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U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 10-K

 

 

 

(Mark One)

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

 

For Fiscal Year Ended: December 31, 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)

 

Delaware   26-0884348

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

     

185 Hudson Street, Floor 25

Jersey City, New Jersey

  07302
(Address of principal executive offices)   (Postal Code)

 

Registrant’s telephone number: 929 264 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 ☐ No

 

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

 

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 ☒ 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 ☒ 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. ☒

 

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:

 

Large Accelerated Filer Accelerated Filer
Non-Accelerated Filer Smaller reporting company
Emerging growth company    

 

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

Yes ☐ No

 

As of June 30, 2022 (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 $0.07 per share) held by non-affiliates of the registrant was $542,941.

 

On March 31, 2023 there were 16,469,115 shares of the registrant’s common stock, par value $0.001, issued and outstanding.

 

DOCUMENTS INCORPORATED BY REFERENCE

None.

 

 

 

 
 

 

TABLE OF CONTENTS

 

  Page
Forward Looking Information 1
   
PART I    
Item 1. Business 2
Item 2. Risk Factors 3
Item 3. Unresolved Staff Comments 4
Item 4. Legal Proceedings 4
Item 5. Mine Safety Disclosures 4
     
PART II    
Item 6. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 5
Item 7. Selected Financial Data 5
Item 8. Management’s Discussion and Analysis of Financial Condition and Results of Operations 6
Item 9. Quantitative and Qualitative Disclosures About Market Risk 8
Item 10. Financial Statements and Supplementary Data 8
Item 11. Changes and Disagreements with Accountants on Accounting and Financial Disclosure 9
Item 12. Controls and Procedures 9
Item 13. Other Information 9
     
PART III    
Item 14. Directors, Executive Officer and Corporate Governance 10
Item 15. Executive Compensation 12
Item 16. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 14
Item 17. Certain Relationships and Related Transactions, and Director Independence 15
Item 18. Principal Accountant Fees and Services 16
     
PART IV    
Item 19. Exhibits, Financial Statement Schedules 17
SIGNATURES 19

 

ii
 

 

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 “EQUATOR,” “EQUATOR Beverage Company,” the “Company,” “we,” “us” or “our” mean EQUATOR Beverage Company.

 

1
 

 

PART I

 

ITEM 1. BUSINESS

 

COMPANY OVERVIEW

 

EQUATOR Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ. EQUATOR’s business is new product development, beverage production, distribution, and sales & marketing of its beverages. Our beverages are Non-GMO Project 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 Coconut Water. In addition to Coconut Water, the Company produces 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 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 broker network, and new products and packaging. 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. Also, our products are plant-based, Eco-friendly and 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.

 

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, 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 began producing MOJO branded products in 2016. EQUATOR Beverage Company is headquartered in Jersey City, New Jersey and our internet site is www.EquatorBeverage.com. EQUATOR’s stock is traded on the OTCQB 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.

 

2
 

 

ITEM 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 beverages’ 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.

 

3
 

 

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 role 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, 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 3. UNRESOLVED STAFF COMMENTS

 

None

 

ITEM 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 5. MINE SAFETY DISCLOSURE

 

None

 

4
 

 

PART II

 

ITEM 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, 2021 to December 31, 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:

 

  High   Low   VWAP*   Shares Traded 
Fourth Quarter 2022  $0.08   $0.05   $0.06    332,890 
Third Quarter 2022  $0.51   $0.06   $0.12    1,065,864 
Second Quarter 2022  $0.22   $0.14   $0.16    132,619 
First Quarter 2022  $0.30   $0.16   $0.20    66,677 
                     
Fourth Quarter 2021  $0.36   $0.12   $0.22    213,837 
Third Quarter 2021  $0.36   $0.20   $0.30    66,652 
Second Quarter 2021  $0.42   $0.26   $0.32    250,218 
First Quarter 2021  $2.00   $0.14   $0.42    732,864 


 

*Volume-weighted average price (VWAP)

 

Holders

 

As of December 31, 2022, there were 16,230,615 shares of Common Stock issued and outstanding held by 907 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, 2022 and 2021.

 

Issuer Purchases of Equity Securities

 

During the year ended December 31, 2022, the Company repurchased 830,342 shares of EQUATOR Restricted Common Stock from shareholders at a total cost of $193,188. The shares were cancelled.

 

During the year ended December 31, 2021, the Company repurchased 382,913 shares of EQUATOR Restricted Common Stock from shareholders at a total cost of $107,215. The shares were cancelled.

 

ITEM 7. SELECTED FINANCIAL DATA

 

None

 

5
 

 

ITEM 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:

 

  Significant Accounting Policies — Accounting policies that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.
     
  Results of Operations — Analysis of our financial results comparing the year ended December 31, 2022 to 2021.
     
  Liquidity and Capital Resources — Analysis of changes in our cash flows, and discussion of our financial condition and potential sources of liquidity.

 

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.

 

6
 

 

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.

 

Results of Operations

 

Years Ended December 31, 2022 and 2021

 

Revenue

 

For the year ended December 31, 2022, the Company reported revenue of $1,821,492 a decrease of $97,390 from revenue of $1,918,882 for the year ended December 31, 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 and port congestions in the United States during 2022 resulted to 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 year ended December 31, 2022, cost of revenue was $1,190,536 or 65% of revenue. For the year ended December 31, 2021, cost of revenue was $1,069,844 or 56% of revenue. The 9 percentage points increase in cost of revenue was due to higher costs of product, ocean freight and warehousing costs compared to the same period last year.

 

7
 

 

Operating Expenses

 

For the year ended December 31, 2022, the selling, general and administrative expenses was $859,155 an increase of $14,501 from the year ended December 31, 2021 of $844,654.

 

This increase in operating expenses was primarily due to higher compensation expenses in 2022. Office expenses and marketing fees also increased compared to the same period last year. These increases were partially offset by lower selling expenses for the year ended December 31, 2022 compared to the same period last year.

 

Liquidity and Capital Resources

 

Liquidity

 

As of December 31, 2022, the Company had working capital of $145,867. Net cash used in operating activities was $93,004 for the year ended December 31, 2022, compared to net cash provided by operating activities for the year ended December 31, 2022 of $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 EQUATOR Restricted Common Stock for the year ended December 31, 2022.

 

Working Capital Needs

 

Our working capital requirements increase as demand grows for our products. During the year ended December 31, 2022, the Company had net borrowings of $225,000. This was the direct result of supply chain delays in manufacturing and ocean transport times. In 2021, borrowings were zero. Should the Company require additional working capital during the next twelve months, it may seek to raise additional funds. Financing transactions may include the issuance of equity, debt securities and obtaining credit facilities.

 

OFF BALANCE SHEET ARRANGEMENTS

 

None

 

ITEM 9. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

 

None

 

ITEM 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.

 

8
 

 

ITEM 11. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None

 

ITEM 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 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 (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, 2022 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

ITEM 13. OTHER INFORMATION

 

None

 

9
 

 

PART III

 

ITEM 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:

 

Name   Age   Title   Appointed
Glenn Simpson   70   Chairman and CEO   October 27, 2011
Jeffrey Devlin   75   Director   January 27, 2012

 

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.

 

10
 

 

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, 2022 all Section 16(a) filing requirements applicable to our officers, directors and greater than 10% beneficial owners were complied with.

 

11
 

 

ITEM 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).

 

Name and Principal Position  Year   Salary  

Stock

Awards

 
Glenn Simpson, Chairman & CEO  2022   $ 72,000 (1)   $ 127,288 (1) 
   2021   $ 30,000 (2)   $ 150,868 (2) 

 

  (1) Pursuant to Mr. Simpson’s employment agreement (the “Amended Simpson Agreement”) amended September 1, 2022, Mr. Simpson is paid a salary of $8,000 per month in cash and the Company is obligated to grant Mr. Simpson 67,000 shares of non-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. The stock bonus is set at 200,000 shares of non-trading, restricted Common Stock per year through March 31, 2027.

 

  (2) Pursuant to Mr. Simpson’s employment agreement (the “Simpson Agreement”), Mr. Simpson is paid a salary of $5,000 per month in cash and the Company is obligated to grant Mr. Simpson 33,500 shares of non-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. The stock bonus is set at 100,000 shares of non-trading, restricted Common Stock per year through March 31, 2025.

 

During the year ended December 31, 2022, 603,000 shares of Non-trading, Restricted Common Stock were issued to Mr. Simpson for the stock portion of his compensation. Mr. Simpson was also issued 350,000 shares of Non-Trading Restricted Common Stock as a one-time stock award.

 

During the year ended December 31, 2021, 804,000 shares of Non-trading, Restricted Common Stock were issued to the Mr. Simpson for the stock portion of his compensation. During the year 2021, Mr. Simpson exercised stock options to purchase 93,750 non-trading, restricted shares for a total exercise price of $30,000. This reduced the accrued salary owed to him.

 

12
 

 

Employment Agreements

 

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

 

      Expiration  Exercise   As of December 31, 
   Issued To  Date  Price   2022   2021 
Shares underlying options outstanding   Glenn Simpson   4/6/2024  $0.16    0    159,054 

 

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 2022 and 2021

 

During the year ended December 31, 2022, Mr. Simpson exercised options to purchase 159,054 Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $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 Mr. Simpson to $0.

 

13
 

 

Director Compensation

 

The non-employee director 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.

 

ITEM 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, 2022 by:

 

  each director;
  each named executive officer; and
  all directors and executive officers as a group.

 

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.

 

Name  Shares  

Percent of

Common Stock (1)

 
Glenn Simpson   7,501,892    46%
Chairman and CEO          
Diane Cudia   491,667    3%
Corporate Controller          
Jeffrey Devlin   480,643    3%
Director          
All Officers and Directors   8,474,202    52%

 

(1) Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of Common Stock subject to options currently exercisable or convertible, or exercisable or convertible within 60 days of December 31, 2022 are deemed outstanding for computing the percentage of the person holding such option but are not deemed outstanding for computing the percentage of any other person. The Company had no options outstanding or convertible securities outstanding.

 

14
 

 

ITEM 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, 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 year 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.

 

15
 

 

ITEM 18. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

The aggregate fees billed to the Company for services rendered in connection with the years ended December 31, 2022 and 2021 are set forth in the table below:

 

Fee Category  2022   2021 
Fee for quarterly reviews  $15,000   $15,000 
Fee for annual audit   23,000    23,000 
Total  $38,000   $38,000 

 

Principal 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.

 

For the years ended December 31, 2022 and December 31, 2021, total principal accountant fees represent fees billed by 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.

 

16
 

 

ITEM 19. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

Financial Statement Schedules

 

The financial statements of 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:

 

Exhibit No.   SEC Report Reference Number   Description
3.1   3.1   Certificate of Incorporation of MOJO Shopping, Inc. (2)
3.2   3.1   Amendment to Certificate of Incorporation of MOJO Ventures, Inc. (3)
3.3   3.1   Certificate of Amendment to Certificate of Incorporation of MOJO Ventures, Inc. (4)
3.4   3.4   Articles of Merger (1)
3.5   3.1   Certificate of Amendment to Certificate of Incorporation of MOJO Organics, Inc. (6)
3.6   3.1   Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock (7)
3.7   3.1   Amended and Restated Bylaws of MOJO Ventures, Inc. (5)
3.8   3.8   Amendment No. 1 to Amended and Restated Bylaws of MOJO Organics, Inc. (8)
3.9   3.1   Certificate of Amendment (10)
3.10   3.1   Certificate of Amendment to Certificate of Incorporation of MOJO Organics, Inc.(11)
16.1   16.1   Letter from MSPC Certified Public Accountants and Advisors, P.C. (9)
31.1   31.1   Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1   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

 

101.INS Inline XBRL Instance Document
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

(1) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the Securities and Exchange Commission (the “SEC”) on May 18, 2011.
   
