Equator Beverage (MOJO) 10-Q 21 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 17, 2015
Document And Entity Information
Entity Registrant Name	Mojo Organics, Inc.
Entity Central Index Key	1,414,953
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,907,396
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 85,665	$ 345,616
Accounts Receivable, net	28,723	43,890
Inventory	$ 77,645	445,328
Supplier deposits		1,782
Prepaid expenses	$ 15,281	37,887
Total Current Assets	207,314	874,503
Property and Equipment, net of accumulated depreciation	2,213	2,603
Other Assets
Security deposit	2,778	2,294
Total Assets	212,305	879,400
Current Liabilities
Accounts payable and accrued expenses	10,516	542,157
Accrued payroll to related parties	16,858	220,677
Total Current Liabilities	$ 27,374	$ 762,834
Stockholders Equity/ (Deficit)
Preferred stock, 10,000,000 shares authorized at $0.001 par value, no shares issued and outstanding
Common stock, 190,000,000 shares authorized at $0.001 par value, 16,907,396 and 16,907,396 shares issued and outstanding, respectively	$ 16,907	$ 16,907
Additional paid in capital	19,100,882	18,436,503
Accumulated deficit	(18,932,858)	(18,336,844)
Total Stockholders Equity/ Deficit	184,931	116,566
Total Liabilities and Stockholders Equity/ Deficit	$ 212,305	$ 879,400

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued
Preferred stock, outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	190,000,000	190,000,000
Common stock, issued	16,907,396	16,907,396
Common stock, outstanding	16,907,396	16,907,396

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenues	$ 77,721	$ 76,300	$ 146,606	$ 161,778
Cost of Revenues	128,994	75,766	238,733	156,397
Gross (Loss) Profit	(51,273)	534	(92,127)	5,381
Operating Expenses
Selling, general and administrative	133,660	1,103,978	982,031	2,471,894
License (settlement) fee	(2,253,085)	92,120	(477,223)	184,240
Total Operating Expenses	(2,119,425)	1,196,098	504,808	2,656,134
Income (Loss) from Operations	2,068,152	(1,195,564)	(596,935)	(2,650,753)
Other Income/ (Expense)
Total Other Income	7,518	309	921	309
Income (Loss) Before Provision for Income Taxes	$ 2,075,670	$ (1,195,255)	$ (596,014)	$ (2,650,444)
Provision for Income Taxes
Net Income (Loss)	$ 2,075,670	$ (1,195,255)	$ (596,014)	$ (2,650,444)
Net Income (Loss) available to common stockholders, basic and fully diluted	$ 0.12	$ (0.08)	$ (.04)	$ (.19)
Basic and diluted weighted average number of common shares outstanding	16,907,396	15,407,945	16,907,396	14,220,969

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net Loss	$ (596,014)	$ (2,650,444)
Adjustments to reconcile net loss to cash used by operating activitites:
Depreciation	725	2,361
Share-based compensation - stock options	38,695	50,717
Stock and warrants issued to directors and employees	$ 625,684	1,575,944
Stock issued to employees in lieu of salary		37,000
Stock and warrants issued to advisors and consultants		442,736
Change in assets and liabilites:
Decrease (increase) in accounts receivable	$ 15,167	1,742
Decrease (increase) in inventory	367,683	(467,184)
Decrease in supplier deposits	1,782	25,787
Decrease in prepaid expenses	22,606	(7,541)
Decrease (increase) in security deposit	(484)	3,504
Increase (decrease) in accounts payable and accrued expenses	(734,654)	43,100
Net cash used in operating activities	(258,810)	(942,278)
Net cash from investing activities:
Purchases of property and equipment	(1,141)	(2,705)
Net cash used in investing activities	$ (1,141)	(2,705)
Net cash from financing activities:
Notes payable to related parties		(24,000)
Repurchase of restricted stock		(11,373)
Sale of common stock, net		1,835,000
Net cash provided by financing activities		1,799,627
Net increase (decrease) in cash and cash equivalents	$ (259,951)	854,644
Cash and cash equivalents at beginning of period	345,616	8,080
Cash and cash equivalents at end of period	$ 85,665	$ 862,724
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid
Taxes paid
NON CASH INVESTING AND FINANCING ACTIVITIES:
Accrued compensation converted to notes payable to related parties		$ 37,000
Common stock issued for the conversion of notes payable to related parties		$ 37,000

