STOCKHOLDERS EQUITY

12 Months Ended

Dec. 31, 2025

NOTE 5 – STOCKHOLDERS’ EQUITY

The Company has authorized 10,000,000 shares of Common Stock having a par value of $0.001.

On October 20, 2025, the State of Delaware approved a 1-for-2 reverse stock split and a decrease in authorized shares from 20,000,000 to 10,000,000 shares.

The decrease in authorized shares and reverse stock split was approved by FINRA on October 27, 2025. All share and per share data has been retroactively adjusted to reflect the Reverse Stock Split.

Restricted Stock Issuances

The table below summarizes the restricted non-trading Common Stock awards during the years 2025 and 2024:

Restricted Non-trading Common Stock Awards

Officers and Directors

January 1 to December 31

2025							2024
	Price		Shares		Amount			Price		Shares		Amount
Q1							Q1
Glenn Simpson	$	-		-	$	-	Glenn Simpson	$	1.40		100,500	$	140,700
Diane Cudia	$	-		-	$	-	Diane Cudia	$	1.40		18,750		26,250
Total				-	$	-	Total				119,250	$	166,950
Q2							Q2
Glenn Simpson	$	-		-	$	-	Glenn Simpson	$	1.40		100,500	$	140,700
Diane Cudia	$	-		-	$	-	Diane Cudia	$	1.40		18,750	$	26,250
Total				-	$	-	Total				119,250	$	166,950
Q3							Q3
Glenn Simpson	$	-		-	$	-	Glenn Simpson	$	1.40		100,500	$	140,700
	$	-		-	$	-	Glenn Simpson	$	1.20		100,000	$	120,000
Diane Cudia	$	-		-	$	-	Diane Cudia	$	1.40		18,750	$	26,250
	$	-		-	$	-	Diane Cudia	$	1.20		50,000	$	60,000
Total				-	$	-	Total				269,250	$	346,950
Q4							Q4
Glenn Simpson	$	0.81		402,000	$	325,620	Glenn Simpson	$	1.40		100,500		140,700
Diane Cudia	$	0.91		92,459	$	84,000	Diane Cudia	$	1.40		18,750		26,250
Total				494,549		409,620	Total				119,250	$	166,950
Grand Total				494,549	$	409,620	Total				627,000	$	847,800

Stock Transactions

Performance stock awards based on revenue targets of 30,000 shares, and 150,000 shares valued at $24,300, and $180,000 were recognized during the year ended December 31, 2025, and December 31, 2024, respectively.

During the year ended December 31, 2025, the Company issued 841 shares of its restricted, non-trading Common Stock for marketing services and 494,549 shares of its restricted, non-trading Common Stock as a result of contractual stock awards. During the year ended December 31, 2024, the Company issued 627,000 shares of its restricted, non-trading Common Stock as a result of contractual stock awards.

During the year ended December 31, 2025, the Company repurchased 225,000 shares of its Common Stock from shareholders compared to zero shares in 2024.

Stock-Based Compensation

The Company recognizes stock-based compensation expense for shares issued in exchange for services in accordance with ASC 718, Compensation—Stock Compensation, measured at the OTC closing market price on the grant date without discount. Service-based awards are expensed as earned. Performance-based awards are expensed when achievement of the performance condition is determined to be probable. No forfeitures were recorded during the periods presented.

No stock awards were granted in the first, second, or third quarters of 2025.

Share Repurchases

The Company accounts for repurchased shares of Common Stock at cost using the cost method, with the repurchased shares recorded as treasury stock and presented as a reduction of stockholders' equity on the balance sheet.

- Definition

The entire disclosure for equity.

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+ Details

EQUATOR Beverage Co 10-K