U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

FORM 10-K

(Mark One)

[X] ☒ANNUAL REPORT PURSUANT TO UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For Fiscal Year Ended: December 31 2020, 2022

OR

[  ] ☐TRANSITION REPORT PURSUANT TO UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number: 000-55269

EQUATOR Beverage Company

(Exact name of registrant as specified in its charter)

Registrant’s telephone number: 929264 7944

Securities registered under Section 12(b) of the Act: None

Securities registered under Section 12(g) of the Act: Common Stock, $0.001 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes[  ] Yes ☐ No [X] ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.

Yes [  ] ☐ No [X] ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] ☒ No [  ]☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] ☒ No [  ]☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a smaller reporting company. See the definitions of the “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and emerging growth company in Rule 12b-2 of the Exchange Act:

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ] ☐ No [X] ☒

As of June 30, 20202022 (the last day of the registrant’s most recently completed second quarter), the aggregate market value of the registrant’s common stock (based on its reported last sale price on such date of $0.109$0.07 per share) held by non-affiliates of the registrant was $1,966,263.$542,941.

On February 22, 2021March 31, 2023 there were 30,811,24016,469,115 shares of the registrant’s common stock, par value $0.001, issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

None.None.

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements using words such as “expects,” “anticipates,” “intends,” “believes” and similar language.

Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the sections “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.

All references in this Annual Report on Form 10-K to “MOJO,“EQUATOR,” “MOJO Organics,“EQUATOR Beverage Company,” the “Company,” “we,” “us” or “our” mean MOJO Organics, Inc.EQUATOR Beverage Company.

PART I

ITEM 1. BUSINESS

COMPANY OVERVIEW

MOJO Organics, Inc. (“MOJO” or the “Company”) isEQUATOR Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ. The Company engages inEQUATOR’s business is new product development, beverage production, marketing, distribution, and sales & marketing of beverage brands thatits beverages. Our beverages are natural, Non-GMO Project verified,Verified, and USDA Organic. We produce both nonalcoholic and ready to drink alcoholic beverages. EQUATOR also has a line of sparkling energy beverages that are focused on the female consumer. EQUATOR beverages are available in North America, the Caribbean and Bermuda. We package our beverages in 100% recyclable, eco-friendly packaging. The packaging has a low impact on the environment. Also, our products are plant-based, Eco-friendly and renewable.

CURRENT OPERATIONS

Sales and Distribution

The Company’s flagship product is MOJO Pure Coconut Water. In addition to Pure Coconut Water, the Company produces Sparkling Coconut Water, Coconut Water + Mango Juice, Coconut Water + Pineapple Juice, Sparkling Coconut Water + Citrus, Sparkling Coconut Water + Blood Orange, Sparkling Coconut Water + Pink Grapefruit, Sparkling Coconut Water Energy + Citrus, Sparkling Coconut Water Energy + Blood Orange, Sparkling Coconut Water Energy + Pink Grapefruit, Cubano Blue Agave Tequila Organic Sparkling Coconut Water + Citrus, Cubano Blue Agave Tequila Organic Sparkling Coconut Water + Blood Orange and Pure 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.packaging. The company predominantlyCompany 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.

CURRENT OPERATIONS

Sales and Distribution

The Company’s flagship product is MOJO Pure Coconut Water. In addition to Pure Coconut Water, the Company produced Sparkling Coconut Water, Coconut Water + Mango Juice, Coconut Water + Pineapple Juice, and Pure Organic Coconut Water in 2020. We seek to grow the market share of Also, our products by expanding our hybrid distribution network through the relationshipsare plant-based, Eco-friendly and efforts of our management and third-party partners an improved broker network, and new products and packaging in 2021. The company 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.renewable.

Production

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. Currently, the Company has multiple production facilities that it could source products from, each of the facilities could supply our forecasted demand for 2021.demand.

Competition

The beverage industry is competitive. Competitors in our market compete for brand recognition, ingredient sourcing, product shelf space, and e-commerce page rankings. Our competitors have similar distribution channels and retailers to deliver and sell their products.

Government Regulation

Within the United States, beverages are governed by the U.S. Food and Drug Administration (the “FDA”). As such, it is necessary for the Company to establish, maintain and make available for inspection records as well as to develop labels (including nutrition information) that meet FDA requirements. The Company’s production facilities are subject to FDA regulation.

Employees

As of December 31, 2020,2022, the Company had two employees. The Company also uses the services of contractors, consultants and other third-parties. We contract with food brokers to represent our products to specific specialized sales channels. We utilize the services of direct sales and distribution companies that deliver and sell our products to their customers. We contract with manufacturing facilities to produce our products and outsource the storage and transportation of our products.

CORPORATE HISTORY AND DEVELOPMENT

The Company was incorporated in 2007 and began producing MOJO branded products in 2016. MOJO Organics IncEQUATOR Beverage Company is headquartered in Jersey City, New Jersey and our internet site is www.MojoOrganicsInc.com. MOJO’swww.EquatorBeverage.com. EQUATOR’s stock is traded on the OTC MarketsOTCQB 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. to EQUATOR Beverage Company. This change of name was filed with the State of Delaware and became effective July 5, 2022.

ITEM 1A.2. RISK FACTORS

In addition to the other information set forth in this report, you should consider the following factors, which could materially affect our business, financial condition or results of operations in future periods. The risks described below are not the only risks facing our Company. Additional risks not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or results of operations in future periods.

If we are unable to expand our operations in the marketplace, our growth rate could be negatively affected.

Our success depends in part on our ability to grow our business. We have adopted and implemented a strategic plan to increase awareness of our products, secure additional distribution channels, and foster and strengthen our supply, manufacturing and distribution relationships. Our strategic plan includes addressing changes in the market. There can be no assurance that we will achieve the growth necessary to achieve our objectives.

We could need additional capital in the future to expand our operations and execute our business objectives.

Should we need additional capital to expand our operations, financing transactions may include the issuance of equity, debt securities, and credit facilities.

The challenges of competing with other beverage companies could result in reductions to our revenue and operating margins.

The nonalcoholic beverage segment of the beverage industry is competitive. We compete with numerous beverage companies, including those marketing similar products. All beveragesbeverages’ companies are competing for stomach share on a daily basis which is approximately 64 oz. of fluid per day, per person. Our success depends on our ability to secure distribution channels for our products, our ability to make consumers aware of our products and the appeal of our products to consumers.

Disruption of supply, increases in costs or shortages of ingredients could affect our operating results.

