EQUATOR Beverage Co - Quarter Report: 2008 June (Form 10-Q)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
10-Q
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[X]
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Quarterly
Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
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For
the quarterly period ended June 30,
2008
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[ ]
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Transition
Report pursuant to 13 or 15(d) of the Securities Exchange Act of
1934
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For
the transition period __________ to __________
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Commission
File Number: 333-148190
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Mojo Shopping,
Inc.
(Exact
name of small business issuer as specified in its charter)
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Delaware
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26-0884348
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(State
or other jurisdiction of incorporation or
organization)
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(IRS
Employer Identification No.)
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1505 Dusty Canyon
Street, Henderson, NV 89052
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(Address
of principal executive offices)
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866-699-6656
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(Issuer’s
telephone number)
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6620 Escondido Street,
Suite E, Las Vegas, NV 89119
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(Former
name, former address and former fiscal year, if changed since last
report)
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Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days [X]
Yes [ ] No
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.
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[ ]
Large accelerated filer Accelerated filer
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[ ]
Non-accelerated filer
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[X]
Smaller reporting company
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Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). [X] Yes [ ] No
State the
number of shares outstanding of each of the issuer’s classes of common stock, as
of the latest practicable date: 4,520,000 common shares as of June
30, 2008
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Page
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PART I – FINANCIAL
INFORMATION
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PART II – OTHER
INFORMATION
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PART
I - FINANCIAL INFORMATION
Item 1. Financial Statements
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Our
unaudited financial statements included in this Form 10-Q are as
follows:
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| F-3 | Consolidated Statement of Stockholder's Equity for the period from inception on August 2, 2007 through June 30, 2008; |
These
unaudited financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America for interim
financial information and the SEC instructions to Form 10-Q. In the
opinion of management, all adjustments considered necessary for a fair
presentation have been included. Operating results for the interim
period ended June 30, 2008 are not necessarily indicative of the results that
can be expected for the full year.
MOJO SHOPPING, INC.
(A Development Stage
Company)
Consolidated
Balance Sheets
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ASSETS
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|||||
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June
30, 2008
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September
30, 2007
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(Unaudited)
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(Audited)
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CURRENT
ASSETS
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Cash
and cash equivalents
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$ | 9,605 | $ | 26,436 | |
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Total
Current Assets
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9,605 | 26,436 | |||
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SOFTWARE,
net
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248 | 248 | |||
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OTHER
ASSETS
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|||||
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Deposits
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348 | 348 | |||
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TOTAL
ASSETS
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$ | 10,201 | $ | 27,032 | |
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LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
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|||||
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CURRENT
LIABILITIES
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Accounts
payable and accrued expenses
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$ | 41,256 | $ | 10,415 | |
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Due
to officer
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224 | 100 | |||
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Total
Current Liabilities
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41,480 | 10,515 | |||
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STOCKHOLDERS'
EQUITY (DEFICIT)
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Preferred
stock, $0.001 par value, 10,000,000 shares authorized, -0-
shares issued and outstanding
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- | - | |||
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Common
stock, $0.001 par value, 90,000,000 shares authorized,
4,520,000 shares issued and outstanding
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4,520 | 4,520 | |||
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Additional
paid-in capital
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27,080 | 27,080 | |||
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Deficit
accumulated during the development stage
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(62,879) | (15,083) | |||
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Total
Stockholders' Equity (Deficit)
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(31,279) | 16,517 | |||
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TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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$ | 10,201 | $ | 27,032 | |
The
accompanying notes are an integral part of these financial
statements.
MOJO SHOPPING, INC.
