Management's Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

Crowdfunding reinvented for the creator economy
The Company provides a software platform designed to support creators throughout the lifecycle of their crowdfunding campaigns. BackerKit's services enable project creators to launch a crowdfunding project and manage post-campaign operations such as pledge management, reward fulfillment, customer engagement, and ecommerce integration. 
BackerKit earns revenue through service fees based on campaign volume, marketing services, and fulfillment-related transaction fees.
The Company's platform is used by a diverse range of creators including but not limited to independent game developers, artists, hardware innovators, and publishers. BackerKit's mission is to empower creative communities by making it easier to build, support, and deliver crowdfunded projects at scale.
Diaspora, Inc was incorporated in the State of Delaware in June 2010. The Company’s fiscal year ends on July 31


Historical Results of Operations

• Revenues & Gross Margin. For the period ended July 31, 2025, the Company had revenues of $17,125,436 compared to the year ended July 31, 2024, when the Company had revenues of $23,695,051. Our gross margin was 33.67% in fiscal year 2025, and 34.63% in 2024.
• Assets. As of July 31, 2025, the Company had total assets of $3,694,959, including $2,329,450 in cash. As of July 31, 2024, the Company had $3,689,284 in total assets, including $1,648,273 in cash.
• Net Loss. The Company has had net losses of $2,198,263 and net losses of $889,581 for the fiscal years ended July 31, 2025 and July 31, 2024, respectively.
• Liabilities. The Company's liabilities totaled $1,037,177 for the fiscal year ended July 31, 2025 and $785,681 for the fiscal year ended July 31, 2024.

Liquidity & Capital Resources

To-date, the company has been financed with $1,450,000 in debt, $344,944 in convertibles, and $3,025,596 in SAFEs.

As of the conclusion of this Offering, we do not plan on raising more capital anytime soon as we expect to return to profitability. We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don't have any other sources of capital in the immediate future.

It is possible that the company will require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether revenue and the proceeds of this offering will be sufficient to enable us to implement our strategy over the long-term. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

Runway & Short/Mid Term Expenses


Diaspora, Inc cash in hand is $2,551,625 as of November 24, 2025. In addition to the cash in the bank, the company also has $1.65M in AR as of November 24th, with an average time to pay of 19 days.

We expect our expenses to be steady at ~$600k per month in operating expenses. COGS vary based on revenue but gross profit margin is expected to stay in the same range. 
Over the next 6 months we expect revenues to be $1.2-1.3M per month on average. Please note that our business is highly seasonal with December to March being historically the lowest revenue months of the year, and typically unprofitable months that are made up during the rest of the year with seasonal highs. As such, we expect monthly revenue to slow heading into that slow season, and then to increase in late spring through fall as it is a seasonal high for crowdfunding based on our data from the last 10 years.
We are not currently profitable. Looking at the business annually, the company was profitable from inception through 2022. A strategic decision made in 2022 to invest cash reserves in launching the crowdfunding business, so FY 2023 through 2025 show a net loss, as anticipated. We expect FY 2026 to be close to breakeven, and to be profitable again on an annual basis beyond that. We don't need any additional funding to reach profitability. We ran profitably for around 10 years and expect to return to profitability after this period of investing in the new crowdfunding platform.

Besides funds raised through Wefunder, we have received investment from some angel investors. We also have access to two lines of credit.
All projections in the above narrative are forward-looking and not guaranteed.