Availability of supply and the prices charged by the producers of production inputs used in our products can be affected by a variety of factors, including the general demand by other buyers for the same fruits used by us in our products, and country politics and country economics in the area in which our fruit is grown.

The quality of fruit we seek trades on a negotiated basis, depending on supply and demand at the time of the purchase. An increase in the price of any fruit that we use in our products will have a negative effect on our margins should we be unable to increase our sales price. Higher energy costs may increase the cost of transporting our supplies. Changes in emission rules for maritime vessels will likely increase costs of shipping our products. Conversely, lower fruit prices and lower energy prices will have a positive result on transport and packaging costs.

We use independent bottlers for the filling of our products and, as such, are subject to the bottler’s production and quality control.

We use independent bottlers for the production of our products. Accordingly, we are dependent on the bottlers and their ability to meet production demands and to achieve product quality. We play an active rollrole in the production of our beverages, which includes but is not limited to developing our formulations, maintaining control over the labeling and packaging of our beverages, independent Underwriters Laboratories testing of our products for safety, and packaging and function of our packaging and correct FDA labeling. We also review and monitor the safety certifications of the factories including their status with the United States Food and Drug Administration. We also inspect the warehouses that our products are stored in, and monitor the trucking companies that deliver our goods.

Litigation and publicity concerning food quality, health claims, and other issues could expose us to significant liabilities.

The packaged food industry can be adversely affected by litigation and complaints from customers and government authorities resulting from product quality, health claims, allergens, illness, and injury. Adverse publicity about these allegations may negatively affect the Company, regardless of whether the allegations are true. In addition, the food industry has been subject to a number of claims based on the nutritional content of food products they sell, and disclosure and advertising practices. Due to the inherent uncertainties of litigation and regulatory proceedings, we cannot predict the ultimate outcome of any such proceedings. An unfavorable outcome will have an adverse impact on our business. In addition, any litigation or regulatory proceedings may result in substantial costs.

ITEM 1B.3. UNRESOLVED STAFF COMMENTS

Not applicable.None

ITEM 2. PROPERTIES

The Company maintains office space in Jersey City, NJ. The initial lease agreement was for the period March 1, 2019 to February 29, 2020 and was renewed for one year under the same terms. In April 2020, the Company was given a 50% discount on the rent for April and May 2020 as well as an optional lease extension for an additional three months under the same terms. The base rent under this agreement is $2,343 per month, and expires May 31, 2021. Lease expense amounted to $25,773 and $27,648 for the twelve months ended December 31, 2020 and 2019 respectively. The security deposit for the lease agreement is $4,518 and the lease expires on May 31, 2021.

ITEM 3.4. LEGAL PROCEEDINGS

We are not a party to any legal or administrative proceedings and are not aware of any pending or threatened legal or administrative proceedings against the Company in all material aspects. We could from time to time become a party to various legal or administrative proceedings arising in the course of our business.

ITEM 4.5. MINE SAFETY DISCLOSURE

Not applicable.None

PART II

ITEM 5.6. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s Common Stock is currently quoted on the OTCQB under the symbol MOJO.

For the period January 1, 20192021 to December 31, 2020,2022, the following table sets forth the high and low closing bid prices by quarter, based upon information obtained from inter-dealer quotations without retail markup, markdown, or commission and may not necessarily represent actual transactions:

Holders

*Volume-weighted average price (VWAP)

Holders

As of December 31, 2020,2022, there were 30,610,24016,230,615 shares of Common Stock issued and outstanding held by 944907 shareholders of record.

Dividends

The Company has not declared a cash dividend with respect to its Common Stock. Future payment of dividends is within the discretion of the Board of Directors and will depend on earnings, capital requirements, financial condition and other relevant factors.

Recent Sales of Unregistered Securities, Use of Proceeds from Registered Securities

There were no sales of unregistered securities during the years ended December 31, 20202022 and 2019.2021.

Issuer Purchases of Equity Securities

On January 23, 2020,During the year ended December 31, 2022, the Company repurchased 25,000830,342 shares of MOJOEQUATOR Restricted Common Stock from shareholders at a total cost of $5,250 with an average purchase price of $0.21.$193,188. The shares were cancelled.

On December10, 2020,During the year ended December 31, 2021, the Company repurchased 100,000382,913 shares of MOJOEQUATOR Restricted Common Stock from shareholders at a total cost of $9,800 with an average purchase price of $0.098.$107,215. The shares were cancelled.

Equity Compensation Plans

2012 Incentive Plan

On February 18, 2019, the Company’s Board of Directors signed an unanimous consent to terminate the 2012 Incentive Plan, and it was resolved further that 70,000 options to purchase shares of Common Stock be converted into 70,000 shares of non-trading, restricted Common Stock. It also consented the CEO of the Company to exercise options to purchase 222,000 Restricted and Non-Trading shares of Common Stock at $0.255 per share. The total exercise price was $56,610 and this reduced the loan payable to the CEO by the same amount. There are no options outstanding from this plan as of December 31, 2020 and December 31, 2019.

2015 Incentive Plan

The 2015 Incentive Plan was terminated by the Board of Directors on January 24, 2019. The 2015 Incentive Plan provided the Company with the ability to issue stock options, stock awards and/or restricted stock purchase offers for up to an aggregate of 1,500,000 shares of Common Stock. There are 505,608 options outstanding from this plan as of December 31, 2020, and 661,858 options were outstanding as of December 31, 2019.

ITEM 6.7. SELECTED FINANCIAL DATA

Not applicable.None

ITEM 7.8. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is provided in addition to the accompanying financial statements and notes to assist readers in understanding our results of operations, financial condition and cash flows. MD&A is organized as follows:

This report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this annual report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

Significant Accounting Policies

We have prepared our financial statements in conformity with accounting principles generally accepted in the United States, which requires management to make significant judgments and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. We base these significant judgments and estimates on historical experience and other applicable assumptions we believe to be reasonable based upon information presently available. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the financial statements as soon as they became known. Actual results could materially differ from our estimates under different assumptions, judgments or conditions.

All of our significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, to our financial statements, included elsewhere in this Annual Report. We have identified the following as our significant accounting policies and estimates, which are defined as those that are reflective of significant judgments and uncertainties, are the most pervasive and important to the presentation of our financial condition and results of operations and could potentially result in materially different results under different assumptions, judgments or conditions.

We believe the following significant accounting policies reflect our more significant estimates and assumptions used in the preparation of our financial statements:

Use 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.

