2 unchanged sentences
Balance Sheets (Unaudited)
−Removed: of September 30, 2022 and December 31, 2021
−Removed: September 30,
+Added: of March 31, 2023 and December 31, 2022
CURRENT ASSETS:
5 unchanged sentences
Total Current Assets
−Removed: LIABILITIES AND STOCKHOLDERS’
+Added: LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
2 unchanged sentences
Total Current Liabilities
−Removed: STOCKHOLDERS’
−Removed: Common stock, 20,000,000 shares authorized at $0.001 par value, 15,917,115 and 15,548,790 shares issued and outstanding, at September 30, 2022 and December 31, 2021, respectively
+Added: STOCKHOLDERS’ EQUITY
+Added: Common stock, 20,000,000 shares authorized at $ 0.001 par value, 16,469,115 and 16,230,615 shares issued and outstanding, at March 31, 2023 and December 31, 2022, respectively
Additional paid-in capital
2 unchanged sentences
( 23,629,281 )
−Removed: Total Stockholders’
−Removed: TOTAL LIABILITIES AND STOCKHOLDERS’
+Added: Total Stockholders’ Equity
+Added: TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
accompanying notes are an integral part of these financial statements.
1 unchanged sentence
Statements of Operations (Unaudited)
−Removed: the Three Months Ended September 30, 2022 and 2021
+Added: the Three Months Ended March 31, 2023 and 2022
Cost of Revenue
1 unchanged sentence
Selling, general and administrative
−Removed: Loss from Operations
+Added: Income/(Loss) from Operations
Other Expense
−Removed: Loss Before Provision for Income Taxes
−Removed: Benefit/(Provision) for Income Taxes
−Removed: Net Loss per common share, basic and diluted
−Removed: Weighted average number of common shares outstanding, basic and diluted
−Removed: accompanying notes are an integral part of these condensed financial statements.
−Removed: BEVERAGE COMPANY
−Removed: Statements of Operations (Unaudited)
−Removed: the Nine Months Ended September 30, 2022 and 2021
−Removed: Cost of Revenue
−Removed: Operating Expenses
−Removed: Selling, general and administrative
−Removed: (Loss)/Income from Operations
−Removed: Other (Expense)/ Income
−Removed: (Loss)/ Income Before Provision for Income Taxes
−Removed: Benefit/(Provision) for Income Taxes
−Removed: Net (Loss)/Income
−Removed: Net (Loss)/Income per common share, basic and diluted
+Added: Income/(Loss) Before Provision for Income Taxes
+Added: Net Income/(Loss)
+Added: $ ( 135,379 )
+Added: Net Income/(Loss) per common share, basic and diluted
Weighted average number of common shares outstanding, basic and diluted
2 unchanged sentences
Statements of Cash Flows (Unaudited)
−Removed: the Nine Months Ended September 30, 2022 and 2021
+Added: the Three Months Ended March 31, 2023 and 2022
Cash flows from operating activities:
Net income/(loss)
+Added: $ ( 135,379 )
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued to directors and employees
−Removed: SBA Loan Forgiveness
Changes in assets and liabilities:
Increase in accounts receivable
−Removed: Increase in inventory
−Removed: Increase in supplier deposits
−Removed: (Increase)/Decrease in prepaid expenses and security deposit
+Added: Decrease/(Increase) in inventory
+Added: Decrease/(Increase) in supplier deposits
+Added: Decrease in prepaid expenses and security deposit
Increase in accounts payable and accrued expenses
−Removed: Increase in accrued payroll to officers
−Removed: Net cash used in operating activities
+Added: Net cash provided by/ (used in) operating activities
Net cash provided by/ (used in) financing activities:
1 unchanged sentence
Repayments of from related party loan
−Removed: Proceeds from options exercise
Shares repurchased for cancellation
Net cash provided by financing activities
−Removed: Net decrease in cash and cash equivalents
+Added: Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
1 unchanged sentence
of non-cash investing and financing activity:
−Removed: During the nine-month period ended September 30, 2022 the Company issued a total of
+Added: During the three-month period ended March 31, 2023 the Company issued a total of 238,500
Restricted and Non-Trading shares with an implied value of $ 13,992 to directors and officers to settle obligations payable.
