EQUATOR Beverage Co - Quarter Report: 2008 March (Form 10-Q)

mainbody.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-QSB

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the quarterly period ended March 31, 2008

[ ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

	For the transition period __________ to __________

	Commission File Number: 333-148190

Mojo Shopping, Inc.

(Exact name of small business issuer as specified in its charter)

Delaware	26-0884348
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

1505 Dusty Canyon Street, Henderson, NV 89052

(Address of principal executive offices)

866-699-6656

(Issuer’s telephone number)

6620 Escondido Street, Suite E, Las Vegas, NV 89119

(Former name, former address and former fiscal year, if changed since last report)

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 shell company (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes [ X ] 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 March 31, 2008.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [ ]

	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis or Plan of Operation	4
Item 3.	Controls and Procedures	8
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	9
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9
Item 3.	Defaults Upon Senior Securities	9
Item 4.	Submission of Matters to a Vote of Security Holders	9
Item 5.	Other Information	9
Item 6.	Exhibits	9

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our unaudited financial statements included in this Form 10-QSB are as follows:
F-1	Consolidated Balance Sheets as of March 31, 2008 and September 30, 2007;

F-2	Consolidated Statements of Operations for the three and six months ended March 31, 2008 and August 2, 2007 (date of inception) to March 31, 2008;

F-3	Consolidated Statement of Stockholders' Equity (Deficit) as of March 31, 2008;

F-4	Consolidated Statements of Cash Flows for the three and six months ended March 31, 2008 and August 2, 2007 (date of inception) to March 31, 2008;

F-5	Notes to Consolidated Financial Statements;

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-QSB. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 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

ASSETS
	March 31, 2008		September 30, 2007
	(Unaudited)
CURRENT ASSETS

Cash and cash equivalents	$	10,758	$	26,436

Total Current Assets		10,758		26,436

SOFTWARE, net		248		248

OTHER ASSETS

Deposits		348		348

TOTAL ASSETS	$	11,354	$	27,032

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable and accrued expenses	$	27,948	$	10,415
Due to officer		224		100

Total Current Liabilities		28,172		10,515

STOCKHOLDERS' EQUITY (DEFICIT)

Preferred stock, $0.001 par value, 10,000,000 shares authorized, -0- shares issued and outstanding		-		-
Common stock, $0.001 par value, 90,000,000 shares authorized, 4,520,000 shares issued and outstanding		4,520		4,520
Additional paid-in capital		27,080		27,080
Accumulated deficit		(48,418)		(15,083)

Total Stockholders' Equity (Deficit)		(16,818)		16,517

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	11,354	$	27,032

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

F-1

MOJO SHOPPING, INC.

(A Development Stage Company)

Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended March 31, 2008		For the Six Months Ended March 31, 2008		From Inception on August 2, 2007 Through March 31, 2008
REVENUES
Merchandise sales	$	92	$	1,785	$	1,785
Sales discounts		-		(60)		(60)

Total Revenue		92		1,725		1,725

COST OF GOODS SOLD
Cost of goods sold		2,130		3,425		3,425
Frieght		-		135		135

Total Cost of Goods Sold		2,130		3,560		3,560

GROSS PROFIT		(2,038)		(1,835)		(1,835)

OPERATING EXPENSES
Advertising and promotion		108		3,117		3,117
General and administrative		12,405		28,459		43,598

Total Operating Expenses		12,513		31,576		46,715

INCOME (LOSS) FROM OPERATIONS		(14,551)		(33,411)		(48,550)

OTHER EXPENSES
Interest income		29		75		81
Other income		-		1		51

Total Other Expenses		29		76		132

NET INCOME BEFORE TAXES		(14,522)		(33,335)		(48,418)

Income taxes		-		-		-

NET LOSS	$	(14,522)	$	(33,335)	$	(48,418)

BASIC LOSS PER COMMON SHARE	$	(0.00)	$	(0.01)


WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		4,520,000		4,520,000

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

F-2

MOJO SHOPPING, INC.

(A Development Stage Company)

Consolidated Statements of Stockholders' Equity (Deficit)

	Common Stock				Additional Paid-In Paid-In		Deficit Accumulated During Development		Stockholders' Equity
	Shares		Amount		Capital		Stage		(Deficit)

Balance, August 2, 2007		-	$	-	$	-	$	-	$	-

Shares issued at $0.02 per share pursuant to subscription on September 28, 2007		1,000,000		1,000		19,000		-		20,000

Shares issued at $0.005 per share pursuant to Share Purchase Agreement dated August 31, 2007		320,000		320		1,280		-		1,600

Shares issued at $0.003 per share pursuant to Share Purchase Agreement dated August 31, 2007		3,200,000		3,200		6,800		-		10,000

Net loss from inception through September 30, 2007		-		-		-		(15,083)		(15,083)

Balance, September 30, 2007		4,520,000		4,520		27,080		(15,083)		16,517

Net loss for the six months March 31, 2008 (unaudited)		-		-		-		(33,335)		(33,335)

Balance, March 31, 2008 (unaudited)		4,520,000	$	4,520	$	27,080	$	(48,418)	$	(16,818)

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)

	For the Six Months Ened March 31, 2008		From Inception on August 2, 2007 Through March 31, 2008

