1.2 contains significant improvements in the inventory monitoring process. It is much less likely to result in a false alert.
1.2.2 contains fixes to startup code to accommodate long load times.
1.3 contains further startup fixes.
1.4 adds a stack, so that if multiple items are received at the same time they will all alert.
1.5 adds customisability to alerts in LootWatch.lua
1.5.3 adds support for localisation.
1.6 considers items which you are wearing to be in your inventory as well.