Equator Beverage (MOJO) 10-Q 28 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2019shares
Document And Entity Information
Entity Registrant Name	MOJO Organics, Inc.
Entity Central Index Key	0001414953
Document Period End Date	Sep. 30, 2019
Document Type	10-Q
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	No
Is Entity Small Business?	true
Is Entity Emerging Growth?	false
Entity Common Stock, Shares Outstanding	28,910,356

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 5,346	$ 24,031
Accounts Receivable, net	133,649	128,342
Inventory	169,758	159,531
Supplier deposits	5,000
Prepaid expenses	21,729	8,299
Security deposit	4,518	4,518
Total Current Assets	340,000	324,720
Current Liabilities
Accounts payable and accrued expenses	125,679	109,931
Accrued Payroll to related parties	33,390	45,000
Total Current Liabilities	159,069	154,931
Stockholders Equity/ (Deficit)
Common stock, 190,000,000 shares authorized at $0.001 par value, 28,910,356 and 26,667,781 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	28,910	27,826
Additional paid in capital	23,411,147	23,190,882
Accumulated deficit	(23,259,126)	(23,048,919)
Total Stockholders Equity	180,930	169,789
Total Liabilities and Stockholders Equity/ Deficit	$ 340,000	$ 324,720

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	190,000,000	190,000,000
Common stock, issued	28,910,356	26,667,781
Common stock, outstanding	28,910,356	26,667,781

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 503,338	$ 489,778	$ 1,346,573	$ 1,283,086
Cost of Revenues	262,106	254,251	692,219	696,604
Gross Profit	241,232	235,526	654,354	586,482
Operating Expenses
Selling, general and administrative	275,857	374,722	864,562	864,427
Total Operating Expenses	275,857	374,722	864,562	864,427
Loss from Operations	(34,625)	(139,196)	(210,208)	(277,945)
Other Income
Loss Before Provision for Income Taxes	(34,625)	(139,196)	(210,208)	(277,945)
Provision for Income Taxes
Net Loss	$ (34,625)	$ (139,196)	$ (210,208)	$ (277,945)
Net loss per common share, basic and fully diluted	$ 0	$ (0.01)	$ 0	$ (0.01)
Basic and diluted weighted average number of common shares outstanding	29,623,689	27,250,188	28,431,664	27,011,460

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net Loss	$ (210,208)	$ (277,945)
Adjustments to reconcile net loss to cash (used in)/provided by operating activitites:
Stock and warrants issued to directors and employees	222,100	188,824
Change in assets and liabilites:
Increase in accounts receivable	(5,307)	(57,648)
(Decrease)/Increase in inventory	(10,227)	101,589
Increase in supplier deposits	(5,000)	(36,677)
(Increase)/Decrease in prepaid expenses	(13,430)	1,553
Increase in accounts payable and accrued expenses	15,748	54,323
(Decrease)/Increase in accrued payroll to related parties	(11,610)	30,075
Net cash (used in)/provided by operating activities	(17,934)	4,094
Net cash from financing activities:
Shares repurchased for cancellation	(750)	(14,636)
Net cash used in financing activities	(750)	(14,636)
Net decrease in cash and cash equivalents	(18,684)	(10,542)
Cash and cash equivalents at beginning of period	24,031	22,357
Cash and cash equivalents at end of period	$ 5,346	$ 11,815

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2019 - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Shares at Dec. 31, 2018	27,825,773
Beginning balance, Amount at Dec. 31, 2018	$ 27,826	$ 23,190,822	$ (23,048,918)	$ 169,789
Stock and warrants issued to directors and employees, Shares	1,088,750
Stock and warrants issued to directors and employees	$ 1,089	221,011		$ 222,100
Stock repurchased and cancelled, shares	(4,167)			(4,167)
Stock repurchased and cancelled, amount	$ (4)	(746)		$ (750)
Net loss			(210,208)	(210,208)
Ending balance, Shares at Sep. 30, 2019	28,910,606
Ending balance, Amount at Sep. 30, 2019	$ 28,910	$ 23,411,147	$ (23,259,126)	$ 180,930