Condensed Statement of Stockhol

Condensed Statement of Stockholders' Equity / (Deficit) (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Shares at Dec. 31, 2014	16,907,396
Beginning balance, Amount at Dec. 31, 2014	$ 16,907	$ 18,436,503	$ (18,336,844)	$ 116,566
Issuance of restricted Common Stock and Warrants:
Directors and Employees, net of forfeitures		625,684		625,684
Stock based compensation - stock options		38,695		38,695
Net loss			$ (596,014)	(596,014)
Ending balance, Shares at Jun. 30, 2015	16,907,396
Ending balance, Amount at Jun. 30, 2015	$ 16,907	$ 19,100,882	$ (18,932,858)	$ 184,931

Business

Business	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Business and Basis of Presentation	NOTE 1 – BUSINESS Overview Headquartered in Jersey City, NJ, MOJO Organics, Inc. (“MOJO” or the “Company”) is a developer of emerging beverage brands that are natural, USDA Organic and non-genetically modified (“Non GMO”). The Company has developed a line of coconut water beverages which are tropically flavored as well as natural, organic and Non GMO. The Company expects to launch these beverages during late 2015. Since July 2013, the Company has produced 100% tropical fruit juices, under a license branding agreement (the “License Agreement”) from Chiquita Brands L.L.C. (“CBLLC”). The License Agreement will be terminated effective September 27, 2015. See Note 5 to the Notes to Condensed Financial Statements. Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q and article 10 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures included in these financial statements are adequate to make the information presented not misleading. The unaudited interim condensed financial statements included in this document have been prepared on the same basis as the annual financial statements, and in the Company’s opinion, reflect all adjustments necessary for a fair presentation in accordance with GAAP and SEC regulations for interim financial statements. The results for the six months ended June 30, 2015 are not necessarily indicative of the results that the Company will have for any subsequent period. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes to those statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
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 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. 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 June 30, 2015 and December 31, 2014 was $4,726 and zero, respectively. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market. When necessary, the Company provides allowances to adjust the carrying value of its inventories to the lower of cost or net realizable value. Supplier Deposits Supplier Deposits consist of prepaid inventory for which the Company has not yet taken delivery. Property and Equipment and Depreciation Property and equipment are stated at cost. Depreciation is computed using the straight line method over the estimated useful life of the respective assets. Computer equipment is depreciated over a period of 3 to 5 years. Maintenance and repairs are charged to expense when incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is credited or charged to income. At June 30, 2015 and December 31, 2014, accumulated depreciation related to property and equipment was $2,267 and $5,539, respectively. Revenue Recognition Revenue from sales of products are recognized when title and risk of loss passes to the customer. Recognition of revenue also requires reasonable assurance of collection of sales proceeds. 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 Per Common Share The Company computes per share amounts in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “ Earnings per Share The following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding for the six months ended June 30, 2015 and 2014, as they would have had an anti-dilutive impact on the Company’s net loss per common share: 2015 2014 Shares underlying options outstanding 865,000 210,000 Shares underlying warrants outstanding 1,114,776 1,114,776 Shares underlying unvested restricted stock 2,023,854 - Total 4,003,630 1,324,776 Start-Up Costs In accordance with ASC topic 720-15, “ Start-Up Costs Income Taxes The Company provides for income taxes under ASC topic 740, “ Income Taxes Stock-Based Compensation ASC Topic 718, “ Accounting for Stock-Based Compensation Fair value of financial instruments The carrying amounts of financial instruments, which include accounts payable, accrued expenses and debt obligations approximate their fair values due to their short-term nature and/or variable interest rates. The Company’s debt obligations bear interest at rates which approximate prevailing market rates for instruments with similar characteristics and, accordingly, the carrying values for these instruments approximate fair value. The Company adopted ASC Topic 820, “ Fair Value Measurement · Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical,, unrestricted assets or liabilities; · Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; · Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company did not have any assets or liabilities measured at fair value on a recurring basis at June 30, 2015 or December 31, 2014. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2015 or 2014. New Accounting Pronouncements In May 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, which creates ASC Topic 606, “ Revenue from Contracts with Customers” Revenue Recognition” Revenue Recognition—Construction-Type and Production-Type Contracts Other Assets and Deferred Costs—Contracts with Customers In June 2014, FASB issued ASU No. 2014-12, “ Compensation – Stock Compensation (Topic 718); Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. In August 2014, FASB issued ASU 2014-15, “ Presentation of Financial Statements Going Concern Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Specifically, the amendments (1) provide a definition of the term substantial doubt, management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective accounting standards, if currently adopted, would have a material effect on the accompanying financial statements.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 3 - GOING CONCERN The Company's financial statements are prepared using GAAP applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company’s business is largely predicated on its relationship with CBLLC and the termination of the License Agreement with CBLLC could have a material adverse impact on its business. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventory	NOTE 4 – INVENTORY As of June 30, 2015, inventory consisted of finished goods of $59,836 and raw materials of $17,809. As of December 31, 2014, inventory consisted of finished goods of $308,708 and raw materials of $136,620.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	NOTE 5 – COMMITMENTS AND CONTINGENCIES Lease Commitment The Company maintains office space in Jersey City, New Jersey. The Company leases the space from a third-party pursuant to a lease agreement dated May 1, 2015 at a rate of $1,389 per month. This agreement will terminate on April 30, 2016. Licensing Agreement On March 27, 2015, pursuant to the terms of the License Agreement, CBLLC provided the Company with written notice of termination effective September 27, 2015. The notice (i) provided the Company with a right of sell off of existing inventory of the licensed products and (ii) demanded payment by the Company of liquidated damages and royalties in the amount of $2,283,089. On May 29, 2015, the Company and CBLLC settled the termination terms of the License Agreement via letter agreement. The accompanying financial statements reflect a credit to income of $2,260,589 for the three months ended June 30, 2015 and a credit to income of $477,223 for the six months ended June 30, 2015.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 6 – STOCKHOLDERS’ EQUITY The Company has authorized 10,000,000 shares of preferred stock (“Preferred Stock”) and 190,000,000 shares of common stock (“Common Stock”), each having a par value of $0.001. In March 2013, the Company approved the 2012 Long-Term Incentive Equity Plan (the “2012 Plan”), which provides the Company with the ability to issue stock options, stock appreciation rights, restricted stock and/or stock based awards for up to an aggregate of 2,050,000 shares of Common Stock. As of June 30, 2015, there were 111,559 shares available under the 2012 Plan. Private Placement Offering In March 2014, the Company consummated two concurrent private placement offerings, receiving an aggregate of $1,819,832, net of expenses, from accredited investors. The Company sold an aggregate of 2,016,483 shares of Common Stock for $0.91 per share for a total of $1,835,000. In the first offering, investors received an immediately exercisable, five year warrant to purchase one share of Common Stock at a price of $0.91 per share for each share purchased in the offering. The investor in the second concurrent offering did not receive warrants. Treasury Stock In April 2014, the Company approved a repurchase of 12,497 shares of Common Stock for $11,372. The shares were subsequently cancelled. Restricted Stock Compensation The Company issued shares of restricted Common Stock to its directors, executive officers and employees. Unvested restricted shares are subject to forfeiture. With the exception of 4,689,105 shares which vest based upon achieving certain milestones, the Company records compensation expense over the vesting period based upon the fair market value on the date of grant for each share, adjusted for forfeitures. In June 2015, the