Combine first 7 ingredients in the bowl of a food processor. Pulse several times to mix ingredients. Pour water through spout and pulse until mixture is easy to pinch and hold together. Mix in chocolate chips. Refrigerate for 30 minutes.
Remove from fridge and shape into 1 inch balls. Roll in sweetened coconut. Stored best in refrigerator.
To help coconut stick better you can brush with a bit of honey or spray with coconut spray.