What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-07-20 compared with 2022-05-16 · 63 added, 39 removed, 61 unchanged (63% 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 March 31, 2022 to 2021.

of Operations — Analysis of our financial results comparing the quarter ended June 30, 2022 to 2021.

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

36 unchanged sentences

and current liabilities approximate their reported carrying amounts.

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.

of Operations

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

Months Ended June 30, 2022 and 2021

the three months ended June 30, 2022, the Company reported revenue of $541,102 a decrease from revenue of $614,729 for the three

months ended June 30, 2021.

The decrease in revenue was due to fewer cases sold for the quarter ended June 30, 2022 compared to the same

period last year.

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

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

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

the three months ended June 30, 2022, cost of revenue was $352,760 or 65% of revenue.

For the three months ended June 30, 2021, cost

of revenue was $329,67 or 54% 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.

The 11% increase in cost of revenue was due to higher costs of product costs, ocean freight

and warehousing costs compared to the same period last year.

the three months ended June 30, 2022, selling, general and administrative expenses was $188,229 a decrease of $15,311 from the three

months ended June, 2021 of $203,540.

decrease in operating expenses was primarily due to lower stock compensation expenses as a result of lower EQUATOR stock price.

Compensation expenses decreased by $15,209 for the three months ended June 30, 2022 compared to the same period last year.

Months Ended June 30, 2022 and 2021

the six months ended June 30, 2022, the Company reported revenue of $920,759 a decrease of $97,286 from revenue of $1,018,045 for the

six months ended June 30, 2021.

The decrease in revenue was due to fewer cases sold in 2022 compared to the same period last year.

of the Company’s products were affected by production and shipping challenges during the first six months of 2022 because of closures

due to COVID-19 and congestions at the ports.

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 six months ended June 30, 2022, cost of revenue was $585,343 or 63% of revenue.

For the six months ended June 30, 2021, cost of revenue

was $537,968 or 53% of revenue.

The 11% increase in cost of revenue was due to higher costs of product, ocean freight and warehousing

costs compared to the same period last year.

the six months ended June 30, 2022, selling, general and administrative expenses was $469,796 an increase of $48,026 from

the six months ended June 30, 2021 of $421,770.

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

Compensation expenses increased by $42,343 for the six months ended June 30, 2022 compared

to the same period last year.

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

Director’s compensation also increased by $19,742 compared to the same period last year.

This increase

is offset by lower office expenses and marketing expenses.

and Capital Resources

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.

of June 30, 2022, the Company had working capital of $200,680.

Net cash used in operating activities was $100,016 for the six

months ended June 30, 2022, compared to net cash used in operating activities for the six months ended June 30, 2021 of $42,879.

cash provided by financing activities was $57,260 for the six months ended June 30, 2022 compared to zero for the six months ended

June 30, 2021.

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,

Capital Needs

working capital requirements increase as demand grows for our products.

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.

Our working capital requirements increase as demand grows for our products.

During the six months ended June 30, 2022, the Company had net borrowings of $225,000.

This was the direct result of supply chain

delays in manufacturing and ocean transport times.

In 2021, borrowings were zero.

Should the Company require 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.

BALANCE SHEET ARRANGEMENTS

1 unchanged sentence

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