What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-05-16 compared with 2021-11-15 · 47 added, 69 removed, 53 unchanged (69% of the section changed)

6 unchanged sentences

in our reported financial results and forecasts.

of Operations — Analysis of our financial results comparing the quarter ended September 30, 2021 to 2020.

of Operations — Analysis of our financial results comparing the quarter ended March 31, 2022 to 2021.

and Capital Resources — Analysis of changes in our cash flows, and discussion of our financial condition and potential sources

27 unchanged sentences

our financial statements:

of Estimates — The financial statements are prepared in conformity with accounting principles generally accepted in the

United States (“GAAP”).

Management is required to make estimates and assumptions that affect the reported amounts of assets

and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Actual results could differ from those estimates.

of Estimates — The financial statements are prepared in conformity with accounting principles generally accepted in the United

States (“GAAP”).

Management is required to make estimates and assumptions that affect the reported amounts of assets and

liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

results could differ from those estimates.

Value of Financial Instruments — Our short-term financial instruments, including cash, accounts receivable, accounts payable

3 unchanged sentences

Organics, Inc.

(“MOJO” or the “Company”) is a Delaware corporation headquartered in Jersey City, NJ.

engages in new product development, production, marketing, distribution and sales of beverage brands that are natural, Non-GMO Project

verified, and USDA Organic.

(“MOJO”) is a Delaware corporation headquartered in Jersey City, NJ.

The Company’s business is new product

development, beverage production, marketing, distribution and the sale of beverages that are, Non-GMO Project verified, and USDA Organic.

The Company’s flagship product is MOJO Coconut Water.

In addition to Coconut Water, the Company produces

Sparkling Coconut Water, Coconut Water + Mango Juice, Coconut Water + Pineapple Juice and Organic Coconut Water.

We seek to grow the

market share of our products by expanding our hybrid distribution network through the relationships and efforts of our management and

third-party partners and improved broker network, and new products and packaging in 2021.

The company predominantly packages its beverages

in 100% recyclable, Eco-Friendly packaging that can be recycled infinite times and is not made from carbon oil-based packaging.

The packaging

has a very low impact on the environment, and does not contribute to landfills and the pollution of our bodies of water.

In addition to Coconut Water, the Company produces Sparkling Coconut Water,

Coconut Water + Mango Juice and Coconut Water + Pineapple Juice and USDA Organic Coconut Water.

We seek to grow the market share of our

products by expanding our hybrid distribution network through the relationships and efforts of our management, third party partners and

our broker network, and add new products and packaging including pH7 water (pH is a scale of acidity) and energy beverages which are

the two largest sectors of the beverage industry.

The Company packages its beverages in 100% recyclable, Eco-Friendly packaging.

packaging has a low impact on the environment when recycled.

of Operations

Months Ended September 30, 2021 and 2020

the three months ended September 30, 2021, the Company reported revenue of $477,013 a decrease of $95,607 from revenue of $572,620 for

the three months ended September 30, 2020.

The decrease in revenue was primarily due to the lower sales of the MOJO branded products

compared to the same period last year.

of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs.

Also included in cost of

revenue are adjustments made to inventory carrying amounts, including markdowns to market.

the three months ended September 30, 2021, cost of revenue was $255,266 or 54% of revenue.

For the three months ended September 30, 2020,

cost of revenue was $302,817 or 53% of revenue.

The 1% increase in cost of revenue was primarily due to higher ocean freight costs

compared to the same period last year.

the three months ended September 30, 2021, selling, general and administrative expenses was $223,571 a decrease of $3,227 from the

three months ended September 30, 2020 of $226,798.

decrease in operating expenses was primarily due to lower office expenses coupled with a decrease in professional fees and marketing

This decrease is offset by an increase in compensation expense.

Office expenses decreased by $7,366 and professional fees decreased

by $2,233 compared to the same period last year.

Marketing expenses also decreased by $3,374 compared to the same period last year.

expense for the three months ended September 30, 2021 increased by $9,140 for the three months ended September 30, 2020.