Company awarded 2,023,854 shares of Common Stock to its officers and employees. The shares will be issued and will vest upon the Company reaching a $3,000,000 revenue threshold during any twelve month period. See Note 8 to the Notes to Condensed Financial Statements. In August 2014, the Company issued 1,500,000 shares of Common Stock to an executive officer. The shares are subject to a restricted stock agreement, and the vesting is conditional upon the Company reaching certain performance goals. Should the executive officer’s employment with the Company end, any unvested shares are forfeited. In March 2014, the Company issued 465,000 shares of Common Stock under the 2012 Plan to its directors, executive officers and employees. The shares are subject to a restricted stock agreement, pursuant to which the shares will vest one year from the date of such agreement if the grantee is a director or employee (as applicable) of the Company at the time. A summary of the restricted stock issuances to directors, executive officers and employees is as follows: Number of Shares Weighted Average Grant Date Fair Value Unvested share balance, January 1, 2014 4,790,408 $ 1.45 Granted 1,965,000 0.49 Vested (633,416 ) 2.09 Forfeited - - Unvested share balance, December 31, 2014 6,091,992 $ 1.07 Granted 2,023,854 Vested (1,415,596 ) 1.31 Forfeited - - Unvested share balance, June 30, 2015 6,700,250 $ 0.75 In connection with the issuance of restricted stock, the Company recorded share-based compensation expense of $625,684 and $1,329,464 for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, there was $3,740,998 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation. That cost is expected to be recognized during the years 2015 and 2016. Stock Warrants As part of the private placement offering in March 2014, the Company issued warrants to purchase 1,114,776 shares of Common Stock at a price of $0.91 per share. The warrants are exercisable for five years from the date of issuance. Advisory Services In March 2014, the Company entered into two agreements pursuant to which the Company was to receive advisory services related to strategy, distributorship, sales and sales channels and investor relations. The Company granted to each advisor 100,000 shares of restricted Common Stock, subject to forfeiture if the advisor terminated or materially breached the agreement before the six-month anniversary thereof. The aggregate value of the advisory fees of $260,000 was calculated based upon the closing price of the Company’s Common Stock on the date of the agreement. Advisory fees of $21,667 were charged to income during the three months ended June 30, 2014. Also in March 2014, the Company issued 82,418 and 1,234 shares of Common Stock for advisory work and consulting work, respectively. The number of shares issued was calculated based upon the fair market value of the stock. On October 3, 2013, the Company entered into an advisor agreement whereby the Company would receive strategic business advisory services, distributorship advisory services, sales and sales channel advisory services and investor relation advisory services in exchange for the issuance of 50,000 shares of restricted Common Stock. The Common Stock vested on April 3, 2014. In connection with this issuance, the Company recorded $75,000 in consulting fees during the three months ended June 30, 2014. -11- On October 3, 2013, the Company entered into an agreement for strategic business advisory services, public relations services and investor relations services with Mr. Ian Thompson. In connection with this agreement, the Company issued 167,204 shares of restricted Common Stock and recorded consulting fees of $501,612 during 2013, which was the fair market value of the stock on the date of issue; there was no cash payment to Mr. Thompson by the Company. The stock is fully vested; however it is restricted from trading. The advisor was also issued an additional 200,000 shares of restricted Common Stock, which was to vest quarterly based upon the Company reaching certain market capitalization and revenue goals, in addition to providing the above services, with the last tranche vesting scheduled to vest on June 30, 2014. Consulting fees amounting to $72,500 were recorded during the three months ended June 30, 2014 related to the additional shares of Common Stock issued. Throughout the term of the agreement, the Company requested the advisor to render performance under the agreement and to provide evidence of same. Mr. Thompson failed to perform in all material respects under the terms of the agreement. On June 27, 2014, the Company terminated the agreement. The Company is taking all necessary steps for the cancellation of the shares totaling 367,204 shares, due to lack of delivery of consideration and material breach of the agreement.

