB Bank, dated February 2, 2012	Incorporated by reference to Exhibit 99.8 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.
10.35	Promissory Note between Eldorado Artesian Springs, Inc. and the U.S. Small Business Administration, dated February 2, 2012.	Incorporated by reference to Exhibit 99.9 to Eldorado’s Form 8-k filed with the Securities and Exchange Commission on February 13, 2012.

19

23.1	Consent of Ehrhardt Keefe Steiner & Hottman PC	Filed herewith
31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith

__________________

*        Management contract or compensatory plan

20

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

	ELDORADO ARTESIAN SPRINGS, INC.
Dated: June 28, 2013	By:	/s/ Douglas A. Larson
		Douglas A. Larson,
		President (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name and Capacity	Date
/s/ Douglas A. Larson	June 28, 2013
Douglas A. Larson,
President and Director
/s/ Kevin M. Sipple	June 28, 2013
Kevin M. Sipple,
Vice-President and Director
/s/ Cathleen Shoenfeld	June 28, 2013
Cathleen Shoenfeld,
Chief Financial Officer, Chief Accounting Officer
(Principal Financial and Accounting Officer), Secretary
/s/ Jeremy S. Martin	June 28, 2013
Jeremy S. Martin,
Vice-President and Director
/s/ J. Ross Colbert	June 28, 2013
J. Ross Colbert,
Director

 21

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Eldorado Artesian Springs, Inc.:

We consent to the incorporation by reference in the registration statements (Nos. 333-53307 and 333-153284) on Form S-8 of Eldorado Artesian Springs, Inc. of our report dated June 28, 2013, with respect to the balance sheets of Eldorado Artesian Springs, Inc. as of March 31, 2013 and 2012 and the related statements of operations, changes in stockholders’ equity and cash flows for the years ended March 31, 2013 and 2012 which report appears in the March 31, 2013 annual report on Form 10-K of Eldorado Artesian Springs, Inc.

Ehrhardt Keefe Steiner & Hottman PC

June 28, 2013

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15(d)-14(a) OF THE EXCHANGE ACT, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas Larson certify that:

1. I have reviewed this annual report on Form 10-K of Eldorado Artesian Springs, Inc.

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Acts Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date:  June 28, 2013	By:	/s/ Douglas Larson
		President
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15(d)-14(a) OF THE EXCHANGE ACT, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Cathleen Shoenfeld certify that:

1. I have reviewed this annual report on Form 10-K of Eldorado Artesian Springs, Inc.

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Acts Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date June 28, 2013	By:	/s/ Cathleen Shoenfeld
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Eldorado Artesian Springs, Inc. (the "Company") on Form 10-K for the period ending March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Douglas Larson, Chief Executive Officer of the Company, certify, pursuant to 18 USC SS. 1350, as adopted pursuant to SS. 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: June 28, 2013	By:	/s/ Douglas Larson
		President
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Eldorado Artesian Springs, Inc. (the "Company") on Form 10-K for the period ending March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Cathleen Shoenfeld, Chief Financial Officer of the Company, certify, pursuant to 18 USC SS. 1350, as adopted pursuant to SS. 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: June 28, 2013	By:	/s/ Cathleen Shoenfeld
		Chief Financial Officer
		(Principal Financial Officer)

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1. Description of Business and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Concentrations of Credit Risk

Concentrations of Credit Risk

The Company maintains cash in bank accounts that may, at times, exceed FDIC insurance limits.  Financial instruments potentially subjecting the Company to concentrations of credit risk consist primarily of accounts receivable.  The Company grants credit to customers located primarily in Colorado.  The Company periodically performs credit analysis and monitors the financial condition of its clients in order to minimize credit risk.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. At March 31, 2013 and 2012, the Company did not have any cash equivalents.

Accounts Receivable

Accounts Receivable

The Company extends unsecured credit to its customers in the ordinary course of business. The Company considers a reserve for doubtful accounts based on the creditworthiness of the customer. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical performance that is tracked by the Company on an ongoing basis.

Inventories

Inventories

Inventories consist of direct costs which are primarily made up of water bottles and packaging and are stated at the lower of cost or market, determined using the first-in, first-out method (FIFO).

Deposits

Deposits

Deposits consist primarily of deposits related to the purchase of equipment.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are stated at cost.  Machinery, equipment, furniture and fixtures are depreciated using various methods over their estimated useful lives, ranging from 3 to 7 years.  Buildings and improvements are depreciated using the straight-line method over the estimated useful lives for owned assets, ranging from 15 to 39 years.  Depreciable lives on leasehold improvements are the shorter of the lease term or the useful life. Capital leased assets amortize over the estimated useful life or related lease term.

Investments

Investments

The Company owns investments of capital stock in an investee. This investment entitles the Company to an equal pro rata share of this investee’s irrigation system. As the ownership represents less than 20% ownership of the Company the value of this investment is stated at cost and evaluated for impairment if there are indications of such.

Water Rights

Water Rights

Water rights are recorded at cost. As water rights have an indefinite life, no amortization is recognized.

Other Assets

Other Assets

Other assets consist of loan fees and other costs which have been recorded at cost and are being amortized using the effective interest method over the term of the loan. The Company expects to amortize approximately $14,000 each year for the next ten years.

Long-Lived Assets

Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered.  The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were deemed necessary during the fiscal years 2013 and 2012.

Customer Deposits

Customer Deposits

Customer deposits consist primarily of deposits on bottles and equipment.