(2) Incorporated by reference to the Registrant’s Registration Statement on Form SB-2 as an exhibit, numbered as indicated above, filed with the SEC on December 19, 2007.
   
(3) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on May 4, 2011.
   
(4) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on January 4, 2012.
   
(5) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on October 31, 2011.
   
(6) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on April 2, 2013.
   
(7) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on February 1, 2013.
   
(8) Incorporated by reference to the Registrant’s Current Report on Form 10-K as an exhibit, numbered as indicated above, filed with the SEC on September 24, 2013.
   
(9) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on October 23, 2015.
   
(10) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on July 1, 2021.
   
(11) Incorporated by reference to the Registrant’s Current Report on Form 8-K as an exhibit, numbered as indicated above, filed with the SEC on July 20, 2022.

 

17
 

 

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.

 

  EQUATOR BEVERAGE COMPANY
   
Dated: March 31, 2023 By: /s/ Glenn Simpson
   

Glenn Simpson, Chief

Executive Officer and Chairman

(Principal Executive and Principal Financial Officer)

 

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.

 

SIGNATURE   TITLE   DATE
         
/s/ Glenn Simpson   Director, Chief Executive Officer and Chairman (Principal Executive and Principal Financial Officer)   March 31, 2023
Glenn Simpson        
         
/s/ Diane Cudia   Corporate Controller (Principal Accounting Officer)   March 31, 2023
Diane Cudia        

 

18
 

 

PART IV - FINANCIAL INFORMATION

 

    Page
Report of Independent Registered Public Accounting Firm – Boyle CPA, LLC Certified Public Accountants and Consultants (PCAOB: 6285)   F-1
Statements of Operations for the years ended December 31, 2022 and 2021   F-2
Balance Sheets as of December 31, 2022 and 2021   F-3
Statements of Changes in Stockholders’ Equity for the years ended December 31, 2022 and 2021   F-4
Statements of Cash Flows for the years ended December 31, 2022 and 2021   F-5
Notes to Financial Statements   F-6

 

19
 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Shareholders and

Board of Directors of EQUATOR Beverage Company

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of EQUATOR Beverage Company (the “Company”) as of December 31, 2022 and 2021, the related statements of operations, changes in stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 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, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 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 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 fraud or 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.

 

Stock Issued for Services

 

During the year ended December 31, 2022, the Company recognized $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

 

We have served as the Company’s auditor since 2020

Red Bank, NJ

March 31, 2023

 

F-1
 

 

EQUATOR BEVERAGE COMPANY

Statements of Operations

For the Years Ended December 31, 2022 and 2021

 

   2022   2021 
Revenue  $1,821,492   $1,918,882 
Cost of Revenue   1,190,536    1,069,844 
Gross Profit   630,956    849,038 
           
Operating Expenses          
Selling, general and administrative   859,155    844,654 
(Loss)/Income from Operations   (228,199)   4,384 
Other (Expense)/Income   (10,637)   35,508 
(Loss)/Income Before Provision for Income Taxes   (238,836)   39,892 
Provision for Income Taxes   -    - 
Net (Loss)/Income  $(238,836)  $39,892 
Net loss per common share, basic and diluted  $(0.02)   0.00 
Weighted average number of common shares outstanding, basic and diluted   15,841,585    15,540,259 

 

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

 

F-2
 

 

EQUATOR BEVERAGE COMPANY

Balance Sheets

As of December 31, 2022 and 2021

 

   2022   2021 
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents  $10,738   $46,481 
Accounts receivable, net   93,852    108,635 
Inventory   268,289    234,566 
Supplier deposits   44,772    28,000 
Prepaid expenses   23,355    11,702 
Security deposit   113    113 
Total Current Assets  $441,119   $429,497 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Accounts payable and accrued expenses  $70,252    58,944 
Loan related parties   225,000    - 
SBA Loans   -    - 
Total Current Liabilities   295,252    58,944 
           
STOCKHOLDERS’ EQUITY          
Common stock, 20,000,000 shares authorized at $0.001 par value, 16,230,615 and 15,548,903 shares issued and outstanding, at December 31, 2022 and December 31, 2021, respectively   16,231    15,549 
Additional paid in capital   23,758,917    23,745,449 
Accumulated deficit   (23,629,281)   (23,390,445)
Total Stockholders’ Equity   145,867    370,553 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $441,119   $429,497 

 

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

 

F-3
 

 

EQUATOR BEVERAGE COMPANY

Statements of Changes in Stockholders’ Equity

For the Years Ended December 31, 2022 and 2021

 

                     
   Common Stock   Additional Paid-In   Accumulated   Stockholders’  
   Shares   Amount   Capital   Deficit   Equity 
Balance, January 1, 2021   15,305,233   $15,305   $23,664,945   $(23,430,337)  $249,913 
Stock issued to Directors and employees   626,583    627    187,337    -    187,963 
Stock retired to treasury   (382,913)   (383)   (106,832)   -    (107,215)
Net Income   -    -    -    39,892    39,892 
Balance, December 31, 2021   15,548,903   $15,549   $23,745,449   $(23,390,445)  $370,553 
Stock issued to Directors and employees   1,353,000    1,353    180,536    -    181,889 
Exercise of stock options   

159,054

    159    

25,290

    -    

25,449

 
Stock retired to treasury   (830,342)   (830)   (192,358)   -    (193,188)
Net Loss   -    -    -    (238,836)   (238,836)
Balance, December 31, 2022   16,230,615   $16,231   $23,758,917   $(23,629,281)  $145,867 

 

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

 

F-4
 

 

EQUATOR BEVERAGE COMPANY

Statements of Cash Flows

For the Years Ended December 31, 2022 and 2021

 

   2022   2021 
Cash flows from operating activities:          
Net Loss / Income  $(238,836)  $39,892 
Adjustments to reconcile net loss to net cash used in operating activities:          
Stock and warrants issued to directors and employees   181,889    187,963 
SBA Loan Forgiveness   -    (35,508)
Changes in assets and liabilities:          
Decrease/(Increase) in accounts receivable   14,783    (35,073)
Increase in inventory   (33,723)   (60,395)
Increase in supplier deposits   (16,772)   (4,000)
(Increase)/Decrease in prepaid expenses   (11,653)   7,807 
Increase in accounts payable and accrued expenses   11,308    2,777 
Net cash (used in)/provided by operating activities   (93,004)   103,463 
Net cash provided by/ (used in) financing activities:          
Proceeds from related party loan   510,000    - 
Repayments from related party loan   (285,000)   - 
Proceeds from stock option exercise   25,449      
Shares repurchased for cancellation   (193,188)   (107,215)
Net cash provided by/(used in) financing activities   57,261    (107,215)
Net decrease in cash and cash equivalents   (35,743)   (3,752)
Cash and cash equivalents at beginning of period   46,481    50,233 
Cash and cash equivalents at end of periods  $10,738   $46,481 

 

Summary of non-cash investing and financing activity: During the year ended December 31, 2022 the Company issued a total of 1,353,000 Restricted and Non-Trading shares with an implied value of $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.

 

F-5
 

 

EQUATOR BEVERAGE COMPANY

Notes to Financial Statements

December 31 2022 and 2021

 

NOTE 1 – BUSINESS

 

Overview

 

EQUATOR Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ. EQUATOR’s business is new product development, beverage production, distribution, and sales & marketing of its beverages. Our beverages are Non-GMO Project 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.

 

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, 2022, and December 31, 2021, the Company did not 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, 2022 and 2021 was zero.

 

Inventory

 

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 2022 or 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.

 

F-6
 

 

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 (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 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:

 

      Expiration   Exercise   As of December 31, 
   Issued To  Date   Price   2022   2021 
Shares underlying options outstanding  Glenn Simpson   4/6/2024   $0.16    0    159,054 

 

Income Taxes

 

The Net Operating Loss Carryforwards for federal taxes was $3,803,700, at December 31, 2022 and 3,746,752 at December 31, 2021. The Net Operating Loss Carryforwards at December 31, 2022 was $3,803,700 and $3,746,752 for the State of New Jersey. The Deferred Tax Assets for federal taxes was $798,777 at December 31, 2022 and $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 $1,141,110 at December 31, 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, 2022, the Company’s Federal income tax payable and State Income Tax payable is zero. At December 31, 2021, The Company’s Federal income tax payable was $39,632 and State Income Tax payable was $16,985 if these had not been offset by 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 not have a deferred tax liability at December 31, 2022 and December 31, 2021.

 

As of December 31, 2022, and December 31, 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.

 

  

Tax

Rate

   2022   2021                 
      

Deferred Tax Assets

as of December 31,

   

Net Operating Loss

Carryforwards

as of December 31,

 
  

Tax Rate

   2022   2021    2022     2021  
Federal   21%  $798,777   $786,818    $ 3,803,700     $ 3,746,752  
State of New Jersey   9%  $342,333   $337,208    $ 3,803,700     $ 3,746,752  
Total       $1,141,110   $1,124,026    $ 7,607,400     $ 7,493,504  

 

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.

 

F-7
 

 

NOTE 3 – COMMITMENTS AND CONTINGENCIES

 

Employment Agreements

 

Pursuant to Mr. Simpson’s Amended and Restated Employment Agreement (“the Agreement”) dated April 6, 2017 and amended on September 1, 2022, Mr. Simpson is paid a salary of $8,000 per month and 67,000 shares of non-trading, restricted Common Stock.

 

Mr. Simpson is also 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 Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of non-trading, restricted Common Stock per year through March 31, 2027.

 

Pursuant to the Agreement, if Mr. Simpson’s employment is terminated without cause, the Company is obligated to pay him all amounts due under the contract for the remaining term of the contract immediately. At December 31, 2022, the potential liability to EQUATOR Beverage Company was $408,000 and 3,417,000 shares of non-trading, restricted Common Stock.

 

F-8
 

 

NOTE 4 – STOCKHOLDERS’ EQUITY

 

On 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 approved a prospective amendment to the Fourth Article of the Company’s Articles of Incorporation to decrease the authorized common stock from 40,000,000 shares, par value $0.001, to 20,000,000 shares, par value $0.001. On June 8, 2022, the majority stockholders approved the decrease in authorized shares amendment by written consent, in lieu of a special meeting of the stockholders. On 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 special 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 Authorized Shares from 190,000,000 to 40,000,000 shares. This was a reduction of 150,000,000 in Authorized Shares. As of December 31, 2022 there are 16,230,615 shares outstanding and no other classes of stock.

 

Restricted Stock Issuances

 

During the year ended December 31, 2022, 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 and transfer.

 

On June 1, 2022, Mr. Simpson exercised his options to purchase 159,054 shares of Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $25,449.

 

On February 4, 2022, the board of Directors approved the issuance 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 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.

 

Additionally, Mr. Simpson was issued 603,000 shares of Restricted and Non-Trading Common Stock for the stock portion of his annual salary. Mr. Devlin was issued 112,500 shares of Restricted and Non-Trading Common Stock as for continuing to serve as a Director of the Company. Ms. Cudia was issued 112,500 shares of Restricted and Non-Trading Common Stock for her annual stock bonus. The value of these shares was recorded as a component of compensation expense.

 

Stock Purchased for Cancellation

 

During the year ended December 31, 2022 the Company purchased 830,342 shares of its Restricted Common Stock from shareholders at a cost of $193,188.

 

During the year ended December 31, 2021 the Company purchased 382,913 shares of its Restricted Common Stock from shareholders at a cost of $765,826. The shares were cancelled.

