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Item 1. Financial Statements

2022-07-20 compared with 2022-05-16 · 144 added, 77 removed, 231 unchanged (49% of the section changed)

FINANCIAL STATEMENTS (Unaudited)

ORGANICS, INC.

BEVERAGE COMPANY

MOJO ORGANICS, INC.)

Balance Sheets (Unaudited)

of March 31, 2022 and December 31, 2021

of June 30, 2022 and December 31, 2021

December 31, 2021

CURRENT ASSETS:

8 unchanged sentences

Accounts payable and accrued expenses

Related party

Related party loans

Total Current Liabilities

STOCKHOLDERS’ EQUITY

Common stock, 40,000,000 shares authorized at $ 0.001 par value, 31,711,080 and 31,097,580 shares issued and outstanding, at March 31, 2022 and December 31, 2021, respectively

Common stock, 20,000,000 shares authorized at $ 0.001 par value, 15,678,502 and 15,548,790 shares issued and outstanding, at June 30, 2022 and December 31, 2021, respectively

Additional paid-in capital

5 unchanged sentences

accompanying notes are an integral part of these financial statements.

ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

(FORMERLY MOJO ORGANICS, INC.)

Statements of Operations (Unaudited)

the Three Months Ended March 31, 2022 and 2021

the Three Months Ended June 30, 2022 and 2021

Cost of Revenue

6 unchanged sentences

Net Income/(Loss)

Net Income/(Loss) per common share, basic and diluted

Weighted average number of common shares outstanding, basic and diluted

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

EQUATOR BEVERAGE COMPANY

(FORMERLY MOJO ORGANICS,

Statements of Operations (Unaudited)

the Six Months Ended June 30, 2022 and 2021

Cost of Revenue

Operating Expenses

Selling, general and administrative

(Loss)/Income from Operations

Other (Expense)/ Income

(Loss)/ Income Before Provision for Income Taxes

Benefit/(Provision) for Income Taxes

Net Income/(Loss)

$ ( 138,206 )

2 unchanged sentences

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

ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

(FORMERLY MOJO ORGANICS,

Statements of Cash Flows (Unaudited)

the Three Months Ended March 31, 2022 and 2021

the Six Months Ended June 30, 2022 and 2021

Cash flows from operating activities:

8 unchanged sentences

Increase in supplier deposits

Decrease in prepaid expenses and security deposit

(Increase)/Decrease in prepaid expenses and security deposit

Increase in accounts payable and accrued expenses

4 unchanged sentences

Repayments of from related party loan

Proceeds from options exercise

Shares repurchased for cancellation

4 unchanged sentences

of non-cash investing and financing activity:

During the three-month period ended March 31, 2022 the Company issued a total of 1,363,500

During the six-month period ended June 30, 2022 the Company issued a total of 960,054

Restricted and Non-Trading shares with an implied value of $ 161,521 to directors and officers to settle obligations payable.

accompanying notes are an integral part of these financial statements.

ORGANICS, INC.

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

EQUATOR BEVERAGE COMPANY

(FORMERLY MOJO ORGANICS, INC.)

Statements of Changes in Stockholders’ Equity (Unaudited)

the Three Months Ended March 31, 2022

the Three and Six Months Ended June 30, 2022 and 2021

Additional Paid-In

2 unchanged sentences

$ ( 23,390,445 )

Beginning Balance

$ (23,390,445 )

Stock issued to Directors and employees

1 unchanged sentence

Balance, March 31, 2022

Stock issued to Directors and employees

Exercise of stock options

Stock repurchased and returned to Treasury

Balance, June 30, 2022

$ ( 23,528,651 )

Ending Balance

Additional Paid-In

Stockholders’

Balance, December 31, 2020

$ ( 23,430,337 )

accompanying notes are an integral part of these financial statements.

ORGANICS, INC.

Stock issued to Directors and employees

Balance, March 31, 2021

( 23,417,694 )

Stock issued to Directors and employees

Balance, June 30, 2021

$ ( 23,336,522 )

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

EQUATOR BEVERAGE COMPANY

(FORMERLY MOJO ORGANICS, INC.)

to Condensed Financial Statements (Unaudited)

Organics, Inc.

Beverage Company (formerly MOJO Organics, Inc.)

(“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 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’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 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.

The packaging has a low impact

on the environment when recycled.

and Distribution

25 unchanged sentences

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

of March 31, 2022, the Company had two employees.

of June 30, 2022, the Company had two employees.