Fair Value of Financial Instruments — Our short-term financial instruments, including cash, accounts receivable, accounts payable and other liabilities, consist primarily of instruments without extended maturities. We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts.

Recent Accounting Pronouncements

In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-01, “Leases (Topic 842): Codification Improvements”. The ASC aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing essential information about leasing transactions. The Company has assessed that this pronouncement had no impact on the financial statements.

Results of Operations

Years Ended December 31, 20202022 and 20192021

Revenue

For the year ended December 31, 2020,2022, the Company reported revenue of $1,741,919$1,821,492 a decrease of $1,103$97,390 from revenue of $1,743,021$1,918,882 for the year ended December 31, 2019.2021. The decrease in revenue was due to fewer cases sold in 2022 compared to the same period last year. The Company’s revenue was affected by production and shipping challenges during the year 2022. The factory closures due to COVID-19 pandemic which caused several channels of our businessand port congestions in the United States during 2022 resulted to be shut down.backordered inventory and lost sales for the Company.

Cost of Revenue

Cost 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.

For the twelve monthsyear ended December 31, 2020,2022, cost of revenue was $917,639$1,190,536 or 53%65% of revenue. For the twelve monthsyear ended December 31, 2019,2021, cost of revenue was $908,408$1,069,844 or 52%56% of revenue. The 1%9 percentage points increase in cost of revenue was due to higher costs of product, ocean freight and warehousing costs compared to the packaging costs updates for old products and also for new products launched in 2020.same period last year.

Operating Expenses

For the year ended December 31, 2020,2022, the selling, general and administrative expenses was $910,218 a decrease$859,155 an increase of $221,594$14,501 from the year ended December 31, 20192021 of $1,131,812.$844,654.

This decreaseincrease in operating expenses was primarily due to lowerhigher compensation expenses coupled with lowerin 2022. Office expenses and marketing and selling expenses. Compensation expenses decreased by $145,036fees also increased compared to the same period last year. MarketingThese increases were partially offset by lower selling expenses decreased by $15,070 from the same period last year. Selling expenses were $428,110 for the year ended December 31, 20202022 compared to $465,864 for the year ended December 31, 2019. This $37,754 decrease is attributable to the lower shipping expenses, broker fees and storage fees.same period last year.

Net Income/(Loss)

For the year ended December 31, 2020, the net loss was ($83,719), a $213,980 improvement from a net loss of ($297,699) for the year ended December 31, 2019.

Liquidity and Capital Resources

Liquidity

As of December 31, 2020,2022, the Company had working capital of $249,913.$145,867. Net cash used in operating activities was $26,203$93,004 for the year ended December 31, 2019,2022, compared to net cash provided by operating activities for the year ended December 31, 20192022 of $32,196.$103,463. Net cash provided by financing activities was $57,261 for year ended December 31, 2022 compared to $107,215 net cash used in financing activities for the year ended December 31, 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 125,000 MOJOEQUATOR Restricted Common Stock at an average stock price of $0.1204 was $15,050 for the year ended December 31, 2020 compared to $750 for the year ended December 31, 2019.2022.

Working Capital Needs

Our working capital requirements increase as demand grows for our products. During 2020 and 2019,the year ended December 31, 2022, the Company did not require additional funding. Ifhad 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 requiresrequire 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.

OFF BALANCE SHEET ARRANGEMENTS

The Company had no off balance sheet arrangements as of December 31, 2020.None

ITEM 7A.9. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not applicable.None

ITEM 8.10. FINANCIAL STATEMENTS

The audited financial statements are included beginning immediately following the signature page to this report. See Item 15 for a list of the financial statements included herein.

ITEM 9.11. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

On November 18, 2020, the Company advised MSPC Certified Public Accountants and Advisors (MSPC) that it was dismissed as the Company’s independent registered public accounting firm. The decision to dismiss MSPC as the Company’s independent registered public accounting firm was approved by the Company’s Board of Directors on November 18, 2020. On November 18, 2020, the Company engaged Boyle CPA, LLC as its independent registered public accounting firm for the Company’s fiscal year ended December 31, 2020. The decision to engage the New Auditor as the Company’s independent registered public accounting firm was approved by the Company’s Board of Directors.None

ITEM 9A.12. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act of 1934 (the “Exchange Act”) is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

Under the supervision and with the participation of the Company’s senior management, consisting of the Company’s principal executive and financial officer and the Company’s principal accounting officer, the Company conducted an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report (the “Evaluation Date”). Based on this evaluation, the Company’s principal executive and financial officer concluded, as of the Evaluation Date, that the Company’s disclosure controls and procedures were effective.

Management’s Annual Report on Internal Control over Financial Reporting

The management of MOJO Organics, Inc.EQUATOR Beverage Company is responsible for establishing and maintaining an adequate system of internal control over financial reporting (as defined in Rule 13a-15(f)) under the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives. In evaluating the effectiveness of our internal control over financial reporting, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.Framework (2013). Based on this evaluation, our officers concluded that, during the period covered by this annual report, our internal controls over financial reporting were not operating effectively.

As previously reported, the Company does not have an audit committee and is not currently obligated to have one. Management does not believe that the lack of an audit committee is a material weakness.

Attestation Report

This Annual Report on Form 10-K does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting as such report is not required for non-accelerated filers.

Changes in Internal Control over Financial Reporting

There was no change in our internal controls over financial reporting during the year ended December 31, 20202022 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

ITEM 9B.13. OTHER INFORMATION

Not Applicable.None

PART III

ITEM 10.14. DIRECTORS, EXECUTIVE OFFICER, AND CORPORATE GOVERNANCE

Executive Officer and Directors

Below are the names and certain information regarding our current executive officer and directors:

Directors are elected to serve until the next annual meeting of stockholders and until their successors are elected and qualified. Biographical information of each current officer and director is set forth below.

Glenn Simpson is Chairman of the Board of Directors and Chief Executive Officer of the Company. Mr. Simpson joined the Company in October 2011. He has extensive experience in the beverage industry. Mr. Simpson was Vice President and Chief Financial Officer of Coca-Cola Bottlers, Inc. in Uzbekistan from 1995 to 2000. His primary responsibilities included corporate strategy, supervision of bottling and distribution operations and facilities construction. His accomplishments included growing revenues from a base at $4 million to over $160 million annually. The company was awarded “Bottler of the Year” by The Coca-Cola Company for two consecutive years under his leadership based upon product quality and revenue growth. From 2009 to 2011, Mr. Simpson was engaged in beverage projects on a consulting basis in Russia and Afghanistan. Mr. Simpson is a Certified Public Accountant and holds an MBA from Columbia University School of Business.