 

F-9
 

 

NOTE 5 – STOCK OPTION

 

During the year ended December 31, 2022, Mr. Simpson exercised options to purchase 159,054 shares of Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $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 Mr. Simpson to $0.

 

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

 

The following table summarizes stock option activity:

 

   Issued To   Expiration
Date
  Days to
Expiration
   Exercise
Price
   Options 
Outstanding, December 31, 2021  Glenn Simpson   4/6/2024   827   $0.16    159,054 
Exercised, June 1, 2022  Glenn Simpson   4/6/2024       $0.16    (159,054)
Outstanding, December 31, 2022  Glenn Simpson   -   -    -    0 

 

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

 

NOTE 6 – CONCENTRATIONS

 

Major Customers

 

During the year ended December 31, 2022, the Company had five customers that accounted for 89% of revenue. The increase in the concentration percentage is due to the shutdown of customers that were affected by the COVID-19 mandated closures. Accounts receivable at December 31, 2022 from these five customers amounted to $74,654. For the year ended December 31, 2021, there were five major customers accounting for 90% of total revenue.

 

F-10
 

 

Major Suppliers

 

During the year ended December 31, 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, 2022 to both suppliers were $15,840.

 

NOTE 7 – 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 June 1, 2022, Mr. Simpson exercised 159,054 stock options at an exercise price of $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 $30,000.

 

NOTE 8 – SBA LOANS “CARES ACT”

 

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

 

F-11

 

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

 

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

CERTIFICATIONS

 

I, Glenn Simpson, certify that:

 

1. I have reviewed this annual report on Form 10-K of EQUATOR Beverage Company;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the issuer is made known to me by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

 

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

 

Date: March 31, 2023   /s/ Glenn Simpson
  Name: Glenn Simpson
  Title: Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)

 

 

 

EX-32.1 3 ex32-1.htm

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Annual Report of EQUATOR Beverage Company on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

Date: March 31, 2023   /s/ Glenn Simpson
  Name: Glenn Simpson
  Title: Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)

 

 

 

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Gross Profit 630,956 849,038
Operating Expenses    
Selling, general and administrative 859,155 844,654
(Loss)/Income from Operations (228,199) 4,384
Other (Expense)/Income (10,637) 35,508
(Loss)/Income Before Provision for Income Taxes (238,836) 39,892
Provision for Income Taxes
Net (Loss)/Income $ (238,836) $ 39,892
Net loss per common share, basic and diluted $ (0.02) $ 0.00
Weighted average number of common shares outstanding, basic and diluted 15,841,585 15,540,259
XML 11 R3.htm IDEA: XBRL DOCUMENT v3.23.1
Balance Sheets - USD ($)
Dec. 31, 2022
Dec. 31, 2021
CURRENT ASSETS:    
Cash and cash equivalents $ 10,738 $ 46,481
Accounts receivable, net 93,852 108,635
Inventory 268,289 234,566
Supplier deposits 44,772 28,000
Prepaid expenses 23,355 11,702
Security deposit 113 113
Total Current Assets 441,119 429,497
CURRENT LIABILITIES:    
Accounts payable and accrued expenses 70,252 58,944
Loan related parties 225,000
SBA Loans
Total Current Liabilities 295,252 58,944
STOCKHOLDERS’ EQUITY    
Common stock, 20,000,000 shares authorized at $0.001 par value, 16,230,615 and 15,548,903 shares issued and outstanding, at December 31, 2022 and December 31, 2021, respectively 16,231 15,549
Additional paid in capital 23,758,917 23,745,449
Accumulated deficit (23,629,281) (23,390,445)
Total Stockholders’ Equity 145,867 370,553
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 441,119 $ 429,497
XML 12 R4.htm IDEA: XBRL DOCUMENT v3.23.1
Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Common stock, shares authorized 20,000,000 20,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares issued 16,230,615 15,548,903
Common stock, shares outstanding 16,230,615 15,548,903
XML 13 R5.htm IDEA: XBRL DOCUMENT v3.23.1
Statements of Changes in Stockholders' Equity - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2020 $ 15,305 $ 23,664,945 $ (23,430,337) $ 249,913
Balance, shares at Dec. 31, 2020 15,305,233      
Stock issued to Directors and employees $ 627 187,337 187,963
Stock issued to Directors and employees, shares 626,583      
Stock retired to treasury $ (383) (106,832) (107,215)
Stock retired to treasury, shares (382,913)      
Net Income Loss 39,892 39,892
Balance at Dec. 31, 2021 $ 15,549 23,745,449 (23,390,445) 370,553
Balance, shares at Dec. 31, 2021 15,548,903      
Stock issued to Directors and employees $ 1,353 180,536 181,889
Stock issued to Directors and employees, shares 1,353,000      
Stock retired to treasury $ (830) (192,358) (193,188)
Stock retired to treasury, shares (830,342)      
Net Income Loss (238,836) (238,836)
Exercise of stock options $ 159 25,290 25,449
Exercise of stock options, shares 159,054      
Balance at Dec. 31, 2022 $ 16,231 $ 23,758,917 $ (23,629,281) $ 145,867
Balance, shares at Dec. 31, 2022 16,230,615      
XML 14 R6.htm IDEA: XBRL DOCUMENT v3.23.1
Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:    
Net Loss / Income $ (238,836) $ 39,892
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock and warrants issued to directors and employees 181,889 187,963
SBA Loan Forgiveness (35,508)
Changes in assets and liabilities:    
Decrease/(Increase) in accounts receivable 14,783 (35,073)
Increase in inventory (33,723) (60,395)
Increase in supplier deposits (16,772) (4,000)
(Increase)/Decrease in prepaid expenses (11,653) 7,807
Increase in accounts payable and accrued expenses 11,308 2,777
Net cash (used in)/provided by operating activities (93,004) 103,463
Net cash provided by/ (used in) financing activities:    
Proceeds from related party loan 510,000
Repayments from related party loan (285,000)
Proceeds from stock option exercise 25,449  
Shares repurchased for cancellation (193,188) (107,215)
Net cash provided by/(used in) financing activities 57,261 (107,215)
Net decrease in cash and cash equivalents (35,743) (3,752)
Cash and cash equivalents at beginning of period 46,481 50,233
Cash and cash equivalents at end of periods $ 10,738 $ 46,481
XML 15 R7.htm IDEA: XBRL DOCUMENT v3.23.1
Statements of Cash Flows (Parenthetical) - Director and Officer [Member] - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]    
Stock issued to directors and officers, shares 1,353,000 626,583
Stock issued to directors and officers, value $ 181,889 $ 187,963
XML 16 R8.htm IDEA: XBRL DOCUMENT v3.23.1
BUSINESS
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
BUSINESS

NOTE 1 – BUSINESS

 

Overview

 

EQUATOR Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ. EQUATOR’s business is new product development, beverage production, distribution, and sales & marketing of its beverages. Our beverages are Non-GMO Project 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.

 

XML 17 R9.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, 2022, and December 31, 2021, the Company did not 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, 2022 and 2021 was zero.

 

Inventory

 

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 2022 or 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 (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 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:

 

      Expiration   Exercise   As of December 31, 
   Issued To  Date   Price   2022   2021 
Shares underlying options outstanding  Glenn Simpson   4/6/2024   $0.16    0    159,054 

 

Income Taxes

 

The Net Operating Loss Carryforwards for federal taxes was $3,803,700, at December 31, 2022 and 3,746,752 at December 31, 2021. The Net Operating Loss Carryforwards at December 31, 2022 was $3,803,700 and $3,746,752 for the State of New Jersey. The Deferred Tax Assets for federal taxes was $798,777 at December 31, 2022 and $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 $1,141,110 at December 31, 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, 2022, the Company’s Federal income tax payable and State Income Tax payable is zero. At December 31, 2021, The Company’s Federal income tax payable was $39,632 and State Income Tax payable was $16,985 if these had not been offset by 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 not have a deferred tax liability at December 31, 2022 and December 31, 2021.

 

As of December 31, 2022, and December 31, 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.

 

  

Tax

Rate

   2022   2021                 
      

Deferred Tax Assets

as of December 31,

   

Net Operating Loss

Carryforwards

as of December 31,

 
  

Tax Rate

   2022   2021    2022     2021  
Federal   21%  $798,777   $786,818    $ 3,803,700     $ 3,746,752  
State of New Jersey   9%  $342,333   $337,208    $ 3,803,700     $ 3,746,752  
Total       $1,141,110   $1,124,026    $ 7,607,400     $ 7,493,504  

 

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.

 

 

XML 18 R10.htm IDEA: XBRL DOCUMENT v3.23.1
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 3 – COMMITMENTS AND CONTINGENCIES

 

Employment Agreements

 

Pursuant to Mr. Simpson’s Amended and Restated Employment Agreement (“the Agreement”) dated April 6, 2017 and amended on September 1, 2022, Mr. Simpson is paid a salary of $8,000 per month and 67,000 shares of non-trading, restricted Common Stock.

 

Mr. Simpson is also 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 Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of non-trading, restricted Common Stock per year through March 31, 2027.

 

Pursuant to the Agreement, if Mr. Simpson’s employment is terminated without cause, the Company is obligated to pay him all amounts due under the contract for the remaining term of the contract immediately. At December 31, 2022, the potential liability to EQUATOR Beverage Company was $408,000 and 3,417,000 shares of non-trading, restricted Common Stock.

 

 

XML 19 R11.htm IDEA: XBRL DOCUMENT v3.23.1
STOCKHOLDERS’ EQUITY
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 4 – STOCKHOLDERS’ EQUITY

 

On 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 approved a prospective amendment to the Fourth Article of the Company’s Articles of Incorporation to decrease the authorized common stock from 40,000,000 shares, par value $0.001, to 20,000,000 shares, par value $0.001. On June 8, 2022, the majority stockholders approved the decrease in authorized shares amendment by written consent, in lieu of a special meeting of the stockholders. On 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 special 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 Authorized Shares from 190,000,000 to 40,000,000 shares. This was a reduction of 150,000,000 in Authorized Shares. As of December 31, 2022 there are 16,230,615 shares outstanding and no other classes of stock.

 

Restricted Stock Issuances

 

During the year ended December 31, 2022, 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 and transfer.

 

On June 1, 2022, Mr. Simpson exercised his options to purchase 159,054 shares of Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $25,449.

 

On February 4, 2022, the board of Directors approved the issuance 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 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.

 

Additionally, Mr. Simpson was issued 603,000 shares of Restricted and Non-Trading Common Stock for the stock portion of his annual salary. Mr. Devlin was issued 112,500 shares of Restricted and Non-Trading Common Stock as for continuing to serve as a Director of the Company. Ms. Cudia was issued 112,500 shares of Restricted and Non-Trading Common Stock for her annual stock bonus. The value of these shares was recorded as a component of compensation expense.

 

Stock Purchased for Cancellation

 

During the year ended December 31, 2022 the Company purchased 830,342 shares of its Restricted Common Stock from shareholders at a cost of $193,188.

 

During the year ended December 31, 2021 the Company purchased 382,913 shares of its Restricted Common Stock from shareholders at a cost of $765,826. The shares were cancelled.

 

 

XML 20 R12.htm IDEA: XBRL DOCUMENT v3.23.1
STOCK OPTION
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
STOCK OPTION

NOTE 5 – STOCK OPTION

 

During the year ended December 31, 2022, Mr. Simpson exercised options to purchase 159,054 shares of Restricted and Non-Trading shares at $0.16 per share. The total exercise value was $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 Mr. Simpson to $0.