(A Development Stage
Company)
Consolidated
Statements of Operations
(Unaudited)
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For
the Three
Months Ended
June 30, 2008
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For
the Nine
Months Ended
June 30, 2008
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From
Inception
on August 2,
2007 Through
June 30, 2008
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||||||
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REVENUES
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Merchandise
sales
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$ | - | $ | 1,785 | $ | 1,785 | ||
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Sales
discounts
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- | (60) | (60) | |||||
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Total
Revenue
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- | 1,725 | 1,725 | |||||
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COST
OF GOODS SOLD
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Cost
of goods sold
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- | 3,425 | 3,425 | |||||
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Frieght
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- | 135 | 135 | |||||
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Total
Cost of Goods Sold
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- | 3,560 | 3,560 | |||||
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GROSS
PROFIT
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- | (1,835) | (1,835) | |||||
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OPERATING
EXPENSES
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Advertising
and promotion
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- | 3,117 | 3,117 | |||||
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General
and administrative
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14,468 | 42,927 | 58,066 | |||||
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Total
Operating Expenses
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14,468 | 46,044 | 61,183 | |||||
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LOSS
FROM OPERATIONS
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(14,468) | (47,879) | (63,018) | |||||
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OTHER
EXPENSES
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Interest
income
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7 | 82 | 88 | |||||
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Other
income
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- | 1 | 51 | |||||
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Total
Other Expenses
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7 | 83 | 139 | |||||
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NET
LOSS BEFORE TAXES
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(14,461) | (47,796) | (62,879) | |||||
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Income
taxes
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- | - | - | |||||
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NET
LOSS
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$ | (14,461) | $ | (47,796) | $ | (62,879) | ||
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BASIC
LOSS PER COMMON SHARE
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$ | (0.00) | $ | (0.01) | ||||
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WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
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4,520,000 | 4,520,000 | ||||||
The
accompanying notes are an integral part of these financial
statements.
MOJO SHOPPING, INC.
(A Development Stage
Company)
Consolidated
Statement of Stockholders' Equity (Deficit)
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Common
Stock
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Additional
Paid-In
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Deficit
Accumulated
During
Development
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Stockholders'
Equity
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|||||||||||
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Shares
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Amount
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Capital
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Stage
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(Deficit)
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||||||||||
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Balance,
August 2, 2007
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- | $ | - | $ | - | $ | - | $ | - | |||||
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Shares
issued at $0.02 per share pursuant to subscription
on September 28, 2007
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1,000,000 | 1,000 | 19,000 | - | 20,000 | |||||||||
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Shares
issued at $0.005 per share pursuant to Share
Purchase Agreement dated August 31, 2007
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320,000 | 320 | 1,280 | - | 1,600 | |||||||||
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Shares
issued at $0.003 per share pursuant to Share
Purchase Agreement dated August 31, 2007
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3,200,000 | 3,200 | 6,800 | - | 10,000 | |||||||||
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Net
loss from inception through September 30, 2007
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- | - | - | (15,083) | (15,083) | |||||||||
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Balance,
September 30, 2007
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4,520,000 | 4,520 | 27,080 | (15,083) | 16,517 | |||||||||
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Net
loss for the nine months June 30, 2008
(unaudited)
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- | - | - | (47,796) | (47,796) | |||||||||
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Balance,
June 30, 2008 (unaudited)
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4,520,000 | $ | 4,520 | $ | 27,080 | $ | (62,879) | $ | (31,279) | |||||
The
accompanying notes are an integral part of these financial
statements.
F-3
MOJO SHOPPING, INC.
(A Development Stage
Company)
Consolidated
Statements of Cash Flows
(Unaudited)
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For
the Nine
Months Ended
June 30, 2008
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From
Inception
on August 2,
2007 Through
June 30,
2008
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OPERATING
ACTIVITIES
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Net
(loss)
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$ | (47,796) | $ | (62,879) | |
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Adjustments
to Reconcile Net Loss to Net
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|||||
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Cash
Used by Operating Activities:
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Changes
in operating assets and liabilities:
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Deposits
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- | (348) | |||
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Accounts
payable and accrued expenses
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30,841 | 41,256 | |||
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Due
to officer
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124 | 224 | |||
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Net
Cash Used by Operating Activities
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(16,831) | (21,747) | |||
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INVESTING
ACTIVITIES
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Purchase
of software
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- | (248) | |||
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Net
Cash Used by Investing Activities
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- | (248) | |||
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FINANCING
ACTIVITIES
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Issuance
of common stock
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- | 31,600 | |||
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Net
Cash Provided by Financing Activities
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- | 31,600 | |||
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NET
INCREASE (DECREASE) IN CASH
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(16,831) | 9,605 | |||
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CASH
AT BEGINNING OF PERIOD
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26,436 | - | |||
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CASH
AT END OF PERIOD
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$ | 9,605 | $ | 9,605 | |
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SUPPLEMENTAL
DISCLOSURES OF CASH
FLOW INFORMATION
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CASH
PAID FOR:
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Interest
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$ | - | $ | - | |
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Income
Taxes
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$ | - | $ | - | |
MOJO SHOPPING, INC.