+Added: three-month period ended March 31, 2022 the Company issued a total of 681,750 Restricted and Non-Trading shares with an implied value
+Added: of $ 112,005 to directors and officers to settle obligations payable.
accompanying notes are an integral part of these condensed financial statements.
BEVERAGE COMPANY
−Removed: Statements of Changes in Stockholders’
−Removed: Equity (Unaudited)
−Removed: the Three and Nine Months Ended September 30, 2022 and 2021
−Removed: Stockholders’
+Added: Statements of Changes in Stockholders’ Equity (Unaudited)
+Added: the Three Months Ended March 31, 2023 and 2022
+Added: Stockholders’
Balance, December 31, 2022
1 unchanged sentence
Stock issued to Directors and employees
−Removed: Stock repurchased and returned to Treasury
Balance, March 31, 2023
$ ( 23,624,796 )
−Removed: Stock issued to Directors and employees
−Removed: Exercise of stock options
−Removed: Stock repurchased and returned to Treasury
−Removed: Balance, June 30, 2022
−Removed: (23,528,651 )
−Removed: Stock issued to Directors and employees
−Removed: Balance, September 30, 2022
−Removed: $ (23,561,999 )
−Removed: Stockholders’
+Added: Stockholders’
Balance, December 31, 2021
1 unchanged sentence
Stock issued to Directors and employees
−Removed: Balance, March 31, 2021
−Removed: (23,417,694 )
−Removed: Stock issued to Directors and employees
−Removed: Balance, June 30, 2021
−Removed: (23,336,522 )
−Removed: Stock issued to Directors and employees
Stock repurchased and returned to Treasury
−Removed: Balance, September 30, 2021
+Added: Net income (loss)
+Added: Balance, March 31, 2022
$ ( 23,525,824 )
3 unchanged sentences
Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ.
−Removed: EQUATOR’s business is new product development, beverage
+Added: EQUATOR’s business is new product development, beverage
production, distribution, and sales & marketing of its beverages.
7 unchanged sentences
The packaging has a low impact on the environment.
+Added: Also, our products are plant-based, Eco-friendly
+Added: and renewable.
and Distribution
−Removed: Company’s flagship product is MOJO Coconut Water.
−Removed: In addition to Coconut Water, the Company produces Sparkling Coconut Water, Coconut
−Removed: Water + Pineapple Juice, and Organic Coconut Water.
−Removed: We seek to grow the market share of our products by expanding our hybrid distribution
−Removed: network through the relationships and efforts of our management and third-party partners and broker network, and new products and packaging.
−Removed: The company packages its beverages in 100% recyclable, Eco-Friendly packaging that can be recycled infinite times and is not made from
−Removed: carbon oil-based packaging.
−Removed: The packaging has a very low impact on the environment, and does not contribute to landfills and the pollution
−Removed: of our bodies of water.
+Added: Company’s flagship product is MOJO Coconut Water.
+Added: In addition to Coconut Water, the Company produces Coconut Water + Pineapple
+Added: Juice, Sparkling Coconut Water + Citrus, Sparkling Coconut Water + Blood Orange, Sparkling Coconut Water + Pink Grapefruit, Sparkling
+Added: Coconut Water Energy + Citrus, Sparkling Coconut Water Energy + Blood Orange, Sparkling Coconut Water Energy + Pink Grapefruit, Cubano
+Added: Blue Agave Tequila Organic Sparkling Coconut Water + Citrus, Cubano Blue Agave Tequila Organic Sparkling Coconut Water + Blood Orange
+Added: and Organic Coconut Water.
+Added: We seek to grow the market share of our products by expanding our hybrid distribution network through the
+Added: relationships and efforts of our management and third-party partners and broker network, and new products and packaging.
+Added: packages its beverages in 100% recyclable, Eco-Friendly packaging that can be recycled infinite times and is not made from carbon oil-based
+Added: The packaging has a very low impact on the environment, and does not contribute to landfills and the pollution of our bodies
+Added: Also, our products are plant-based, Eco-friendly and renewable.
Company has multiple sources for its production.
−Removed: The Company’s fruit sources are of high quality.
+Added: The Company’s fruit sources are of high quality.
The fruit is part of the overall
7 unchanged sentences
the United States, beverages are governed by the U.S.
−Removed: Food and Drug Administration (the “FDA”).
