Mojo Organics, Inc.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Pursuant to the Amended and Restated Employment Agreement (“the Agreement”) dated April 6, 2017 date, Mr. Simpson is paid a salary of $5,000 per month in cash and the Company is obligated to grant 67,000 shares of non-trading, restricted Common Stock per month. Additionally, Mr. Simpson is entitled to an annual bonus comprised of cash and non-trading, restricted Common Stock based on the achievement of performance goals established by the Board of Directors of the Company and set forth in the Agreement. The cash bonus is established at $44,400 per year. The stock bonus is set at 200,000 shares of non-trading, restricted Common Stock per year through March 31, 2025.

The term of the Agreement is through April 1, 2025. In the event that the Agreement is terminated for good reason, the Company shall pay Mr. Simpson any accrued but unpaid salary for services rendered to the date of termination, and an amount equal to the salary at the time of termination, payable for the remainder of the current term. As of March 31, 2021, there are 48 months remaining on the Agreement. The Company’s liability on the remainder of the Agreement is $240,000 for the cash portion of Mr. Simpson’s salary, and 3,216,000 shares of non-trading, restricted Common Stock.

During the three months ended March 31, 2021, the Mr. Simpson was issued 201,000 Restricted and Non-Trading shares of Common Stock under the terms of the Agreement for the stock portion of his compensation. Refer to Note 4 – Restricted Stock Issuances.

On May 5, 2020, the Company received loan proceeds in the amount of $35,508 under the Paycheck Protection Program (“PPP”). On December 18, 2020, the Company applied for the loan forgiveness for the loan proceeds amounting $35,508 under the Paycheck Protection Program. The Company received the loan forgiveness decision from the SBA in January 2021. The full amount of the loan proceeds amounting $35,508 was forgiven.

On April 1, 2021, the Company entered into a contract with Cosco Shipping Lines (“Cosco”) for shipping services between Asia and the United States of America. The contract is for 200 containers per year.  As of May 11, 2021, Cosco has provided 4 containers which is below the contract level. It is impossible for the Company to maintain its business unless additional containers are provided by Cosco to correct the shortage and to meet current contract requirements.  We cannot ascertain at this time if Cosco will be able to meet the performance levels outlined in the contract