(A
Development Stage Company)
Notes to
Consolidated Financial Statements
June 30,
2008 and September 30, 2007
1. CONDENSED
FINANCIAL STATEMENTS
The
accompanying financial statements have been prepared by the Company without
audit. In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at June 30, 2008 and for all
periods presented have been made.
Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted. It is suggested that
these condensed financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's September 30, 2007
audited financial statements. The results of operations for the
periods ended June 30, 2008 and 2007 are not necessarily indicative of the
operating results for the full years.
2. GOING
CONCERN
The
accompanying financial statements have been prepared in conformity with
generally accepted accounting principle, which contemplate continuation of the
Company as a going concern. However, the Company has accumulated
deficit of $62,879 as of June 30, 2008. The Company currently has
limited liquidity, and has not completed its efforts to establish a stabilized
source of revenues sufficient to cover operating costs over an extended period
of time.
Management
anticipates that the Company will be dependent, for the near future, on
additional investment capital to fund operating expenses The Company intends to
position itself so that it may be able to raise additional funds through the
capital markets. In light of management’s efforts, there are no assurances that
the Company will be successful in this or any of its endeavors or become
financially viable and continue as a going concern.
Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of Operations
Forward-Looking
Statements
Certain
statements, other than purely historical information, including estimates,
projections, statements relating to our business plans, objectives, and expected
operating results, and the assumptions upon which those statements are based,
are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of
1934. These forward-looking statements generally are identified
by the words “believes,” “project,” “expects,” “anticipates,” “estimates,”
“intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will
continue,” “will likely result,” and similar expressions. We intend
such forward-looking statements to be covered by the safe-harbor provisions for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, and are including this statement for purposes of complying with
those safe-harbor provisions. Forward-looking statements are based on
current expectations and assumptions that are subject to risks and uncertainties
which may cause actual results to differ materially from the forward-looking
statements. Our ability to predict results or the actual effect of future plans
or strategies is inherently uncertain. Factors which could have a
material adverse affect on our operations and future prospects on a consolidated
basis include, but are not limited to: changes in economic conditions,
legislative/regulatory changes, availability of capital, interest rates,
competition, and generally accepted accounting principles. These risks and
uncertainties should also be considered in evaluating forward-looking statements
and undue reliance should not be placed on such statements. We
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. Further information concerning our business, including
additional factors that could materially affect our financial results, is
included herein and in our other filings with the SEC.
Company
Overview
We were
incorporated on August 2, 2007, in the state of Delaware for the purpose of
developing, promoting, and expanding our online retail business.
We are in
the business of online retailing. Specifically, we have created and are
continuing to develop our website, www.mojoshopping.com (“mojoshopping.com”).
Through our site, we sell products, such as furniture, design accessories,
art, clothing, music, and a variety of environmentally friendly products, all of
which are designed to appeal to the tastes of young, socially conscious
professionals.
Our plan
is to target young professionals who are conscious of and attempting to keep
pace with ever-changing trends. We will draw these individuals to our site by
providing content that not only educates customers on the latest trends, but
provides a place to make purchases consistent with those trends. Our target
clientele may best be described as “hip” or “trendy”.
We plan
to seek alliances with other online entities that cater to our target market,
whereby they will help drive traffic to our site in exchange for a percentage of
sales revenue generated by any resulting traffic.
Ivona
Janieszewski is our President, Secretary, Chief Executive Officer, Chief
Financial Officer, and sole director.
Website
Our
mojoshopping.com website is currently active and fully
functioning. The shopping cart options are live and capable of
processing orders.
MojoShopping.com
is propelled by a nucleus of design aficionados with collective backgrounds in
furniture design, fashion design and manufacturing and innovative interior
design.