Stock Based Compensation

Stock Based Compensation

The Company accounts for stock-based compensation arrangements for employees and recognizes compensation expense for share-based awards based on the grant date estimated fair value of the awards using the Black Scholes option pricing model.  Compensation expense for all share-based awards is recognized in earnings over the requisite service period (generally the vesting period).  The Company records compensation expense related to non-employees over the service periods commensurate with the services provided.  Compensation expense recorded during fiscal year 2013 and 2012 was $20,121 each year.

Basic and Diluted Loss Per Common Share

Basic and Diluted Loss Per Common Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

Potentially dilutive common shares and outstanding options and warrants which have been excluded from the computation of diluted income per share as of March 31, 2013 and 2012 were 104,000 and 111,000, respectively, because their effect would have been antidilutive.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash, receivables, accounts payable and accrued expenses approximated fair value as of March 31, 2013, because of the relatively short maturity of these instruments.

Revenue Recognition

Revenue Recognition

Revenue is recognized on the sale of products as customer shipments are made.  Returns are estimated and recorded at the time of sale.  Rental revenue is recognized on a monthly basis upon commencement of the lease agreement. Water utility revenue is recognized on a monthly basis based upon the monthly contracted rate.

Shipping Costs

Shipping Costs

Shipping costs for materials used in the final products are included in the cost of goods. Shipping costs for products delivered to customers are included in total operating expenses.

Promotional Expense – Consideration to Vendors

Promotional Expense – Consideration to Vendors

The Company recognizes certain promotional expense as a reduction in revenues. These costs included off invoice discounts to resellers and promotions for customers.

Advertising Costs

Advertising Costs

The Company expenses advertising costs as incurred.  Advertising expense for the years ended March 31, 2013 and 2012 were $219,888 and $208,226, respectively.

Use of Estimates

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, disclosures 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 from those estimates.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This pronouncement was issued to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This pronouncement is effective for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact to our consolidated financial position, results of operations or cash flows.

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This pronouncement was issued to address implementation issues about the scope of Accounting Standards Update No. 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. This pronouncement is effective for reporting periods beginning on or after January 1, 2013. We do not anticipate the adoption of ASU 2013-01 to have a material impact to the consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, ‘Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This pronouncement was issued to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (i.e. inventory) instead of directly to income or expense in the same reporting period. This pronouncement is effective prospectively for reporting periods beginning after December 15, 2012. We do not anticipate the adoption of ASU 2013-02 to have a material impact to the consolidated financial position, results of operations or cash flows.

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Unaudited Statements of Operations (USD $)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenue
Water and related	$ 9,694,518	$ 9,059,764
Resort operations	180,482	167,418
Total revenues	9,875,000	9,227,182
Cost of goods sold	2,382,806	2,492,881
Gross profit	7,492,194	6,734,301
Operating expenses
Salaries and related	3,422,318	3,211,621
Administrative and general	1,707,923	1,607,173
Delivery	876,644	769,422
Advertising and promotions	219,888	208,226
Depreciation and amortization	513,829	478,574
Total operating expenses	6,740,602	6,275,016
Income from operations	751,592	459,285
Other income (expense)
Interest income	2,249	1,960
Interest expense	(255,333)	(345,263)
Total other expense	(253,084)	(343,303)
Net income before income taxes	498,508	115,982
Income tax (expense) benefit
Current	(8,767)	24,191
Deferred	22,173	(24,191)
Total income tax benefit (expense)	13,406	0
Net income available to common shareholders	$ 511,914	$ 115,982
Basic and dilutive income (loss) per common share	$ 6,036,091	$ 6,036,091
Weighted average number of common shares outstanding - basic and dilutive	0.08	0.02

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4. Line of Credit

12 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

4. Line of Credit

Note 4 – Line of Credit

The Company has a line of credit with ANB Bank in the amount of $750,000. As of March 31, 2013, the Company did not have a balance on the line of credit. The line of credit is subject to certain borrowing base requirements, requires monthly interest payments calculated at Prime plus 1% with a minimum rate of 5.5%. The borrowing base was $750,000 as of March 31, 2013. The line includes certain reporting and financial covenants, is cross-collateralized by substantially all assets of the Company and is guaranteed by three company executives. The line has a maturity date of December 27, 2013.

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1. Description of Business and Summary of Significant Accounting Policies (Details Narrative) (USD $)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Description Of Business And Summary Of Significant Accounting Policies Details Narrative
Compensation expense	$ 20,121	$ 20,121
Potentially dilutive common shares and outstanding options and warrants which have been excluded from the computation of diluted income per share	104,000	111,000
Advertising costs	$ 219,888	$ 208,226

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2. Balance Sheet Disclosures (Tables)

12 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts receivable

	March 31, 2013			March 31, 2012
Accounts receivable
Accounts receivable	$	1,087,197		$	1,024,807
Allowance for doubtful accounts		(80,000	)		(80,000	)
	$	1,007,197		$	944,807

Property, plant and equipment

	March 31, 2013			March 31, 2012
Property, plant and equipment
Land	$	1,000,263		$	1,000,263
Buildings and improvements		4,442,756			4,415,980
Machinery and equipment		5,844,738			5,497,607
Office furniture and fixtures		329,391			329,391
		11,617,148			11,243,241
Less accumulated depreciation and amortization		(8,003,519	)		(7,504,906	)
	$	3,613,629		$	3,738,335

Accrued expenses

	March 31, 2013		March 31, 2012
Accrued expenses
Accrued payroll and taxes	$	128,914	$	117,183
Accrued property taxes		110,000		182,154
Accrued sales taxes		30,102		27,634
	$	269,016	$	326,971