Stock Options

Stock Options	6 Months Ended
	Jun. 30, 2015
Other Liabilities Disclosure [Abstract]
Stock Options	NOTE 7 – STOCK OPTIONS In June 2015, the Company granted a director of the Company stock options to purchase 35,000 shares of Common Stock pursuant to the 2012 Plan. The exercise price is $0.255 per share and the options become exercisable in four equal tranches in December 2015, June 2016, December 2016 and June 2017. They expire in June 2020. In August 2014, the Company granted certain directors and employees of the Company stock options to purchase 620,000 shares of Common Stock pursuant to the 2012 Plan. The exercise price is $0.255 per share and the options become exercisable in four equal tranches in February 2015, August 2015, February 2016 and August 2016. They expire in August 2019. In July 2013, the Company granted certain directors and employees of the Company stock options pursuant to purchase 210,000 shares of Common Stock at an exercise price of $2.07 per share, which was 115% of the last sale price of the Common Stock on the date of grant. The options were granted pursuant to the 2012 Plan and became exercisable in July 2014. They expired July 1, 2015. During the six months ended June 30, 2015 and 2014, compensation expense of $38,695 and $25,358, respectively, was recorded. As of June 30, 2015, there was $94,627 of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized 2015 through 2017 in conjunction with the applicable vesting periods.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 8 – RELATED PARTY TRANSACTIONS In June 2015, pursuant to letter agreements, the Chief Executive Officer, the Chief Operating Officer and the Controller (and Principal Accounting Officer) of the Company forgave unpaid salary due to them of $239,500, $16,000 and $43,032, respectively. This resulted in a credit to income of $298,532 for the three months and six months ended June 30, 2015. On June 15, 2015, the Company entered into an Amended and Restated Employment Agreement (the "Simpson Agreement") with the Chief Executive Officer (the “CEO”) pursuant to which the CEO will continue to act as the Company's CEO and Chairman of the Board for a term of five years as extended in consideration of (i) a base salary of $5,000 per month from June 2015 through September 2015 and then increasing to $18,500 per month, (ii) 1,544,737 shares of Common Stock of the Company to be issued to the CEO upon the Company generating revenue of $3,000,000 during any twelve month period during the term and (iii) an annual bonus based on performance goals established by the Board of Directors of the Company as set forth in the Simpson Agreement. In addition, on June 15, 2015, the Company entered into an Amended and Restated Employment Agreement (the "Spinner Agreement") with Peter Spinner pursuant to which Mr. Spinner will continue to act as the Company's Chief Operating Officer (“COO”) for a term of five years as extended in consideration of (i) a base salary of $8,000 per month from June 2015 through September 2015 and then increasing to $16,000 per month, (ii) 252,632 shares of Common Stock of the Company to be issued to the COO upon the Company generating revenue of $3,000,000 during any twelve month period during the term and (iii) an annual bonus based on performance goals established by the Board of Directors of the Company as set forth in the Spinner Agreement. Additionally, the Company awarded its Controller a one-time grant of 226,485 shares of Common Stock of the Company (the "Controller Grant Shares") in consideration of her previous and continued services as Controller of the Company, which such Controller Grant Shares will be issued to the Controller During the three months ended June 30, 2014, the Company issued 23,272 shares of restricted, non-transferable Common Stock to an officer of the Company as payment of salary in lieu of cash, equivalent to $37,000. The shares were valued by the Company at the closing price of the Company’s Common Stock on the last trading day of the applicable month for which payment was due. In December 2013, the Company received $24,000 in non-interest bearing, demand loans from certain related parties. The loans were repaid in full by February 2014.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 9 – SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events,”

