What changed in this filing

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Item 1. Financial Statements

2025-08-06 compared with 2025-05-07 · 77 added, 47 removed, 174 unchanged (42% of the section changed)

2 unchanged sentences

Condensed Balance Sheets (Unaudited)

As of March 31, 2025 and December 31, 2024

As of June 30, 2025 and December 31, 2024

Current Assets

11 unchanged sentences

Stockholders’ Equity

Common stock, 20,000,000 shares authorized at $ 0.001 par value, 18,220,316 and 18,218,634 shares issued and outstanding, at March 31, 2025 and December 31, 2024, respectively

Common stock, 20,000,000 shares authorized at $ 0.001 par value, 18,070,316 and 18,218,634 shares issued and outstanding, at June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

7 unchanged sentences

Condensed Statements of Operations (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

For the Six Months Ended June 30, 2025 and 2024

Cost of Revenue

7 unchanged sentences

Provision for Income Taxes

Benefit from Deferred Tax Asset

Net Income / (Loss)

4 unchanged sentences

EQUATOR BEVERAGE COMPANY

Condensed Statements of Operations (Unaudited)

For the Three Months Ended June 30, 2025 and 2024

Cost of Revenue

Operating Expenses

Selling, general and administrative

Total Operating Expenses

Income / (Loss) from Operations

Interest Expense

Income / (Loss) Before Provision for Income Taxes

Provision for Income Taxes

Benefit from Deferred Tax Asset

Net Income / (Loss)

Net Income / (Loss) Per Common Share, Basic and Diluted

Weighted Average Number of Common Shares Outstanding, Basic and Diluted

The accompanying notes are an integral part of these condensed financial statements.

EQUATOR BEVERAGE COMPANY

Condensed Statements of Cash Flows (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

For the Six Months Ended June 30, 2025 and 2024

Cash Flows from Operating Activities:

11 unchanged sentences

Net Cash Provided by / (Used in) Financing Activities:

Shares repurchased for cancellation

Proceeds from related party loan

7 unchanged sentences

Summary of non-cash investing and financing activity:

During the three-month period ended March 31, 2025 the Company issued a total of 1,682 restricted and non-trading shares with an implied value of $840 to an unrelated party for marketing services.

During the three-month period ended March 31, 2024 the Company issued a total of 201,000 restricted and non-trading shares with an implied value of $122,610 to directors and officers as a result of contractual stock awards.

During the six-month period ended June 30, 2025 the Company issued a total of 1,682 restricted and non-trading shares with an implied value of $840 to an unrelated party for marketing services.

During the six-month period ended June 30, 2024 the Company issued a total of 477,000 restricted and non-trading shares with an implied value of $237,780 to directors and officers as a result of contractual stock awards.

The accompanying notes are an integral part of these condensed financial statements.

1 unchanged sentence

Condensed Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

For the Six Months Ended June 30, 2025 and 2024

Balance, December 31, 2024

1 unchanged sentence

Restricted, Non-Trading Stock issued to Directors, employees and unrelated parties

1,682 1 839 840

Net Income / (Loss)

84,034 84,034

Stock Retired to Treasury

Balance, March 31, 2025

$ ( 24,526,348 )

Restricted, Non-Trading Stock issued to Directors, employees and unrelated parties

Stock Retired to Treasury

Balance, June 30, 2025

$ ( 24,373,292 )

Balance, December 31, 2023

1 unchanged sentence

Restricted, Non-Trading Stock issued to Directors, employees and unrelated parties

Net Income / (Loss)

Stock Retired to Treasury

Balance, March 31, 2024

$ ( 23,912,258 )

Restricted, Non-Trading Stock issued to Directors, employees and unrelated parties

Stock Retired to Treasury

Balance, June 30, 2024

$ ( 23,972,396 )

The accompanying notes are an integral part of these condensed financial statements.

1 unchanged sentence

Notes to Condensed Financial Statements (Unaudited)

March 31, 2025

June 30, 2025

NOTE 1 – BUSINESS

3 unchanged sentences

Our beverages can be found in North America, the Caribbean, and Bermuda.

We are committed to sustainability and use 100% recyclable, eco-friendly packaging that has a minimal impact on the environment.

Furthermore, our products are plant-based, renewable, and eco-friendly.

Coconut water is nature's super hydration drink for skin and body.

In each 11 oz serving, there are five essential electrolytes totaling 1043 mg more than other sports drinks.

It is a fast rehydration recovery drink which performs faster than water.

Coconut water has natural nutrients for skin and hair and vitamins B & C natural - not added.

Coconut water is plant based and renewable;

great for vegan, kosher, paleo keto and low carb diets.

All this comes with a fresh crisp coconut taste.

There are no preservatives in this coconut water and it is packaged in an eco-friendly container.

CURRENT OPERATIONS

7 unchanged sentences

The Company has multiple sources for its production.

The Company’s fruit sources are of high quality.

The fruit is part of the overall taste and quality of our products.

8 unchanged sentences

The Company’s production facilities are subject to FDA regulation.

As of March 31, 2025, the Company had two employees.

As of June 30, 2025, the Company had two employees.

The Company also uses the services of contractors, consultants and other third-parties.

11 unchanged sentences

The unaudited interim condensed financial statements included in this document have been prepared on the same basis as the annual audited financial statements, and in the Company’s opinion, reflect all adjustments necessary for a fair presentation in accordance with GAAP and SEC regulations for interim financial statements.

The results for the three months ended March 31, 2025 are not necessarily indicative of the results that the Company will have for any subsequent period.

The results for the six months ended June 30, 2025 are not necessarily indicative of the results that the Company will have for any subsequent period.

These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes to those statements for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K.

6 unchanged sentences

Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less.