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9. Stockholders' Equity (Details 1) (USD $)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Number of Options
Number of Options Outstanding, Beginning	0	226,000
Number of Options Granted	0	0
Number of Options Forfeited/canceled	(7,000)	(115,000)
Number of Options Exercised	0	0
Number of Options Outstanding, Ending	104,000	0
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning	$ 1.55	$ 1.47
Weighted Average Exercise Price Granted	$ 0	$ 0
Weighted Average Exercise Price Forfeited/canceled	$ 1.2	$ 1.4
Weighted Average Exercise Price Exercised	$ 0	$ 0
Weighted Average Exercise Price Outstanding, Ending	$ 1.57	$ 1.55

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2. Balance Sheet Disclosures (Details 2) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Balance Sheet Disclosures Details 2
Accrued expenses	$ 128,914	$ 117,183
Accrued payroll and taxes	110,000	182,154
Accrued property taxes	30,102	27,634
Accrued sales taxes	$ 269,016	$ 326,971

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2. Balance Sheet Disclosures (Details 1) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Balance Sheet Disclosures Details 1
Land	$ 1,000,263	$ 1,000,263
Buildings and improvements	4,442,756	4,415,980
Machinery and equipment	5,844,738	5,497,607
Office furniture and fixtures	329,391	329,391
Property Plant And Equipment, Gross	11,617,148	11,243,241
Less accumulated depreciation and amortization	(8,003,519)	(7,504,906)
Property Plant And Equipment, Net	$ 3,613,629	$ 3,738,335

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6. Income Taxes (Details 1) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Income Taxes Details 1
Allowance for doubtful accounts	$ 29,648	$ 29,648
Property and equipment	(68,839)	630
Deductible stock compensation	0	9,914
Net operating loss and credits	61,364	212,078
Valuation allowance	0	(252,270)
Deferred Tax Assets, Net	$ 22,173	$ 0

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5. Capital Leases (Details) (USD $)	Mar. 31, 2013
Capital Leases Details
Cost	$ 177,225
Less accumulated amortization	(38,029)
Capital Lease Obligations	$ 139,196

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2. Balance Sheet Disclosures (Details) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Balance Sheet Disclosures Details
Accounts receivable	$ 1,087,197	$ 1,024,807
Allowance for doubtful accounts	(80,000)	(80,000)
Accounts Receivable, Net	$ 1,007,197	$ 944,807

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Statement of Changes in Stockholders' Equity (Unaudited) (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Value at Mar. 31, 2011	$ 6,036	$ 1,653,496	$ (1,122,047)	$ 537,485
Beginning Balance, Shares at Mar. 31, 2011	6,036,091
Stock options issued to employees		20,121		20,121
Net income			115,982	115,982
Ending Balance, Value at Mar. 31, 2012	6,036	1,673,617	(1,006,065)	673,588
Ending Balance, Shares at Mar. 31, 2012	6,036,091
Stock options issued to employees		20,121		20,121
Net income			511,914	511,914
Ending Balance, Value at Mar. 31, 2013	$ 6,036	$ 1,693,738	$ (494,151)	$ 1,205,623
Ending Balance, Shares at Mar. 31, 2013	6,036,091

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2. Balance Sheet Disclosures

12 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

2. Balance Sheet Disclosures

Note 2 - Balance Sheet Disclosures

Accounts receivable consist of the following:

	March 31, 2013			March 31, 2012
Accounts receivable
Accounts receivable	$	1,087,197		$	1,024,807
Allowance for doubtful accounts		(80,000	)		(80,000	)
	$	1,007,197		$	944,807

Property, plant and equipment consist of the following at:

	March 31, 2013			March 31, 2012
Property, plant and equipment
Land	$	1,000,263		$	1,000,263
Buildings and improvements		4,442,756			4,415,980
Machinery and equipment		5,844,738			5,497,607
Office furniture and fixtures		329,391			329,391
		11,617,148			11,243,241
Less accumulated depreciation and amortization		(8,003,519	)		(7,504,906	)
	$	3,613,629		$	3,738,335

Depreciation expense for the fiscal year ended March 31, 2013 and 2012 was $498,614 and $476,679.

Accrued expenses consist of the following at:

	March 31, 2013		March 31, 2012
Accrued expenses
Accrued payroll and taxes	$	128,914	$	117,183
Accrued property taxes		110,000		182,154
Accrued sales taxes		30,102		27,634
	$	269,016	$	326,971

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5. Capital Leases

12 Months Ended

Mar. 31, 2013

Leases [Abstract]

5. Capital Leases

Note 5 - Capital Leases

The Company acquired assets under the provisions of a long-term lease.  For financial reporting purposes, minimum lease payments relating to the assets have been capitalized.  The leases have various expiration dates between October 2013 and February 2020.  Amortization of the leased property is included in depreciation expense.

