Equator Beverage (MOJO) 10-Q 15 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 15, 2017
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, 2017
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		26,181,781
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 12,924	$ 38,668
Accounts Receivable, net	149,443	29,872
Inventory	290,663	312,029
Prepaid expenses	18,227	29,709
Total Current Assets	471,257	410,278
Security deposit	4,518	4,461
Total Assets	475,775	414,739
Current Liabilities
Accounts payable and accrued expenses	113,437	39,329
Accrued payroll to related parties	36,514	484,600
Total Current Liabilities	149,951	523,929
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, 25,492,445 and 18,380,326 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	25,492	18,380
Additional paid in capital	22,718,901	21,265,200
Accumulated deficit	(22,418,569)	(21,392,770)
Total Stockholders Equity (Deficit)	325,824	(109,190)
Total Liabilities and Stockholders Equity (Deficit)	$ 475,775	$ 414,739

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	190,000,000	190,000,000
Common stock, issued	25,492,445	18,380,326
Common stock, outstanding	25,492,445	18,380,326

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 344,077	$ 411,803	$ 586,037	$ 662,515
Cost of Revenues	225,711	237,492	369,505	383,626
Gross Profit	118,366	174,311	216,532	278,889
Operating Expenses
Selling, general and administrative	1,030,694	522,125	1,244,511	1,008,265
Total Operating Expenses	1,030,694	522,125	1,244,511	1,008,265
Loss from Operations	(912,328)	(347,814)	(1,027,979)	(729,376)
Other Income (Expense)		(698)	2,180	(698)
Loss Before Provision for Income Taxes	(912,328)	(348,512)	(1,025,799)	(730,074)
Provision for Income Taxes
Net Loss	$ (912,328)	$ (348,512)	$ (1,025,799)	$ (730,074)
Net loss per common share, basic and fully diluted	$ (0.04)	$ (0.02)	$ (0.05)	$ (0.04)
Basic and diluted weighted average number of common shares outstanding	22,995,547	18,273,876	20,700,686	18,081,565

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net Loss	$ (1,025,799)	$ (730,074)
Adjustments to reconcile net loss to cash used by operating activitites:
Stock-based compensation - stock options	214,690	37,618
Stock portion of compensation paid in restricted Common Stock	70,760
Accrued payroll settled through issuance of restricted Common Stock	598,100
Stock and warrants issued to directors and employees	577,263	463,970
Change in assets and liabilites:
Increase in accounts receivable	(119,571)	(175,622)
Decrease (increase) in inventory	21,366	(194,072)
Increase in supplier deposits		(19,493)
Decrease in prepaid expenses	11,425	5,656
Increase in accounts payable and accrued expenses	74,108	56,165
Increase in accrued payroll to related parties	(448,086)	214,628
Net cash used in operating activities	(25,744)	(341,224)
Net cash from financing activities:
Sale of common stock, net		337,500
Net cash provided by financing activities		337,500
Net decrease in cash and cash equivalents	(25,744)	(3,724)
Cash and cash equivalents at beginning of period	38,668	15,442
Cash and cash equivalents at end of period	12,924	11,718
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid
Taxes paid

Condensed Statement of Changes

Condensed Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Shares at Dec. 31, 2016	18,380,326
Beginning balance, Amount at Dec. 31, 2016	$ 18,380	$ 21,265,200	$ (21,392,770)	$ (109,190)
Stock based compensation
Stock options		214,690		214,690
Issuance of restrcited Common Stock for stock portion of compensation, Shares	366,000
Issuance of restrcited Common Stock for stock portion of compensation, Value	$ 366	70,394		70,760
Accrued payroll settled through issuance of restricted Common Stock, Shares	3,138,125
Accrued payroll settled through issuance of restricted Common Stock, Value	$ 3,138	594,962		598,100
Issuance of restricted Common Stock for bonuses, Shares	2,479,869
Issuance of restricted Common Stock for bonuses, Value	$ 2,480	394,283		396,763
Issuance of restricted Common Stock to related parties, Shares	1,128,125
Issuance of restricted Common Stock to related parties, Value	$ 1,128	1,179,372		180,500
Net loss			(1,025,799)	(1,025,799)
Ending balance, Shares at Jun. 30, 2017	25,492,445
Ending balance, Amount at Jun. 30, 2017	$ 25,492	$ 22,718,901	$ (22,418,569)	$ 325,824