+Added: Food and Drug Administration (the “FDA”).
As such, it is necessary
1 unchanged sentence
that meet FDA requirements.
−Removed: The Company’s production facilities are subject to FDA regulation.
−Removed: of September 30, 2022, the Company had two employees.
+Added: The Company’s production facilities are subject to FDA regulation.
+Added: of March 31, 2023, the Company had two employees.
The Company also uses the services of contractors, consultants and other third-parties.
5 unchanged sentences
HISTORY AND DEVELOPMENT
−Removed: Company was incorporated in 2007 and began producing MOJO branded products in 2016.
−Removed: EQUATOR Beverage Company is headquartered in Jersey
−Removed: City, New Jersey and our internet site is www.EquatorBeverage.com.
−Removed: EQUATOR’s stock is traded on the OTCQB under the symbol MOJO.
−Removed: On June 8, 2022, the Board of Directors and majority stockholder of the Company approved a change of name from MOJO Organics, Inc.
−Removed: EQUATOR Beverage Company.
−Removed: This change of name was filed with the State of Delaware and became effective July 5, 2022.
+Added: Company began producing MOJO branded products in 2016.
+Added: EQUATOR Beverage Company is headquartered in Jersey City, New Jersey and our internet
+Added: site is www.EquatorBeverage.com.
+Added: EQUATOR’s stock is traded on the OTCQB under the symbol MOJO.
+Added: On June 8, 2022, the Board of Directors
+Added: and majority stockholder of the Company approved a change of name from MOJO Organics, Inc.
+Added: to EQUATOR Beverage Company.
+Added: This change of
+Added: name was filed with the State of Delaware and became effective July 5, 2022.
Financial Statements
accompanying unaudited interim condensed financial statements have been prepared pursuant to the rules and regulations for reporting
−Removed: on Form 10-Q and article 10 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”).
+Added: on Form 10-Q and article 10 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”).
Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States of America
−Removed: (“GAAP”) for complete financial statements have been condensed or omitted pursuant to such rules and regulations.
+Added: (“GAAP”) for complete financial statements have been condensed or omitted pursuant to such rules and regulations.
the Company believes that the disclosures included in these financial statements are adequate to make the information presented not misleading.
The unaudited interim condensed financial statements included in this document have been prepared on the same basis as the annual audited
−Removed: financial statements, and in the Company’s opinion, reflect all adjustments necessary for a fair presentation in accordance with
+Added: 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.
−Removed: The results for the three and nine months ended September 30, 2022 are not
−Removed: necessarily indicative of the results that the Company will have for any subsequent period.
−Removed: These unaudited condensed financial statements
−Removed: should be read in conjunction with the audited financial statements and the notes to those statements for the year ended December 31,
−Removed: 2021 included in the Company’s Annual Report on Form 10-K.
+Added: The results for the three months ended March 31, 2023 are not necessarily
+Added: indicative of the results that the Company will have for any subsequent period.
+Added: These unaudited condensed financial statements should
+Added: be read in conjunction with the audited financial statements and the notes to those statements for the year ended December 31, 2022 included
+Added: in the Company’s Annual Report on Form 10-K.
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
−Removed: financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”).
+Added: 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
3 unchanged sentences
equivalents include investment instruments and time deposits purchased with a maturity of three months or less.
−Removed: As of September 30, 2022,
−Removed: and September 30, 2021, the Company did not have any cash equivalents.
+Added: As of March 31, 2023,
+Added: and March 31, 2022, 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.
−Removed: The allowance for doubtful accounts as of September 30, 2022 and 2021 was zero.
−Removed: consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”).
+Added: The allowance for doubtful accounts as of March 31, 2023 and 2022 was zero .
+Added: consisting solely of finished goods, are stated at the lower of 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.
1 unchanged sentence
from sales of products is recognized when the related performance obligation is satisfied.
−Removed: The Company’s performance obligation
+Added: The Company’s performance obligation
is satisfied upon the shipment or delivery of products to customers.
−Removed: The Company’s products are sold on cash and credit terms which
+Added: The Company’s products are sold on cash and credit terms which
are established in accordance with standardized industry practices and typically require payment within 30 days of delivery.
8 unchanged sentences
Income/(Loss) Per Common Share
−Removed: Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards
−Removed: Codification (“ASC”) Topic 260, “
−Removed: Earnings per Share”.