The assets under capital lease have cost and accumulated amortization as follows:

	March 31,
	2013
Cost	$	177,225
Less accumulated amortization		(38,029	)
	$	139,196

Maturities of capital lease obligations are as follows:

Year Ending March 31,
2014	$	55,861
2015		38,808
2016		9,702
Total minimum lease payments		104,371
Amount representing interest		(9,439	)
Present value of net minimum lease payments		94,932
Less current portion		(49,341	)
Long-term capital lease obligation	$	45,591

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3. Long-Term Debt

12 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

3. Long-Term Debt

Note 3 - Long-Term Debt

Long-term debt is as follows:

	March 31, 2013			March 31, 2012
Note payable to a bank with interest fixed at 5.5% until February 2017, at which time the interest rate may change. The note calls for monthly principal and interest payments of $19,495 with unpaid principal and interest due February 2, 2022. The note is cross-collateralized with the line of credit and backed by substantially all assets of the Company and guaranteed by three stockholders and officers of the Company.  The note is subject to certain restrictive covenants.	$	2,730,449		$	2,808,873
Note payable to a bank with an effective interest rate of 4.951% for the full 20 year term. The note calls for monthly principal and interest payments of $10,088 effective May 1, 2012 and matures in April 2032. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	$	1,405,019		$	1,415,216
Note payable to a bank with interest fixed at 6% until October 2017. The note calls for monthly principal and interest payments of $349 effective October 2012. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	$	15,680		$	-
		4,151,148			4,224,089
Less current portion		(146,325	)		(126,583	)
	$	4,004,823		$	4,097,506

Maturities of Long-Term Debt Obligations:

Year Ending March 31,
2014	$	359,183
2015		359,183
2016		357,791
Thereafter		3,680,946
Total payments		4,757,103
Amount representing interest		(605,955	)
Net payments		4,151,148
Less current portion		(146,325	)
Long-term debt obligation	$	4,004,823

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3. Long-Term Debt (Details) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Long-Term Debt Details
Note payable to a bank with interest fixed at 5.5% until February 2017, at which time the interest rate may change. The note calls for monthly principal and interest payments of $19,495 with unpaid principal and interest due February 2, 2022. The note is cross-collateralized with the line of credit and backed by substantially all assets of the Company and guaranteed by three stockholders and officers of the Company.  The note is subject to certain restrictive covenants.	$ 2,730,449	$ 2,808,873
Note payable to a bank with an effective interest rate of 4.951% for the full 20 year term. The note calls for monthly principal and interest payments of $10,088 effective May 1, 2012 and matures in April 2032. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	1,405,019	1,415,216
Note payable to a bank with interest fixed at 6% until October 2017. The note calls for monthly principal and interest payments of $349 effective October 2012. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	15,680	0
Long Term Debt	4,151,148	4,224,089
Less current portion	(146,325)	(126,583)
Long Term Debt, Noncurrent	$ 4,004,823	$ 4,097,506

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5. Capital Leases (Details 1) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Capital Leases Details 1
2014	$ 55,861
2015	38,808
2016	9,702
Total minimum lease payments	104,371
Amount representing interest	(9,439)
Present value of net minimum lease payments	94,932
Less current portion	(49,341)	(26,321)
Long-term capital lease obligation	$ 45,591	$ 16,531

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9. Stockholders' Equity (Details)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2011
Number of Options Outstanding, Ending	104,000	0	226,000
Number of Options Exercisable	94,000
Life	1 year 6 months 14 days
0.875
Number of Options Outstanding, Ending	15,000
Number of Options Exercisable	15,000
Life	1 year 5 months 1 day
1.00
Number of Options Outstanding, Ending	9,000
Number of Options Exercisable	9,000
Life	1 year 29 days
1.65
Number of Options Outstanding, Ending	14,000
Number of Options Exercisable	14,000
Life	1 year 7 months 24 days
1.75
Number of Options Outstanding, Ending	16,000
Number of Options Exercisable	16,000
Life	1 year 9 months
1.80
Number of Options Outstanding, Ending	50,000
Number of Options Exercisable	40,000
Life	1 year 9 months 18 days

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Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized	50,000,000	50,000,000
Common stock, Issued	6,036,091	6,036,091
Common stock, outstanding	6,036,091	6,036,091

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8. Contingency

12 Months Ended

Mar. 31, 2013

Notes to Financial Statements

8. Contingency

Note 8 – Contingency

When we purchased the Eldorado Springs property in 1983, included in the purchase of the real estate were certain water rights that had been decreed for the water sources located on the property. We have the right to beneficially use the water derived from the sources of water that are the subject of the decreed water rights, unless there is a call being made downstream from our location by a water right that is senior to ours. A senior water right would be obtained by those that applied water to a beneficial use prior to the uses associated with our water sources. Because the Eldorado Springs area was not developed until the early 1900’s there are many senior water rights that could place a call on the stream and unless we have a recognized replacement source of water or a decreed Augmentation Plan we would be forced to stop using the water from our sources.

We had previously enrolled in a replacement water subscription service known as GASP (Groundwater Appropriators of the South Platte) as a means of providing replacement water to the stream system at times when we withdrew water from our sources when we were not in priority. However, during the drought in 2002, GASP was unable to make all of the replacements for which they were obligated. Therefore, the State of Colorado determined that GASP would no longer be a recognized source of replacement water. This determination by the state meant that we would have to obtain other sources of replacement or augmentation water if we continued to withdraw water from our sources while not in priority.

Because demand for our spring water exists on a year round basis, we require a replacement water source that can be delivered to the stream at any time during the year. We were able to purchase shares of stock of the Farmer’s Reservoir and Irrigation Company (FRICO) – Marshall Division. Each share entitles us to the use of a pro rata portion of the water belonging to FRICO as operated pursuant to state regulations that govern what are known as Mutual Ditch Companies. Marshall Reservoir is located in close proximity to our water sources in Eldorado Springs and because the water is stored it is able to be released upon demand to meet our obligations.