 

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

 

The following table summarizes stock option activity:

 

   Issued To   Expiration
Date
  Days to
Expiration
   Exercise
Price
   Options 
Outstanding, December 31, 2021  Glenn Simpson   4/6/2024   827   $0.16    159,054 
Exercised, June 1, 2022  Glenn Simpson   4/6/2024       $0.16    (159,054)
Outstanding, December 31, 2022  Glenn Simpson   -   -    -    0 

 

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

 

XML 21 R13.htm IDEA: XBRL DOCUMENT v3.23.1
CONCENTRATIONS
12 Months Ended
Dec. 31, 2022
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 6 – CONCENTRATIONS

 

Major Customers

 

During the year ended December 31, 2022, the Company had five customers that accounted for 89% of revenue. The increase in the concentration percentage is due to the shutdown of customers that were affected by the COVID-19 mandated closures. Accounts receivable at December 31, 2022 from these five customers amounted to $74,654. For the year ended December 31, 2021, there were five major customers accounting for 90% of total revenue.

 

 

Major Suppliers

 

During the year ended December 31, 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, 2022 to both suppliers were $15,840.

 

XML 22 R14.htm IDEA: XBRL DOCUMENT v3.23.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 7 – 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 June 1, 2022, Mr. Simpson exercised 159,054 stock options at an exercise price of $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 $30,000.

 

XML 23 R15.htm IDEA: XBRL DOCUMENT v3.23.1
SBA LOANS “CARES ACT”
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
SBA LOANS “CARES ACT”

NOTE 8 – SBA LOANS “CARES ACT”

 

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

XML 24 R16.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Use of Estimates

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 and Cash Equivalents

 

Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. As of December 31, 2022, and December 31, 2021, the Company did not have any cash equivalents.

 

Accounts Receivable

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, 2022 and 2021 was zero.

 

Inventory

Inventory

 

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 2022 or 2021.

 

Revenue Recognition

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

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

 

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 (Loss)/Income Per Common Share

Net (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 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:

 

      Expiration   Exercise   As of December 31, 
   Issued To  Date   Price   2022   2021 
Shares underlying options outstanding  Glenn Simpson   4/6/2024   $0.16    0    159,054 

 

Income Taxes

Income Taxes

 

The Net Operating Loss Carryforwards for federal taxes was $3,803,700, at December 31, 2022 and 3,746,752 at December 31, 2021. The Net Operating Loss Carryforwards at December 31, 2022 was $3,803,700 and $3,746,752 for the State of New Jersey. The Deferred Tax Assets for federal taxes was $798,777 at December 31, 2022 and $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 $1,141,110 at December 31, 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, 2022, the Company’s Federal income tax payable and State Income Tax payable is zero. At December 31, 2021, The Company’s Federal income tax payable was $39,632 and State Income Tax payable was $16,985 if these had not been offset by 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 not have a deferred tax liability at December 31, 2022 and December 31, 2021.

 

As of December 31, 2022, and December 31, 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.

 

  

Tax

Rate

   2022   2021                 
      

Deferred Tax Assets

as of December 31,

   

Net Operating Loss

Carryforwards

as of December 31,

 
  

Tax Rate

   2022   2021    2022     2021  
Federal   21%  $798,777   $786,818    $ 3,803,700     $ 3,746,752  
State of New Jersey   9%  $342,333   $337,208    $ 3,803,700     $ 3,746,752  
Total       $1,141,110   $1,124,026    $ 7,607,400     $ 7,493,504  

 

Fair value of financial instruments

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.

 

 

XML 25 R17.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE

      Expiration   Exercise   As of December 31, 
   Issued To  Date   Price   2022   2021 
Shares underlying options outstanding  Glenn Simpson   4/6/2024   $0.16    0    159,054 
SCHEDULE OF DEFERRED TAX ASSETS

  

Tax

Rate

   2022   2021                 
      

Deferred Tax Assets

as of December 31,

   

Net Operating Loss

Carryforwards

as of December 31,

 
  

Tax Rate

   2022   2021    2022     2021  
Federal   21%  $798,777   $786,818    $ 3,803,700     $ 3,746,752  
State of New Jersey   9%  $342,333   $337,208    $ 3,803,700     $ 3,746,752  
Total       $1,141,110   $1,124,026    $ 7,607,400     $ 7,493,504  
XML 26 R18.htm IDEA: XBRL DOCUMENT v3.23.1
STOCK OPTION (Tables)
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
SCHEDULE OF STOCK OPTIONS ACTIVITY

The following table summarizes stock option activity:

 