+Added: Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards
+Added: Codification (“ASC”) Topic 260, “ Earnings per Share”.
ASC Topic 260 requires presentation of basic and
4 unchanged sentences
are no potentially dilutive securities that have been excluded from the computation of weighted average shares outstanding.
−Removed: Net Operating Loss Carryforwards for federal taxes was $3,754,634, at September 30, 2022 and $3,754,634 for the State of New Jersey.
−Removed: The Deferred Tax Assets for federal taxes was $788,473 at September 30, 2022 and $337,917 for the State of New Jersey.
−Removed: The total Deferred
−Removed: Tax Assets was $1,126,390 at September 30, 2022.
−Removed: The Deferred Tax assets have been fully reserved by valuation allowances beyond that
−Removed: portion which is expected to offset current taxes.
−Removed: As of September 30, 2022, the Company’s Federal income tax payable and State
−Removed: Income Tax payable is zero.
+Added: Net Operating Loss Carryforwards for federal taxes was $ 3,785,462 , at March 31, 2023 and 3,770,126 at March 31, 2022.
+Added: The Net Operating
+Added: Loss Carryforwards at March 31, 2023 was $ 3,785,462 and $ 3,770,126 for the State of New Jersey.
+Added: The Deferred Tax Assets for federal taxes
+Added: was $ 794,947 at March 31, 2023 and $ 791,727 at March 31, 2022.
+Added: The Deferred Tax Assets at March 31, 2023 was $ 340,692 and $ 339,312 at
+Added: March 31, 2022 for the State of New Jersey.
+Added: The total Deferred Tax Assets was $ 1,135,639 at March 31, 2023 and $ 1,131,038 at March 31,
+Added: The Deferred Tax assets have been fully reserved by valuation allowances beyond that portion which is expected to offset current
+Added: As of March 31, 2023, the Company’s Federal income tax payable is $ 3,830 and State Income Tax payable is $ 1,641 .
+Added: 31, 2022, The Company’s Federal income tax payable and State Income tax payable was zero .
Company provides for income taxes using the asset and liability approach in accounting for income taxes.
4 unchanged sentences
evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
−Removed: The Company did not have a deferred
−Removed: tax liability at September30, 2022 and September 30, 2021.
−Removed: of September 30, 2022, and September 30, 2021, the Company had no accrued interest or penalties because there were none.
−Removed: had no Federal or State tax examinations in the past nor does it have any at the current time.
+Added: The Company expects to utilize
+Added: all Deferred Tax Assets.
+Added: The Company did no t have a deferred tax liability at March 31, 2023 and 2022.
+Added: of March 31, 2023, and March 31, 2022, the Company had no accrued interest or penalties because there were none.
+Added: The Company had no Federal
+Added: or State tax examinations in the past nor does it have any at the current time.
+Added: of March 31, 2023, and March 31, 2022, the Company had no accrued interest or penalties because there were none.
+Added: The Company had no Federal
+Added: or State tax examinations in the past nor does it have any at the current time.
SCHEDULE OF DEFERRED TAX ASSETS
−Removed: Deferred Tax Asset as
−Removed: of September 30,
+Added: Deferred Tax Assets
+Added: as of March 31,
+Added: Net Operating Loss
+Added: as of March 31,
State of New Jersey
3 unchanged sentences
3 – COMMITMENTS AND CONTINGENCIES
−Removed: to the Amended and Restated Employment Agreement (“the Agreement”) dated April 6, 2017 and amended on September 1, 2022,
+Added: Simpson’s Amended and Restated Employment Agreement (“the Agreement”) dated April 6, 2017 and amended on September
Simpson is paid a salary of $ 8,000 per month and 67,000 shares of non-trading, restricted Common Stock.
4 unchanged sentences
to the Agreement, if Mr.
−Removed: Simpson’s employment is terminated without cause, the Company is obligated to pay him all amounts due
+Added: Simpson’s employment is terminated without cause, the Company is obligated to pay him all amounts due
under the contract for the remaining term of the contract immediately.
−Removed: At September 30, 2022, the potential liability to EQUATOR Beverage
+Added: At March 31, 2023, the potential liability to EQUATOR Beverage
Company was $ 408,000 and 3,216,000 shares of non-trading, restricted Common Stock.