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

5 unchanged sentences

HISTORY AND DEVELOPMENT

Company was incorporated in 2007 and began producing MOJO branded products in 2016.

MOJO Organics Inc is headquartered in Jersey City,

New Jersey and our internet site is www.MojoOrganicsInc.com.

MOJO’s stock is traded on the OTC Markets under the symbol MOJO.

The Company was incorporated in 2007 and began producing

MOJO branded products in 2016.

EQUATOR Beverage Company (formerly MOJO Organics Inc) is headquartered in Jersey City, New

Jersey and our internet site is www.EquatorBeverage.com.

EQUATOR’s stock is traded on the OTC Markets under the symbol MOJO.

On June 8, 2022, the Board of Directors and majority stockholder of the Company approved a change of name from MOJO Organics, Inc.

EQUATOR Beverage Company.

This change of name was filed with the State of Delaware and became effective July 5, 2022.

Financial Statements

7 unchanged sentences

GAAP and SEC regulations for interim financial statements.

The results for the three months ended March 31, 2022 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, 2021 included

in the Company’s Annual Report on Form 10-K.

The results for the three and six months ended June 30, 2022 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,

2021 included in the Company’s Annual Report on Form 10-K.

2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5 unchanged sentences

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

As of March 31, 2022,

and March 31, 2021, the Company did no t have any cash equivalents.

As of June 30, 2022,

and June 30, 2021, the Company did no t have any cash equivalents.

receivable are stated at the amount management expects to collect from outstanding balances.

1 unchanged sentence

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, 2022 and 2021 was zero .

The allowance for doubtful accounts as of June 30, 2022 and 2021 was zero .

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

22 unchanged sentences

outstanding during the periods.

following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding as they would

have had an anti-dilutive impact on the Company’s net income/(loss) per common share:

SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE

As of March 31

Shares underlying options outstanding

Glenn Simpson

are no potentially dilutive securities that have been excluded from the computation of weighted average shares outstanding.

Net Operating Loss Carryforwards for federal taxes was $ 3,748,885 ,

at March 31, 2022 and $ 3,770,126

at June 30, 2022 and $ 3,748,885

for the State of New Jersey.

Tax Assets for federal taxes was $ 787,266

at March 31, 2022 and $ 339,312

at June 30, 2022 and $ 337,400

for the State of New Jersey.

The total Deferred

Tax Assets was $ 1,131,038 at

March 31, 2022.

The Deferred Tax assets have been fully reserved by valuation allowances beyond that portion which is expected to offset

current taxes.

As of March 31, 2022, the Company’s Federal income tax payable and State Income Tax payable is zero .

Tax Assets was $ 1,124,666

at June 30, 2022.

The Deferred Tax assets have been fully reserved

by valuation allowances beyond that portion which is expected to offset current taxes.

As of June 30, 2022, the Company’s Federal

income tax payable and State Income Tax payable is zero .

Company provides for income taxes using the asset and liability approach in accounting for income taxes.

5 unchanged sentences

The Company did no t have a deferred

tax liability at March 31, 2022 and March 31, 2021.

of March 31, 2022, and March 31, 2021, the Company had no accrued interest or penalties because there were none.

tax liability at June 30, 2022 and June 30, 2021.

of June 30, 2022, and June 30, 2021, the Company had no accrued interest or penalties because there were none.

The Company had no Federal

or State tax examinations in the past nor does it have any at the current time.

SCHEDULE OF DEFERRED TAX ASSETS

Deferred Tax Asset as of March 31,

OF DEFERRED TAX ASSETS

Deferred Tax Asset as

State of New Jersey

15 unchanged sentences

time of termination, payable for the remainder of the current term.

As of March 31, 2022, there are 36 months remaining on the Agreement.

As of June 30, 2022, there are 33 months remaining on the Agreement.

The Company’s liability on the remainder of the Agreement is $ 165,000 for the cash portion of Mr.

1 unchanged sentence

shares of non-trading, restricted Common Stock.

the quarter ended March 31, 2022, the Mr.

the six months ended June 30, 2022, Mr.

Simpson was issued 402,000 Restricted and Non-Trading shares of Common Stock under the terms

5 unchanged sentences

Authorized Shares.

As of March 31, 2022 there are 31,711,080 shares outstanding and no other classes of stock.

As of June 30, 2022 there are 15,678,502 shares outstanding and no other classes of stock.