   Issued To   Expiration
Date
  Days to
Expiration
   Exercise
Price
   Options 
Outstanding, December 31, 2021  Glenn Simpson   4/6/2024   827   $0.16    159,054 
Exercised, June 1, 2022  Glenn Simpson   4/6/2024       $0.16    (159,054)
Outstanding, December 31, 2022  Glenn Simpson   -   -    -    0 
XML 27 R19.htm IDEA: XBRL DOCUMENT v3.23.1
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - Glenn Simpson [Member] - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Expiration date Apr. 06, 2024  
Exercise price $ 0.16  
Shares underlying options outstanding 0 159,054
XML 28 R20.htm IDEA: XBRL DOCUMENT v3.23.1
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Operating Loss Carryforwards [Line Items]    
Total $ 1,141,110 $ 1,124,026
Net operating loss carryforwards 7,607,400 7,493,504
Domestic Tax Authority [Member]    
Operating Loss Carryforwards [Line Items]    
Total $ 798,777 786,818
Tax rate 21.00%  
Net operating loss carryforwards $ 3,803,700 3,746,752
State and Local Jurisdiction [Member]    
Operating Loss Carryforwards [Line Items]    
Total $ 342,333 337,208
Tax rate 9.00%  
Net operating loss carryforwards $ 3,803,700 $ 3,746,752
XML 29 R21.htm IDEA: XBRL DOCUMENT v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Operating Loss Carryforwards [Line Items]    
Cash equivalents $ 0 $ 0
Allowance for doubtful accounts 0 0
Net operating loss carryforwards 7,607,400 7,493,504
Deferred tax assets 1,141,110 1,124,026
Deferred Tax Liabilities, Net 0 0
Accrued interest or penalties 0 0
Domestic Tax Authority [Member]    
Operating Loss Carryforwards [Line Items]    
Net operating loss carryforwards 3,803,700 3,746,752
Deferred tax assets 798,777 786,818
State and Local Jurisdiction [Member]    
Operating Loss Carryforwards [Line Items]    
Net operating loss carryforwards 3,803,700 3,746,752
Deferred tax assets 342,333 337,208
Income tax payable $ 0  
Federal [Member]    
Operating Loss Carryforwards [Line Items]    
Income tax payable   39,632
State [Member]    
Operating Loss Carryforwards [Line Items]    
Income tax payable   $ 16,985
XML 30 R22.htm IDEA: XBRL DOCUMENT v3.23.1
COMMITMENTS AND CONTINGENCIES (Details Narrative) - Employment Agreements [Member] - Glenn Simpson [Member] - USD ($)
12 Months Ended
Sep. 01, 2022
Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Monthly salary $ 8,000  
Number of shares of non trading, restricted common stock, shares 67,000  
Employee bonus $ 44,400  
Stock bonus, shares 200,000  
Non Trading Restricted Common Stock [Member]    
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]    
Issuance of restricted and non-trading   $ 408,000
Issuance of restricted and non-trading, shares   3,417,000
XML 31 R23.htm IDEA: XBRL DOCUMENT v3.23.1
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)
12 Months Ended
Jul. 05, 2022
Jun. 08, 2022
Jun. 01, 2022
Feb. 04, 2022
Dec. 31, 2022
Dec. 31, 2021
Jun. 30, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Reverse stock split 1-for-2 reverse split effect a 1-for-2 reverse split of the Company’s Common Stock.          
Common stock, shares authorized 40,000,000       20,000,000 20,000,000  
Common stock par value         $ 0.001 $ 0.001  
Reduction in common stock shares authorized             150,000,000
Common stock, shares outstanding         16,230,615 15,548,903  
Stock options exercised         $ 25,449    
Restricted Common Stock [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Stock repurchased during period shares         830,342 382,913  
Stock repurchased during period value         $ 193,188 $ 765,826  
Minimum [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Common stock, shares authorized             40,000,000
Maximum [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Common stock, shares authorized             190,000,000
Board of Directors [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Common stock, shares authorized   40,000,000          
Common stock par value   $ 0.001          
Board of Directors [Member] | Minimum [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Common stock, shares authorized   20,000,000          
Common stock par value   $ 0.001          
Director and Officers [Member] | Restricted and Non Trading Shares [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Issuance of restricted and non-trading, shares         1,353,000    
Glenn Simpson [Member] | Restricted and Non Trading Shares [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Stock issued during period shares stock options exercised     159,054   159,054 93,750  
Share price     $ 0.16        
Stock options exercised     $ 25,449   $ 25,449    
Mr Simpson Mr Devlin and Ms Cudia [Member] | Restricted and Non Trading Shares [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Issuance of restricted and non-trading, shares       525,000      
Mr. Simpson [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Issuance of restricted and non-trading, shares       350,000 603,000    
Mr.Devlin [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Issuance of restricted and non-trading, shares       87,500 112,500    
Ms Cudia [Member]              
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]              
Issuance of restricted and non-trading, shares       87,500 112,500    
XML 32 R24.htm IDEA: XBRL DOCUMENT v3.23.1
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) - Glenn Simpson [Member] - Equity Option [Member]
12 Months Ended
Dec. 31, 2022
$ / shares
shares
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]  
Stock Options, Expiration Date Apr. 06, 2024
Stock Option, Outstanding, Days to Expiration 827 days
Stock Options, Outstanding, Exercise Price | $ / shares $ 0.16
Stock Options, Outstanding Options | shares 159,054
Stock Options, Exercised, Exercise Price | $ / shares $ 0.16
Stock Options, Exercised Options | shares (159,054)
Stock Options, Outstanding, Exercise Price | $ / shares
Stock Options, Outstanding Options | shares 0
XML 33 R25.htm IDEA: XBRL DOCUMENT v3.23.1
STOCK OPTION (Details Narrative) - USD ($)
12 Months Ended
Jun. 01, 2022
Feb. 04, 2022
Dec. 31, 2022
Dec. 31, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]        
Stock option exercise     $ 25,449  
Share-based compensation expense     0 $ 0
Unrecognized compensation cost     $ 0  
Glenn Simpson [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]        
Accrued salaries       $ 0
Glenn Simpson [Member] | Maximum [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]        
Exercise price   $ 0.32    
Glenn Simpson [Member] | Minimum [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]        
Exercise price   $ 0.16    
Glenn Simpson [Member] | Restricted and Non Trading Shares [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]        
Stock issued during period shares stock options exercised 159,054   159,054 93,750
Exercise price $ 0.16   $ 0.16 $ 0.32
Stock option exercise $ 25,449   $ 25,449  
Accrued payroll       $ 30,000
XML 34 R26.htm IDEA: XBRL DOCUMENT v3.23.1
CONCENTRATIONS (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Five Customers [Member]    
Concentration Risk [Line Items]    
Accounts receivable $ 74,654  
Both Suppliers [Member]    
Concentration Risk [Line Items]    
Accounts payable $ 15,840  
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Five Customers [Member]    
Concentration Risk [Line Items]    
Concentration risk 89.00%  
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Five Customers [Member]    
Concentration Risk [Line Items]    
Concentration risk   90.00%
XML 35 R27.htm IDEA: XBRL DOCUMENT v3.23.1
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
12 Months Ended
Jun. 01, 2022
Dec. 31, 2022
Dec. 31, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]      
Exercise of stock options   $ 25,449  
Mr. Simpson [Member]      
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]      
Loan payable   $ 225,000  
Glenn Simpson [Member] | Restricted and Non Trading Shares [Member]      
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]      
Stock issued during period shares stock options exercised 159,054 159,054 93,750
Exercise price $ 0.16 $ 0.16 $ 0.32
Exercise of stock options $ 25,449 $ 25,449  
Accrued payroll     $ 30,000
XML 36 R28.htm IDEA: XBRL DOCUMENT v3.23.1
SBA LOANS “CARES ACT” (Details Narrative)
1 Months Ended
Jan. 31, 2021
USD ($)
Paycheck Protection Program [Member]  
Short-Term Debt [Line Items]  
Debt forgiveness $ 35,508
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us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001414953 us-gaap:RetainedEarningsMember 2022-12-31 0001414953 MOJO:DirectorAndOfficerMember 2022-01-01 2022-12-31 0001414953 MOJO:DirectorAndOfficerMember 2021-01-01 2021-12-31 0001414953 us-gaap:DomesticCountryMember 2022-12-31 0001414953 us-gaap:DomesticCountryMember 2021-12-31 0001414953 us-gaap:StateAndLocalJurisdictionMember 2022-12-31 0001414953 us-gaap:StateAndLocalJurisdictionMember 2021-12-31 0001414953 MOJO:FederalMember 2021-12-31 0001414953 MOJO:StateMember 2021-12-31 0001414953 MOJO:GlennSimpsonMember 2022-01-01 2022-12-31 0001414953 MOJO:GlennSimpsonMember 2022-12-31 0001414953 MOJO:GlennSimpsonMember 2021-01-01 2021-12-31 0001414953 us-gaap:DomesticCountryMember 2022-01-01 2022-12-31 0001414953 us-gaap:StateAndLocalJurisdictionMember 2022-01-01 2022-12-31 0001414953 MOJO:GlennSimpsonMember MOJO:EmploymentAgreementsMember 2022-08-29 2022-09-01 0001414953 MOJO:GlennSimpsonMember MOJO:EmploymentAgreementsMember 2022-09-01 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0001414953 MOJO:FiveCustomersMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-12-31 0001414953 MOJO:FiveCustomersMember 2022-12-31 0001414953 MOJO:FiveCustomersMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-12-31 0001414953 MOJO:BothSuppliersMember 2022-12-31 0001414953 MOJO:SimpsonMember 2022-12-31 0001414953 MOJO:PaycheckProtectionProgramMember 2021-01-01 2021-01-31 iso4217:USD shares iso4217:USD shares pure 0001414953 false FY 10-K true 2022-12-31 --12-31 2022 false 000-55269 EQUATOR Beverage Company DE 26-0884348 185 Hudson Street Floor 25 Jersey City NJ 07302 929 264 7944 Common Stock, $0.001 par value per share No No Yes Yes Non-accelerated Filer true false false 542941 16469115 None 6285 Boyle CPA, LLC Red Bank, NJ 1821492 1918882 1190536 1069844 630956 849038 859155 844654 -228199 4384 -10637 35508 -238836 39892 -238836 39892 -0.02 0.00 15841585 15540259 10738 46481 93852 108635 268289 234566 44772 28000 23355 11702 113 113 441119 429497 70252 58944 225000 295252 58944 20000000 20000000 0.001 0.001 16230615 16230615 15548903 15548903 16231 15549 23758917 23745449 -23629281 -23390445 145867 370553 441119 429497 15305233 15305 23664945 -23430337 249913 626583 627 187337 187963 382913 383 106832 107215 39892 39892 15548903 15549 23745449 -23390445 370553 15548903 15549 23745449 -23390445 370553 1353000 1353 180536 181889 159054 159 25290 25449 830342 830 192358 193188 -238836 -238836 -238836 -238836 16230615 16231 23758917 -23629281 145867 16230615 16231 23758917 -23629281 145867 -238836 39892 181889 187963 -35508 -14783 35073 33723 60395 16772 4000 11653 -7807 11308 2777 -93004 103463 510000 285000 25449 193188 107215 57261 -107215 -35743 -3752 46481 50233 10738 46481 1353000 181889 626583 187963 <p id="xdx_809_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zJaRnDBqo1H1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_820_zmDGR2Ij3Bn7">BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Overview</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">EQUATOR Beverage Company, a Delaware corporation is headquartered in Jersey City, NJ. EQUATOR’s business is new product development, beverage production, distribution, and sales &amp; marketing of its beverages. Our beverages are Non-GMO Project 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_803_eus-gaap--SignificantAccountingPoliciesTextBlock_zqPLr1rnVEgj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 2 – <span id="xdx_823_zkTeRoWsiCma">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--UseOfEstimates_zBK1BQLISQ5b" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_z83TbBWGecAb">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zbnyhiljKJxc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86D_zQWZmOv7hmad">Cash and Cash Equivalents</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. As of December 31, 2022, and December 31, 2021, the Company did <span id="xdx_900_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20221231_zcQxa85Vj9gg" title="Cash equivalents"><span id="xdx_903_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20211231_zcg1NbW0OPIb" title="Cash equivalents">no</span></span>t have any cash equivalents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--TradeAndOtherAccountsReceivablePolicy_zToNinLpAQJ9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_867_zeBlqQD6LSDg">Accounts Receivable</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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, 2022 and 2021 was <span id="xdx_90B_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iI_dc_c20221231_zrVd6LEKboLk" title="Allowance for doubtful accounts"><span id="xdx_90C_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iI_dc_c20211231_zPobD4osJBfl" title="Allowance for doubtful accounts">zero</span></span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--InventoryPolicyTextBlock_zPK1GiVKCwL7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_863_z3sZWFJFCDjd">Inventory</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 2022 or 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--RevenueRecognitionPolicyTextBlock_ztNIro4us6jb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_865_zDlfenIIhTQd">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p id="xdx_841_ecustom--DeductionsFromRevenuePolicyTextBlock_zXyhRXMHjQjf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_861_zxfNNVkXkQS9">Deductions from Revenue</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_ecustom--ShippingAndHandlingCostsPolicyTextBlock_zqikJY3ah36j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86F_zr5ix9kveibi">Shipping and Handling Costs</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--EarningsPerSharePolicyTextBlock_zcwQF0AMQmt2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_ztcytiv7LIWc">Net (Loss)/Income Per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89A_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zrYcKsv9M1Yd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B0_zz5Oil8zVJY2" style="display: none">SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issued To</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Date</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: left">Shares underlying options outstanding</td><td style="width: 2%"> </td> <td style="width: 12%; text-align: left">Glenn Simpson</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zNu9bnqppzQ7" title="Expiration date">4/6/2024</span></span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zATTfHf7MBfj" title="Exercise price">0.16</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zZa2XiaQO1yb" title="Shares underlying options outstanding">0</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zvEXtGAfy883" title="Shares underlying options outstanding">159,054</span></td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_8AF_zxIbWdLycKwh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--IncomeTaxDisclosureTextBlock_zY9fAHMoOEil" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86F_zaNCMdpOeLzi">Income Taxes</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Net Operating Loss Carryforwards for federal taxes was $<span id="xdx_905_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zlEeyXeXSGef" title="Net operating loss carryforwards">3,803,700</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, at December 31, 2022 and <span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zxC3wTq0LdK4" title="Net operating loss carryforwards">3,746,752</span> at December 31, 2021. The Net Operating Loss Carryforwards at December 31, 2022 was $<span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zuwX2HKATCd9" title="Net operating loss carryforwards">3,803,700</span> and $<span id="xdx_90B_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_z0fueFw36Dua" title="Net operating loss carryforwards">3,746,752</span> </span> for the State of New Jersey. The Deferred Tax Assets for federal taxes was $<span id="xdx_90C_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zx9wvuE4UF39" title="Deferred tax assets">798,777 </span>at December 31, 2022 and $<span id="xdx_90D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zTI7DJQTmEMk" title="Deferred tax assets">786,818</span> at December 31, 2021. The Deferred Tax Assets at December 31, 2022 was $<span id="xdx_901_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zO0yfVGGhRS5" title="Deferred