The water represented by our shares in the FRICO system had been historically used for irrigating croplands. This meant that, in addition to obtaining a decreed augmentation plan from the Colorado Water Court, we had to obtain a change of use decree in order to use the water for replacing our withdrawals as part of the Augmentation Plan. The Water Court of the State of Colorado entered a Decree on April 16, 2013 approving the change in water right and the terms and conditions of our Augmentation Plan, subject to the retained jurisdiction clauses normally associated with such actions. The Decree allows us to use the water represented by our FRICO shares as augmentation water to replace our out of priority withdrawals from our springs and other sources. It also established the conditions under which we can add other sources of water to the Plan for use as additional replacement water. It is possible that our ability to withdraw water from our springs in a particular year may be limited if the water associated with our FRICO shares under drought conditions is not sufficient to meet all of our replacement requirements.  Because drought is an ever present possibility in our location, we will continue to seek additional sources of replacement and augmentation water to add to our Augmentation Plan.

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Unaudited Statements of Cash Flows (USD $)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities
Net income	$ 511,914	$ 115,982
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	513,829	478,574
Deferred income taxes	(22,173)	0
Stock based compensation	20,121	20,121
Changes in assets and liabilities
Accounts receivable	(62,390)	103,739
Inventories	(83,377)	31,526
Prepaid expenses and other	6,428	(41,568)
Deposits	0	39,996
Accounts payable	177,851	(265,575)
Accrued expenses	(57,955)	(8,609)
Income taxes payable	8,767	0
Customer deposits	24,052	(18,233)
Net cash provided by operating activities	1,037,067	455,953
Cash flows from investing activities
Purchases of property and equipment	(272,846)	(217,191)
Net cash flows used in investing activities	(272,846)	(217,191)
Cash flows from financing activities
Payments on line of credit	(370,051)	0
Payments on long-term debt and capital leases	(180,238)	(67,881)
Borrowings on long-term obligations	16,531	0
Net cash flows used in financing activities	(533,758)	(67,881)
Net increase in cash	230,463	170,881
Cash - beginning of period	250,083	79,202
Cash - end of period	$ 480,546	$ 250,083

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Balance Sheets (Unaudited) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Assets
Cash	$ 480,546	$ 250,083
Accounts receivable - trade, net	1,007,197	944,807
Inventories	420,048	336,671
Prepaid expenses and other	41,290	49,748
Deferred tax asset	29,648	0
Total current assets	1,978,729	1,581,309
Non-current assets
Property, plant and equipment, net	3,613,629	3,738,335
Investments	361,196	361,196
Water rights, net	71,675	71,675
Deposits	108,204	108,204
Other, net	123,896	95,297
Total non-current assets	4,278,600	4,374,707
Total assets	6,257,329	5,956,016
Liabilities and Stockholders' Equity
Accounts payable	415,442	237,591
Accrued expenses	269,016	326,971
Income taxes payable	8,767	0
Customer deposits	104,926	80,874
Line of credit	0	370,051
Current portion of capital lease obligations	49,341	26,321
Current portion of long-term debt	146,325	126,583
Total current liabilities	993,817	1,168,391
Non-current liabilities
Deferred tax liability	7,475	0
Capital lease obligations, less current portion	45,591	16,531
Long term debt, less current portion	4,004,823	4,097,506
Total non-current liabilities	4,057,889	4,114,037
Total liabilities	5,051,706	5,282,428
Commitments and contingency
Stockholders' equity
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; 0  shares issued and outstanding	0	0
Common stock, par value $.001 per share; 50,000,000 shares authorized; 6,036,091 (2013 and 2012) issued and outstanding	6,036	6,036
Additional paid-in capital	1,693,738	1,673,617
Accumulated deficit	(494,151)	(1,006,065)
Total stockholders' equity	1,205,623	673,588
Total liabilities and stockholders' equity	$ 6,257,329	$ 5,956,016

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3. Long-Term Debt (Details 1) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Long-Term Debt Details 1
2014	$ 359,183
2015	359,183
2016	357,791
Thereafter	3,680,946
Total payments	4,757,103
Amount representing interest	(605,955)
Net payments	4,151,148	4,224,089
Less current portion	(146,325)	(126,583)
Long-term debt obligation	$ 4,004,823	$ 4,097,506

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9. Stockholders' Equity (Tables)

12 Months Ended

Mar. 31, 2013

Equity [Abstract]

Activity for options outstanding

				Weighted
				Average
	Stock			Exercise
	Options			Price
Outstanding - March 31, 2011		226,000		$	1.47
Granted		-			-
Forfeited/canceled		(115,000	)		1.40
Exercised		-			-
Outstanding - March 31, 2012		111,000			1.55
Granted		-			-
Forfeited/canceled		(7,000	)		1.20
Exercised		-			-
Outstanding - March 31, 2013		104,000		$	1.57

Options outstanding and exercisable

		Options Outstanding						Options Exercisable
Exercise Prices		Number		Price*		Life*		Number		Price*
$	0.875		15,000	$	0.875		1.42		15,000	$	0.875
	1.00		9,000		1.00		1.08		9,000		1.00
	1.65		14,000		1.65		3.09		14,000		1.65
	1.75		16,000		1.75		4.09		16,000		1.75
	1.80		50,000		1.80		5.05		40,000		1.80
Total - March 31, 2013			104,000	$	1.57		3.77		94,000	$	1.54

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10. Employee Benefit Plan (Details Narrative) (USD $)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Employee Benefit Plan Details Narrative
Company's matching percentage	3.00%	3.00%
Company's matching amount	$ 43,200	$ 43,100