Jeffrey Devlin has served on the Board of Directors of the Company since January 2012. Mr. Devlin has over 35 years of advertising and business development experience. Mr. Devlin currently serves as Chief Marketing Officer – Government, Advertising and Commerce at Deloitte Consulting LLP. He has held various other executive and creative positions over the course of his advertising career, including launching the introduction of Diet Coke for The Coca-Cola Company. Mr. Devlin currently serves on the board of directors of a number of private organizations, as well as on the board of directors of Location Based Technologies, Inc., a publicly traded company. Mr. Devlin received a Bachelor’s degree from Bethel University.

Board Committees

The Company has not established any committees of the Board of Directors. Our Board of Directors may designate from among its members an executive committee and one or more other committees in the future. We do not have a nominating committee or a nominating committee charter. Further, we do not have a policy with regard to the consideration of any director candidates recommended by security holders. To date, no security holders have made any such recommendations. Our two directors perform all functions that would otherwise be performed by committees. Given the present size of our board it is not practical for us to have committees. If we are able to grow our business and increase our operations, we intend to expand the size of our board and allocate responsibilities accordingly.

Shareholder Communications

Currently, we do not have a policy with regard to the consideration of any director candidates recommended by security holders. To date, no security holders have made any such recommendations.

Code of Ethics

We have adopted a written code of ethics (the “Code of Ethics”) that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions. We believe that the Code of Ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code. To request a copy of the Code of Ethics, please make written request to our Company at 185 Hudson Street, Floor 25, Jersey City, New Jersey 07302.

Section 16(a) Beneficial Ownership Reporting Compliance

Under Section 16(a) of the Exchange Act, all executive officers, directors, and each person who is the beneficial owner of more than 10% of the common stock of a company that files reports pursuant to Section 12 of the Exchange Act of 1934, are required to report the ownership of such common stock, options, and stock appreciation rights (other than certain cash only rights) and any changes in that ownership with the SEC. To our knowledge, based solely on a review of the copies of such reports furnished to us and written representations that no other reports were required, during the fiscal year ended December 31, 20202022 all Section 16(a) filing requirements applicable to our officers, directors and greater than 10% beneficial owners were complied with.

ITEM 11.15. EXECUTIVE COMPENSATION

The following table sets forth information concerning the total compensation paid or earned by each of our named executive officers (as defined under SEC rules).

The Summary Compensation Table omits columns for Option Awards, Non-Equity Incentive Plan Compensation, Non-Qualified Deferred Compensation Earnings and All Other Compensation as no such amounts were paid toDuring the named executive officers during the fiscal yearsyear ended December 31, 2020 or 2019.

(1) Pursuant his employment agreement (the “Simpson Agreement”),2022, 603,000 shares of Non-trading, Restricted Common Stock were issued to Mr. Simpson will be paid a salaryfor the stock portion of $5,000 per month in cash and the Company is obligated to granthis compensation. Mr. Simpson 67,000was also issued 350,000 shares of non-trading, restrictedNon-Trading Restricted Common Stock per month. Pursuant to this agreement, Mr. Simpson is also entitled to an annual bonus comprised of cash and non-trading, restricted Common shares based on performance goals established by the Board of Directors of the Company. The cash bonus is established at $44,400 per year. Theas a one-time stock bonus is set at 200,000 shares of non-trading, restricted Common Stock per year through March 31, 2025 based upon revenue performance goals. The revenue goals range from $900,000 to $19,200,000 per year. The bonus awards are accelerated should revenue exceed the annual target amounts.award.

During the twelve monthsyear ended December 31, 2020,2021, 804,000 shares of Non-trading, Restricted Common Stock were issued to the CEOMr. Simpson for the stock portion of his compensation. During the first quarter of 2020,year 2021, Mr. Simpson exercised stock options to purchase 156,25093,750 non-trading, restricted shares at $0.16 per share and thefor a total exercise price of $25,000$30,000. This reduced the accrued salary owed to him. He was paid in cash for the second and fourth quarters, and for the month of September. Mr. Simpson received 108,696 non-trading, restricted shares in lieu of cash payments.

During 2019, Mr. Simpson exercised stock options to purchase 555,688 non-trading, restricted shares at an average price of $0.198 per share for a total of $110,000. The total exercise price reduced the accrued salary owed to him by $95,000 and reduced a non-interest loan payable to the CEO by 15,000. He was owed $10,000 as of December 31, 2019 for the cash portion of his salary.

Mr. Simpson’s employment agreement is the only executive employment agreement in effect as of December 31, 2020.

The Company has no other plans in place and has never maintained any plans that provide for the payment of retirement benefits or benefits that will be paid primarily following retirement including, but not limited to, tax qualified deferred benefit plans, supplemental executive retirement plans, tax-qualified deferred contribution plans and nonqualified deferred contribution plans.

Employment Agreements

The “Simpson Agreement” is the only employment agreement in effect as of December 31, 2020.2022. See discussion above.

Outstanding Option Awards at December 31

The following table sets forth information regarding stock options held by executive officers at December 31.

On February 4, 2022, the Company adjusted the exercise price of the options granted to Mr. Simpson from $0.32 per share to $0.16 per share.

On September 24, 2021, the Company extended the expiration date of the options granted to Mr. Simpson from expiring an April 6, 2022 to April 6, 2024.

Option Exercises in 20192022 and 20202021

On February 25, 2019,During the year ended December 31, 2022, Mr. Simpson exercised options to purchase 222,000 shares of Non-Trading, Restricted, Common Stock at $0.255 per share and the accrued payroll owed to him was reduced by $56,610. On the same date, two directors who had 35,000 options each were issued a total of 70,000 shares of Non-Trading, Restricted, Common Stock following the resolution to terminate the 2012 Incentive Plan.

On August 13, 2019, Mr. Simpson exercised options to purchase 93,750 shares of Non-Trading, Restricted, Common Stock at $0.16 per share. The total exercise value is $15,000 and this reduced a non interest loan payable balance to the CEO to $0.

On November 1, 2019, Mr. Simpson exercised options to purchase 239,938 shares of Non-Trading, Restricted, Common Stock at $0.16 per share. The total exercise value is $38,390 and the accrued payroll owed to him was reduced by the same amount.

On January 14, 2020, Mr. Simpson exercised options to purchase 93,750 Restricted and Non-trading shares at $0.16 per share. The total exercise value was $15,000 and this reduced the accrued salary payable to the CEO by the same amount.