tax assets">342,333</span> and $<span id="xdx_90E_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zyY8vq37VWbb" title="Deferred tax assets">337,208</span> at December 31, 2021 for the State of New Jersey. The total Deferred Tax Assets was $<span id="xdx_903_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20221231_zMFDzUDGwd8l" title="Deferred tax assets">1,141,110 </span>at December 31, 2022 and $<span id="xdx_90F_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20211231_zjBqN99qNcK8" title="Deferred tax assets">1,124,026</span> 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, 2022, the Company’s Federal income tax payable and State Income Tax payable is <span id="xdx_90E_eus-gaap--TaxesPayableCurrentAndNoncurrent_iI_dc_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zMXfNvuczyw1" title="Income tax payable">zero</span>. At December 31, 2021, The Company’s Federal income tax payable was $<span id="xdx_909_eus-gaap--TaxesPayableCurrentAndNoncurrent_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__custom--FederalMember_zAFPoCqnrKYj" title="Income tax payable">39,632</span> and State Income Tax payable was $<span id="xdx_903_eus-gaap--TaxesPayableCurrentAndNoncurrent_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__custom--StateMember_z1ay29YZr2Ef" title="Income tax payable">16,985</span> if these had not been offset by deferred tax assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90D_eus-gaap--DeferredTaxLiabilities_iI_do_c20221231_zFqtw3XMD0z4"><span id="xdx_90E_eus-gaap--DeferredTaxLiabilities_iI_do_c20211231_zz83fN9eBMu3">no</span></span>t have a deferred tax liability at December 31, 2022 and December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, and December 31, 2021, the Company had <span id="xdx_90F_eus-gaap--UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued_iI_do_c20221231_zeoCqyxsymKg" title="Accrued interest or penalties"><span id="xdx_909_eus-gaap--UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued_iI_do_c20211231_zu1Y4MqpsFH" title="Accrued interest or penalties">no</span></span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_896_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zMdks6dyvWEg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zifjpGDZDxNe" style="display: none">SCHEDULE OF DEFERRED TAX ASSETS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Tax</p> <p style="margin-top: 0; margin-bottom: 0">Rate</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20221231_zpYn6nwXvRhk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20211231_zam1DDirPmk9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Deferred Tax Assets</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">as of December 31,</p></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0"><b>Net Operating Loss</b></p> <p style="text-align: center; margin-top: 0; margin-bottom: 0"/> <p style="text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Carryforwards</b></span></p> <p style="text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>as </b></span><b>of December 31,</b></p></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0"><b>Tax Rate</b></p></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><b>2022</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><b>2021</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; text-align: center"><b>2022</b></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> <td style="border-bottom: Black 1.5pt solid; text-align: center"><b>2021</b></td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> </tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zTaT48aSjvRb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span id="xdx_90D_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zeNGiGMO8nG4" title="Tax rate">21</span></td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">798,777</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">786,818</td><td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 9%"><span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zK60Cowywe5b" title="Net operating loss carryforwards">3,803,700</span></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 9%"><span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zVRJAxw6tnXd" title="Net operating loss carryforwards">3,746,752</span></td> <td style="width: 1%"> </td> </tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zW28iktev50c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">State of New Jersey</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_904_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zbixiAbd7fvk" title="Tax rate">9</span></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">342,333</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">337,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid">$</td> <td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zjQUlRrHz1c9" title="Net operating loss carryforwards">3,803,700</span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid">$</td> <td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_907_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zLXZmUlxY7ei" title="Net operating loss carryforwards">3,746,752</span></td> <td style="padding-bottom: 1.5pt"> </td> </tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><b>Total</b></td><td><b> </b></td> <td style="text-align: left"><b> </b></td><td style="text-align: right"><b> </b></td><td style="text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td style="font-weight: bold; text-align: left"><b>$</b></td><td style="font-weight: bold; text-align: right"><b>1,141,110</b></td><td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td style="font-weight: bold; text-align: left"><b>$</b></td><td style="font-weight: bold; text-align: right"><b>1,124,026</b></td><td style="font-weight: bold; text-align: left"><b> </b></td> <td><b> </b></td> <td><b>$</b></td> <td style="text-align: right"><b><span id="xdx_90B_eus-gaap--OperatingLossCarryforwards_iI_c20221231_zb3SYKgmpDS3" title="Net operating loss carryforwards">7,607,400</span></b></td> <td><b> </b></td> <td> </td> <td><b>$</b></td> <td style="text-align: right"><b><span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_c20211231_zN4LSso1oV0c" title="Net operating loss carryforwards">7,493,504</span></b></td> <td><b> </b></td> </tr> </table> <p id="xdx_8A8_zMWAbUakS2p" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="xdx_84C_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z8Rh6rVHPmjc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_869_z9EKRcVH9BOe">Fair value of financial instruments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p id="xdx_844_eus-gaap--UseOfEstimates_zBK1BQLISQ5b" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_z83TbBWGecAb">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zbnyhiljKJxc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86D_zQWZmOv7hmad">Cash and Cash Equivalents</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash equivalents include investment instruments and time deposits purchased with a maturity of three months or less. As of December 31, 2022, and December 31, 2021, the Company did <span id="xdx_900_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20221231_zcQxa85Vj9gg" title="Cash equivalents"><span id="xdx_903_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20211231_zcg1NbW0OPIb" title="Cash equivalents">no</span></span>t have any cash equivalents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 0 0 <p id="xdx_840_eus-gaap--TradeAndOtherAccountsReceivablePolicy_zToNinLpAQJ9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_867_zeBlqQD6LSDg">Accounts Receivable</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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, 2022 and 2021 was <span id="xdx_90B_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iI_dc_c20221231_zrVd6LEKboLk" title="Allowance for doubtful accounts"><span id="xdx_90C_eus-gaap--AllowanceForDoubtfulAccountsReceivableCurrent_iI_dc_c20211231_zPobD4osJBfl" title="Allowance for doubtful accounts">zero</span></span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 0 0 <p id="xdx_849_eus-gaap--InventoryPolicyTextBlock_zPK1GiVKCwL7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_863_z3sZWFJFCDjd">Inventory</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 2022 or 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_844_eus-gaap--RevenueRecognitionPolicyTextBlock_ztNIro4us6jb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_865_zDlfenIIhTQd">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p id="xdx_841_ecustom--DeductionsFromRevenuePolicyTextBlock_zXyhRXMHjQjf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_861_zxfNNVkXkQS9">Deductions from Revenue</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_ecustom--ShippingAndHandlingCostsPolicyTextBlock_zqikJY3ah36j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86F_zr5ix9kveibi">Shipping and Handling Costs</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--EarningsPerSharePolicyTextBlock_zcwQF0AMQmt2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86C_ztcytiv7LIWc">Net (Loss)/Income Per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company computes per share amounts in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89A_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zrYcKsv9M1Yd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B0_zz5Oil8zVJY2" style="display: none">SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issued To</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Date</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: left">Shares underlying options outstanding</td><td style="width: 2%"> </td> <td style="width: 12%; text-align: left">Glenn Simpson</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zNu9bnqppzQ7" title="Expiration date">4/6/2024</span></span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zATTfHf7MBfj" title="Exercise price">0.16</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zZa2XiaQO1yb" title="Shares underlying options outstanding">0</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zvEXtGAfy883" title="Shares underlying options outstanding">159,054</span></td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_8AF_zxIbWdLycKwh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89A_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zrYcKsv9M1Yd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B0_zz5Oil8zVJY2" style="display: none">SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issued To</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Date</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: left">Shares underlying options outstanding</td><td style="width: 2%"> </td> <td style="width: 12%; text-align: left">Glenn Simpson</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zNu9bnqppzQ7" title="Expiration date">4/6/2024</span></span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zATTfHf7MBfj" title="Exercise price">0.16</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_906_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zZa2XiaQO1yb" title="Shares underlying options outstanding">0</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_90E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zvEXtGAfy883" title="Shares underlying options outstanding">159,054</span></td><td style="width: 1%; text-align: left"> </td></tr> </table> 2024-04-06 0.16 0 159054 <p id="xdx_84B_eus-gaap--IncomeTaxDisclosureTextBlock_zY9fAHMoOEil" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86F_zaNCMdpOeLzi">Income Taxes</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Net Operating Loss Carryforwards for federal taxes was $<span id="xdx_905_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zlEeyXeXSGef" title="Net operating loss carryforwards">3,803,700</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, at December 31, 2022 and <span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zxC3wTq0LdK4" title="Net operating loss carryforwards">3,746,752</span> at December 31, 2021. The Net Operating Loss Carryforwards at December 31, 2022 was $<span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zuwX2HKATCd9" title="Net operating loss carryforwards">3,803,700</span> and $<span id="xdx_90B_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_z0fueFw36Dua" title="Net operating loss carryforwards">3,746,752</span> </span> for the State of New Jersey. The Deferred Tax Assets for federal taxes was $<span id="xdx_90C_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zx9wvuE4UF39" title="Deferred tax assets">798,777 </span>at December 31, 2022 and $<span id="xdx_90D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zTI7DJQTmEMk" title="Deferred tax assets">786,818</span> at December 31, 2021. The Deferred Tax Assets at December 31, 2022 was $<span id="xdx_901_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zO0yfVGGhRS5" title="Deferred tax assets">342,333</span> and $<span id="xdx_90E_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zyY8vq37VWbb" title="Deferred tax assets">337,208</span> at December 31, 2021 for the State of New Jersey. The total Deferred Tax Assets was $<span id="xdx_903_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20221231_zMFDzUDGwd8l" title="Deferred tax assets">1,141,110 </span>at December 31, 2022 and $<span id="xdx_90F_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_c20211231_zjBqN99qNcK8" title="Deferred tax assets">1,124,026</span> 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, 2022, the Company’s Federal income tax payable and State Income Tax payable is <span id="xdx_90E_eus-gaap--TaxesPayableCurrentAndNoncurrent_iI_dc_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zMXfNvuczyw1" title="Income tax payable">zero</span>. At December 31, 2021, The Company’s Federal income tax payable was $<span id="xdx_909_eus-gaap--TaxesPayableCurrentAndNoncurrent_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__custom--FederalMember_zAFPoCqnrKYj" title="Income tax payable">39,632</span> and State Income Tax payable was $<span id="xdx_903_eus-gaap--TaxesPayableCurrentAndNoncurrent_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__custom--StateMember_z1ay29YZr2Ef" title="Income tax payable">16,985</span> if these had not been offset by deferred tax assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90D_eus-gaap--DeferredTaxLiabilities_iI_do_c20221231_zFqtw3XMD0z4"><span id="xdx_90E_eus-gaap--DeferredTaxLiabilities_iI_do_c20211231_zz83fN9eBMu3">no</span></span>t have a deferred tax liability at December 31, 2022 and December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, and December 31, 2021, the Company had <span id="xdx_90F_eus-gaap--UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued_iI_do_c20221231_zeoCqyxsymKg" title="Accrued interest or penalties"><span id="xdx_909_eus-gaap--UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued_iI_do_c20211231_zu1Y4MqpsFH" title="Accrued interest or penalties">no</span></span> 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_896_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zMdks6dyvWEg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zifjpGDZDxNe" style="display: none">SCHEDULE OF DEFERRED TAX ASSETS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Tax</p> <p style="margin-top: 0; margin-bottom: 0">Rate</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20221231_zpYn6nwXvRhk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20211231_zam1DDirPmk9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Deferred Tax Assets</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">as of December 31,</p></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0"><b>Net Operating Loss</b></p> <p style="text-align: center; margin-top: 0; margin-bottom: 0"/> <p style="text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Carryforwards</b></span></p> <p style="text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>as </b></span><b>of December 31,</b></p></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0"><b>Tax Rate</b></p></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><b>2022</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><b>2021</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; text-align: center"><b>2022</b></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> <td style="border-bottom: Black 1.5pt solid; text-align: center"><b>2021</b></td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> </tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zTaT48aSjvRb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span id="xdx_90D_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zeNGiGMO8nG4" title="Tax rate">21</span></td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">798,777</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">786,818</td><td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 