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The financial statements are prepared in conformity with 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.
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 June 30, 2015 and December 31, 2014 was $4,726 and zero, respectively.
Inventories	Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market. When necessary, the Company provides allowances to adjust the carrying value of its inventories to the lower of cost or net realizable value.
Supplier Deposits	Supplier Deposits Supplier Deposits consist of prepaid inventory for which the Company has not yet taken delivery.
Property and Equipment and Depreciation	Property and Equipment and Depreciation Property and equipment are stated at cost. Depreciation is computed using the straight line method over the estimated useful life of the respective assets. Computer equipment is depreciated over a period of 3 to 5 years. Maintenance and repairs are charged to expense when incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is credited or charged to income. At June 30, 2015 and December 31, 2014, accumulated depreciation related to property and equipment was $2,267 and $5,539, respectively.
Revenue Recognition	Revenue Recognition Revenue from sales of products are recognized when title and risk of loss passes to the customer. Recognition of revenue also requires reasonable assurance of collection of sales proceeds.
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 Per Common Share	Net Loss Per Common Share The Company computes per share amounts in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, “ Earnings per Share The following potentially dilutive securities have been excluded from the computation of weighted average shares outstanding for the six months ended June 30, 2015 and 2014, as they would have had an anti-dilutive impact on the Company’s net loss per common share: 2015 2014 Shares underlying options outstanding 865,000 210,000 Shares underlying warrants outstanding 1,114,776 1,114,776 Shares underlying unvested restricted stock 2,023,854 - Total 4,003,630 1,324,776
Start-Up Costs	Start-Up Costs In accordance with ASC topic 720-15, “ Start-Up Costs
Income Taxes	Income Taxes The Company provides for income taxes under ASC topic 740, “ Income Taxes
Stock-Based Compensation	Stock-Based Compensation ASC Topic 718, “ Accounting for Stock-Based Compensation
Fair value of financial instruments	Fair value of financial instruments The carrying amounts of financial instruments, which include accounts payable, accrued expenses and debt obligations approximate their fair values due to their short-term nature and/or variable interest rates. The Company’s debt obligations bear interest at rates which approximate prevailing market rates for instruments with similar characteristics and, accordingly, the carrying values for these instruments approximate fair value. The Company adopted ASC Topic 820, “ Fair Value Measurement · Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical,, unrestricted assets or liabilities; · Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; · Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company did not have any assets or liabilities measured at fair value on a recurring basis at June 30, 2015 or December 31, 2014. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2015 or 2014.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, which creates ASC Topic 606, “ Revenue from Contracts with Customers” Revenue Recognition” Revenue Recognition—Construction-Type and Production-Type Contracts Other Assets and Deferred Costs—Contracts with Customers In June 2014, FASB issued ASU No. 2014-12, “ Compensation – Stock Compensation (Topic 718); Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. In August 2014, FASB issued ASU 2014-15, “ Presentation of Financial Statements Going Concern Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Specifically, the amendments (1) provide a definition of the term substantial doubt, management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective accounting standards, if currently adopted, would have a material effect on the accompanying financial statements.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Net loss per common share	2015 2014 Shares underlying options outstanding 865,000 210,000 Shares underlying warrants outstanding 1,114,776 1,114,776 Shares underlying unvested restricted stock 2,023,854 - Total 4,003,630 1,324,776

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Number of Shares Weighted Average Grant Date Fair Value Unvested share balance, January 1, 2014 4,790,408 $ 1.45 Granted 1,965,000 0.49 Vested (633,416 ) 2.09 Forfeited - - Unvested share balance, December 31, 2014 6,091,992 $ 1.07 Granted 2,023,854 0.17 Vested (1,415,596 ) 1.31 Forfeited - - Unvested share balance, June 30, 2015 6,700,250 $ 0.75

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Net loss per common share (Details) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Shares underlying options outstanding	865,000	210,000
Shares underlying warrants outstanding	1,114,776	1,114,776
Shares underlying unvested restricted stock	2,023,854
Total	4,003,630	1,324,776

Stockholders' Equity (Deficit20

Stockholders' Equity (Deficit) (Details) - Schedule of Share-based Compensation, Restricted Stock Activity - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Schedule of Share-based Compensation, Restricted Stock Activity [Abstract]
Unvested share balance	6,091,992	4,790,408
Weighted Average Grant Date Fair Value, balance	$ 1.07	$ 1.45
Number of Shares, Granted	2,023,854	1,965,000
Weighted Average Grant Date Fair Value, Granted	$ .17	$ 0.49
Number of Shares, Vested	(1,415,596)	(633,416)
Weighted Average Grant Date Fair Value, Vested	$ 1.31	$ 2.09
Number of Shares, Forfeited
Weighted Average Grant Date Fair Value, Forfeited

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Accumulated depreciation	$ 2,267	$ 5,539
Allowance for doubtful accounts	$ 4,726	$ 0

Inventory (Details Narrative)

Inventory (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished goods inventory	$ 59,836	$ 308,708
Raw materials inventory	$ 17,809	$ 136,620

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Mar. 27, 2015	Feb. 11, 2014
Commitments and Contingencies
Monthly office fee				$ 1,389
Liquidated damages			$ 2,283,089
Credit to income	$ 2,260,589	$ 477,223