Business

Business	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Business and Basis of Presentation	NOTE 1 – BUSINESS Overview MOJO Organics, Inc. (“MOJO” or the “Company”) was incorporated in the State of Delaware on August 2, 2007. Headquartered in Jersey City, NJ, the Company engages in new product development, production, marketing, distribution and sales of beverage brands that are natural, USDA Organic and Non GMO Project Verified. 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 audited 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, 2017 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, 2016 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, 2017
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. As of June 30, 2017 and December 31, 2016, 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 June 30, 2017 and December 31, 2016 was zero. Inventories Inventories, consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”). When necessary, the Company provides allowances to adjust the carrying value of its inventories to the lower of cost or NRV. Supplier Deposits Supplier deposits consist of payments to manufacturers for future production. Revenue Recognition Revenue from sales of products is recognized when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Costs incurred for sales incentives and discounts are accounted for as a reduction in revenue. 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 Basic EPS is computed by dividing the income (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 loss per common share: For the Six Months Ended June 30, 2017 2016 Shares underlying options outstanding 1,491,865 620,000 Shares underlying warrants outstanding 3,683,614 3,096,919 Total 5,175,479 3,716,919 For the Three Months Ended June 30, 2017 2016 Shares underlying options outstanding 2,354,149 620,000 Shares underlying warrants outstanding 4,012,366 3,096,919 Total 6,366,515 3,716,919 Income Taxes 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 recognizes interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2017 and December 31, 2016, the Company had no accrued interest or penalties. The Company has had no Federal or state tax examinations in the past nor does it have any at the current time. Stock-Based Compensation ASC Topic 718, “ Accounting for Stock-Based Compensation The Company accounts for equity based transactions with non-employees under the provisions of ASC Subtopic 505-50, “ Equity-Based Payments to Non-Employees Fair value of financial instruments The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable, accrued expenses and debt obligations, approximate their fair values due to their short-term nature. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09. Revenue from Contracts with Customers Revenue Recognition Reclassifications Certain amounts in the June 30, 2016 Financial Statements have been reclassified to conform to the presentation used in the June 30, 2017 Financial Statements.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	NOTE 3 – COMMITMENTS AND CONTINGENCIES Employment Agreements On April 6, 2017, the Company entered into Amended and Restated Employment Agreements with Mr. Glenn Simpson (the “Simpson Agreement”), the Company’s Chairman and Chief Executive Officer (the “CEO”) and Mr. Peter Spinner (the “Spinner Agreement”), the Company’s Chief Operating Officer (the “COO”). The Simpson Agreement and the Spinner Agreement were effective April 1, 2017 and have eight year terms. Pursuant to the Simpson Agreement, Mr. Simpson will be paid a salary of $5,000 per month in cash and the right to receive 67,000 shares of restricted Common Stock per month. These shares have no voting rights, are not eligible for dividends and are non-transferable unless the restriction is lifted. The restriction shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. Additionally, Mr. Simpson is entitled to an annual bonus comprised of cash and Common Stock based on performance goals established by the Board of Directors of the Company as set forth in the Simpson Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of Common Stock per year through December 31, 2025 based upon revenue performance goals. The revenue goals range from $2,400,000 to $19,200,000 per year. The bonus awards may be accelerated should revenue exceed the annual target amounts. Pursuant to the Spinner Agreement, Mr. Spinner will be paid a salary of $5,000 per month in cash and the right to receive 55,000 shares of restricted Common Stock per month. These shares have no voting rights, are not eligible for dividends and are non-transferable unless the restriction is lifted. The restriction shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. Additionally, Mr. Spinner is entitled to an annual bonus comprised of cash and Common Stock based on performance goals established by the Board of Directors of the Company as set forth in the Spinner Agreement. The cash bonus is established at $38,400 per year. The stock bonus is set at 200,000 shares of Common Stock per year beginning in the year 2020 through December 31, 2025 based upon revenue performance goals. The revenue goals range from $5,200,000 to $19,200,000 per year. The bonus awards may be accelerated should revenue exceed the annual target amounts. Mr. Simpson was issued a one-time stock bonus equal to 1,882,237 shares of restricted Common Stock and stock options to purchase 995,546 shares of Common Stock at $0.16 per shares as part of the Simpson Agreement. The restricted shares have no voting rights, are not eligible for dividends and are non-transferable. The restriction shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. See Notes 4 and 5. Lease Commitment The Company maintains office space in Jersey City, New Jersey. The Company leased the space pursuant to a lease agreement dated September 15, 2016 at a rate of $2,230 per month. The lease agreement was terminated on February 28, 2017. The Company signed a new lease agreement for the period March 1, 2017 to February 28, 2018. The new rent under this agreement is $2,259 per month. Lease expense amounted to $14,415 and $11,309 for the six months ended June 30, 2017 and 2016, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 4 – STOCKHOLDERS’ EQUITY The Company has authorized 190,000,000 shares of common stock (“Common Stock”) and 10,000,000 shares of preferred stock (“Preferred Stock”), each having a par value of $0.001. In October 2015, the Company approved the 2015 Incentive Stock Plan (the “2015 Plan”), which provides the Company with the ability to issue stock options, stock awards and/or restricted stock purchase offers for up to an aggregate of 1,500,000 shares of Common Stock. 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. Private Placement Offerings On January 20, 2016, the Company approved a subscription agreement (the “2016 Subscription”) whereby 1,428,572 shares of Common Stock were offered to accredited investors for $0.35 per share. For every two shares purchased, the investor received a warrant to acquire one share of Common Stock at an exercise price of $0.70 per share exercisable for a period of two years from the date of issuance representing a potential aggregate of 714,286 shares of Common Stock. The Company issued a total of 964,286 shares of Common Stock and two year purchase warrants to acquire a total 482,143 shares of Common Stock to four accredited investors in consideration of $337,500. Restricted Stock Compensation The CEO and COO agreed to forego the receipt of $598,100 owed to them for salary and bonus in exchange for shares of restricted Common Stock. In May 2017, the Company issued an aggregate 3,138,125 shares of restricted Common Stock as settlement of that liability. The shares issued have no voting rights, are not eligible for dividends and are non-transferable unless the restrictions are lifted. The restrictions shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. Also in May 2017, the Company issued an aggregate 2,479,869 restricted shares of Common Stock to the CEO and COO as part of the Simpson Agreement and Spinner Agreement, respectively. These shares have no voting rights, are not eligible for dividends and are non-transferable unless the restrictions are lifted. The restrictions shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. See Note 3 for further discussion. Pursuant to the Simpson Agreement and the Spinner Agreement, the Company issued 201,000 shares and 165,000 shares, respectively, to the CEO and COO for the stock portion of their monthly compensation for the quarter ended June 30, 2017. These restricted shares have no voting rights, are not eligible for dividends and are non-transferable unless the restrictions are lifted. The restriction shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. During the quarter ended June 30, 2017, the Company issued 