9%"><span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zK60Cowywe5b" title="Net operating loss carryforwards">3,803,700</span></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 9%"><span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zVRJAxw6tnXd" title="Net operating loss carryforwards">3,746,752</span></td> <td style="width: 1%"> </td> </tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zW28iktev50c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">State of New Jersey</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_904_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zbixiAbd7fvk" title="Tax rate">9</span></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">342,333</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">337,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid">$</td> <td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zjQUlRrHz1c9" title="Net operating loss carryforwards">3,803,700</span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid">$</td> <td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_907_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zLXZmUlxY7ei" title="Net operating loss carryforwards">3,746,752</span></td> <td style="padding-bottom: 1.5pt"> </td> </tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><b>Total</b></td><td><b> </b></td> <td style="text-align: left"><b> </b></td><td style="text-align: right"><b> </b></td><td style="text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td style="font-weight: bold; text-align: left"><b>$</b></td><td style="font-weight: bold; text-align: right"><b>1,141,110</b></td><td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td style="font-weight: bold; text-align: left"><b>$</b></td><td style="font-weight: bold; text-align: right"><b>1,124,026</b></td><td style="font-weight: bold; text-align: left"><b> </b></td> <td><b> </b></td> <td><b>$</b></td> <td style="text-align: right"><b><span id="xdx_90B_eus-gaap--OperatingLossCarryforwards_iI_c20221231_zb3SYKgmpDS3" title="Net operating loss carryforwards">7,607,400</span></b></td> <td><b> </b></td> <td> </td> <td><b>$</b></td> <td style="text-align: right"><b><span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_c20211231_zN4LSso1oV0c" title="Net operating loss carryforwards">7,493,504</span></b></td> <td><b> </b></td> </tr> </table> <p id="xdx_8A8_zMWAbUakS2p" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> 3803700 3746752 3803700 3746752 798777 786818 342333 337208 1141110 1124026 0 39632 16985 0 0 0 0 <p id="xdx_896_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zMdks6dyvWEg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zifjpGDZDxNe" style="display: none">SCHEDULE OF DEFERRED TAX ASSETS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Tax</p> <p style="margin-top: 0; margin-bottom: 0">Rate</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49B_20221231_zpYn6nwXvRhk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20211231_zam1DDirPmk9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0">Deferred Tax Assets</p> <p style="text-align: center; margin-top: 0; margin-bottom: 0">as of December 31,</p></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"> </td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0"><b>Net Operating Loss</b></p> <p style="text-align: center; margin-top: 0; margin-bottom: 0"/> <p style="text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Carryforwards</b></span></p> <p style="text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>as </b></span><b>of December 31,</b></p></td> <td style="padding-bottom: 1.5pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="text-align: center; margin-top: 0; margin-bottom: 0"><b>Tax Rate</b></p></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><b>2022</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><b>2021</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold"><b> </b></td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> <td colspan="3" style="border-bottom: Black 1.5pt solid; text-align: center"><b>2022</b></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> <td style="border-bottom: Black 1.5pt solid; text-align: center"><b>2021</b></td> <td style="padding-bottom: 1.5pt; text-align: center"><b> </b></td> </tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zTaT48aSjvRb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span id="xdx_90D_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zeNGiGMO8nG4" title="Tax rate">21</span></td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">798,777</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">786,818</td><td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 9%"><span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zK60Cowywe5b" title="Net operating loss carryforwards">3,803,700</span></td> <td style="width: 1%"> </td> <td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 9%"><span id="xdx_90F_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zVRJAxw6tnXd" title="Net operating loss carryforwards">3,746,752</span></td> <td style="width: 1%"> </td> </tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zW28iktev50c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">State of New Jersey</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span id="xdx_904_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20220101__20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zbixiAbd7fvk" title="Tax rate">9</span></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">342,333</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">337,208</td><td style="padding-bottom: 1.5pt; text-align: left"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid">$</td> <td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_c20221231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zjQUlRrHz1c9" title="Net operating loss carryforwards">3,803,700</span></td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid">$</td> <td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_907_eus-gaap--OperatingLossCarryforwards_iI_c20211231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zLXZmUlxY7ei" title="Net operating loss carryforwards">3,746,752</span></td> <td style="padding-bottom: 1.5pt"> </td> </tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold"><b>Total</b></td><td><b> </b></td> <td style="text-align: left"><b> </b></td><td style="text-align: right"><b> </b></td><td style="text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td style="font-weight: bold; text-align: left"><b>$</b></td><td style="font-weight: bold; text-align: right"><b>1,141,110</b></td><td style="font-weight: bold; text-align: left"><b> </b></td><td style="font-weight: bold"><b> </b></td> <td style="font-weight: bold; text-align: left"><b>$</b></td><td style="font-weight: bold; text-align: right"><b>1,124,026</b></td><td style="font-weight: bold; text-align: left"><b> </b></td> <td><b> </b></td> <td><b>$</b></td> <td style="text-align: right"><b><span id="xdx_90B_eus-gaap--OperatingLossCarryforwards_iI_c20221231_zb3SYKgmpDS3" title="Net operating loss carryforwards">7,607,400</span></b></td> <td><b> </b></td> <td> </td> <td><b>$</b></td> <td style="text-align: right"><b><span id="xdx_909_eus-gaap--OperatingLossCarryforwards_iI_c20211231_zN4LSso1oV0c" title="Net operating loss carryforwards">7,493,504</span></b></td> <td><b> </b></td> </tr> </table> 0.21 798777 786818 3803700 3746752 0.09 342333 337208 3803700 3746752 1141110 1124026 7607400 7493504 <p id="xdx_84C_eus-gaap--FairValueOfFinancialInstrumentsPolicy_z8Rh6rVHPmjc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_869_z9EKRcVH9BOe">Fair value of financial instruments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p id="xdx_801_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_z8KU47AW1Hs7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 3 – <span id="xdx_828_zHYgdp3WHiQ3">COMMITMENTS AND CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Employment Agreements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to Mr. Simpson’s Amended and Restated Employment Agreement (“the Agreement”) dated April 6, 2017 and amended on September 1, 2022, Mr. Simpson is paid a salary of $<span id="xdx_90F_eus-gaap--SalariesAndWages_c20220829__20220901__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zlFGqsNZCozc" title="Monthly salary">8,000</span> per month and <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20220829__20220901__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zHoIrczkJa8a" title="Number of shares of non trading, restricted common stock, shares">67,000</span> shares of non-trading, restricted Common Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Simpson is also 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 Agreement. The cash bonus is established at $<span id="xdx_90B_eus-gaap--AccruedBonusesCurrentAndNoncurrent_iI_c20220901__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zbrzeExo049d" title="Employee bonus">44,400</span> per year. The stock bonus is set at <span id="xdx_90D_ecustom--StockBonusShares_iI_pid_c20220901__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember_zCvgoeEwakif" title="Stock bonus, shares">200,000</span> shares of non-trading, restricted Common Stock per year through March 31, 2027.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the Agreement, if Mr. Simpson’s employment is terminated without cause, the Company is obligated to pay him all amounts due under the contract for the remaining term of the contract immediately. At December 31, 2022, the potential liability to EQUATOR Beverage Company was $<span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember__us-gaap--StatementEquityComponentsAxis__custom--NonTradingRestrictedCommonStockMember_zCRXO3Y0eQO2" title="Issuance of restricted and non-trading">408,000</span> and <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementsMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GlennSimpsonMember__us-gaap--StatementEquityComponentsAxis__custom--NonTradingRestrictedCommonStockMember_zu4gAac7s8C2" title="Issuance of restricted and non-trading, shares">3,417,000</span> shares of non-trading, restricted Common Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> 8000 67000 44400 200000 408000 3417000 <p id="xdx_802_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_z9gs4pwqcXs3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 4 – <span id="xdx_82D_zxCIY0Zhi3ha">STOCKHOLDERS’ EQUITY</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 5, 2022, the State of Delaware approved the <span id="xdx_902_eus-gaap--StockholdersEquityReverseStockSplit_c20220704__20220705_zqPCjmAiqCdh" title="Reverse stock split description">1-for-2 reverse split</span> and the decrease in Authorized shares from <span id="xdx_902_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20220705_zuRdjxrSBtub" title="Common stock, shares authorized">40,000,000</span> to <span id="xdx_900_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20221231_zi2rAjmW9o8k" title="Common stock, shares authorized">20,000,000</span> shares.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 8, 2022, the Board of Directors of the Company approved a prospective amendment to the Fourth Article of the Company’s Articles of Incorporation to decrease the authorized common stock from <span id="xdx_90B_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20220608__srt--TitleOfIndividualAxis__custom--BoardOfDirectorsMember_zbAvE2fCmZoh" title="Common stock shares authorized">40,000,000</span> shares, par value $<span id="xdx_90C_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20220608__srt--TitleOfIndividualAxis__custom--BoardOfDirectorsMember_zOHyEGbyvYBg" title="Common stock par value">0.001</span>, to <span id="xdx_907_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20220608__srt--TitleOfIndividualAxis__custom--BoardOfDirectorsMember__srt--RangeAxis__srt--MinimumMember_z7hALFTYOF4g" title="Common stock shares authorized">20,000,000</span> shares, par value $<span id="xdx_905_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20220608__srt--TitleOfIndividualAxis__custom--BoardOfDirectorsMember__srt--RangeAxis__srt--MinimumMember_zSkfVxG8zWo4" title="Common stock par value">0.001</span>. On June 8, 2022, the majority stockholders approved the decrease in authorized shares amendment by written consent, in lieu of a special meeting of the stockholders. On June 8, 2022, the Board of Directors of the Company approved the prospective amendment to the Company’s Articles of Incorporation to <span id="xdx_904_eus-gaap--StockholdersEquityReverseStockSplit_c20220606__20220608_zzkReFdSYGPh" title="Reverse stock split">effect a 1-for-2 reverse split of the Company’s Common Stock.</span> 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 special 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2021, the Company decreased its Authorized Shares from <span id="xdx_900_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20210630__srt--RangeAxis__srt--MaximumMember_zpxdxJ9ZzcLc" title="Common stock, shares authorized">190,000,000</span> to <span id="xdx_90F_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20210630__srt--RangeAxis__srt--MinimumMember_zuxtwwZnX2i4" title="Common stock, shares authorized">40,000,000</span> shares. This was a reduction of <span id="xdx_907_ecustom--ReductionInCommonStockSharesAuthorized_iI_c20210630_z23Bz6p9gBv6" title="Reduction in common stock shares authorized">150,000,000</span> in Authorized Shares. As of December 31, 2022 there are <span id="xdx_90F_eus-gaap--CommonStockSharesOutstanding_iI_pid_c20221231_zBw6BDzPIwB5" title="Common stock, shares outstanding">16,230,615</span> shares outstanding and no other classes of stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Restricted Stock Issuances</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022, <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--DirectorAndOfficersMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zWIVOrcjiNzd" title="Issuance of restricted and non-trading, shares">1,353,000</span> shares of Restricted and Non-Trading Common Stock were issued to Directors and Officers of the Company. These shares have full voting rights but are restricted for sale and transfer.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 1, 2022, Mr. Simpson exercised his options to purchase <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220601__20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zAKED6518asd" title="Stock issued during period shares stock options exercised">159,054</span> shares of Restricted and Non-Trading shares at $<span id="xdx_905_eus-gaap--SharePrice_iI_pid_c20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zvpK7KnwsVZk" title="Share price">0.16</span> per share. The total exercise value was $<span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_c20220601__20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_z5py7c91Oys6" title="Stock options exercised">25,449</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 4, 2022, the board of Directors approved the issuance of <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pid_c20220204__20220204__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember__srt--TitleOfIndividualAxis__custom--MrSimpsonMrDevlinAndMsCudiaMember_zrQqpGUny556" title="Issuance of restricted and non-trading, shares">525,000</span> shares of Restricted and Non-Trading Common Stock to Mr. Simpson, Mr. Devlin and Ms. Cudia for their continued service to the Company. Mr. Simpson was issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pid_c20220204__20220204__srt--TitleOfIndividualAxis__custom--SimpsonMember_zWbd6YtXnN6b" title="Issuance of restricted and non-trading, shares">350,000</span> shares of Restricted and Non-Trading Common Stock. Mr. Devlin and Ms. Cudia were each issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20220204__20220204__srt--TitleOfIndividualAxis__custom--MrDevlinMember_zH5igdWumWRj" title="Issuance of restricted and non-trading, shares"><span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20220204__20220204__srt--TitleOfIndividualAxis__custom--MrDevlinMember_zCfGFVY4Pfua" title="Issuance of restricted and non-trading, shares"><span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20220204__20220204__srt--TitleOfIndividualAxis__custom--CudiaMember_zmibpC6PGzP1" title="Issuance of restricted and non-trading, shares">87,500</span></span></span> shares of Restricted and Non-Trading Common Stock. The value of these shares was recorded as a component of compensation expense.