Stockholders' Equity (Deficit24

Stockholders' Equity (Deficit) (Details) - USD ($)	Oct. 03, 2013	Jun. 30, 2014	Apr. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jul. 01, 2015	Dec. 31, 2014	Oct. 03, 2014	Aug. 31, 2014	Dec. 31, 2013	Jun. 30, 2013
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized				10,000,000			10,000,000
Common Stock, Shares Authorized				190,000,000			190,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)				$ 0.001			$ 0.001
Common Stock, Par or Stated Value Per Share (in Dollars per share)				$ 0.001			$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				35,000
Sale of Stock, Price Per Share (in Dollars per share)				$ .255
Stock Repurchased During Period, Shares			12,497
Stock Repurchased During Period, Value (in Dollars)			$ 11,372
Share-Based Compensation Arrangement By Share Based Payment Award Award Shares Which Vest Based Upon Certain Milestones				4,689,105
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)				$ 3,740,998
Compensation expense for advisory fees					$ 21,667
Consulting fees					$ 75,000
Shares that did not vest						6,700,250	6,091,992			4,790,408
Officers and Employees
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-Based Compensation Arrangement By Share Based Payment Award Award Shares Which Vest Based Upon Certain Milestones				2,023,854
Revenue Goals				$ 3,000,000
Private Placement
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Proceeds from Issuance of Private Placement (in Dollars)		$ 1,819,832
Stock Issued During Period, Shares, New Issues		2,016,483
Sale of Stock, Price Per Share (in Dollars per share)		$ .91			$ .91
Stock Issued During Period, Value, New Issues (in Dollars)		$ 1,835,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ .91			$ .91
Advisory Services
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Restricted Common Stock Granted to Advisors		100,000
Compensation expense for advisory fees		$ 260,000
Warrants issued in connection with advisory fees		$ 82,418
Shares issued for consulting work		1,234
Strategic Business Distributorship Investor Relation And Sales And Sales Channel Advisory Services [Member]
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Restricted Common Stock Granted to Advisors	50,000
Agreement with Mr. Ian Thompson
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-Based Compensation Arrangement By Share Based Payment Award Award Shares Which Vest Based Upon Certain Milestones								200,000
Shares issued for consulting work	167,204
Consulting fees	$ 501,612				$ 72,500
Shares that did not vest								50,000
Shares pending cancellation due to lack of delivery of consideration and break of the agreement					367,204
Employee Stock Option | Long Term Incentive Equity Plan 2012
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Common Stock, Shares Authorized		465,000			465,000						111,559
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											2,050,000
Restricted Stock
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Common Stock, Shares Authorized									1,500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)									$ .91
Allocated Share-based Compensation Expense (in Dollars)				$ 625,684	$ 1,329,464
Stock Warrants
NOTE 6 - STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		1,114,776			1,114,776
Sale of Stock, Price Per Share (in Dollars per share)		$ .91			$ .91

Stock Options (Details Narrativ

Stock Options (Details Narrative) - USD ($)	Jun. 30, 2015	Aug. 31, 2014	Jun. 30, 2014	Jun. 30, 2013
Stock Options granted	35,000
Exercise price per share	$ .255
Compensation expense, recorded	$ 38,695		$ 25,358
Total unrecognized compensation cost related to non-vested stock options	$ 94,627
Long Term Incentive Equity Plan 2012
Stock Options granted		620,000		210,000
Exercise price per share		$ 0.255		$ 2.07
Last sale price, percentage				115.00%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Oct. 01, 2015	Jun. 15, 2015	Dec. 31, 2013
Credit to income	$ 2,260,589		$ 507,223
Common stock issued	35,000		35,000
Restricted, non-transferable Common Stock issued		23,272
Restricted, non-transferable Common Stock issued, value		$ 37,000
Demand loans received						$ 24,000
CEO
Forgiveness of unpaid salaries	$ 239,500		$ 239,500
COO
Forgiveness of unpaid salaries	16,000		16,000
Controller
Forgiveness of unpaid salaries	$ 43,032		$ 43,032
Common stock issued	226,485		226,485
Revenue Goals	$ 3,000,000		$ 3,000,000
Simpson Agreement
Base salary per month				$ 18,500	$ 5,000
Common stock issued					1,544,737
Revenue Goals					$ 3,000,000
Spinner Agreement
Base salary per month				$ 16,000	$ 8,000
Common stock issued					252,632
Revenue Goals					$ 3,000,000

Uncategorized Items - mojo-2015

Label	Element	Value
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue	$ .75