Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  OTC Bulletin Board - Other OTC  >  MOJO Organics Inc    MOJO

MOJO ORGANICS INC

(MOJO)
SummaryQuotesChartsNewsCalendarCompany 
News SummaryMost relevantAll newsOfficial PublicationsSector news

MOJO ORGANICS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/14/2019 | 04:13pm EDT

Our Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided in addition to the accompanying financial statements and notes to assist readers in understanding our results of operations, financial condition and cash flows. MD&A is organized as follows:

• Significant Accounting Policies - Accounting policies that we believe are

     important to understanding the assumptions and judgments incorporated in our
     reported financial results and forecasts.



• Results of Operations - Analysis of our financial results comparing the six

     months ended June 30, 2019 to June 30, 2018.



• Results of Operations - Analysis of our financial results comparing the three

     months ended June 30, 2019 to June 30, 2018.



• Liquidity and Capital Resources - Analysis of changes in our cash flows, and

     discussion of our financial condition and potential sources of liquidity.



This report includes a number of forward looking statements that reflect our current views with respect to future events and financial performance. Forward looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward looking statements, which apply only as of the date of this annual report. These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

Significant Accounting Policies

We have prepared our financial statements in conformity with accounting principles generally accepted in the United States, which requires management to make significant judgments and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. We base these significant judgments and estimates on historical experience and other applicable assumptions we believe to be reasonable based upon information presently available. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the financial statements as soon as they became known. Actual results could materially differ from our estimates under different assumptions, judgments or conditions.

All of our significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, to our financial statements, included elsewhere in this Annual Report. We have identified the following as our critical accounting policies and estimates, which are defined as those that are reflective of significant judgments and uncertainties, are the most pervasive and important to the presentation of our financial condition and results of operations and could potentially result in materially different results under different assumptions, judgments or conditions.

We believe the following critical accounting policies reflect our more significant estimates and assumptions used in the preparation of our financial statements:

Use of Estimates - The financial statements are prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Stock-based Compensation - ASC Topic 718, "Accounting for Stock-Based Compensation" prescribes accounting and reporting standards for employee stock-based compensation plans, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights.



  14







ASC Topic 718 requires employee compensation expense to be recorded using the fair value method. The Company accounts for employee stock based compensation in accordance with the provisions of ASC Topic 718.

Determining the appropriate fair value of the stock-based compensation requires the input of subjective assumptions, including the expected life of the stock-based payment and stock price volatility. The Company uses the Black-Scholes option-pricing option model to value its stock option awards which incorporate the Company's stock price, volatility, U.S. risk-free rate, dividend rate, and estimated life.

Recent Accounting Pronouncements



New Accounting Pronouncements


In March 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2019-01, "Leases(Topic 842): Codification Improvements". The ASC aims to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing essential information about leasing transactions. The Company has assessed that this pronouncement has no impact on the financial statements.




COMPANY 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 Non GMO Project Verified.



Results of Operations


Six Months June 30, 2019 and 2018



Revenue


For the six months ended June 30, 2019, the Company reported revenue of $843,235, an increase of $ 49,919 or 6% from revenue of $793,316 for the six months ended June 30, 2018. The increase in revenue was primarily due to the growing demand for MOJO branded products, and private label products.



Cost of Revenue


Cost of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs. Also included in cost of revenue are adjustments made to inventory carrying amounts, including markdowns to market.

For the six months ended June 30, 2019, cost of revenue was $430,113 or 51% of revenue. For the six months ended June 30, 2018, cost of revenue was $442,858 or 56% of revenue. The 5 percentage points decrease in cost margin was primarily due to lower purchase price of goods.



  15






Operating Expenses


For the six months ended June 30, 2019, operating expenses were $588,705 an increase of $99,745 from operating expenses of $488,960 for the six months ended June 30, 2018.

This increase in operating expenses was comprised of higher marketing and selling expenses. Selling expenses were $241,793 for the six months ended June 30, 2019 compared to $166,165 for the six months ended June 30, 2018. This $75,628 increase is attributable to the Amazon selling fees coupled with an increase in freight and delivery expenses. Marketing expenses increased by $9,529 from the same period last year and this is due to advertising and merchandising done in 2019.

Three Months June 30, 2019 and 2018



Revenue


For the three months ended June 30, 2019, the Company reported revenue of $434,738, a decrease of $ 7,684 or 2% from revenue of $442,422 for the three months ended June 30, 2018. The decrease in revenue was due to slower fulfillment of orders during the quarter. In transit inventory to customers was $16,146 as of June 30, 2019.



Cost of Revenue


Cost of revenue includes finished goods purchase costs, production costs, raw material costs and freight in costs. Also included in cost of revenue are adjustments made to inventory carrying amounts, including markdowns to market.

For the three months ended June 30, 2019, cost of revenue was $229,480 or 53% of revenue. For the three months ended June 30, 2018, cost of revenue was $242,052 or 55% of revenue. The 2 percentage points decrease in cost margin was primarily due to lower purchase price of goods.



Operating Expenses


For the three months ended June 30, 2019, operating expenses were $302,964 an increase of $55,519 from operating expenses of $247,175 for the three months ended June 30, 2018.

The increase in operating expenses was comprised of higher marketing and selling expenses and an increase in compensation costs. Selling expenses were $114,973 for the three months ended June 30, 2019 compared to $98,115 for the six months ended June 30, 2018. This $16,858 increase is attributable to the Amazon selling fees coupled with an increase in freight and delivery expenses. Marketing expenses increased by $9,289 from the same period last year and this is due to advertising and merchandising done in 2019. Compensation expenses increased by $27,944 from $109,527 in 2018 and this is caused by higher salaries paid in stock driven by the increase in MOJO stock price in 2019.

Liquidity and Capital Resources



Liquidity


As of June 30, 2019, the Company had working capital of $143,327. Net cash used for operating activities was $10,317 for the six months ended June 30, 2019, an increase of $2,226 compared to net cash used operating activities for the six months ended June 30, 2018. Net cash used in financing activities was $750 for the six months ended June 30, 2019 and $13,135 for the six months ended June 30, 2018.




Working Capital Needs



Our working capital requirements increase as demand grows for our products. Should the Company require additional working capital in the next twelve months, it may seek to raise funds. Financing transactions could include the issuance of equity or debt securities or obtaining credit facilities.

OFF-BALANCE SHEET ARRANGEMENTS

The Company had no off-balance sheet arrangements as of June 30, 2019.

16

© Edgar Online, source Glimpses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MOJO ORGANICS INC
08/14MOJO ORGANICS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND ..
AQ
05/10MOJO ORGANICS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND ..
AQ
05/10MOJO ORGANICS : Reports Six Consecutive Quarters of Double-Digit Revenue Growth
PR
02/25MOJO ORGANICS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND ..
AQ
02/22MOJO ORGANICS, INC. : Change in Directors or Principal Officers (form 8-K)
AQ
01/22MOJO ORGANICS, INC. : Results of Operations and Financial Condition (form 8-K)
AQ
2018MOJO ORGANICS : marks four consecutive quarters of revenue growth
PR
2018MOJO ORGANICS, INC. : Reports 2018 Second Quarter Results
PR
2018MOJO ORGANICS, INC. : Files Form 10 K And Reports 2017 Fourth Quarter Results
PR
2018MOJO ORGANICS : Issues Statement About Promotional Activity Concerning Its Commo..
PR
More news
Chart MOJO ORGANICS INC
Duration : Period :
MOJO Organics Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Managers
NameTitle
Glenn Simpson Chairman & Chief Executive Officer
Jeffrey A. Devlin Independent Director
Peter Spinner Director
Robert Kaufman Independent Director
Diane Cudia Controller
Sector and Competitors
1st jan.Capitalization (M$)
MOJO ORGANICS INC40.00%6
THE COCA-COLA COMPANY14.91%230 350
KEURIG DR PEPPER9.24%39 164
SUNTORY BEVERAGE & FOOD LTD-6.84%13 023
COCA-COLA HBC AG10.77%11 832
COCA COLA HBC AG - ADR5.55%11 832