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

TurboPass seeks to transform credit and is becoming a leader of “consumer permission data” distribution related to credit, underwriting and borrower validation. TurboPass is a SaaS platform for income, employment and asset validation for the automotive finance and general chattel paper (credit sales) ecosystem. We hope to deliver more equitable credit opportunities for Americans.

Milestones

TurboPass Corporation was incorporated in the State of Delaware in June 2018.

Since then, we have:

• Secured first active dealer users in November 2017
• Filed Provisional Patent March 2018 TurboPass Corporation Delaware C-Corp Formation in June 2018 
• Launched a pilot with Westlake Financial in December 2018 
• Raised pre-seed financing round with friends and family from January-September 2019 
• Secured customers like New England Automax who began paid subscriptions in February 2019 
• Charles Maund Toyota becomes the first Franchise Dealer customer (Largest Toyota Dealer in South Zone and 3rd Largest in Texas) in April 2019 
• Became an Auto Finance News DemoVation Challenge Finalist in May 2019 

Historical Results of Operations

Our company was organized in June 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $17,100. Our gross margin was 0.58%.
• Assets. As of December 31, 2018, the Company had total assets of $24,871, all of which is cash.
• Net Loss. The Company has had net losses of $41,879 for 2018.
• Liabilities. The Company's liabilties totaled $66,670 for 2018.

Liquidity & Capital Resources

To-date, the Company has been financed with $135,000 in SAFEs at a $10,000,000 valuation cap and 20% discount. Currently, the Company is in process of switching prior investors to a convertible note with a $3,500,000 valuation cap and 20% discount. 

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 9 months before we need to raise further capital.

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.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. 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 the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. 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

TurboPass Corporation cash in hand is $17,500, as of September 2019. Over the last three months, revenues have averaged $2,500/month, cost of goods sold has averaged $6,300/month, and operational expenses have averaged $1,700/month, for an average burn rate of $5,500 per month. Our intent is to be profitable in 18 months.

We raised a small friends and family round over the first half of 2019 to get us to the crowdfunding campaign and we are kicking off a concurrent Reg D Raise over the next 3-6 months to finish out our Seed round with. We are hoping to raise $1,500,000 from that round, but cannot guarantee we reach that goal.

We hope (although cannot guarantee) to bring on 15-20 new dealership subscribers per month with the addition of a part-time outside sales associate, brought aboard in September 2019.