1,128,125 shares of restricted Common Stock to certain of its executive officers. The shares issued have no voting rights, are not eligible for dividends and are non-transferable unless the restrictions are lifted. The restrictions shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. In connection with the issuance of restricted Common Stock to certain of its directors, executive officers and employees, unvested restricted shares are subject to forfeiture. With the exception of 1,726,485 shares issued to employees and directors and 582,626 shares issued to a former director, 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. The Company recorded $577,263 and $463,970 for restricted stock based compensation costs for the six months ended June 30, 2017 and June 30, 2016, respectively. As of June 30, 2017, there was $490,426 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation which vests only upon the achievement of certain performance criteria. 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, 2016 4,210,306 $ 0.75 Granted — — Vested (1,901,193 ) 1.33 Forfeited — — Unvested share balance, December 31, 2016 2,309,113 $ 0.21 Granted 7,112,119 0.19 Vested (7,112,119 ) 0.19 Forfeited — — Unvested share balance, June 30, 2017 2,309,113 $ 0.21 Stock Warrants In connection with two private placement offerings in March 2014 (the “2014 Offerings”), investors received one purchase warrant at $0.91 per share for each share of Common Stock purchased. The warrants issued to Wyatts Torch Equity Partners, LP (“Wyatts”) were incorrectly calculated. On March 6, 2017, the Company issued warrants to purchase 915,447 shares of Common Stock at $0.91 per share to Wyatts to correct for this error. There was no financial impact resulting from this warrant understatement other than an understatement of potentially dilutive shares. In connection with the 2016 Subscription, warrants to purchase 482,143 shares of Common Stock were issued at a price of $0.70 per share and are exercisable for a period of two years from the date of issuance. The following table summarizes warrant activity during the period: Outstanding at January 1, 2016 2,614,776 Issued in connection with the 2016 Subscription 482,143 Outstanding at December 31, 2016 3,096,919 Issued in connection with the 2014 Offerings 915,447 Outstanding at June 30, 2017 4,012,366 Exercisable at June 30, 2017 4,012,366 Advisory Services On October 3, 2013, the Company entered into an agreement with Ian Thompson for strategic business advisory services, public relations services and investor relations services with 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. The stock is vested; however it is restricted from trading. Ian Thompson was also issued 200,000 shares of restricted Common Stock, which was to vest quarterly based upon the Company reaching certain market capitalization and revenue goals, in addition to providing the above services, with the last tranche vesting scheduled to vest on June 30, 2014. Consulting fees amounting to $105,000 and $280,000 were recorded in 2014 and 2013, respectively, related to the 200,000 shares of Common Stock. Throughout the term of the agreement, the Company requested that Ian Thompson render performance under the agreement and to provide evidence of same. Ian Thompson failed to perform in all material respects under the terms of the agreement and refused to provide evidence. On June 27, 2014, the Company terminated the agreement. The Company is taking all necessary steps for the cancellation of the 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, 2017
Other Liabilities Disclosure [Abstract]
Stock Options	NOTE 5 – STOCK OPTIONS On April 6, 2017, the Company granted stock options to purchase 356,559 shares and 1,500,000 shares of Common Stock pursuant to the 2012 Plan and the 2015 Plan, respectively. See note 3. The options were priced at the fair market value of the Common Stock and are immediately exercisable. The following table summarizes stock option activity under the Plans: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding, December 31, 2016 620,000 $ 0.255 2.2 Granted 1,856,559 $ 0.160 4.8 Expired — — — Forfeited — — — Outstanding, June 30, 2017 2,476,559 $ 0.184 4.1 Exercisable, June 30, 2017 2,476,559 $ 0.184 4.1 During the six months ended June 30, 2017 and 2016, compensation expense related to stock options of $214,690 and $37,618, respectively, was recorded. As of June 30, 2017, there was no unrecognized compensation cost related to non-vested stock options.