On March 6, 2020, Mr. Simpson exercised options to purchase 62,500159,054 Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $10,000$25,449.

During the year ended December 31, 2021, Mr. Simpson exercised options to purchase 93,750 Restricted and Non-Trading shares at $0.32 per share. The total exercise value was $30,000 and this reduced the accrued salary payable to the CEOMr. Simpson to $0.

Director Compensation

The non-employee directorsdirector did not receive cash compensation for serving as such, for serving on committees (if any) of the Board of Directors or for special assignments. Board members are not reimbursed for expenses incurred in connection with attending meetings. During the year ended December 31, 2020, there were no arrangements that resulted in our making payments to any of our non-employee directors for any services provided to us by them as directors.

ITEM 12.16. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information with respect to the beneficial ownership of our Common Stock known by us as of December 31, 20202022 by:

Except as otherwise indicated, the persons listed below have sole voting and investment power with respect to all shares of our Common Stock owned by them, except to the extent such power may be shared with a spouse.

Securities Authorized For Issuance Under Equity Compensation Plans

2012 Incentive Plan

On February 18, 2019, the Company’s Board of Directors signed an unanimous consent to terminate the 2012 Incentive Plan, and it was resolved further that 70,000 options to purchase shares of Common Stock be converted into 70,000 shares of Common Stock. It also consented the CEO of the Company to exercise options to purchase 222,000 Restricted and Non-Trading shares of Common Stock at $0.255 per share. The total exercise price was $56,610 and this reduced the loan payable to the CEO by the same amount.

There are no options outstanding from this plan as of December 31, 2020 and December 31, 2019.

2015 Incentive Plan

The 2015 Incentive Plan was terminated by the Board of Directors on January 24, 2019. The 2015 Incentive Plan provided the Company with the ability to issue stock options, stock awards and/or restricted stock purchase offers for up to an aggregate of 1,500,000 shares of Common Stock.

There are 505,608 options outstanding from this plan as of December 31, 2020, and 661,858 options were outstanding as of December 31, 2019.

ITEM 13.17. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Other than as disclosed below and in this Form 10-K, there have been no transactions, since January 1, 2020,2022, or any currently proposed transaction, in which we were or are to be a participant and the amount involved exceeds the lesser of $120,000 or 1% of the average of our total assets at yearendyear end for the last two completed fiscal years and in which any of our directors, executive officers or beneficial holders of more than 5% of our outstanding Common Stock, or any of their respective immediate family members, has had or will have any direct or material indirect interest.

Director Independence

We are not currently subject to listing requirements of any national securities exchange or inter-dealer quotation system which has requirements that a majority of the board of directors be “independent” and, as a result, we are not at this time required to (and we do not) have our Board of Directors comprised of a majority of “Independent Directors.”

Our Board of Directors has considered the independence of its directors in reference to the definition of “independent director” established by the Nasdaq Marketplace Rule 5605(a)(2). In doing so, the Board of Directors has reviewed all commercial and other relationships of each director in making its determination as to the independence of its directors. After such review, the Board of Directors has determined that Mr. Devlin qualifies as independent under the requirements of the Nasdaq listing standards.

ITEM 14.18. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

On November 18, 2020, MSPC, Certified Public Accountants and Advisors, a Professional Corporation (“MSPC”) was dismissed as the Company’s independent public accounting firm. As of November 18, 2020, the Company engaged Boyle CPA LLC, Certified Public Accountants and Consultants (“Boyle CPA) as its new independent registered public accounting firm.

The aggregate fees billed to the Company for services rendered in connection with the years ended December 31, 20202022 and 20192021 are set forth in the table below:

AuditPrincipal accountant fees and services consist of fees incurred for professional services rendered for the audit of financial statements, for reviews of our interim financial statements included in our quarterly reports on Form 10-Q and for services that are normally provided in connection with statutory or regulatory filings or engagements.

Consent fees consist of fees incurred for yearendFor the use of the 2019 audit report by the previous auditor. All audit consentyears ended December 31, 2022 and December 31, 2021, total principal accountant fees represent fees billed by MSPC.  Boyle CPA.

Audit Committee’s Pre-Approval Practice

We do not have an audit committee. Our board of directors has approved the services described above.

ITEM 15.19. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Financial Statement Schedules

The financial statements of MOJO Organics, Inc.EQUATOR Beverage Company are listed on the Index to Financial Statements on this annual report on Form 10-K beginning on page F-1.

The following Exhibits are being filed with this Annual Report on Form 10-K:

* Filed herewith.

** Filed previously

† Management compensatory plan, contract or arrangement.

SIGNATURES

Pursuant toIn accordance with the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

PART IV - FINANCIAL INFORMATION

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and

Board of Directors of MOJO Organics, Inc.EQUATOR Beverage Company

Opinion on the Financial Statements

We have audited the accompanying balance sheetsheets of MOJO Organics, Inc.EQUATOR Beverage Company (the “Company”) as of December 31, 2020,2022 and 2021, the related statements of operations, changes in stockholders’ equity, and cash flows for each of the yearyears in the two-year period ended December 31, 2020,2022, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020,2022 and 2021, and the results of its operations and its cash flows for each of the yeartwo years in the period ended December 31, 2020,2022, in conformity with accounting principles generally accepted in the United States of America.

Basis of Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with standards of the PCAOB.Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to errorfraud or fraud.error. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Inventory Valuation

At December 31, 2020, the Company’s inventory balance was $174,171. As described in Note 2 to the financial statements, inventories, consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value. If necessary, the Company provides allowances to adjust the carrying value of its inventories to net realizable value when the net realizable value is below cost. At December 31, 2020, there were no such adjustments to inventory.

Our audit procedures included testing the reasonableness of management’s key assumptions and judgments used to determine the inventory valuation. For instance, we confirmed the units held at an independent warehouse, for selected purchases we vouched the unit costs to supplier invoices, we compared the quantities and carrying value of on-hand inventories to related unit sales, and we reviewed historic inventory turnover.

Stock Issued for Services

During the year ended December 31, 2020,2022, the Company recognized $177,322$181,889 in expenses related to stock issued for services. As discussed in Notes 3 and 4, the Company has issued stock to Management under an employment agreement and periodically issued other shares for services. Shares issued for services are recorded at their fair value on their measurement dates based upon prices on OTC markets.

Our audit procedures to evaluate the appropriateness and accuracy of the accounting and fair value determined by management included reviewing the agreements and selected documentation supporting the issuances as well as recomputing the valuations made by Management by examining the prices from third party sources.