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6. Income Taxes (Details 2) (USD $)	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Taxes Details 2
Federal income taxes computed at statutory rate	$ 169,493	$ 39,434
State income taxes	25,581	4,820
Stock based compensation	6,841	6,841
Other	13,481	(26,904)
Valuation allowance	(228,802)	(24,191)
Effective Income Tax	$ (13,406)	$ 0

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7. Commitments and Contingency (Details) (USD $)	Mar. 31, 2013
Commitments And Contingency Details
2014	$ 298,092
2015	274,749
2016	253,092
2017	226,720
Thereafter	226,576
Operating Leases Future Minimum Payments Due	$ 1,279,229

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7. Commitments and Contingency

12 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingency

Note 7 – Commitments and Contingency

Operating Leases

The Company leases delivery trucks, vehicles, equipment and property under non-cancelable operating leases.  Rent expense for these leases was $415,812 and $368,459 for the years ended March 31, 2013 and 2012, respectively.

Future minimum lease payments under these leases are approximately as follows:

Year Ending March 31,
2014	$	298,092
2015		274,749
2016		253,092
2017		226,720
Thereafter		226,576
	$	1,279,229

Renewable Energy Service Agreement

On June 11, 2009, the Company entered into a twenty year renewable energy service agreement with Eldorado Springs Solar, LLC, an unrelated third party, to design, install, own, operate and maintain a solar electricity generating system at our property in Louisville, Colorado. The Company will purchase all of the solar electricity generated by the system which will provide approximately 50% of the electricity needs at the facility in Louisville, Colorado. The agreement provides a guaranteed energy rate schedule for 10 years with a reset rate in year eleven for the electric cost. If the Company was to terminate the agreement the Company would be required to pay a termination penalty. As of March 31, 2013, this penalty would be approximately $350,000. The Company also has the option to purchase and take title to the system starting in year eleven. During the fiscal year ended March 31, 2013, the Company expensed approximately $10,500 in utility costs under this agreement.

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4. Line of Credit (Details Narrative) (USD $)	Mar. 31, 2013
Line Of Credit Details Narrative
Line of credit	$ 750,000

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10. Employee Benefit Plan

12 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

10. Employee Benefit Plan

Note 10 - Employee Benefit Plan

The Company has adopted a 401(k) profit sharing plan for its employees.  Employees become eligible to participate in the plan once they have completed one year of service and have reached 21 years of age.  Contributions by the Company and employees vest immediately.  The Company matches 100% of employee’s contributions up to 3% of the employee’s gross pay.  The Company matched approximately $43,100 for the year ended March 31, 2013 and $43,200 for the year ended March 31, 2012.  No discretionary profit sharing contributions were approved by the Board of Directors for the years ended March 31, 2013 and 2012.

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6. Income Taxes

12 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

6. Income Taxes

Note 6 - Income Taxes

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns.  Deferred tax liabilities and assets are determined based on the differences between the financial statement and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse.  The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that are not expected to be realized based on available evidence. Net operating losses in the amount of approximately $70,000 for federal and $735,000 for state and begin to expire in 2031 and 2028.

The Company is subject to income taxes in the U.S. federal jurisdiction, and various state and local jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. In the United States, the tax years 2009-2012 remain open to examination by the federal Internal Revenue Service and the tax years 2008-2012 remain open for various state taxing authorities. The Company has not taken any uncertain tax positions.  The net current and long-term deferred tax assets and liabilities in the accompanying balance sheet include the following:

	March 31, 2013			March 31, 2012
Current deferred tax asset	$	29,648		$	-
Current deferred tax liability		-			-
Net current deferred tax asset	$	29,648		$	-
Long-term deferred tax asset, net of valuation allowance	$	61,364		$	-
Long-term deferred tax liability		(68,839	)		-
Net long-term deferred tax liability, net of valuation allowance	$	(7,475	)	$	-

Temporary differences giving rise to the net deferred tax asset are as follows:

Allowance for doubtful accounts	$	29,648		$	29,648
Property and equipment		(68,839	)		630
Deductible stock compensation		-			9,914
Net operating loss and credits		61,364			212,078
Valuation allowance		-			(252,270	)
	$	22,173		$	-

The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net income compared to the income tax (benefit) expense in the statements of income:

	For the Years Ended
	March 31,
	2013			2012
Federal income taxes computed at statutory rate	$	169,493		$	39,434
State income taxes		25,581			4,820
Stock based compensation		6,841			6,841
Other		13,481			(26,904	)
Valuation allowance		(228,802	)		(24,191	)
	$	(13,406	)	$	-

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1. Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

1. Description of Business and Summary of Significant Accounting Policies

Note 1 - Description of Business and Summary of Significant Accounting Policies

Eldorado Artesian Springs, Inc., (the "Company"), is a Colorado corporation which primarily sells bottled Artesian spring water from springs located in Eldorado Springs, Colorado and rents water dispensers.  The Company also sells a line of Organic Vitamin Charged Spring Water to retail stores. The Company rents housing, and during the summer months, it operates a natural Artesian spring pool. The Company's bottling and distribution facility is located in Louisville, Colorado.

Concentrations of Credit Risk

The Company maintains cash in bank accounts that may, at times, exceed FDIC insurance limits.  Financial instruments potentially subjecting the Company to concentrations of credit risk consist primarily of accounts receivable.  The Company grants credit to customers located primarily in Colorado.  The Company periodically performs credit analysis and monitors the financial condition of its clients in order to minimize credit risk.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. At March 31, 2013 and 2012, the Company did not have any cash equivalents.