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 6 – RELATED PARTY TRANSACTIONS As of June 30, 2017, accrued payroll of $36,514 was payable to the CEO, COO and Controller of the Company. See Note 7. As of December 31, 2016, accrued payroll of $484,600 was payable to the CEO and COO, and such amount included unpaid salary as well as unpaid bonus. During 2016, the CEO and the COO forgave unpaid salary due to them of $96,000 and $81,000, respectively. In January 2016, the Company sold 285,715 shares of Common Stock and warrants to purchase 142,857 shares of Common Stock at $0.70 per share to Wyatts for $100,000 pursuant to the 2016 Subscription. The managing member of Wyatts is the COO of the Company, as well as a Director of the Company.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	NOTE 7 – SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events,” In August 2017, the Company settled all of its accrued payroll balance at June 30, 2017. The CEO and the COO agreed to forego the receipt of cash owed to them as of June 30, 2017 of $10,000 each in exchange for shares of restricted Common Stock, which have no voting rights, are not eligible for dividends and are non-transferable unless the restrictions are lifted and the restrictions shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. In addition, the Company paid its remaining accrued payroll balance of $16,514 in cash.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
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. As of June 30, 2017 and December 31, 2016, 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 June 30, 2017 and December 31, 2016 was zero.
Inventories	Inventories Inventories, consisting solely of finished goods, are stated at the lower of cost (first-in, first-out method) or net realizable value (“NRV”). When necessary, the Company provides allowances to adjust the carrying value of its inventories to the lower of cost or NRV.
Supplier Deposits	Supplier Deposits Supplier deposits consist of payments to manufacturers for future production.
Revenue Recognition	Revenue Recognition Revenue from sales of products is recognized when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Costs incurred for sales incentives and discounts are accounted for as a reduction in revenue.
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 Basic EPS is computed by dividing the income (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 loss per common share: Six Months Ended June 30, Shares underlying options outstanding 1,491,865 620,000 Shares underlying warrants outstanding 3,683,614 3,096,919 Total 5,175,479 3,716,919 Three Months Ended June 30, 2017 2016 Shares underlying options outstanding 2,354,149 620,000 Shares underlying warrants outstanding 4,012,366 3,096,919 Total 6,366,515 3,716,919
Income Taxes	Income Taxes 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 recognizes interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2017 and December 31, 2016, the Company had no accrued interest or penalties. The Company has had no Federal or state tax examinations in the past nor does it have any at the current time.
Stock-Based Compensation	Stock-Based Compensation ASC Topic 718, “ Accounting for Stock-Based Compensation The Company accounts for equity based transactions with non-employees under the provisions of ASC Subtopic 505-50, “ Equity-Based Payments to Non-Employees
Fair value of financial instruments	Fair value of financial instruments The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable, accrued expenses and debt obligations, approximate their fair values due to their short-term nature.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09. Revenue from Contracts with Customers Revenue Recognition
Reclassifications	Reclassifications Certain amounts in the June 30, 2016 Financial Statements have been reclassified to conform to the presentation used in the June 30, 2017 Financial Statements.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share	For the Six Months Ended 2017 2016 Shares underlying options outstanding 1,491,865 620,000 Shares underlying warrants outstanding 3,683,614 3,096,919 Total 5,175,479 3,716,919 For the Three Months Ended June 30, 2017 2016 Shares underlying options outstanding 2,354,149 620,000 Shares underlying warrants outstanding 4,012,366 3,096,919 Total 6,366,515 3,716,919