/s/ Boyle CPA, LLC

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and directors of

MOJO Organics, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheet of MOJO Organics, Inc. (the “Company”) as of December 31, 2019, the related statements of operations, changes in stockholders’ equity/deficit, and cash flows for the year ended December 31, 2019, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019, and the results of its operations and its cash flows for the year ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal controls over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We began serving as the Company’s auditor in 2016. Insince 2020 we became the predecessor auditor.

Red Bank, NJ

Cranford, New JerseyMarch 31, 2023

March 30, 2020

MOJO ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

Statements of Operations

For the Years Ended December 31, 20202022 and 20192021

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

MOJO ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

Balance Sheets

As of December 31, 20202022 and 20192021

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

MOJO ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

Statements of Changes in Stockholders’ Equity

For the Years Ended December 31, 20202022 and 20192021

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

MOJO ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

Statements of Cash Flows

For the Years Ended December 31, 20202022 and 20192021

Summary of non-cash investing and financing activity: During the twelve-month periodyear ended December 31, 20202022 the Company issued a total of 1,383,9461,353,000 Restricted and Non-Trading shares with an implied value of $177,322$181,889 to directors and officers to settle obligations payable. During the twelve-month period ended December 31, 2021 the Company issued a total of 626,583 Restricted and Non-Trading shares with an implied value of $187,963 to directors and officers to settle obligations payable.

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

MOJO ORGANICS, INC.

EQUATOR BEVERAGE COMPANY

Notes to Financial Statements

December 31 20202022 and 20192021

NOTE 1 – BUSINESS

Overview

MOJO Organics, Inc. (“MOJO” or the “Company”) isEQUATOR Beverage Company, a Delaware Corporationcorporation is headquartered in Jersey City, NJ. The Company engages inEQUATOR’s business is new product development, beverage production, marketing, distribution, and sales & marketing of beverage brands thatits beverages. Our beverages are Non-GMO Project Verified.

The Company’s flagship product is MOJO Pure Coconut Water. In additionVerified, and USDA Organic. We produce both nonalcoholic and ready to Pure Coconut Water,drink alcoholic beverages. EQUATOR also has a line of sparkling energy beverages that are focused on the Company produces Sparkling Coconut Water, Coconut Water + Mango Juice, Coconut Water + Pineapple Juicefemale consumer. EQUATOR beverages are available in North America, the Caribbean and Pure Organic Coconut Water.Bermuda. We seek to grow the market share ofpackage 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-basedeco-friendly packaging. The packaging has a very low impact on the environment,environment. Also, our products are plant-based, Eco-friendly and does not contribute to landfills and the pollution of our bodies of water.renewable.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“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.

Cash and Cash Equivalents

Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. As of December 31, 2020,2022, and December 31, 2019,2021, the Company did notnot have any cash equivalents.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect from outstanding balances. 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 December 31, 20202022 and 20192021 was zero.zero.

InventoriesInventory

Inventories,Inventory, 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. There were no such adjustments in 20202022 or 2019.2021.

Revenue Recognition

Revenue from sales of products is recognized when the related performance obligation is satisfied. The Company’s performance obligation is satisfied upon the shipment or delivery of products to customers. 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. Costs incurred for sales incentives and discounts are accounted for as reductions in revenue.

Deductions from Revenue

Costs incurred for sales incentives and discounts are accounted for as a reduction in revenue. These costs include payments to customers for performing merchandising activities on our behalf, including in-store displays, promotions for new items and obtaining optimum shelf space.

Shipping and Handling Costs

Shipping and Handling Costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line Selling, General and Administrative Expenses in our Statements of Operations.

Net Income/(Loss)/Income Per Common Share

The Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “Earnings“Earnings per Share”. ASC Topic 260 requires presentation of basic and diluted EPS. Basic EPS is computed by dividing the loss available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted average number of shares of common stock and common stock equivalents outstanding during the periods.

The 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 ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE

Income Taxes

The Net Operating Loss Carryforwards for federal taxes was $4,637,871$3,803,700, at December 31, 20202022 and $5,008,013 3,746,752 at December 31, 2021. The Net Operating Loss Carryforwards at December 31, 2022 was $3,803,700 and $3,746,752for the State of New Jersey. The Deferred Tax Assets for federal taxes was $973,953 $798,777 at December 31, 20202022 and $451,721$786,818 at December 31, 2021. The Deferred Tax Assets at December 31, 2022 was $342,333 and $337,208 at December 31, 2021 for the State of New Jersey. The total Deferred Tax Assets was $1,424,674 $1,141,110 at December 31, 2020.2022 and $1,124,026 at December 31, 2021. The Deferred Tax assets have been fully reserved by valuation allowances beyond that portion which is expected to offset current taxes. As of December 31, 2020,2022, the Company’s Federal income tax payable would be $12,477 and State Income Tax payable would be $5,347is zero. At December 31, 2021, The Company’s Federal income tax payable was $39,632 and State Income Tax payable was $16,985 if thisthese had not been offset by the deferred tax assets.

The Company provides for income taxes using the asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. 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 notnot have a deferred tax liability at December 31, 20202022 and December 31, 2019.2021.

As of December 31, 2020,2022, and December 31, 2019,2021, 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

Fair value of financial instruments

The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable and accrued expenses approximate their fair values due to their short-term nature.

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The ASC aims to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The Company is still assessing the impact of this pronouncement to the financial statements.

NOTE 3 – COMMITMENTS AND CONTINGENCIES

The global coronavirus (COVID-19) pandemic has caused disruptions in supply chains, affecting production and sales across a range of industries. While this disruption is currently expected to be temporary, there is considerable uncertainty around the duration.

The extent of the impact of COVID-19 on our operational and financial performance will depend on the effect on our customers and vendors – all of which are uncertain and cannot be predicted. The related financial impact cannot be reasonably estimated at this time.

Employment Agreements

On April 6, 2017, the Company entered into anPursuant to Mr. Simpson’s Amended and Restated Employment Agreement with Mr. Glenn Simpson (the “Simpson(“the Agreement”), the Company’s Chairman and Chief Executive Officer (the “CEO”). The Simpson Agreement was effective April 1, 2017 and has an eight-year term.

Pursuant to the Simpson Agreement dated April 6, 2017 and amended on September 1, 2022, Mr. Simpson will beis paid a salary of $5,000$8,000 per month in cash and the Company is obligated to grant 67,000 shares of non-trading, restricted Common Stock per month. Additionally, Stock.