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, Mr. Simpson was issued <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--SimpsonMember_ziUuP8BpTxvl" title="Issuance of restricted and non-trading, shares">603,000</span> shares of Restricted and Non-Trading Common Stock for the stock portion of his annual salary. Mr. Devlin was issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--MrDevlinMember_zN2J3CjkzdX2" title="Issuance of restricted and non-trading, shares">112,500</span> shares of Restricted and Non-Trading Common Stock as for continuing to serve as a Director of the Company. Ms. Cudia was issued <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20220101__20221231__srt--TitleOfIndividualAxis__custom--CudiaMember_zvoCD1Qyddnf" title="Issuance of restricted and non-trading, shares">112,500</span> shares of Restricted and Non-Trading Common Stock for her annual stock bonus. The value of these shares was recorded as a component of compensation expense.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Stock Purchased for Cancellation</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022 the Company purchased <span id="xdx_905_eus-gaap--StockRepurchasedDuringPeriodShares_pid_c20220101__20221231__us-gaap--AwardTypeAxis__custom--RestrictedCommonStockMember_zZM20TPOFOAd" title="Stock repurchased during period shares">830,342</span> shares of its Restricted Common Stock from shareholders at a cost of $<span id="xdx_901_eus-gaap--StockRepurchasedDuringPeriodValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--RestrictedCommonStockMember_zGnxwEHBBRb8" title="Stock repurchased during period value">193,188</span></span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2021 the Company purchased <span id="xdx_902_eus-gaap--StockRepurchasedDuringPeriodShares_pid_c20210101__20211231__us-gaap--AwardTypeAxis__custom--RestrictedCommonStockMember_zz0mkcbQujyb" title="Stock repurchased during period shares">382,913</span> shares of its Restricted Common Stock from shareholders at a cost of $<span id="xdx_90D_eus-gaap--StockRepurchasedDuringPeriodValue_c20210101__20211231__us-gaap--AwardTypeAxis__custom--RestrictedCommonStockMember_zyL9qLwGmEX9" title="Stock repurchased during period value">765,826</span>. The shares were cancelled.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> 1-for-2 reverse split 40000000 20000000 40000000 0.001 20000000 0.001 effect a 1-for-2 reverse split of the Company’s Common Stock. 190000000 40000000 150000000 16230615 1353000 159054 0.16 25449 525000 350000 87500 87500 87500 603000 112500 112500 830342 193188 382913 765826 <p id="xdx_80A_eus-gaap--ShareholdersEquityAndShareBasedPaymentsTextBlock_zIdzgp85SqUd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 5 – <span id="xdx_820_zZFoZgOhWmS1">STOCK OPTION</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022, Mr. Simpson exercised options to purchase <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zZByT3vkoGC5" title="Stock issued during period shares stock options exercised">159,054</span> shares of Restricted and Non-Trading shares at $<span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zENbS3PZysT6">0.16</span> per share. The total exercise value was $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zHAvjfW9UKH7" title="Stock option exercise">25,449</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 4, 2022, the Company adjusted the exercise price of the options granted to Mr. Simpson from $<span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220204__20220204__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__srt--RangeAxis__srt--MaximumMember_zW8cvLsnCOBi" title="Exercise price">0.32</span> per share to $<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220204__20220204__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__srt--RangeAxis__srt--MinimumMember_zXwUITlODgu3" title="Exercise price">0.16</span> per share.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2021, Mr. Simpson exercised options to purchase <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20210101__20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zwQa1Cov1QJa" title="Stock issued during period shares stock options exercised">93,750</span> shares of Restricted and Non-Trading shares at $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zLyjcQIpvEfa" title="Exercise price">0.32</span> per share. The total exercise value was $<span id="xdx_90D_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_c20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zOxGYVhA7aoe" title="Accrued payroll">30,000</span> and this reduced the accrued salary payable to Mr. Simpson to $<span id="xdx_901_eus-gaap--AccruedSalariesCurrentAndNoncurrent_iI_c20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember_zIKPxIf3Ps4l" title="Accrued salaries">0</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 24, 2021, the Company extended the expiration date of the options granted to Mr. Simpson from April 6, 2022 to April 6, 2024.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p id="xdx_89D_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zumssoOwJXr" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes stock option activity:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zF3tw9okJey5" style="display: none">SCHEDULE OF STOCK OPTIONS ACTIVITY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issued To</td> <td style="text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Expiration<br/> Date</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Days to <br/> Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise <br/> Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 24%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding, December 31, 2021</span></td><td style="width: 2%; text-align: left"> </td> <td style="width: 12%; text-align: center">Glenn Simpson</td> <td style="text-align: left; width: 2%"> </td> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_z6NWrezAEkr2" style="width: 12%; text-align: right" title="Stock Options, Expiration Date">4/6/2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtD_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zXhdsdpnr4Le" style="width: 12%; text-align: right" title="Stock Option, Outstanding, Days to Expiration">827</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_ziZNJf59OgOg" style="width: 12%; text-align: right" title="Stock Options, Outstanding, Exercise Price">0.16</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zjnnFepFIgBk" style="width: 12%; text-align: right" title="Stock Options, Outstanding Options">159,054</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercised, June 1, 2022</span></td><td style="text-align: left"> </td> <td style="text-align: center">Glenn Simpson</td> <td style="text-align: left"> </td> <td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zTekRV4INlRd" style="text-align: right" title="Stock Options, Expiration Date">4/6/2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zi5wQ1U7ZRh8" style="text-align: right" title="Stock Options, Exercised, Exercise Price">0.16</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zzKEmDxeztck" style="text-align: right" title="Stock Options, Exercised Options">(159,054</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding, December 31, 2022</span></td><td style="text-align: left"> </td> <td style="text-align: center">Glenn Simpson</td> <td> </td> <td style="text-align: right">-</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zVlsisGRih1a" style="text-align: right" title="Stock Options, Outstanding, Exercise Price"><span style="-sec-ix-hidden: xdx2ixbrl0523">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zjyn4fnI77i1" style="text-align: right" title="Stock Options, Outstanding Options">0</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A3_zcmeCzGf5A57" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the years ended December 31, 2022 and 2021, compensation expense related to stock options was $<span id="xdx_909_eus-gaap--ShareBasedCompensation_c20220101__20221231_zYoDZAYypzW8" title="Share-based compensation expense"><span id="xdx_900_eus-gaap--ShareBasedCompensation_c20210101__20211231_zd9TYGeMJn0l" title="Share-based compensation expense">0</span></span>. As of December 31, 2022, there was <span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_do_c20221231_zhnhIgbDRm3f" title="Unrecognized compensation cost">no</span> unrecognized compensation cost related to non-vested stock options.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> 159054 0.16 25449 0.32 0.16 93750 0.32 30000 0 <p id="xdx_89D_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zumssoOwJXr" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table summarizes stock option activity:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BA_zF3tw9okJey5" style="display: none">SCHEDULE OF STOCK OPTIONS ACTIVITY</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issued To</td> <td style="text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Expiration<br/> Date</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Days to <br/> Expiration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise <br/> Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 24%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding, December 31, 2021</span></td><td style="width: 2%; text-align: left"> </td> <td style="width: 12%; text-align: center">Glenn Simpson</td> <td style="text-align: left; width: 2%"> </td> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_z6NWrezAEkr2" style="width: 12%; text-align: right" title="Stock Options, Expiration Date">4/6/2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtD_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zXhdsdpnr4Le" style="width: 12%; text-align: right" title="Stock Option, Outstanding, Days to Expiration">827</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_ziZNJf59OgOg" style="width: 12%; text-align: right" title="Stock Options, Outstanding, Exercise Price">0.16</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zjnnFepFIgBk" style="width: 12%; text-align: right" title="Stock Options, Outstanding Options">159,054</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercised, June 1, 2022</span></td><td style="text-align: left"> </td> <td style="text-align: center">Glenn Simpson</td> <td style="text-align: left"> </td> <td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zTekRV4INlRd" style="text-align: right" title="Stock Options, Expiration Date">4/6/2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zi5wQ1U7ZRh8" style="text-align: right" title="Stock Options, Exercised, Exercise Price">0.16</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zzKEmDxeztck" style="text-align: right" title="Stock Options, Exercised Options">(159,054</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding, December 31, 2022</span></td><td style="text-align: left"> </td> <td style="text-align: center">Glenn Simpson</td> <td> </td> <td style="text-align: right">-</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zVlsisGRih1a" style="text-align: right" title="Stock Options, Outstanding, Exercise Price"><span style="-sec-ix-hidden: xdx2ixbrl0523">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20220101__20221231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zjyn4fnI77i1" style="text-align: right" title="Stock Options, Outstanding Options">0</td><td style="text-align: left"> </td></tr> </table> 2024-04-06 P827D 0.16 159054 2024-04-06 0.16 159054 0 0 0 0 <p id="xdx_80D_eus-gaap--ConcentrationRiskDisclosureTextBlock_zQfDDJMllUGa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 6 – <span id="xdx_82D_zqWZn1xcbVc4">CONCENTRATIONS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Major Customers</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2022, the Company had five customers that accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20220101__20221231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--RevenueFromContractWithCustomerMember__srt--MajorCustomersAxis__custom--FiveCustomersMember_zAXddLJ9jMQk" title="Concentration risk">89</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% of revenue. The increase in the concentration percentage is due to the shutdown of customers that were affected by the COVID-19 mandated closures. Accounts receivable at December 31, 2022 from these five customers amounted to $<span id="xdx_90B_eus-gaap--AccountsReceivableNetCurrent_iI_c20221231__srt--MajorCustomersAxis__custom--FiveCustomersMember_zHY9MspgGNic" title="Accounts receivable">74,654</span>. For the year ended December 31, 2021, there were five major customers accounting for <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20210101__20211231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--FiveCustomersMember_zfi2DtkNj24k" title="Concentration risk">90</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% of total revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Major Suppliers</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 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, 2022 to both suppliers were $<span id="xdx_902_eus-gaap--AccountsPayableCurrentAndNoncurrent_iI_c20221231__srt--MajorCustomersAxis__custom--BothSuppliersMember_zXw5JSSPYQrf" title="Accounts payable">15,840</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 0.89 74654 0.90 15840 <p id="xdx_802_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zAp8nqLuJEm" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 7 – <span id="xdx_824_zacpe1lWmhhk">RELATED PARTY TRANSACTIONS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 $<span id="xdx_90B_eus-gaap--LoansPayable_iI_c20221231__srt--TitleOfIndividualAxis__custom--SimpsonMember_zBKXqbWi6l44" title="Loan payable">225,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 1, 2022, Mr. Simpson exercised <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220601__20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_z1P6qvXqhXvj" title="Stock issued during period shares stock options exercised">159,054</span> stock options at an exercise price of $<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220601__20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_fMQ_____zHTIz6cOZ2q">0.16</span>. The Company issued <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220601__20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zdLxAg40VfQ1" title="Stock issued during period shares stock options exercised">159,054</span> Restricted and Non-Trading shares of Common Stock in exchange for the total exercise price of $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_c20220601__20220601__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zDQFIYkAlrY4" title="Exercise of stock options">25,449</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2021, Mr. Simpson exercised <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20210101__20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zUal9aM07aHc" title="Stock issued during period shares stock options exercised">93,750</span> stock options at an exercise price of $<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zaR4nPSbDy6b" title="Exercise price">0.32</span>. The Company issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20210101__20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zyFdXxaxuHJi" title="Stock issued during period shares stock options exercised">93,750</span> Restricted and Non-Trading shares of Common Stock, and the accrued payroll owed to him was reduced by $<span id="xdx_909_eus-gaap--EmployeeRelatedLiabilitiesCurrentAndNoncurrent_iI_c20211231__srt--TitleOfIndividualAxis__custom--GlennSimpsonMember__us-gaap--AwardTypeAxis__custom--RestrictedAndNonTradingSharesMember_zPQR9GhIckgj" title="Accrued payroll">30,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 225000 159054 0.16 159054 25449 93750 0.32 93750 30000 <p id="xdx_80B_eus-gaap--DebtDisclosureTextBlock_zWlOEaoXKSS5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 8 – <span id="xdx_825_zQ1S0GvjJ1k2">SBA LOANS “CARES ACT”</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In January 2021, the Company received the loan forgiveness decision from the SBA for the loan proceeds under the Paycheck Protection Program. The full amount of the loan amounting $<span id="xdx_90B_eus-gaap--DebtInstrumentDecreaseForgiveness_c20210101__20210131__us-gaap--DebtInstrumentAxis__custom--PaycheckProtectionProgramMember_zMXnrXUneWnl" title="Debt forgiveness">35,508</span> was forgiven in January 2021.</span></p> 35508 EXCEL 38 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( !B(?U8'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " 8B']6[>SRV>T K @ $0 &1O8U!R;W!S+V-O&ULS9+! M:L,P#(9?9?B>R(YA!Y/ZLK'3"H45-G8SMMJ:Q8FQ-9*^_9RL31G; ^QHZ?>G M3Z#61F6'A+LT1$SD,=]-H>NSLG'#3D11 61[PF!R71)]:1Z&% R59SI"-/;# M'!$:SN\A(!EGR, ,K.)*9+IU5MF$AH9TP3N[XN-GZA:8LX =!NPI@Z@%,#U/ MC.>I:^$&F&&$*>3O KJ5N%3_Q"X=8)?DE/V:&L>Q'N62*SL(>-L^ORSK5K[/ M9'J+Y5?VBLX1-^PZ^54^/.Z?F&YX(RLN*RGVC5"<*RG>9]&PO=&AE M;64O=&AE;64Q+GAM;.U:6W/:.!1^[Z_0>&?V;0O&-H&VM!-S:7;;M)F$[4X? 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