On June 8, 2022, the Board of Directors of the

Company approved a prospective amendment to the Fourth Article of the Company’s Articles of Incorporation to decrease the authorized

common stock from 40,000,000 shares, par value $ 0.001 , to 20,000,000 shares, par value $ 0.001 .

On June 8, 2022, the majority stockholders

approved the decrease in authorized shares amendment by written consent, in lieu of a special meeting of the stockholders.

On June 8, 2022,

the Board of Directors of the Company approved the prospective amendment to the Company’s Articles of Incorporation to effect a

1-for-2 reverse split of the Company’s Common Stock.

On June 8, 2022, stockholders of the Company owning a majority of the Company’s

outstanding voting stock approved the reverse stock split by written consent, in lieu of a special meeting of the stockholders.

in authorized shares and reverse stock split was approved by FINRA on July 19, 2022 and effective July 20, 2022.

All share and per share data has been retroactively adjusted to reflect the reverse stock split.

Stock Issuances

the quarter ended March 31, 2021, 1,363,500 shares of Restricted and Non-Trading Common Stock were issued to Directors and Officers of

the six months ended June 30, 2022, 801,000 shares of Restricted and Non-Trading Common Stock were issued to Directors and Officers

of the Company.

These shares have full voting rights but are restricted for sale and transfer.

June 1, 2022, Mr.

Simpson exercised his options to purchase 159,054

shares of Restricted and Non-Trading shares at

The total exercise value was $ 25,449 .

February 4, 2022, the board of Directors approved the issuance of 525,000 shares of Restricted and Non-Trading Common Stock to Mr.

13 unchanged sentences

Purchased for Cancellation

the quarter ended March 31, 2021 the Company purchased 750,000 shares of its Restricted Common Stock from shareholders at a cost of $ 101,250 .

the six months ended June 30, 2022 the Company purchased 830,342 shares of its Restricted Common Stock from shareholders at a cost

of $ 193,187 .

The shares were cancelled.

2 unchanged sentences

5 – STOCK OPTIONS

June 1, 2022, Mr.

Simpson exercised options to purchase 159,054

shares of Restricted and Non-Trading shares at

The total exercise value was $ 25,449 .

February 4, 2022, the Company adjusted the exercise price of the options granted to Mr.

Simpson from $ 0.16

per share to $ 0.08

Simpson from $ 0.32 per share to $ 0.16 per share.

September 24, 2021, the Company extended the expiration date of the options granted to Mr.

5 unchanged sentences

following table summarizes stock option activity:

SCHEDULE OF STOCK OPTIONS ACTIVITY

OF STOCK OPTIONS ACTIVITY

Expiration Date

3 unchanged sentences

Glenn Simpson

Exercisable, March 31, 2022

Exercised, June 1, 2022

Glenn Simpson

the three months ended March 31, 2022 and 2021, compensation expense related to stock options was $ 0 .

As of March 31, 2022, there was

no unrecognized compensation cost related to non-vested stock options.

Outstanding, June 30, 2022

Glenn Simpson

the six months ended June 30, 2022 and 2021, compensation expense related to stock options was $ 0 .

As of June 30, 2022, there was no

unrecognized compensation cost related to non-vested stock options.

6 – RELATED PARTY TRANSACTIONS

the quarter ended March 31, 2022, Mr.

lent $ 192,000 to the Company.

As of March 31, 2022, the loan payable to Mr.

Simpson was $ 127,402 .

the six months ended June 30, 2022, Mr.

Simpson lent $ 352,000 to the Company.

As of June 30, 2022, the loan payable to Mr.

June 1, 2022, Mr.

Simpson exercised 159,054

stock options at an exercise price of $ 0.16 .

The Company issued 159,054

Restricted and Non-Trading shares of Common Stock

in exchange for the total exercise price of $ 25,449 .

the year ended December 31, 2021, Mr.

4 unchanged sentences

January 2021, the Company received the loan forgiveness decision from the SBA for the loan proceeds under the Paycheck Protection Program.

The full amount of the loan amounting $ 35,508

was forgiven in January 2021.

The full amount of the loan amounting $ 35,508 was forgiven in January 2021.

NOTE 8 – SUBSEQUENT EVENTS

On July 19, 2022, FINRA approved the 1-for-2 reverse

split and the decrease in Authorized shares from 40,000,000 to 20,000,000 shares.

The market effective date is July 20, 2022.

On July 5, 2022, the State of Delaware approved the

Company’s name change to EQUATOR Beverage Company.

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