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 September 30, 2023 to September 30, 2022.
+Added: Results of Operations — Analysis of our financial results comparing the quarter ended March 31, 2024 to March 31, 2023.
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 energy sparkling beverages formulated for female consumers.
+Added: In addition, we have a line of sparkling energy beverages.
Our beverages can be found in North America, the Caribbean, and Bermuda.
10 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30, 2023 and 2022
−Removed: 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.
−Removed: The $126,974 increase in revenue was due in part to a strong demand for a new product that launched in 2022.
−Removed: Cost of Revenue
−Removed: Cost of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs.
−Removed: Also included in cost of revenue are adjustments made to inventory carrying amounts, including markdowns to market.
−Removed: For the three months ended September 30, 2023, cost of revenue was $367,262 or 54% of revenue.
−Removed: For the three months ended September 30, 2022, cost of revenue was $380,864 or 69% of revenue.
−Removed: 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.
−Removed: Operating Expenses
−Removed: 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.
−Removed: This increase in operating expenses was primarily due to the increase in share price of the stock awards issued to officers and directors.
−Removed: Stock awards increased by $102,028 for the quarter ended September 30, 2023 compared to the same period last year.
−Removed: Compensation expense increased by $9,257 for the third quarter of 2023 compared to the same period in 2022.
−Removed: Amazon selling fees also increased by $46,443.
−Removed: Nine Months Ended September 30, 2023 and 2022
−Removed: 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.
−Removed: 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.
+Added: Three Months Ended March 31, 2024 and 2023
+Added: For the quarter ended March 31, 2024, the Company reported revenue of $640,653 an increase of $125,020 or 24% from revenue of $515,633 for the quarter ended March 31, 2023.
+Added: The increase in revenue was due to strong demand for all products.
Cost of Revenue
−Removed: Cost of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs.
−Removed: Also included in cost of revenue are adjustments made to inventory carrying amounts, including markdowns to market.
−Removed: For the nine months ended September 30, 2023, cost of revenue was $988,441 or 56% of revenue.
−Removed: For the nine months ended September 30, 2022, cost of revenue was $966,207 or 66% of revenue.
−Removed: 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.
+Added: Cost of revenue includes finished goods purchase costs and freight in costs.
+Added: For the quarter ended March 31, 2024, cost of revenue was $370,070 or 58% of revenue, an improvement of 3 percentage points from the same period in 2023.
+Added: For the quarter ended March 31, 2023, cost of revenue was $313,457 or 61% of revenue.
+Added: The improvement in the operating margin was the result of improved sales of higher margin products.
Operating Expenses
−Removed: 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.
−Removed: This increase in operating expenses was primarily due to an increase in Amazon selling expenses, compensation expenses and marketing expenses.
−Removed: 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.
+Added: Operating expenses for the first quarter of 2024 were $230,758 compared to $178,720 for the same period in 2023 excluding restricted, non-trading stock awards issued to officers and directors.
+Added: This $52,038 or 29% increase was primarily due to increased revenue of 24%.
+Added: During the first quarter of 2023, 201,000 shares of restricted, non-trading common stock were issued to officers and directors compared to 276,000 shares issued during the same period in 2023 which is a reduction of 75,000 shares.
+Added: For the first quarter of 2024, the implied cost of the restricted, non-trading common shares was $0.61 per share compared to $0.06 per share for the first quarter of 2023.
+Added: The increase was due to a higher stock price of the publicly traded shares in 2024.
Liquidity and Capital Resources
−Removed: As of September 30, 2023, the Company had working capital of $235,836.
−Removed: 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.
−Removed: 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.
−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 nine months ended September 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 nine months ended September 30, 2022.
+Added: As of March 31, 2024, the Company had working capital of $290,462 compared to $164,342 for the first quarter of 2023.
+Added: Net cash used in operating activities was $162,241 for the quarter ended March 31, 2024, a $182,149 decline compared to net cash from operating activities for the quarter ended March 31, 2023 of $19,908.
+Added: Net cash provided by financing activities was $130,000 for the quarter ended March 31, 2024 compared to $10,000 net cash provided by financing activities for the quarter ended March 31, 2023.
+Added: Net cash provided by financing activities was used for operations for the quarter ended March 31, 2024.
Working Capital Needs
Our working capital requirements increase as revenue grows for our products.
−Removed: During the nine months ended September 30, 2023, the Company had net borrowings of $240,000.
−Removed: This was the direct result of supply chain delays in manufacturing and ocean transport times.
−Removed: In 2022, borrowings were $275,000.
+Added: During the quarter ended March 31, 2024, the Company had net borrowings of $130,000.
+Added: In the first quarter of 2023, net borrowings were $235,000.
Should the Company require additional working capital during the next twelve months, it may seek to raise additional funds.
−Removed: Financing transactions may include the issuance of equity, debt securities and obtaining credit facilities.
+Added: Financing transactions may include debt securities and obtaining credit facilities.
OFF BALANCE SHEET ARRANGEMENTS
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS
−Removed: Not applicable
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.