−Removed: STOCKHOLDERS’
+Added: 4 – STOCKHOLDERS’ EQUITY
July 5, 2022, the State of Delaware approved the 1-for-2 reverse split and the decrease in Authorized shares from 40,000,000 to 20,000,000
−Removed: June 8, 2022, the Board of Directors of the Company approved a prospective amendment to the Fourth Article of the Company’s Articles
+Added: 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 .
1 unchanged sentence
meeting of the stockholders.
−Removed: On June 8, 2022, the Board of Directors of the Company approved the prospective amendment to the Company’s
−Removed: Articles of Incorporation to effect a 1-for-2 reverse split of the Company’s Common Stock.
+Added: On June 8, 2022, the Board of Directors of the Company approved the prospective amendment to the Company’s
+Added: Articles of Incorporation to effect a 1-for-2 reverse split of the Company’s Common Stock.
On June 8, 2022, stockholders of the
−Removed: Company owning a majority of the Company’s outstanding voting stock approved the reverse stock split by written consent, in lieu
+Added: 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.
2 unchanged sentences
All share and per share data has been retroactively adjusted to reflect the reverse stock split.
−Removed: June 2021, the Company decreased its Authorized Shares from 190,000,000 to 40,000,000 shares.
−Removed: This was a reduction of 150,000,000 in
−Removed: Authorized Shares.
−Removed: As of September 30, 2022 there are 15,917,115 shares outstanding and no other classes of stock.
Stock Issuances
−Removed: the nine months ended September 30, 2022, 1,211,054 shares of Restricted and Non-Trading Common Stock were issued to Directors and Officers
+Added: the three months ended March 31, 2023, 238,500 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.
+Added: the year ended December 31, 2022, 1,353,000 shares of Restricted and Non-Trading Common Stock were issued to Directors and Officers of
+Added: These shares have full voting rights but are restricted for sale and transfer
June 1, 2022, Mr.
17 unchanged sentences
Purchased for Cancellation
−Removed: the nine months ended September 30, 2022 the Company purchased 830,342 shares of its Restricted Common Stock from shareholders at a cost
the year ended December 31, 2022 the Company purchased 830,342 shares of its Restricted Common Stock from shareholders at a cost of $ 193,188 .
−Removed: The shares were cancelled.
5 – STOCK OPTIONS
+Added: of March 31, 2023, there are no outstanding stock options.
June 1, 2022, Mr.
3 unchanged sentences
Simpson from $ 0.32 per share to $ 0.16 per share.
−Removed: September 24, 2021, the Company extended the expiration date of the options granted to Mr.
−Removed: Simpson from April 6, 2022 to April 6, 2024.
−Removed: the year ended December 31, 2021, Mr.
−Removed: Simpson exercised options to purchase 93,750 shares of Restricted and Non-Trading shares at $0.32
−Removed: The total exercise value was $30,000 and this reduced the accrued salary payable to Mr.
−Removed: Simpson to $0.
following table summarizes stock option activity:
−Removed: OF STOCK OPTIONS ACTIVITY
−Removed: Outstanding, December 31, 2021
+Added: SCHEDULE OF STOCK OPTIONS ACTIVITY
+Added: Outstanding January 1, 2022
Glenn Simpson
−Removed: Exercised, September 30, 2022
+Added: Exercised June 1, 2022
Glenn Simpson
−Removed: Outstanding, September 30, 2022
+Added: Outstanding March 31, 2023
Glenn Simpson
−Removed: the nine months ended September 30, 2022 and 2021, compensation expense related to stock options was $0.
−Removed: As of September 30, 2022, there
−Removed: was no unrecognized compensation cost related to non-vested stock options.
+Added: the three months ended March 31, 2023 and 2022, compensation expense related to stock options was $ 0 .
+Added: As of March 31, 2023, there was
+Added: no unrecognized compensation cost related to non-vested stock options.
6 – RELATED PARTY TRANSACTIONS
−Removed: the nine months ended September 30, 2022, Mr.
+Added: the three months ended March 31, 2023, Mr.
Simpson lent funds to the Company.
−Removed: As of September 30, 2022, the loan payable to Mr.
−Removed: was $275,000.
+Added: As of March 31, 2023, the loan payable to Mr.