Mr. Simpson is entitled toalso paid an annual bonus comprised of cash and non-trading, restricted Common Stock based on the achievement of performance goals established by the Board of Directors of the Company and set forth in the Simpson Agreement. The cash bonus is established at $44,400$44,400 per year. The stock bonus is set at 200,000 shares of non-trading, restricted Common Stock per year through March 31, 2025 based upon achieving revenue performance goals. The revenue goals range from $900,0002027.

Pursuant to $19,200,000 per year. The bonus awards are accelerated when revenues exceed the annual target amounts.

DuringAgreement, if Mr. Simpson’s employment is terminated without cause, the twelve months endedCompany is obligated to pay him all amounts due under the contract for the remaining term of the contract immediately. At December 31, 2020,2022, the CEOpotential liability to EQUATOR Beverage Company was issued 804,000 Restricted$408,000 and Non-Trading3,417,000 shares of Common Stock under the terms of the Simpson Agreement for the stock portion of his annual compensation. Refer to Note 4 – Restricted Stock Issuances.

During the first quarter of 2020, Mr. Simpson exercised stock options to purchase 156,250 non-trading, restricted shares at $0.16 per share and the total exercise price of $25,000 reduced the accrued salary owed to him. Refer to Note 4 for the explanation of the conversions. He was paid in cash for the second and fourth quarters, and for the month of September. Mr. Simpson received 108,696 non-trading, restricted shares in lieu of cash payments.Common Stock.

The “Simpson Agreement” is the only executive employment agreement in effect as of December 31, 2020.

The Company has no other plans in place and has never maintained any plans that provide for the payment of retirement benefits or benefits that will be paid primarily following retirement including, but not limited to, tax qualified deferred benefit plans, supplemental executive retirement plans, tax-qualified deferred contribution plans and nonqualified deferred contribution plans.

Lease Commitment

The Company maintains office space in Jersey City, NJ. The initial lease agreement was for the period March 1, 2019 to February 29, 2020 and was renewed for one year under the same terms. In April 2020, the Company was given a 50% discount on the rent for April and May 2020 as well as an optional lease extension for an additional three months under the same terms. The base rent under this agreement is $2,343 per month, and expires May 31, 2021. Lease expense amounted to $25,773 and $27,648 for the year ended December 31, 2020 and 2019 respectively. The security deposit for the lease agreement is $4,518 and the lease expires on May 31, 2021.

NOTE 4 – STOCKHOLDERS’ EQUITY

TheOn 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 shares.

On June 8, 2022, the Board of Directors of the Company hasapproved a prospective amendment to the Fourth Article of the Company’s Articles of Incorporation to decrease the authorized 190,000,000common stock from 40,000,000 shares, of Common Stock having a 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 $0.001.a special meeting of the stockholders. On February 4, 2019,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 votespecial meeting of the stockholders. The decrease 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.

In June 2021, the Company decreased its majority shareholders, cancelled the authorization for the issuanceAuthorized Shares from 190,000,000 to 40,000,000 shares. This was a reduction of up to 10,000,000150,000,000 in Authorized Shares. As of December 31, 2022 there are 16,230,615 shares outstanding and no other classes of preferred stock. There were no shares of preferred stock issued or outstanding prior to this change.

Restricted Stock Issuances

During the year ended December 31, 2020, 1,383,9462022, 1,353,000 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 orand transfer. The CEO

On June 1, 2022, Mr. Simpson exercised his options to purchase 156,250159,054 shares of Restricted and Non-Trading shares at $0.16$0.16 per share for ashare. The total exercise pricevalue was $25,449.

On February 4, 2022, the board of $25,000 which reducedDirectors approved the accrued salary payableissuance of 525,000 shares of Restricted and Non-Trading Common Stock to Mr. Simpson, Mr. Devlin and Ms. Cudia for their continued service to the CEO by the same amount.Company. Mr. Simpson was issued 350,000 shares of Restricted and Non-Trading Common Stock. Mr. Devlin and Ms. Cudia were each issued 87,500 shares of Restricted and Non-Trading Common Stock. The value of these shares was recorded as a component of compensation expense.

The CEOAdditionally, Mr. Simpson was also issued 804,000603,000 shares of Restricted and Non-Trading Common Stock for the stock portion of his annual salary. A DirectorMr. Devlin was issued 90,000112,500 shares of non-trading, restrictedRestricted and Non-Trading Common stockStock as an award for continuing to serve as a Director of the Company. The Corporate ControllerMs. Cudia was also issued 225,000112,500 shares of non-trading, restrictedRestricted and Non-Trading Common stockStock for her annual stock bonus. The value of these shares was recorded as a component of compensation expense.

On December 8, 2020 the Company’s Board of Directors signed a unanimous consent to convert Mr. Simpson’s accrued salary payable for the months of July and August amounting $10,000 to 108,696 non-trading, restricted shares in lieu of cash payments. This reduced the salary payable to the CEO by the same amount.

Advisory Services

On October 3, 2013, the Company entered into an agreement for strategic business advisory services, public relations services and investor relations services with Ian Thompson from Carricklee House, Strabane, Northern Ireland.

In connection with this agreement, the Company issued 167,204 shares of restricted Common Stock and recorded consulting fees of $501,612 during 2013, which was the fair market value of the stock on the date of issue. The stock is vested; however, it is restricted from trading. Ian Thompson was also issued 200,000 shares of restricted Common Stock, which was to vest quarterly based upon the Company reaching certain market capitalization and revenue goals, in addition to providing the above services, with the last tranche vesting on June 30, 2014. Consulting fees amounting to $105,000 and $280,000 were recorded in 2014 and 2013, respectively, related to the 200,000 shares of Common Stock. Throughout the term of the agreement, the Company requested that Ian Thompson to render performance under the agreement and to provide evidence of same. Ian Thompson failed to perform in all material respects under the terms of the agreement and refused to provide evidence.

On June 27, 2014, the Company terminated the agreement. Empire Stock Transfer, Inc, the Company’s transfer agent was directed to process cancellation requests regarding the certificates listed below. The Board of Directors approved the Company’s irrevocable agreement to indemnify the Transfer Agent for all loss, liability or expense in carrying out the authority and direction contained on the terms of the Unanimous Written Consent to terminate the Thompson Agreement. The Transfer Agent shall maintain the right to uphold the transfer in the event of forgery.