Accounts Receivable

The Company extends unsecured credit to its customers in the ordinary course of business. The Company considers a reserve for doubtful accounts based on the creditworthiness of the customer. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management's best estimate of uncollectible amounts and is determined based on historical performance that is tracked by the Company on an ongoing basis.

Inventories

Inventories consist of direct costs which are primarily made up of water bottles and packaging and are stated at the lower of cost or market, determined using the first-in, first-out method (FIFO).

Deposits

Deposits consist primarily of deposits related to the purchase of equipment.

Property, Plant and Equipment

Property, plant and equipment are stated at cost.  Machinery, equipment, furniture and fixtures are depreciated using various methods over their estimated useful lives, ranging from 3 to 7 years.  Buildings and improvements are depreciated using the straight-line method over the estimated useful lives for owned assets, ranging from 15 to 39 years.  Depreciable lives on leasehold improvements are the shorter of the lease term or the useful life. Capital leased assets amortize over the estimated useful life or related lease term.

Investments

The Company owns investments of capital stock in an investee. This investment entitles the Company to an equal pro rata share of this investee’s irrigation system. As the ownership represents less than 20% ownership of the Company the value of this investment is stated at cost and evaluated for impairment if there are indications of such.

Water Rights

Water rights are recorded at cost. As water rights have an indefinite life, no amortization is recognized.

Other Assets

Other assets consist of loan fees and other costs which have been recorded at cost and are being amortized using the effective interest method over the term of the loan. The Company expects to amortize approximately $14,000 each year for the next ten years.

Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered.  The Company looks primarily to the undiscounted future cash flows in its assessment of whether or not long-lived assets have been impaired. No impairments were deemed necessary during the fiscal years 2013 and 2012.

Customer Deposits

Customer deposits consist primarily of deposits on bottles and equipment.

Stock Based Compensation

The Company accounts for stock-based compensation arrangements for employees and recognizes compensation expense for share-based awards based on the grant date estimated fair value of the awards using the Black Scholes option pricing model.  Compensation expense for all share-based awards is recognized in earnings over the requisite service period (generally the vesting period).  The Company records compensation expense related to non-employees over the service periods commensurate with the services provided.  Compensation expense recorded during fiscal year 2013 and 2012 was $20,121 each year.

Basic and Diluted Loss Per Common Share

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

Potentially dilutive common shares and outstanding options and warrants which have been excluded from the computation of diluted income per share as of March 31, 2013 and 2012 were 104,000 and 111,000, respectively, because their effect would have been antidilutive.

Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash, receivables, accounts payable and accrued expenses approximated fair value as of March 31, 2013, because of the relatively short maturity of these instruments.

Revenue Recognition

Revenue is recognized on the sale of products as customer shipments are made.  Returns are estimated and recorded at the time of sale.  Rental revenue is recognized on a monthly basis upon commencement of the lease agreement. Water utility revenue is recognized on a monthly basis based upon the monthly contracted rate.

Shipping Costs

Shipping costs for materials used in the final products are included in the cost of goods. Shipping costs for products delivered to customers are included in total operating expenses.

Promotional Expense – Consideration to Vendors

The Company recognizes certain promotional expense as a reduction in revenues. These costs included off invoice discounts to resellers and promotions for customers.

Advertising Costs

The Company expenses advertising costs as incurred.  Advertising expense for the years ended March 31, 2013 and 2012 were $219,888 and $208,226, respectively.

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, disclosures 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 from those estimates.

Recently Issued Accounting Pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. New pronouncements assessed by the Company recently are discussed below:

In July 2012, the FASB issued ASU No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” This pronouncement was issued to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This pronouncement is effective for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact to our consolidated financial position, results of operations or cash flows.

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This pronouncement was issued to address implementation issues about the scope of Accounting Standards Update No. 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. This pronouncement is effective for reporting periods beginning on or after January 1, 2013. We do not anticipate the adoption of ASU 2013-01 to have a material impact to the consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, ‘Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This pronouncement was issued to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (i.e. inventory) instead of directly to income or expense in the same reporting period. This pronouncement is effective prospectively for reporting periods beginning after December 15, 2012. We do not anticipate the adoption of ASU 2013-02 to have a material impact to the consolidated financial position, results of operations or cash flows.

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6. Income Taxes (Details) (USD $)	Mar. 31, 2013	Mar. 31, 2012
Income Taxes Details
Current deferred tax asset	$ 29,648	$ 0
Current deferred tax liability	0	0
Net current deferred tax asset	29,648	0
Long-term deferred tax asset, net of valuation allowance	61,364	0
Long-term deferred tax liability	(68,839)	0
Net long-term deferred tax liability, net of valuation allowance	$ (7,475)	$ 0

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3. Long-Term Debt (Tables)

12 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Long-term debt

	March 31, 2013			March 31, 2012
Note payable to a bank with interest fixed at 5.5% until February 2017, at which time the interest rate may change. The note calls for monthly principal and interest payments of $19,495 with unpaid principal and interest due February 2, 2022. The note is cross-collateralized with the line of credit and backed by substantially all assets of the Company and guaranteed by three stockholders and officers of the Company.  The note is subject to certain restrictive covenants.	$	2,730,449		$	2,808,873
Note payable to a bank with an effective interest rate of 4.951% for the full 20 year term. The note calls for monthly principal and interest payments of $10,088 effective May 1, 2012 and matures in April 2032. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	$	1,405,019		$	1,415,216
Note payable to a bank with interest fixed at 6% until October 2017. The note calls for monthly principal and interest payments of $349 effective October 2012. The note is cross collateralized with the line of credit and backed by substantially all assets of the Company and is guaranteed by three stockholders and officers of the Company.	$	15,680		$	-
		4,151,148			4,224,089
Less current portion		(146,325	)		(126,583	)
	$	4,004,823		$	4,097,506