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2016 4,210,306 $ 0.75 Granted — — Vested (1,901,193 ) 1.33 Forfeited — — Unvested share balance, December 31, 2016 2,309,113 $ 0.21 Granted 7,112,119 0.19 Vested (7,112,119 ) 0.19 Forfeited — — Unvested share balance, June 30, 2017 2,309,113 $ 0.21
Schedule Of Stockholders Equity Note Warrants Or Rights	Outstanding at January 1, 2016 2,614,776 Issued in connection with the 2016 Subscription 482,143 Outstanding at December 31, 2016 3,096,919 Issued in connection with the 2014 Offerings 915,447 Outstanding at June 30, 2017 4,012,366 Exercisable at June 30, 2017 4,012,366

Stock Options (Tables)

Stock Options (Tables)	6 Months Ended
	Jun. 30, 2017
Other Liabilities Disclosure [Abstract]
Stock Options	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding, December 31, 2016 620,000 $ 0.255 2.2 Granted 1,856,559 $ 0.160 4.8 Expired — — — Forfeited — — — Outstanding, June 30, 2017 2,476,559 $ 0.184 4.1 Exercisable, June 30, 2017 2,476,559 $ 0.184 4.1

Summary of Significant Accoun18

Summary of Significant Accounting Policies - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Shares underlying options outstanding	2,354,149	620,000	1,491,865	620,000
Shares underlying warrants outstanding	4,012,366	3,096,919	3,683,614	3,096,919
Total	6,366,515	3,716,919	5,175,475	3,716,919

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Sep. 15, 2016
Monthly office fee	$ 2,259			$ 2,230
Lease expense	$ 14,415	$ 11,309
Common stock issued, per share	$ 0.001		$ 0.001
CEO
Employment Agreement terms	Pursuant to the Simpson Agreement, Mr. Simpson will be paid a salary of $5,000 per month in cash and the right to receive 67,000 shares of restricted Common Stock per month. These shares have no voting rights, are not eligible for dividends and are non-transferable unless the restriction is lifted. The restriction shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. Additionally, Mr. Simpson is entitled to an annual bonus comprised of cash and Common Stock based on performance goals established by the Board of Directors of the Company as set forth in the Simpson Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of Common Stock per year through December 31, 2025 based upon revenue performance goals. The revenue goals range from $2,400,000 to $19,200,000 per year. The bonus awards may be accelerated should revenue exceed the annual target amounts.
Restricted Common Stock Issued	1,882,237
Stock options issued	995,546
Revenue required to life stock restriction	$ 3,000,000
COO
Employment Agreement terms		Pursuant to the Spinner Agreement, Mr. Spinner will be paid a salary of $5,000 per month in cash and the right to receive 55,000 shares of restricted Common Stock per month. These shares have no voting rights, are not eligible for dividends and are non-transferable unless the restriction is lifted. The restriction shall be lifted only upon the generation of $3,000,000 in revenue by the Company during a consecutive twelve month period. Additionally, Mr. Spinner is entitled to an annual bonus comprised of cash and Common Stock based on performance goals established by the Board of Directors of the Company as set forth in the Spinner Agreement. The cash bonus is established at $38,400 per year. The stock bonus is set at 200,000 shares of Common Stock per year beginning in the year 2020 through December 31, 2025 based upon revenue performance goals. The revenue goals range from $5,200,000 to $19,200,000 per year. The bonus awards may be accelerated should revenue exceed the annual target amounts.
Restricted Common Stock Issued		597,632
Stock options issued		8,611,013
Revenue required to life stock restriction		$ 3,000,000

Stockholders' Equity (Deficit21

Stockholders' Equity (Deficit) - Schedule of Share-based Compensation, Restricted Stock Activity (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Unvested share balance	2,309,113	4,210,306
Weighted Average Grant Date Fair Value, balance, Beginning	$ 0.21	$ 0.75
Weighted Average Grant Date Fair Value, balance, End	$ 0.21	$ 0.21
Number of Shares, Granted	7,112,119
Weighted Average Grant Date Fair Value, Granted	$ .19
Number of Shares, Vested	(7,112,119)	(1,901,193)
Weighted Average Grant Date Fair Value, Vested	$ .19	$ 1.33
Number of Shares, Forfeited
Weighted Average Grant Date Fair Value, Forfeited

Stockholders' Equity (Deficit22

Stockholders' Equity (Deficit) - Schedule Of Stockholders Equity Note Warrants Or Rights (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Warrants Outstanding	$ 4,012,366	$ 3,096,919	$ 2,614,776
Warrants Issued	915,447	482,143
Warrants Exercisable	4,012,366