+Added: the year ended December 31, 2022, Mr.
+Added: Simpson lent funds to the Company.
+Added: As of December 31, 2022, the loan payable to Mr.
June 1, 2022, Mr.
2 unchanged sentences
shares of Common Stock in exchange for the total exercise price of $ 25,449 .
−Removed: the year ended December 31, 2021, Mr.
−Removed: Simpson exercised 93,750 stock options at an exercise price of $0.32.
−Removed: The Company issued 93,750
−Removed: Restricted and Non-Trading shares of Common Stock, and the accrued payroll owed to him was reduced by $30,000.
−Removed: SBA LOANS “CARES ACT”
−Removed: January 2021, the Company received the loan forgiveness decision from the SBA for the loan proceeds under the Paycheck Protection Program.
−Removed: The full amount of the loan amounting $35,508 was forgiven in January 2021.
−Removed: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is provided in addition
−Removed: to the accompanying financial statements and notes to assist readers in understanding our results of operations, financial condition
−Removed: and cash flows.
−Removed: MD&A is organized as follows:
−Removed: Significant Accounting
−Removed: Policies —
−Removed: Accounting policies that we believe are important to understanding the assumptions and judgments incorporated in
−Removed: our reported financial results and forecasts.
−Removed: Results of Operations —
−Removed: Analysis of our financial results comparing the quarter ended September 30, 2022 to 2021.
−Removed: Liquidity and Capital Resources
−Removed: Analysis of changes in our cash flows, and discussion of our financial condition and potential sources of liquidity.
−Removed: report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance.
−Removed: Forward looking statements are often identified by words like:
−Removed: believe, expect, estimate, anticipate, intend, project and similar expressions,
−Removed: or words which, by their nature, refer to future events.
−Removed: You should not place undue certainty on these forward-looking statements, which
−Removed: apply only as of the date of this annual report.
−Removed: These forward-looking statements are subject to certain risks and uncertainties that
−Removed: could cause actual results to differ materially from historical results or our predictions.
−Removed: Accounting Policies
−Removed: have prepared our financial statements in conformity with accounting principles generally accepted in the United States, which requires
−Removed: management to make significant judgments and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent
−Removed: assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
−Removed: these significant judgments and estimates on historical experience and other applicable assumptions we believe to be reasonable based
−Removed: upon information presently available.
−Removed: These estimates may change as new events occur, as additional information is obtained and as our
−Removed: operating environment changes.
−Removed: These changes have historically been minor and have been included in the financial statements as soon
−Removed: as they became known.
−Removed: Actual results could materially differ from our estimates under different assumptions, judgments or conditions.
−Removed: of our significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, to our financial statements,
−Removed: included elsewhere in this Annual Report.
−Removed: We have identified the following as our critical accounting policies and estimates, which are
−Removed: defined as those that are reflective of significant judgments and uncertainties, are the most pervasive and important to the presentation
−Removed: of our financial condition and results of operations and could potentially result in materially different results under different assumptions,
−Removed: judgments or conditions.
−Removed: believe the following critical accounting policies reflect our more significant estimates and assumptions used in the preparation of
−Removed: our financial statements:
−Removed: of Estimates —
−Removed: The financial statements are prepared in conformity with accounting principles generally accepted in the United
−Removed: States (“GAAP”).
−Removed: Management is required to make estimates and assumptions that affect the reported amounts of assets and
−Removed: liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
−Removed: results could differ from those estimates.
−Removed: Value of Financial Instruments —
−Removed: Our short-term financial instruments, including cash, accounts receivable, accounts payable
−Removed: and other liabilities, consist primarily of instruments without extended maturities.
−Removed: We believe that the fair values of our current assets
−Removed: and current liabilities approximate their reported carrying amounts.
−Removed: Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ.
−Removed: EQUATOR’s business is new product development, beverage
−Removed: production, distribution, and sales & marketing of its beverages.
−Removed: Our beverages are Non-GMO Project Verified, and USDA Organic.
−Removed: produce both nonalcoholic and ready to drink alcoholic beverages.
−Removed: Equator also has a line of sparking energy beverages that are focused
−Removed: on the female consumer.
−Removed: Equator beverages are available in North America, the Caribbean and Bermuda.
−Removed: We package our beverages in 100%
−Removed: recyclable, eco-friendly packaging.