As of March 31, 2025, and December 31, 2024, the Company did not have any cash equivalents.

As of June 30, 2025, and December 31, 2024, the Company did not have any cash equivalents.

Accounts Receivable

1 unchanged sentence

The Company provides for probable uncollectible amounts based upon its assessment of the current status of the individual receivables and after using reasonable collection efforts.

The allowance for doubtful accounts as of March 31, 2025 and December 31, 2024 was zero.

The allowance for doubtful accounts as of June 30, 2025 and December 31, 2024 was zero .

Inventory, consisting solely of finished goods, are stated at average cost (first-in, first-out method) or net realizable value (“NRV”).

If necessary, the Company provides allowances to adjust the carrying value of its inventories to NRV when NRV is below cost.

There were no such adjustments in 2025 or 2024.

There were no such adjustments as of June 30, 2025 or 2024.

Revenue Recognition

12 unchanged sentences

Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company did not have a deferred tax liability at March 31, 2025 and 2024.

As of March 31, 2025, and March 31, 2024, the Company had no accrued interest or penalties.

The Company did not have a deferred tax liability at June 30, 2025 and 2024.

As of June 30, 2025, and June 30, 2024, the Company had no accrued interest or penalties.

The Company had no Federal or State tax examinations in the past nor does it have any at the current time.

The table below shows the details of the Net Operating Loss Carryforward and Deferred Tax Assets for 2025 and 2024:

The table below shows the details of the Net Operating Loss Carryforward and Deferred Tax Assets as of June 30, 2025 and 2024:

Net Operating Loss Carryforward, January 1

Taxable Income, January 1 to March 31

Net Operating Loss Carryforward, March 31

Taxable Income, January 1 to June 30

Net Operating Loss Carryforward, June 30

Federal Deferred Tax Asset, January 1

Federal Tax Expense as of March 31 (21% Tax Rate)

Federal Deferred Tax Asset, March 31

Federal Tax Expense as of June 30 (21% Tax Rate)

Federal Deferred Tax Asset, June 30

State of New Jersey Deferred Tax Asset, January 1

State of New Jersey Tax Expense as of March 31 (9% Tax Rate)

State of New Jersey Deferred Tax Asset, March 31

Total Deferred Tax Asset, March 31

State of New Jersey Tax Expense as of June 30 (9% Tax Rate)

State of New Jersey Deferred Tax Asset, June 30

Total Deferred Tax Asset, June 30

Total Tax Expense

The table below shows the reconciliation of Net Income / (Loss) per Books to Taxable Income:

Provision for Income Taxes

Benefit from Deferred Tax Asset

Net Provision for Income Taxes -State of New Jersey*

*The State of New Jersey NOL deduction is limited to 80% of taxable income.

The table below shows the reconciliation of Net Income / (Loss) per Books to Taxable Income as of June 30:

Net Income/(Loss) before Taxes

7 unchanged sentences

Simpson’s Employment Agreement (“the Agreement”) effective January 1, 2025 Mr.

Simpson is paid a salary of $ 9,500 per month.

Simpson is paid a salary of $ 9,500 per month until June 30, 2025.

Effective July 1, 2025 Mr.

Simpson will be paid a salary of $10,833 per month.

Pursuant to the Agreement, should Mr.

1 unchanged sentence

Simpson all amounts from the contract immediately for the remaining term of 66 months.

At March 31, 2025, the potential liability to EQUATOR Beverage Company was $ 1,104,000 .

As of June 30, 2025, the potential liability to EQUATOR Beverage Company was $ 714,978 .

At December 30, 2024, the potential liability to EQUATOR Beverage Company was $ 570,000 .

NOTE 4 – STOCKHOLDERS’ EQUITY

1 unchanged sentence

Restricted Stock Issuances

The table below summarizes the restricted, non-trading stock awards during the first three months of 2025 and 2024:

The table below summarizes the restricted, non-trading stock awards during the first six months of 2025 and 2024:

Restricted, Non-trading Stock Awards

Officers and Directors

January 1 to March 31

January 1 to June 30

Glenn Simpson

Stock Transactions

During the three months ended March 31, 2025, the Company issued 1,682 shares of its restricted, non-trading common shares for marketing services.

During the quarters ended March 31, 2025 and 2024, the Company did not purchase any shares of its common stock from shareholders.

During the six months ended June 30, 2025, the Company issued 1,682 shares of its restricted, non-trading common shares for marketing services.

During the period ended June 30, 2025, the Company purchased 150,000 shares of its common stock from shareholders at a cost of $ 60,000 .

During the period ended June 30, 2024, the Company did not purchase any shares of its common stock from shareholders.

NOTE 5 – RELATED PARTY TRANSACTIONS

2 unchanged sentences

The principal and any accrued interest are due and payable on demand, and the Company has the right to pay back the loan in full or make payments without penalty.

As of March 31, 2025, the loan payable to Mr.

As of June 30, 2025, the loan payable to Mr.

Simpson was $ 459,000 .

As of March 31, 2024, the loan payable to Mr.

As of December 31, 2024, the loan payable to Mr.

Simpson was $ 115,000 .

NOTE 6 – SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A)

Selling, General, and Administrative expenses ("SG&A") consist of all costs related to the general operation of the company, excluding direct production costs.

SG&A includes costs such as sales and marketing expenses including e-commerce fulfillment fees, salaries, office expenses, shipping and handling costs, and other overhead costs necessary to support the company's core business activities.

The table below presents the material components of Selling, General and Administrative (SG&A) expenses as a percentage of total expenses for the quarters ended June 30, 2025 and 2024:

E-commerce Fulfillment Fees

Freight and Delivery Expenses

Compensation Expenses

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.

What changed 10-Q

Item 1. Financial Statements