Stock Purchased for Cancellation

On January 23, 2020During the year ended December 31, 2022 the Company purchased 25,000830,342 shares of its restricted common stockRestricted Common Stock from one shareholder for cancellation. Theshareholders at a cost of $193,188.

During the year ended December 31, 2021 the Company paid $5,250 or $0.21 per share which was the average market price forpurchased 382,913 shares of its traded shares during the period.Restricted Common Stock from shareholders at a cost of $765,826. The shares were cancelled and are available for reissuance.cancelled.

On December 10, 2020 the Company purchased 100,000 shares of its restricted common stock from one shareholder for cancellation. The Company paid $9,800 or $0.098 per share which was the average market price for its traded shares during the period. The shares were cancelled and are available for reissuance.

NOTE 5 – STOCK OPTIONS

2012 Incentive Plan

On February 18, 2019, the Company’s Board of Directors signed an unanimous consent to terminate the 2012 Incentive Plan, and it was resolved further that 70,000 options to purchase shares of Common Stock be converted into 70,000 shares of non-trading, restricted Common Stock. It also consented the CEO of the Company to exercise options to purchase 222,000 Restricted and Non-Trading shares of Common Stock at $0.255 per share. The total exercise price was $56,610 and this reduced the loan payable to the CEO by the same amount. There are no options outstanding from this plan as of December 31, 2020 and December 31, 2019.

2015 Incentive PlanNOTE 5 – STOCK OPTION

The 2015 Incentive Plan was terminated byDuring the Board of Directors on January 24, 2019. The 2015 Incentive Plan provided the Company with the ability to issue stock options, stock awards and/or restricted stock purchase offers for up to an aggregate of 1,500,000 shares of Common Stock. There are 505,608 options outstanding from this plan as ofyear ended December 31, 2020, and 661,858 options were outstanding as of December 31, 2019.

Stock Option Activity

On February 25, 2019,2022, Mr. Simpson exercised options to purchase 222,000159,054 shares of Non-Trading, Restricted, Common Stock at $0.255 per share and the accrued payroll owed to him was reduced by $56,610. On the same date, two directors who had 35,000 options each were issued a total of 70,000 shares of non-trading, restricted Common Stock following the resolution to terminate the 2012 Incentive Plan.

On August 13, 2019, Mr. Simpson exercised options to purchase 93,750 shares of Non-Trading, Restricted, Common Stock at $0.16 per share. The total exercise value is $15,000 and this reduced a non interest loan payable balance to the CEO to $0.

On November 1, 2019, Mr. Simpson exercised options to purchase 239,938 shares of Non-Trading, Restricted, Common Stock at $0.16 per share. The total exercise value is $38,390 and the accrued payroll owed to him was reduced by the same amount.

On January 14, 2020, Mr. Simpson exercised options to purchase 93,750 Restricted and Non-tradingNon-Trading shares at $0.16$0.16 per share. The total exercise value was $15,000$25,449.

On February 4, 2022, the Company adjusted the exercise price of the options granted to Mr. Simpson from $0.32 per share to $0.16 per share.

During the year ended December 31, 2021, Mr. Simpson exercised options to purchase 93,750 shares of Restricted and Non-Trading shares at $0.32 per share. The total exercise value was $30,000 and this reduced the accrued salary payable to the CEO by the same amount.

On March 6, 2020, Mr. Simpson exercisedto $0.

On September 24, 2021, the Company extended the expiration date of the options granted to purchase 62,500 Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $10,000 and this reduced the accrued salary payableMr. Simpson from April 6, 2022 to the CEO to $0.April 6, 2024.

The following table summarizes stock option activity under the Plans:activity:

SCHEDULE OF STOCK OPTIONS ACTIVITY

During the years ended December 31, 20202022 and 2019,2021, compensation expense related to stock options was $0.$0. As of December 31, 2020,2022, there was no unrecognized compensation cost related to non-vested stock options.

NOTE 6 – CONCENTRATIONS

Major Customers

During the year ended December 31, 2020,2022, the Company had threefive customers that accounted for 80%89% of revenue. The increase in the concentration percentage is due to the shut downshutdown of customers that were affected by the COVID-19 mandated closures. Accounts receivable at December 31, 20202022 from these threefive customers amounted to $45,193.$74,654. For the year ended December 31, 2019,2021, there were twofive major customers accounting for 48%90% of total revenue.

Major Suppliers

During the year ended December 31, 2020,2022, the Company purchased its inventory from two suppliers. The Company has established relationships with other suppliers which management believes could meet its needs on similar terms. Accounts payable at December 31, 20202022 to both suppliers was $20,672.were $15,840.

NOTE 87 – RELATED PARTY TRANSACTIONS

During the year ended December 31, 2022, Mr. Simpson lent funds to the Company. As of December 31, 2022, the loan payable to Mr. Simpson was $225,000.

On January 14, 2020 the CEO of the CompanyJune 1, 2022, Mr. Simpson exercised 93,750159,054 stock options at an exercise price of $0.16.$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.

During the year ended December 31, 2021, Mr. Simpson exercised 93,750 stock options at an exercise price of $0.32. The Company issued 93,750 Restricted and Non-Trading shares of Common Stock, and the accrued payroll owed to him was reduced by $15,000.$30,000.

On March 12, 2020 the $10,000 accrued salary balance was used to pay for an option exercise made by the CEO of the Company. As a result of the transaction, the Company issued 62,500 Restricted and Non-Trading shares of Common Stock to the CEO and the accrued payroll then owed to the CEO was reduced to $0.

NOTE 98 – SBA LOANS “CARES ACT”

On May 5, 2020,In January 2021, the Company received loan proceeds in the amount of $35,508 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the eight-week period.

On May 27, 2020, the Company received grant proceeds in the amount of $2,000 under the Economic Injury Disaster Loan (“EIDL”) Program. This grant was recorded as other income during the second quarter of 2020. The EIDL program was created to assist businesses, renters and homeowners located in regions affected by declared disasters. The Company applied for the EIDL Emergency Advance which provides $1,000 per employee up to a maximum of $10,000.

On December 18, 2020, the Company applied for the loan forgiveness for the loan proceeds amounting $35,508 under the Paycheck Protection Program. The Company believes it has met the criteria for forgiveness and should receive that determination from the US Treasury.

NOTE 10 – SUBSEQUENT EVENTS

The Company received the loan forgiveness decision from the SBA in January 2021.for the loan proceeds under the Paycheck Protection Program. The full amount of the loan proceeds amounting $35,508$35,508 was forgiven.forgiven in January 2021.