−Removed: The packaging has a low impact on the environment
−Removed: of Operations
−Removed: Months Ended September 30, 2022 and 2021
−Removed: the three months ended September 30, 2022, the Company reported revenue of $548,973 an increase from revenue of $477,013 for the three
−Removed: months ended September 30, 2021.
−Removed: The 15% increase in revenue was due to an increase in cases sold for the quarter ended September 30,
−Removed: 2022 compared to the same period last year.
−Removed: of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs.
−Removed: Also included in cost of
−Removed: revenue are adjustments made to inventory carrying amounts, including markdowns to market.
−Removed: the three months ended September 30, 2022, cost of revenue was $380,64 or 69% of revenue.
−Removed: For the three months ended September 30, 2021,
−Removed: cost of revenue was $255,266 or 54% of revenue.
−Removed: The 15% increase in cost of revenue was due to higher costs of product, ocean freight
−Removed: and warehousing costs compared to the same period last year.
−Removed: the three months ended September 30, 2022, selling, general and administrative expenses was $198,122 a decrease of $25,449 from the three
−Removed: months ended September 30, 2021 of $223,571.
−Removed: decrease in operating expenses was due to lower Amazon selling fees and also from a decrease in stock compensation expense.
−Removed: Amazon selling
−Removed: fees decreased by $20,505 while compensation expenses decreased by $10,567 for the three months ended June 30, 2022 compared to the same
−Removed: period last year.
−Removed: Months Ended September 30, 2022 and 2021
−Removed: the nine months ended September 30, 2022, the Company reported revenue of $1,469,732 a decrease of $25,326 from revenue of $1,495,058
−Removed: for the nine months ended September 30, 2021.
−Removed: The decrease in revenue was due to fewer cases of MOJO flavored products sold in 2022 compared
−Removed: to the same period last year.
−Removed: Some of the Company’s products were affected by production and shipping challenges during the first
−Removed: nine months of 2022 because of closures due to COVID-19 and congestions at the ports.
−Removed: of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs.
−Removed: Also included in cost of
−Removed: revenue are adjustments made to inventory carrying amounts, including markdowns to market.
−Removed: the nine months ended September 30, 2022, cost of revenue was $966,207 or 66% of revenue.
−Removed: For the nine months ended September 30, 2021,
−Removed: cost of revenue was $793,234 or 53% of revenue.
−Removed: The 13% increase in cost of revenue was due to higher costs of product, ocean freight
−Removed: and warehousing costs compared to the same period last year.
−Removed: the nine months ended September 30, 2022, selling, general and administrative expenses was $667,918 an increase of $22,577 from the nine
−Removed: months ended September 30, 2021 of $645,341.
−Removed: increase in operating expenses was primarily due to higher compensation expenses offset by a decrease in selling expenses.
−Removed: director compensation expenses increased by $52,355 for the nine months ended September 30, 2022 compared to the same period last year.
−Removed: Selling expenses which consists of Amazon fees, freight delivery expenses and commissions decreased by $35,446 compared to the same period
−Removed: and Capital Resources
−Removed: of September 30, 2022, the Company had working capital of $191,182.
−Removed: Net cash used in operating activities was $144,119 for the nine months
−Removed: ended September 30, 2022, compared to net cash used in operating activities for the nine months ended September 30, 2021 of $42,879.
−Removed: Net cash provided by financing activities was $107,260 for the nine months ended September 30, 2022 compared to zero for the nine months
−Removed: ended September 30, 2021.
−Removed: Net cash was provided by financing activities of a related party loan and proceeds from the exercise of stock
−Removed: options, offset by cash used in financing activities to repurchase EQUATOR Restricted Common Stock for the nine months ended September
−Removed: Capital Needs
−Removed: working capital requirements increase as demand grows for our products.
−Removed: During the nine months ended September 30, 2022, the Company
−Removed: had net borrowings of $275,000.
−Removed: This was the direct result of supply chain delays in manufacturing and ocean transport times.
−Removed: borrowings were zero.
−Removed: Should the Company require additional working capital during the next twelve months, it may seek to raise additional
−Removed: Financing transactions may include the issuance of equity, debt securities and obtaining credit facilities.
−Removed: BALANCE SHEET ARRANGEMENTS
−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS
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.