Business

Business	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Business and Basis of Presentation	NOTE 1 – BUSINESS Overview MOJO Organics, Inc. (“MOJO” or the “Company”) a Delaware corporation is headquartered in Jersey City, NJ. The Company engages in new product development, production, marketing, distribution and sales of beverage brands that are natural and Non GMO Project verified. The Company flagship product is MOJO Pure Coconut Water. In addition to Pure Coconut Water, the Company produces Sparkling Coconut Water, Coconut Water + Mango Juice, and Coconut Water + Pineapple Juice. The Company sells its products to distributors, wholesalers and direct to consumers through e-commerce platforms. 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 nine months ended September 30, 2019 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, 2018 included in the Company’s Annual Report on Form 10-K.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
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 September 30, 2019 and December 31, 2018, the Company did not have any cash equivalents. For purposes of reporting cash flows, cash and cash equivalents include all highly liquid investments purchases 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 September 30, 2019 and December 31, 2018 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. If necessary, the Company provides allowances to adjust the carrying value of its inventories to the lower of cost or NRV. 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. Deductions from Revenue Costs incurred for sales incentives and discounts are accounted for as reductions 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 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 as they would have had an anti-dilutive impact on the Company’s net loss per common share: At September 30, 2019 2018 Shares underlying options outstanding 901,796 2,476,559 Shares underlying warrants outstanding 1,500,000 3,530,223 Total 2,401,796 6,006,782 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 penalties related to income tax matters in income tax expense. As of September 30, 2019 and September 30, 2018, 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. As of September 30, 2019 and December 31, 2018, the Company had Net Operating Loss Carryforwards of $4,955,634 and $4,736,851, respectively, and recognized an Allowance for Deferred Tax Assets amounting to $1,295,155 and $1,237,976, respectively. The Company does not expect the allowance to be reversed within the next twelve months. Stock-Based Compensation The Company accounts for equity based transactions under the provisions of ASC Topic 718, “ Accounting for Stock-Based Compensation”. Share based payment awards are measured at grant date fair value of the equity instrument that an entity is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Fair value of financial instruments The carrying amounts of financial instruments, which include cash, accounts receivable, accounts payable and accrued expense, approximate their fair values due to their short-term nature. Recent Accounting Pronouncements In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-01, “Leases(Topic 842): Codification Improvements”.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	NOTE 3 – COMMITMENTS AND CONTINGENCIES Employment Agreements On April 6, 2017, the Company entered into an Amended and Restated Employment Agreements with Mr. Glenn Simpson (the “Simpson Agreement”), the Company’s Chairman and Chief Executive Officer (the “CEO”).The Simpson Agreement was effective April 1, 2017 and has an eight year term. Pursuant to the Simpson Agreement dated April 6, 2017, 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. Pursuant to his employment agreement, Mr. Simpson is entitled to a salary of not less than $18,500 per month. 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 May 31, 2025 based upon achieving revenue performance goals. The revenue goals range from $2,400,000 to $19,200,000 per year. The bonus awards are accelerated when revenues exceed the annual target amounts. During the nine months ended September 30, 2019, 603,000 shares of restricted Common Stock were issued to the CEO as part of the Simpson Agreement for his first, second and third quarter compensation. During 2018, he did not receive cash payments. Mr. Simpson received stock in lieu of cash for the first quarter of 2018. He was owed $33,390 and $45,000 as of September 30, 2019 and December 31, 2018, respectively, for the cash portion of his salary. On December 8, 2017, the Company entered into an Amended and Restated Employment Agreement with Mr. Peter Spinner (the “Spinner Agreement”), who was the Company’s Chief Operating Officer at that date. This agreement was effective January 1, 2018. Pursuant to the Spinner Agreement, Mr. Spinner received $5,000 paid in stock each month for part-time employment. The Spinner Agreement was terminated on March 31, 2018 when Mr. Spinner’s employment with MOJO ended. The “Simpson Agreement” is the only executive employment agreement in effect as of September 30, 2019. The Company has no other plans in place and has never maintained any plans that provide for the payment of retirement benefits or benefits that will be paid primarily following retirement including, but not limited to, tax qualified deferred benefit plans, supplemental executive retirement plans, tax-qualified deferred contribution plans and nonqualified deferred contribution plans. Lease Commitment The Company maintains office space in Jersey City, NJ. The initial lease agreement was for the period March 1, 2018 to February 28, 2019 and was renewed for one year (through February 29, 2020) under the same terms. The rent under this agreement is $2,304 per month. Lease expense amounted to $20,736 and $20,682 for the nine months ended September 30, 2019 and 2018 respectively. The security deposit for the lease agreement is $4,518 and the lease expires on February 29, 2020.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
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 having a par value of $0.001. On February 4, 2019, the Company by a vote of its majority shareholders cancelled the authorization for the issuance of up to 10,000,000 shares of preferred stock. There were no shares of preferred stock issued or outstanding prior to this change. 2012 Incentive Plan The 2012 Incentive Plan was terminated by the Board of Directors on February 18, 2019. The Company’s Board of Directors resolved that the 2012 Incentive Plan which allowed the issuance of up to 2,050,000 securities to officers, directors and consultants as incentive compensation would be terminated. It was further resolved that 70,000 options to purchase shares of common stock issued under the 2012 Incentive Plan be converted into 70,000 shares of Common Stock. Another resolution was made that Mr. Glenn Simpson be permitted to exercise his option to purchase 222,000 shares of Common Stock for $0.255 per share. The 2012 Incentive Plan was approved by our shareholders in March 2013. The 2012 Incentive Plan provided the Company with the ability to issue stock options, stock appreciation rights, restricted stock and/or other stock-based awards for up to an aggregate of 2,050,000 shares of common stock. In 2016, the Company issued 620,000 stock options to purchase shares of common stock that expire in August 2019, and issued 1,073,441,restricted common stock to its Directors and employees. In 2017, the Company granted stock options to purchase 356,559 shares that expire in April 2022. The options were priced at the fair market value of the Common Stock and are exercisable. In 2018, there were no issuances under the 2012 plan. As of December 31, 2018, issued stock options total 976,559. During 2018, 495,403 stock options had been cancelled due to termination of employment and were available for reissuance at that time. 2015 Incentive Plan The 2015 Incentive Plan was terminated by the Board of Directors on January 24, 2019. The 2015 Incentive Plan provided 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. The Company approved the 2015 Incentive Plan in October 2015. The 2015 Incentive Plan provided 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 April, 2017, the Company granted stock options to purchase 1,500,000 shares of Common Stock pursuant to the 2015 Plan. The options were priced at the fair market value of the Common Stock and were exercisable from the date of issuance. In 2018, there were no issuances under the 2015 plan. As of December 31, 2018, issued stock options total 1,500,000. During 2018, 693,610 stock options had been cancelled due to termination of employment and were available for reissuance at that time. Restricted Stock Compensation On May 9, 2018, the Company’s Board of Directors approved to the lifting of the prior restrictions on 8,756,542, shares issued to the CEO and 4,709,022, shares issued to the former COO of the Company. Restricted Stock Issuances During the nine months ended September 30, 2019, 1,088,750 shares of restricted Common Stock were issued to Directors and Officers of the Company. These shares have full voting rights but are restricted for sale or transfer. During the quarter ended March 31, 2019, a total of 493,000 shares of restricted Common Stock were issued. The CEO exercised his option to purchase 222,000 shares at $0.255 per share. The CEO was also issued 201,000 shares for the stock portion of his salary for the first quarter. Two directors who had 35,000 options each were issued a total of 70,000 shares of Common Stock following the resolution to terminate the 2012 Incentive Plan as discussed in Note 4. During the quarter ended June 30, 2019, a total of 251,000 shares of restricted Common Stock were issued. 201,000 shares were issued to the CEO for the stock portion of his salary for the second quarter and 50,000 shares were issued to the Corporate Controller as part of her annual stock bonus. During the quarter ended September 30, 2019, a total of 344,750 shares of restricted Common Stock were issued. The CEO exercised his option to purchase 93,750 shares at $0.16 per share. The total exercise value is $15,000 and this reduced the loan payable balance to the CEO to $0. The CEO was also issued 201,000 shares for the stock portion of his salary for the third quarter. The Corporate Controller was also issued 50,000 shares as part of her annual stock bonus. Stock Warrants In connection with private placement offerings in March 2014 (the “2014 Offerings”), warrants to purchase 2,030,223 shares of Common Stock were issued at a price of $0.91 per share. These warrants expired on March 12, 2019. In connection with the February 2016 Private Placement Offering, warrants to purchase 482,143 shares of Common Stock were issued at a price of $0.70 per share, these warrants expired on February 12, 2018. The following table summarizes warrant activity during the period: Outstanding at December 31, 2018 3,530,223 Expired in March 2019 (2,030,223 ) Outstanding at September 30, 2019 1,500,000 Exercisable at September 30, 2019 1,500,000 Number of Warrants Expiration Date Exercise Price Exercise Value Issued August 19, 2015 1,500,000 August 19, 2020 $ 0.40 $ 600,000 Exercisable at September, 2019 1,500,000 Advisory Services On October 3, 2013, the Company entered into an agreement for strategic business advisory services, public relations services and investor relations services with Ian Thompson from Carricklee House, Strabane, Northern Ireland. 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 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 to 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. Empire Stock Transfer, Inc, the Company’s transfer agent was directed to process cancellation requests regarding the certificates listed below. The Board of Directors approved the Company’s irrevocable agreement to indemnify the Transfer Agent for all loss, liability or expense in carrying out the authority and direction contained on the terms of the Unanimous Written Consent to terminate the Thompson Agreement. The Transfer Agent shall maintain the right to uphold the transfer in the event of forgery. Certificate No(s) Registered To No. of Shares Transfer to or CANCELLED No. of Shares 605 Ian Thompson 50,000 CANCELLED 50,000 606 Ian Thompson 50,000 CANCELLED 50,000 607 Ian Thompson 50,000 CANCELLED 50,000 608 Ian Thompson 50,000 CANCELLED 50,000 610 Ian Thompson 167,204 CANCELLED 167,204 Stock Purchased for Cancellation During the period January 1, 2019 to September 30, 2019, the Company purchased 4,167 shares of its restricted common stock from one shareholder for cancellation. The Company paid $750 which was the market price for its traded shares during the period. The shares were cancelled and are available for reissuance.

Stock Options

Stock Options	9 Months Ended
	Sep. 30, 2019
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 Incentive Plan and the 2015 Incentive Plan, respectively. See note 4. The options were priced at the fair market value of the Common Stock and are immediately exercisable. On March 31,2018, 1,189,013 stock options were forfeited due to a termination of employment. On February 18, 2019, the Company’s Board of Directors resolved to terminate the 2012 Incentive Plan, and it was resolved further that 70,000 options to purchase shares of Common Stock be converted into 70,000 shares of Common Stock. It also allowed the CEO of the Company to exercise his option to purchase 222,000 shares of Common Stock. During February, two of the Company’s Directors surrendered 70,000 stock options and were issued 70,000 shares of Common Stock in exchange. The CEO of the Company was also issued 222,000 shares of Common Stock. On August 13, 2019, the Company’s Board of Directors rexolved to allow the CEO to exercise his option to purchase 93,750 shares at $0.16 per share. The total exercise value of $15,000 was reduced the loan payable to the CEO to $0. As of September 30, 2019, there are 901,796 remaining options outstanding that were issued to Glenn Simpson. The weighted average exercise price is $0.16. The following table summarizes stock option activity under the Plans: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding, December 31, 2018 1,287,546 $ 0.182 2.69 Granted Exercised (315,750 ) 0.227 — Forfeited (70,000 ) 0.255 — Outstanding, September 30, 2019 901,796 $ 0.160 2.52 Exercisable, September 30, 2019 901,796 $ 0.160 2.52 During the nine months ended September 30, 2019 and 2018, compensation expense related to stock options of $0 and $0, respectively, was recorded. As of September 30, 2019, there was no unrecognized compensation cost related to non-vested stock options.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 6 – RELATED PARTY TRANSACTIONS On February 25, 2019 the CEO of the Company exercised 222,000 stock options at an exercise price of $0.255 and the accrued payroll owed to him was reduced by $56,610. On August 13, 2019 the $15,000 loan payable balance was used to pay for an option exercise made by the CEO of the Company. As a result of the transaction, the Company issued 93,750 shares to the CEO and the balance payable under the loan was reduced to $0. As of September 30, 2019, accrued payroll of $48,784 was owed to the CEO and employees.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 7 – SUBSEQUENT EVENTS On August 13, 2019 the $15,000 loan payable balance was used to pay for an option exercise made by the CEO of the Company. As a result of the transaction, the Company issued 93,750 shares to the CEO and the balance payable under the loan was reduced to $0. These shares have full voting rights, but have sale restrictions. Mr. Simpson has 901,796 remaining options at $0.16 per share.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
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 September 30, 2019 and December 31, 2018, the Company did not have any cash equivalents. For purposes of reporting cash flows, cash and cash equivalents include all highly liquid investments purchases 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 September 30, 2019 and December 31, 2018 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. If necessary, the Company provides allowances to adjust the carrying value of its inventories to the lower of cost or NRV.
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.
Deductions from Revenue	Deductions from Revenue Costs incurred for sales incentives and discounts are accounted for as reductions 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 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 as they would have had an anti-dilutive impact on the Company’s net loss per common share: At September 30, 2019 2018 Shares underlying options outstanding 901,796 2,476,559 Shares underlying warrants outstanding 1,500,000 3,530,223 Total 2,401,796 6,006,782
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 penalties related to income tax matters in income tax expense. As of September 30, 2019 and September 30, 2018, 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. As of September 30, 2019 and December 31, 2018, the Company had Net Operating Loss Carryforwards of $4,955,634 and $4,736,851, respectively, and recognized an Allowance for Deferred Tax Assets amounting to $1,295,155 and $1,237,976, respectively. The Company does not expect the allowance to be reversed within the next twelve months.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for equity based transactions under the provisions of ASC Topic 718, “ Accounting for Stock-Based Compensation”. Share based payment awards are measured at grant date fair value of the equity instrument that an entity is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied.
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 expense, approximate their fair values due to their short-term nature.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-01, “Leases(Topic 842): Codification Improvements”.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share	At September 30, 2019 2018 Shares underlying options outstanding 901,796 2,476,559 Shares underlying warrants outstanding 1,500,000 3,530,223 Total 2,401,796 6,006,782

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Schedule Of Stockholders Equity Note Warrants Or Rights	Outstanding at December 31, 2018 3,530,223 Expired in March 2019 (2,030,223 ) Outstanding at September 30, 2019 1,500,000 Exercisable at September 30, 2019 1,500,000 Number of Warrants Expiration Date Exercise Price Exercise Value Issued August 19, 2015 1,500,000 August 19, 2020 $ 0.40 $ 600,000 Exercisable at September, 2019 1,500,000
Schedule Of Cancellation of Shares	Certificate No(s) Registered To No. of Shares Transfer to or CANCELLED No. of Shares 605 Ian Thompson 50,000 CANCELLED 50,000 606 Ian Thompson 50,000 CANCELLED 50,000 607 Ian Thompson 50,000 CANCELLED 50,000 608 Ian Thompson 50,000 CANCELLED 50,000 610 Ian Thompson 167,204 CANCELLED 167,204

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Sep. 30, 2019
Other Liabilities Disclosure [Abstract]
Stock Options	Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding, December 31, 2018 1,287,546 $ 0.182 2.69 Granted Exercised (315,750 ) 0.227 — Forfeited (70,000 ) 0.255 — Outstanding, September 30, 2019 901,796 $ 0.160 2.52 Exercisable, September 30, 2019 901,796 $ 0.160 2.52

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Total		6,006,782
Options Outstanding
Total	901,796	2,476,559
Warrants Outstanding
Total	1,500,000	3,530,223

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Net Operating Loss Carryforward	$ 4,955,634	$ 4,736,851
Allowance for Deferred Tax Assets	$ 1,295,155	$ 1,237,976

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Common stock issued	603,000
Monthly office fee	$ 2,304
Lease expense	20,736	$ 20,682
Security deposit	4,518		$ 4,518
Accrued salary	$ 48,784
CEO
Employment Agreement terms	Pursuant to the Simpson Agreement dated April 6, 2017, 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. Pursuant to his employment agreement, Mr. Simpson is entitled to a salary of not less than $18,500 per month. 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 Amended 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 May 31, 2025 based upon revenue performance goals. The revenue goals range from $2,400,000 to $19,200,000 per year. The bonus awards are accelerated should revenue exceed the annual target amounts.
Accrued salary	$ 33,390		$ 45,000
COO
Employment Agreement terms	On December 8, 2017, the Company entered into an Amended and Restated Employment Agreement with Mr. Peter Spinner (the “Amended Spinner Agreement”). This agreement was effective January 1, 2018. Pursuant to the Amended Spinner Agreement, Mr. Spinner received $5,000 paid in stock each month for part-time employment. The Spinner Agreement was terminated on March 31, 2018. Mr. Spinner’s employment with MOJO ended March 31, 2018.

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule Of Stockholders Equity Note Warrants Or Rights (Details) - USD ($)	1 Months Ended	9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Warrants Outstanding		$ 1,500,000		$ 3,530,223
Warrants Issued, Expired	(2,030,223)
Warrants Exercisable		1,500,000
Number of securities			6,006,782
Exercise Value		$ 600,000
August 19, 2015 | Wyatts Torch
Number of securities		1,500,000
Expiration Date		Aug. 19, 2020
Exercise Price		$ 0.40

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule Of Cancellation of Shares (Details)	9 Months Ended
	Sep. 30, 2019shares
Certificate #605
Shares cancelled	50,000
Certificate #606
Shares cancelled	50,000
Certificate #607
Shares cancelled	50,000
Certificate #608
Shares cancelled	50,000
Certificate #610
Shares cancelled	167,204

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Oct. 03, 2013	Mar. 31, 2019	Mar. 31, 2019	Aug. 13, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2019	Dec. 31, 2017	Apr. 06, 2017	Dec. 31, 2016	Oct. 31, 2015	Oct. 03, 2014	Sep. 30, 2013
Common Stock, Shares Authorized					190,000,000	190,000,000
Common Stock, Par or Stated Value Per Share (in Dollars per share)					$ 0.001	$ 0.001
Exercise price, per share					$ 0.91
Warrants expired		2,030,223
Common stock shares issued					28,910,356	26,667,781			493,000
Common stock issued					251,000
Stock repurchased and cancelled, shares					(4,167)
Value of stock repurchased					$ (750)
Agreement with Mr. Ian Thompson
Shares pending cancellation due to lack of delivery of consideration and break of the agreement							367,204
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
Directors
Warrants issued												1,073,441
March 2014 Private Placement
Warrants issued					2,030,223
Exercise price, per share					$ .91
February 2016 Private Placement
Warrants issued					482,143
Exercise price, per share					$ .70
Long Term Incentive Equity Plan 2012 | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											356,559				2,050,000
Warrants issued						976,559				356,559		620,000
Stock options cancelled						495,403
Stock options available to be issued						495,403
Long Term Incentive Equity Plan 2015 | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											1,500,000		1,500,000
Stock options cancelled						693,610
Stock options available to be issued						693,610
Corporate Controller
Common stock issued					50,000
Directors and Officers
Common stock shares issued					744,000
CEO
Exercise price, per share									$ .255
Common stock issued			201,000	93,750	201,000
Options exercised			222,000

Stock Options - Stock Option Ac

Stock Options - Stock Option Activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Stock Options Outstanding	901,796	1,287,546
Stock Options Outstanding, Weighted Average Exercise Price	$ 0.160	$ 0.182
Stock Options Outstanding, Weighted Average Remaing Contractual Term	2 years 6 months	2 years 5 months
Stock Options Exercised		$ (315,750)
Stock Options Exercised, Weighted Average Exercise Price		$ 0.227
Stock Options Forfeited		(70,000)
Stock Options Forfeited, Weighted Average Exercise Price		$ 0.255
Stock Options Exercisable	901,796	222,000
Stock Options Exercisable. Weighted Average Exercise Price	$ 0.160

Stock Options (Details Narrativ

Stock Options (Details Narrative) - USD ($)	Aug. 13, 2019	Feb. 28, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Apr. 06, 2017	Oct. 31, 2015	Sep. 30, 2013
Compensation expense			$ 0	$ 0	$ 0
Stock options forfeited					1,189,013
Options converted		70,000
Common stock issued upon conversion of options		70,000
Options exercised	93,750
Stock Options Exercisable			901,796		222,000
Stock Options Exercisable. Weighted Average Exercise Price			$ 0.160
CEO
Options exercised		222,000
Directors
Options converted		70,000
Common stock issued upon conversion of options		70,000
Employee Stock Option | Long Term Incentive Equity Plan 2012
Stock Options granted						356,559		2,050,000
Employee Stock Option | Long Term Incentive Equity Plan 2015
Stock Options granted						1,500,000	1,500,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Aug. 13, 2019	Feb. 28, 2019	Sep. 30, 2019	Dec. 31, 2018
Accrued salary			$ 48,784
Note payable to related party			15,000
Options exercised	93,750
Reduction in accrued payroll	$ 0
CEO
Accrued salary			$ 33,390	$ 45,000
Options exercised		222,000
Options exercised, par value		$ 0.255
Reduction in accrued payroll		$ 56,610

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - $ / shares	3 Months Ended	7 Months Ended	9 Months Ended
	Mar. 31, 2019	Aug. 13, 2019	Sep. 30, 2019
Shares issued			251,000
CEO
Shares issued	201,000	93,750	201,000
Options		901,796
Options price per share		$ 0.16