3 unchanged sentences
Significant Accounting Policies — Accounting policies that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.
−Removed: Results of Operations — Analysis of our financial results comparing the quarter ended June 30, 2023 to June 30, 2022.
+Added: Results of Operations — Analysis of our financial results comparing the quarter ended September 30, 2023 to September 30, 2022.
Liquidity and Capital Resources — Analysis of changes in our cash flows, and discussion of our financial condition and potential sources of liquidity.
21 unchanged sentences
Our beverages have been certified Non-GMO Project Verified and USDA Organic, and we offer both nonalcoholic and ready-to-drink alcoholic options.
−Removed: In addition, we have a line of sparkling energy beverages targeted towards female consumers.
+Added: In addition, we have a line of energy sparkling beverages formulated for female consumers.
Our beverages can be found in North America, the Caribbean, and Bermuda.
10 unchanged sentences
Results of Operations
−Removed: Three Months Ended June 30, 2023 and 2022
−Removed: For the three months ended June 30, 2023, the Company reported revenue of $588,479 an increase from revenue of $541,102 for the three months ended June 30, 2022.
+Added: Three Months Ended September 30, 2023 and 2022
+Added: For the three months ended September 30, 2023, the Company reported revenue of $675,947 an increase from revenue of $548,973 for the three months ended September 30, 2022.
The $126,974 increase in revenue was due in part to a strong demand for a new product that launched in 2022.
2 unchanged sentences
Also included in cost of revenue are adjustments made to inventory carrying amounts, including markdowns to market.
−Removed: For the three months ended June 30, 2023, cost of revenue was $307,721 or 52% of revenue.
−Removed: For the three months ended June 30, 2022, cost of revenue was $352,760 or 65% of revenue.
−Removed: The 13% decrease in cost of revenue was primarily due to lower ocean transportation costs for the quarter ended June 30, 2023 compared to the same period last year.
+Added: For the three months ended September 30, 2023, cost of revenue was $367,262 or 54% of revenue.
+Added: For the three months ended September 30, 2022, cost of revenue was $380,864 or 69% of revenue.
+Added: The 15% decrease in cost of revenue was primarily due to lower ocean transportation costs for the quarter ended September 30, 2023 compared to the same period last year.
Operating Expenses
−Removed: For the three months ended June 30, 2023, selling, general and administrative expenses was $258,671 an increase of $70,441 from the three months ended June 30, 2022 of $188,229.
−Removed: This increase in operating expenses was due to an increase in Amazon Selling fees coupled with increases in compensation and marketing expenses.
−Removed: Amazon selling fees increased by $35,683.
−Removed: Compensation expense increased by $12,950 and marketing expenses went up by $11,013 compared to the same period last year.
−Removed: For the three months ended June 30, 2023, the net income was $18,830, a $21,657 improvement from a net loss of ($2,827) for the three months ended June 30, 2022.
−Removed: Six Months Ended June 30, 2023 and 2022
−Removed: For the six months ended June 30, 2023, the Company reported revenue of $1,104,113 an increase from revenue of $920,759 for the six months ended June 30, 2022.
−Removed: The $183,354 increase in revenue was primarily due to Covid having a lesser impact on our business.
+Added: For the three months ended September 30, 2023, selling, general and administrative expenses was $358,639 an increase of $160,517 from the three months ended September 30, 2022 of $198,122.
+Added: This increase in operating expenses was primarily due to the increase in share price of the stock awards issued to officers and directors.
+Added: Stock awards increased by $102,028 for the quarter ended September 30, 2023 compared to the same period last year.
+Added: Compensation expense increased by $9,257 for the third quarter of 2023 compared to the same period in 2022.
+Added: Amazon selling fees also increased by $46,443.
+Added: Nine Months Ended September 30, 2023 and 2022
+Added: For the nine months ended September 30, 2023, the Company reported revenue of $1,780,059 an increase from revenue of $1,469,732 for the nine months ended September 30, 2022.
+Added: The $310,327 increase in revenue was primarily due to new accounts that the Company picked up and also a higher quantity of cases sold to current customers during 2023 compared to the same period in 2022.