OPERATING ACTIVITIES

Net income (loss)	$	(33,335)	$	(48,418)
Adjustments to Reconcile Net Loss to Net
Cash Used by Operating Activities:
Changes in operating assets and liabilities:
Deposits		-		(348)
Accounts payable and accrued expenses		17,533		27,948
Due to officer		124		224

Net Cash Used by Operating Activities		(15,678)		(20,594)

INVESTING ACTIVITIES

Purchase of software		-		(248)

Net Cash Used (Provided) by Investing Activities		-		(248)

FINANCING ACTIVITIES

Issuance of common stock		-		31,600

Net Cash Used by Financing Activities		-		31,600

NET DECREASE IN CASH		(15,678)		10,758

CASH AT BEGINNING OF PERIOD		26,436		-

CASH AT END OF PERIOD	$	10,758	$	10,758

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:

Interest	$	-	$	-
Income Taxes	$	-	$	-

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

F-4

MOJO SHOPPING, INC.

(A Development Stage Company)

Notes to Consolidated Financial Statements

March 31, 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 March 31, 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 March 31, 2008 and is not necessarily indicative of the operating results for the full year.

2. GOING CONCER

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 $43,166 as of March 31, 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.

F-5

Item 2. Management’s Discussion and Analysis or Plan of Operation

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, design accessories and creative art, and will soon expand to other mainstay lifestyle products ranging from fashion staples; t-shirts and jean apparel, 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.

Competition

We face significant competition in the online retail industry. E-commerce is a dynamic, high-growth market. Our competition for online customers comes from a variety of sources, including existing traditional retailers that are using the Internet to expand their channels of distribution, established Internet companies, and new Internet companies such as ourselves. In addition, our competition for customers comes from traditional direct marketers, brands that may attempt to sell their products directly to consumers through the Internet, and outlet stores.

Many of our competitors have longer operating histories, significantly greater resources, greater brand recognition and more firmly established supply relationships. Moreover, we expect additional competitors to emerge in the future. We believe that the principal competitive factors in our market include: brand recognition, merchandise selection, price, convenience, customer service, order delivery performance, and site features. Although we plan to compete effectively in this market, we recognize that this market is relatively new and is evolving rapidly, and, accordingly, there can be no assurance that we will be able to compete effectively in this marketplace.

We believe that our success will depend upon our ability to remain competitive in this field. We compete with others in efforts to obtain financing and explore and develop our online forum. The failure to compete successfully in the online market for commercial opportunities and for resources could have a material adverse effect on our business.

Intellectual Property

We have not filed a trademark application to register the name, “MojoShopping.com.” To date, we do not yet own any other patent, trademark, or legally enforceable claim to proprietary intellectual property.

Employees

We have no significant employees other than our sole officer and director, Ivona Janieszewski.

Compliance with Environmental Laws

We did not incur any costs in connection with the compliance with any federal, state, or local environmental laws.

Research and Development Expenditures

We have not incurred any research or development expenditures since our inception.

Plan of Operations

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 develop greater relationships with our suppliers and manufacturers to be able to supply and ship the products to be offered on our website to our customers.

We do not plan to maintain 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 six months ended March 31, 2008 and from August 2, 2007 (date of inception) until March 31, 2008.

For the three months ended March 31, 2008, we generated gross revenue from sales of $92. Cost of goods sold of $2,130, operating expenses of $12,513, and interest and other income of $29 resulted in a net loss of $14,522 for the three months ended March 31, 2008. For the six months ended March 31, 2008, we generated gross revenue from sales of $1,725. Cost of goods sold of $3,560, operating expenses of $31,576, and interest and other income of $76 resulted in a net loss of $33,335 for the three months ended March 31, 2008. For the period from August 2, 2007 (date of inception) through March 31, 2008, we generated gross revenue from sales of $1,725. Cost of goods sold of $3,560, operating expenses of $46,715, and interest and other income of $132 resulted in a net loss of $48,418 for the period from August 2, 2007 (date of inception) through March 31, 2008.

Liquidity and Capital Resources

As of March 31, 2008, we had total current assets of $10,758, consisting entirely of Cash. Our total current liabilities as of March 31, 2008 were $28,172. Thus, we have working capital deficit of $17,414 as of March 31, 2008.

Operating activities used $15,678 in cash for the six months ended March 31, 2008, and $20,594 for the period from August 2, 2007 (Date of Inception) until March 31, 2008. Our net losses of $33,335 and $48,418, respectively, were the primary components of our negative operating cash

flow for the periods. Investing Activities neither used nor generated cash for the six months ended March 31, 2008, and used $248 in cash during the period from August 2, 2007 (Date of Inception) until March 31, 2008. We have incurred in accrued expenses of $27,948 during the period from August 2, 2007 (Date of Inception) until March 31, 2008. As of March 31, 2008, we had $10,758 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 March 31, 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 $43,166 as of March 31, 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. 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 March 31, 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 March 31, 2008, our disclosure controls and procedures are effective. There have been no changes in our internal controls over financial reporting during the quarter ended March 31, 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 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 March 31, 2008.

Item 5. Other Information

None

Item 6. Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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:	May 14, 2008

	By: /s/ Ivona Janieszewski Ivona Janieszewski Title: Chief Executive Officer and Director