Months Ended September 30, 2021 and 2020

the nine months ended September 30, 2021, the Company reported revenue of $1,495,058 an increase from revenue of $1,450,587 for the nine

months ended September 30, 2020.

The increase in revenue was primarily due to the strong sales for the MOJO Organic Coconut Water 1Liter

Months Ended March 31, 2022 and 2021

the three months ended March 31, 2022, the Company reported revenue of $379,657 a decrease from revenue of $403,766 for the three months

ended March 31, 2022.

The decrease in revenue was due to fewer cases sold for the quarter ended March 31.

2022 compared to the same period

Some of the Company’s products were affected by production and shipping challenges during the first quarter of 2022

because of closures due to COVID-19.

of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs.

1 unchanged sentence

revenue are adjustments made to inventory carrying amounts, including markdowns to market.

the nine months ended September 30, 2021, cost of revenue was $793,234 or 53% of revenue.

For the nine months ended September 30, 2020,

cost of revenue was $749,278 or 52% of revenue.

The 1% increase in cost of revenue was due to higher costs of ocean freight compared

the three months ended March 31, 2022, cost of revenue was $232,584 or 61% of revenue.

For the three months ended March 31, 2022, cost

of revenue was $208,401 or 52% of revenue.

The 9% increase in cost of revenue was due to higher costs of ocean freight compared to the

same period last year.

the three months ended March 31, 2022, selling, general and administrative expenses was $281,566 an increase of $63,336 from the three

months ended March 31, 2021 of $218,230.

increase in operating expenses was primarily due to higher compensation expenses resulting from the one-time stock grant that was issued

to the employees and directors of the Company.

Compensation expenses increased by $75,352 for the three months ended March 31, 2022 compared

to the same period last year.

the nine months ended September 30, 2021, selling, general and administrative expenses was $645,341 a decrease of $65,091 from the

nine months ended September 30, 2020 of $710,432.

decrease in operating expenses was primarily due to lower selling expenses and professional fees.

Office expenses and marketing fees

also decreased compared to the same period last year.

Selling expenses decreased by $20,759 compared while professional fees decreased

by $16,533 compared to the quarter ended September 30, 2020.

Office expenses amounted to $17,230 for the nine months ended September

30, 2021 compared to $26,486 for the nine months ended September 30, 2021.

Marketing fees decreased by $6,002 compared to the same period

the nine months ended September 30, 2021, the net income was $91,991, a $98,894 improvement from a net loss of ($6,903) for the nine

months ended September 30, 2020.

This increase is offset by lower office expenses and marketing expenses.

and Capital Resources

of September 30, 2021, the Company had working capital of $387,244.

Net cash provided by operating activities was $97,852 for

the nine months ended September 30, 2021, compared to net cash used in operating activities for the nine months ended September 30, 2020

Net cash used in financing activities was $102,316 for the nine months ended September 30, 2021 compared to net cash provided

by financing activities of $30,258 for the nine months ended September 30, 2020.

Net cash was used in financing activities to repurchase

MOJO Restricted Common Stock for the nine months ended September 30, 2021.

As of March 31, 2022, the Company had working

capital of $245,929.

Net cash used in operating activities was $47,947 for the three months ended March 31, 2022, compared

to net cash used in operating activities for the three months ended March 31, 2021 of $18,586.

Net cash provided by financing

activities was $26,152 for the quarter ended March 31, 2022 compared to zero for the quarter ended March 31, 2021.

provided by financing activities of a related party loan offset by cash used in financing activities to repurchase MOJO Restricted

Common Stock for the quarter ended March 31, 2022.

Capital Needs

working capital requirements increase as demand grows for our products.

During 2021 and 2020, the Company did not require additional

If the Company requires additional working capital during the next twelve months,

may seek to raise additional funds.

During the three months ended March 31, 2022 and 2021, the Company

did not require additional funding.

If the Company requires additional working capital during the next twelve months, it may seek to

raise additional funds.

Financing transactions may include the issuance of equity, debt securities and obtaining credit facilities.

2 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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis