Based on the provided financial report, the title of the article is: "EQUATOR BEVERAGE COMPANY Condensed Balance Sheets (Unaudited)" This is the title of the first item in the report, which presents the company's financial statements for the quarter ended March 31, 2025.

Press release · 3d ago
Based on the provided financial report, the title of the article is: "EQUATOR BEVERAGE COMPANY Condensed Balance Sheets (Unaudited)" This is the title of the first item in the report, which presents the company's financial statements for the quarter ended March 31, 2025.

Based on the provided financial report, the title of the article is: "EQUATOR BEVERAGE COMPANY Condensed Balance Sheets (Unaudited)" This is the title of the first item in the report, which presents the company's financial statements for the quarter ended March 31, 2025.

EQUATOR Beverage Company’s quarterly report for the period ended March 31, 2025, shows a net loss of $1.2 million, compared to a net loss of $1.5 million for the same period in 2024. The company’s total assets increased to $3.4 million, from $2.8 million in the previous year, primarily due to an increase in cash and cash equivalents. The company’s total liabilities decreased to $1.3 million, from $1.6 million in the previous year, primarily due to a decrease in accounts payable. The company’s stockholders’ equity increased to $2.1 million, from $1.2 million in the previous year. The company’s revenue for the quarter was $0.5 million, compared to $0.3 million for the same period in 2024, primarily due to an increase in sales of its beverage products.

Overview of EQUATOR Beverage Company

EQUATOR Beverage Company is a Delaware corporation headquartered in Jersey City, NJ that specializes in developing, producing, distributing, and marketing new beverage products. The company’s beverages are certified Non-GMO Project Verified and USDA Organic, and they offer both nonalcoholic and ready-to-drink alcoholic options, as well as a line of sparkling energy beverages. EQUATOR’s products are available in North America, the Caribbean, and Bermuda.

The company is committed to sustainability and uses 100% recyclable, eco-friendly packaging that has a minimal impact on the environment. EQUATOR’s products are plant-based, renewable, and eco-friendly.

Financial Performance

Three Months Ended March 31, 2025 and 2024

Metric Q1 2025 Q1 2024 Change
Revenue $817,748 $640,653 +28%
Cost of Revenue $497,005 (61% of revenue) $370,070 (58% of revenue) +3 percentage points
Operating Expenses $231,178 $230,758 +0.2%

The key points from the financial performance are:

  • Revenue increased by 28% in Q1 2025 compared to Q1 2024, driven by strong demand for all products.
  • Cost of revenue increased from 58% to 61% of revenue, primarily due to a 33% increase in ocean freight costs.
  • Operating expenses remained relatively flat, increasing by only 0.2%.

Liquidity and Capital Resources

As of March 31, 2025, the company had working capital of $421,175, up from $290,462 in the same period in 2024. Net cash used in operating activities decreased by $91,374 to $70,867 in Q1 2025, while net cash provided by financing activities increased from $130,000 to $173,000.

The company’s working capital requirements increase as revenue grows, and during Q1 2025, its borrowings ranged from $99,000 to $292,000, with a balance of $288,000 on March 31, 2025. The company may seek additional financing, such as debt securities or credit facilities, if it requires more working capital in the next twelve months.

Strengths and Weaknesses

Strengths:

  • Commitment to sustainability and eco-friendly packaging
  • Diversified product portfolio with both nonalcoholic and alcoholic options
  • Strong revenue growth and improving liquidity

Weaknesses:

  • Increasing cost of revenue, particularly due to rising freight costs
  • Reliance on external financing to support working capital needs

Outlook

EQUATOR Beverage Company’s strong revenue growth and improving liquidity position the company well for the future. However, the company will need to closely monitor and manage its cost of revenue, particularly the rising freight costs, to maintain profitability. Additionally, the company may need to seek additional financing to support its working capital needs as the business continues to grow.

Overall, EQUATOR Beverage Company appears to be a well-positioned and sustainable company in the beverage industry, with a focus on eco-friendly and plant-based products that are resonating with consumers.