Maturities of Long-Term Debt Obligations

Year Ending March 31,
2014	$	359,183
2015		359,183
2016		357,791
Thereafter		3,680,946
Total payments		4,757,103
Amount representing interest		(605,955	)
Net payments		4,151,148
Less current portion		(146,325	)
Long-term debt obligation	$	4,004,823

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9. Stockholders' Equity

12 Months Ended

Mar. 31, 2013

Equity [Abstract]

9. Stockholders' Equity

Note 9 - Stockholders' Equity

Stock Options

The Company has a qualified stock plan, the 2008 Incentive Stock Plan, pursuant to which 2,000,000 shares were reserved for issuance.  As of March 31, 2013, 1,950,000 shares were available for future grant.  Additionally, the Company previously had a qualified stock plan, the 1997 Stock Option Plan, which expired in 2007, pursuant to which 875,000 shares were reserved for issuance.  As of March 31, 2013, 54,000 shares were reserved for issuance pursuant to outstanding grants and no shares were available for future grant as the plan has expired.  The 2008 Incentive Stock Plan and the 1997 Stock Option Plan, referred to herein as the Plans, and the shares issuable there under, are both registered on Form S-8 with the Securities and Exchange Commission.  The Plans provide for the grant of options and other equity based awards to employees, directors and consultants of the Company and are administered by the Company’s Board of Directors.

The following table presents the activity for options outstanding:

				Weighted
				Average
	Stock			Exercise
	Options			Price
Outstanding - March 31, 2011		226,000		$	1.47
Granted		-			-
Forfeited/canceled		(115,000	)		1.40
Exercised		-			-
Outstanding - March 31, 2012		111,000			1.55
Granted		-			-
Forfeited/canceled		(7,000	)		1.20
Exercised		-			-
Outstanding - March 31, 2013		104,000		$	1.57

The following table presents the composition of options outstanding and exercisable:

		Options Outstanding						Options Exercisable
Exercise Prices		Number		Price*		Life*		Number		Price*
$	0.875		15,000	$	0.875		1.42		15,000	$	0.875
	1.00		9,000		1.00		1.08		9,000		1.00
	1.65		14,000		1.65		3.09		14,000		1.65
	1.75		16,000		1.75		4.09		16,000		1.75
	1.80		50,000		1.80		5.05		40,000		1.80
Total - March 31, 2013			104,000	$	1.57		3.77		94,000	$	1.54

*Price and Life reflect the weighted average exercise price and weighted average remaining contractual life, in years, respectively.

Compensation expense recorded during the years ended March 31, 2013 and 2012 for options granted under the 2008 and 1997 Incentive Stock Plan was $20,121 and $20,121.  As of March 31, 2013 all options granted under the 1997 Incentive Stock plan were fully vested and 40,000 of the 50,000 options were fully vested under the 2008 Incentive Stock Plan.

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7. Commitments and Contingency (Tables)

12 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease payments

Year Ending March 31,
2014	$	298,092
2015		274,749
2016		253,092
2017		226,720
Thereafter		226,576
	$	1,279,229

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5. Capital Leases (Tables)

12 Months Ended

Mar. 31, 2013

Leases [Abstract]

Assets under capital lease

	March 31,
	2013
Cost	$	177,225
Less accumulated amortization		(38,029	)
	$	139,196

Maturities of capital lease obligations

Year Ending March 31,
2014	$	55,861
2015		38,808
2016		9,702
Total minimum lease payments		104,371
Amount representing interest		(9,439	)
Present value of net minimum lease payments		94,932
Less current portion		(49,341	)
Long-term capital lease obligation	$	45,591

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Document and Entity Information (USD $)	12 Months Ended
	Mar. 31, 2013	Sep. 30, 2013	Jun. 28, 2013
Document And Entity Information
Entity Registrant Name	ELDORADO ARTESIAN SPRINGS INC
Entity Central Index Key	0000796124
Document Type	10-K
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 239,114
Entity Common Stock, Shares Outstanding			6,036,091
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013

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6. Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Net current and long-term deferred tax assets and liabilities

	March 31, 2013			March 31, 2012
Current deferred tax asset	$	29,648		$	-
Current deferred tax liability		-			-
Net current deferred tax asset	$	29,648		$	-
Long-term deferred tax asset, net of valuation allowance	$	61,364		$	-
Long-term deferred tax liability		(68,839	)		-
Net long-term deferred tax liability, net of valuation allowance	$	(7,475	)	$	-

Temporary differences giving rise to the net deferred tax asset

Allowance for doubtful accounts	$	29,648		$	29,648
Property and equipment		(68,839	)		630
Deductible stock compensation		-			9,914
Net operating loss and credits		61,364			212,078
Valuation allowance		-			(252,270	)
	$	22,173		$	-

Reconciliation of the statutory federal income tax rate

	For the Years Ended
	March 31,
	2013			2012
Federal income taxes computed at statutory rate	$	169,493		$	39,434
State income taxes		25,581			4,820
Stock based compensation		6,841			6,841
Other		13,481			(26,904	)
Valuation allowance		(228,802	)		(24,191	)
	$	(13,406	)	$	-