Our
initial repertoire of design products include core categories like modern
furniture, lighting, design accessories, rugs & textiles, clothing, gifts,
and pets, which contain products ranging from fashion staples to the latest
unique gift items and cutting edge electronic gadgetry.
Influenced
by pop culture, with a clear sense of the needs and demands of the hip,
contemporary individual consumer that has a continual appetite for new and
exciting design-oriented products, we present a new entertaining experience in
online shopping. MojoShopping.com’s focus is to offer the most exciting
lifestyle and design products in today’s modern world.
Plan
of Operation in the Next Twelve Months
We are in
the business of online retailing. Specifically, we have created and are
continuing to develop our website, www.mojoshopping.com. Through the site, we
sell products, such as furniture, design accessories, art, clothing, music, and
a variety of environmentally friendly products, all of which are designed to
appeal to the tastes of young, socially conscious professionals.
We intend
to work closely with our web designer over the next twelve months to further
develop our website and our shopping cart functionalities. In
addition, we intend to solidify relationships with our existing suppliers and
manufacturers as well as expand our supplier base. Our intent is to develop
relationships whereby our suppliers and manufacturers will be willing to ship
products offered on our website directly to our customers.
We do not
currently and do not plan on maintaining a significant product inventory. We
anticipate that the majority of our product suppliers will drop ship products
from their respective warehousing facilities directly to our customers. We have
already received verbal commitments from several suppliers to that effect. By
eliminating the majority of our warehousing and shipping costs, we are able to
offer competitive prices to our customers while realizing savings on our own
costs.
We are
designing our site to automatically place orders with suppliers when customers
place their order on our site. By automating this process and arranging for
suppliers to ship directly to our customers, we reduce our order processing
time. Products will ship immediately from the manufacturer or supplier when
customers place their order, rather than waiting for individuals at our business
to process or fill the order. Currently, however, our site does not have this
functionality, and we resubmit incoming orders to our suppliers for
shipping.
Notwithstanding
the foregoing, we do currently and plan to continue to hold in inventory a small
number of customizable gift items, such as t-shirts. We anticipate that most
such items will retail between $10 and $40. While these items will not represent
a significant profit center, they will serve to draw visitors to our site and
build brand loyalty.
Products
We have
entered into negotiations and have verbal commitments from a variety of
manufacturers and suppliers to sell their products on our site. Most of the
manufacturers/suppliers have also committed to drop ship products from their
warehouses directly to our customers. Notwithstanding the foregoing, there can
be no assurance that any of the manufacturers/suppliers we have verbal
commitments from will follow through on their verbal commitments or continue to
allow us to sell their products and ship to our customers in the
future.
Over the
next twelve months, we intend to solidify negotiations and have verbal
commitments from a variety of manufacturers and suppliers to sell their products
on our site. Most of the manufacturers/suppliers have also committed to drop
ship products from their warehouses directly to our customers.
Results of Operations for the three
and nine months ended June 30, 2008 and from August 2, 2007 (date of
inception) until June
30, 2008.
For the
three months ended June 30, 2008, we generated gross revenue from sales of $0.
During the same period, we recorded cost of goods sold of $0, operating expenses
of $14,468, and interest and other income of $7, resulting in a net loss of
$14,461 for the three months ended June 30, 2008. For the nine months ended June
30, 2008, we generated gross revenue from sales of $1,725. During the same
period, we recorded cost of goods sold of $3,560, operating expenses of $46,044,
and interest and other income of $83, resulting in a net loss of $47,796 for the
nine months ended June 30, 2008. For the period from August 2, 2007 (date of
inception) through June 30, 2008, we generated gross revenue from sales of
$1,725. Cost of goods sold of $3,560, operating expenses of $61,183, and
interest and other income of $139 resulted in a net loss of $62,879 for the
period from August 2, 2007 (date of inception) through June 30,
2008.
Liquidity
and Capital Resources
As of
June 30, 2008, we had total current assets of $9,605, consisting entirely of
Cash. Our total current liabilities as of June 30, 2008 were
$41,480. Thus, we have working capital deficit of $31,875 as of June
30, 2008.