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Oct. 03, 2013	May 31, 2017	Jan. 20, 2016	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2014	Dec. 31, 2013	Mar. 06, 2017	Dec. 31, 2016	Oct. 31, 2015	Oct. 03, 2014	Jun. 30, 2013
Preferred Stock, Shares Authorized				10,000,000	10,000,000					10,000,000
Common Stock, Shares Authorized				190,000,000	190,000,000					190,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)				$ 0.001	$ 0.001					$ 0.001
Common stock issued, per share				$ 0.001	$ 0.001					$ 0.001
Consideration for Stock issued (in Dollars)					$ 337,500
Share-Based Compensation Arrangement By Share Based Payment Award Award Shares Which Vest Based Upon Certain Milestones				2,026,884	2,026,884
Recorded Share-based Compensation Expense, in connection with restriced stock					$ 577,263	$ 463,970
Unrecognized compensation expense related to unvested share-based compensation				$ 490,426	$ 490,426
Restricted Common Stock issued		3,138,125
Agreement with Mr. Ian Thompson
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						$ 105,000	$ 280,000
Shares pending cancellation due to lack of delivery of consideration and break of the agreement							367,204
Employees and Directors
Share-Based Compensation Arrangement By Share Based Payment Award Award Shares Which Vest Based Upon Certain Milestones						1,726,485
Former Director
Share-Based Compensation Arrangement By Share Based Payment Award Award Shares Which Vest Based Upon Certain Milestones						582,626
CEO
Restricted Common Stock issued		2,479,869		201,000
COO
Restricted Common Stock issued		2,479,869		165,000
Executive Officers
Restricted Common Stock issued				1,128,125
Wyatt Torch Equity Partners, LP
Warrants issued									915,447
Exercise price, per share									$ 0.91
2016 Subscription
Consideration for Stock issued (in Dollars)			$ 337,500
Stock Issued During Period, Shares, New Issues			1,428,572			964,286
Sale of Stock, Price Per Share (in Dollars per share)			$ .35
Aggregate shares of common stock			714,286			482,143
Warrants issued			482,143
Exercise price, per share			$ .70			$ .70
Employee Stock Option | Long Term Incentive Equity Plan 2015
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											1,500,000
Employee Stock Option | Long Term Incentive Equity Plan 2012
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized													2,050,000

Stock Options (Details)

Stock Options (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Stock Options Outstanding	2,476,559	620,000
Stock Options Outstanding, Weighted Average Exercise Price	$ 0.184	$ .255
Stock Options Outstanding, Weighted Average Remaing Contractual Term	4 years 1 month	2 years 2 months
Stock Options Granted	1,856,559
Stock Options Granted, Weighted Average Remaining Contractual Term	4 years 9 months
Stock Options Expired
Stock Options Expired, Weighted Average Exercise Price
Stock Options Expired, Weighted Average Remaining Contractual Term	0 years
Stock Options Forfeited
Stock Options Forfeited, Weighted Average Exercise Price
Stock Options Forfeited, Weighted Average Remaining Contractual Term	0 years
Stock Optiones Exercisable	2,476,559
Stock Optiones Exercisable. Weighted Average Exercise Price	$ .184
Stock Optiones Exercisable, Weighted Average Remaining Contractual Term	4 years 1 month

Stock Options (Details Narrativ

Stock Options (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Apr. 06, 2017
Compensation expense	$ 214,690	$ 37,618
Employee Stock Option | Long Term Incentive Equity Plan 2012
Stock options granted			356,559
Employee Stock Option | Long Term Incentive Equity Plan 2015
Stock options granted			1,500,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2017	Jan. 31, 2016
Common stock issued, value	$ 18,380	$ 25,492
Common stock issued, per share	$ 0.001	$ 0.001
CEO
Accrued Payroll	$ 484,600	$ 36,514
Forgiveness of unpaid salary	96,000
COO
Accrued Payroll	484,600	36,514
Forgiveness of unpaid salary	$ 81,000
Controller
Accrued Payroll		$ 36,514
Wyatts Torch Equity Partners, L.P.
Common stock issued			285,714
Common stock issued, value			$ 100,000
Warrants issued			142,857
Common stock issued, per share			$ 0.70

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accrued payroll	$ 113,437	$ 39,329
Accrued payroll paid in cash	16,514
CEO
Accrued payroll	10,000
COO
Accrued payroll	$ 10,000