Cost of Revenue
1 unchanged sentence
Also included in cost of revenue are adjustments made to inventory carrying amounts, including markdowns to market.
−Removed: For the six months ended June 30, 2023, cost of revenue was $621,179 or 56% of revenue.
−Removed: For the six months ended June 30, 2022, cost of revenue was $585,343 or 63% of revenue.
−Removed: The 7% decrease in cost of revenue was due to the lower ocean transportation costs for the first six months of 2023 compared to the same period last year.
+Added: For the nine months ended September 30, 2023, cost of revenue was $988,441 or 56% of revenue.
+Added: For the nine months ended September 30, 2022, cost of revenue was $966,207 or 66% of revenue.
+Added: The 10% decrease in cost of revenue was due to the lower ocean transportation costs for the first nine months of 2023 compared to the same period last year.
Operating Expenses
−Removed: For the six months ended June 30, 2023, selling, general and administrative expenses was $453,583 a decrease of $16,213 from the six months ended June 30, 2022 of $469,796.
−Removed: This increase in operating expenses was due to lower stock award expenses offset by increases in Amazon selling expenses, compensation expenses and marketing expenses.
−Removed: During the first six months of 2023, Stock award expenses decreased by $89,520 compared to the same period last year;
−Removed: while Amazon selling expenses increased by $27,280, compensation expenses increased by $26,980 and marketing expenses increased by $11,671 compared to the first six months of 2022.
−Removed: For the six months ended June 30, 2023, the net income was $23,315, a $161,521 improvement from a net loss of ($138,206) for the six months ended June 30, 2022.
+Added: For the nine months ended September 30, 2023, selling, general and administrative expenses was $812,222, an increase of $144,304 from the nine months ended September 30, 2022 of $667,918.
+Added: This increase in operating expenses was primarily due to an increase in Amazon selling expenses, compensation expenses and marketing expenses.
+Added: During the first nine months of 2023, Amazon selling expenses increased by $70,721, compensation expenses increased by $36,278 and marketing expenses increased by $13,691compared to the first nine months of 2022.
Liquidity and Capital Resources
−Removed: As of June 30, 2023, the Company had working capital of $171,408.
−Removed: Net cash used in operating activities was $2,673 for the six months ended June 30, 2023, compared to net cash used in operating activities for the six months ended June 30, 2022 of $100,016.
−Removed: Net cash provided by financing activities was $26,998 for the six months ended June 30, 2023 compared to $57,260 for the six months ended June 30, 2022.
−Removed: Net cash was provided by financing activities of a related party loan, offset by cash used in financing activities to repurchase EQUATOR Restricted Common Stock for the six months ended June 30, 2023.
−Removed: Net cash was provided by financing activities of a related party loan and proceeds from the exercise of stock options, offset by cash used in financing activities to repurchase EQUATOR Restricted Common Stock for the six months ended June 30, 2022.
+Added: As of September 30, 2023, the Company had working capital of $235,836.
+Added: Net cash provided by operating activities was $12,594 for the nine months ended September 30, 2023, compared to net cash used in operating activities for the nine months ended September 30, 2022 of $144,119.
+Added: Net cash used in financing activities was $23,002 for the nine months ended September 30, 2023 compared to $107,260 for the nine months ended September 30, 2022.
+Added: Net cash was provided by financing activities of a related party loan, offset by cash used in financing activities to repurchase EQUATOR Restricted Common Stock for the nine months ended September 30, 2023.
+Added: Net cash was provided by financing activities of a related party loan and proceeds from the exercise of stock options, offset by cash used in financing activities to repurchase EQUATOR Restricted Common Stock for the nine months ended September 30, 2022.
Working Capital Needs
−Removed: Our working capital requirements increase as demand grows for our products.
−Removed: During the six months ended June 30, 2023, the Company had net borrowings of $290,000.
+Added: Our working capital requirements increase as revenue grows for our products.
+Added: During the nine months ended September 30, 2023, the Company had net borrowings of $240,000.
This was the direct result of supply chain delays in manufacturing and ocean transport times.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.