Operating
activities used $16,831 in cash for the nine months ended June 30, 2008, and
$21,747 for the period from August 2, 2007 (Date of Inception) until June 30,
2008. Our net losses of $47,796 and $62,879, respectively, were the primary
components of our negative operating cash flow for the periods. Investing
Activities neither used nor generated cash for the nine months ended June 30,
2008, and used $248 in cash during the period from August 2, 2007 (Date of
Inception) until June 30, 2008. We have incurred accrued expenses of
$30,841 during the period from August 2, 2007 (Date of Inception) until June 30,
2008. As of June 30, 2008, we had $9,605 in
cash. Therefore, we will need to raise additional funds during the
next twelve months in order to execute on our business plan.
Although
our principal has no legal obligation to infuse additional capital, it is
anticipated that our principal will do so as reasonably necessary by providing
short-term demand loans carrying a market interest rate should it become
necessary. We anticipate that we may have to raise additional capital
to meet our financial requirements over the next twelve months. We believe that
it will be easier to raise the requisite financing once our stock is traded on a
readily accessible exchange or national quotation system.
Off
Balance Sheet Arrangements
As of
June 30, 2008, there were no off balance sheet arrangements.
Going
Concern
The
accompanying financial statements have been prepared in conformity with
generally accepted accounting principle, which contemplate continuation of the
Company as a going concern. However, we have accumulated deficit of
$62,879 as of June 30, 2008. We currently have limited liquidity, and have not
completed our efforts to establish a stabilized source of revenues sufficient to
cover operating costs over an extended period of time.
Management
anticipates that we will be dependent, for the near future, on additional
investment capital to fund operating expenses. We intend to position ourselves
so that we may be able to raise additional funds through the capital markets. In
light of our efforts, there are no assurances that we will be successful in this
or any of our endeavours or become financially viable and continue as a going
concern.
Item 3. Quantitative and Qualitative
Disclosures About Market Risk
A smaller
reporting company is not required to provide the information required by this
Item.
Item 4T. Controls and
Procedures
We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of June 30, 2008. This evaluation was
carried out under the supervision and with the participation of our Chief
Executive Officer and our Chief Financial Officer, Ms. Ivona
Janieszewski. Based upon that evaluation, our Chief Executive Officer
and Chief Financial Officer concluded that, as of June 30, 2008, our disclosure
controls and procedures are effective. There have been no changes in
our internal controls over financial reporting during the quarter ended June 30,
2008.
Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed in our reports filed or
submitted under the Exchange Act are recorded, processed, summarized and
reported, within the time periods specified in the SEC's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in our
reports filed under the Exchange Act is accumulated and communicated to
management, including our Chief Executive Officer and Chief Financial Officer,
to allow timely decisions regarding required disclosure.
Limitations on the
Effectiveness of Internal Controls
Our
management does not expect that our disclosure controls and procedures or our
internal control over financial reporting will necessarily prevent all fraud and
material error. Our disclosure controls and procedures are designed to provide
reasonable assurance of achieving our objectives and our Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective at that reasonable assurance level. Further,
the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within the Company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
internal control. The design of any system of controls also 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. Over time, control may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate.
PART
II – OTHER INFORMATION
Item 1. Legal Proceedings
We are
not a party to any pending legal proceeding. We are not aware of any pending
legal proceeding to which any of our officers, directors, or any beneficial
holders of 5% or more of our voting securities are adverse to us or have a
material interest adverse to us.
Item 1A: Risk Factors
A smaller
reporting company is not required to provide the information required by this
Item.
Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds
None
Item 3. Defaults upon Senior
Securities
None
Item 4. Submission of Matters to a Vote
of Security Holders
No
matters have been submitted to our security holders for a vote, through the
solicitation of proxies or otherwise, during the quarterly period ended June 30,
2008.
Item 5. Other Information
None
Item 6. Exhibits
|
Exhibit
Number
|
Description
of Exhibit
|
SIGNATURES
In
accordance with the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
Mojo
Shopping, Inc.
|
|
|
Date:
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August
13, 2008
|
|
By: /s/ Ivona
Janieszewski
Ivona
Janieszewski
Title: Chief
Executive Officer and
Director
|
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