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

We are creating Africa's Digital Bank.

Africa's economy is powered by SMBS and Freelancers who are currently migrating their businesses online but are faced with severe identity and fraud issues. More so, until now, they have to patronise fragmented solutions by downloading several apps in order to effectively run their businesses. Aladdin as a super app is solving all these problems.

Our company via our super app- Aladdin supports SMEs, Freelancers and individuals with the tools (financial, commercial and social) that they need to thrive. Aladdin is an ever-evolving ecosystem of solutions designed to keep adding value to our users via continuous integration of valuable APIs, SDKs and mini-programs via partnerships.
On Aladdin, our users can borrow, save, invest, make payments, get cards, get insured, buy and sell products and services and interact with other users.

Milestones

Aladdin Scheme Inc. was incorporated in the State of Delaware in November 2021.

Since then, we have:

•  250K downloads, 0ver 160k Users, 40K+ loans, $100 million in transaction volume
•  Over $300K in revenue
• 8 institutional investors: Plug & Play, Hatcher, LoftyInc, Expert Dojo at a valuation of $9M

- Over $700k already raised

• 🤝 10 strategic partnerships secured
• 💪🏿 Co-founder founding director of $2B unicorn (Opay) & CEO of Okash, 1M+ users, $120M+ disbursed
• 💫 Team has a combined 48 yrs experience in financial services, ecommerce & technology

Historical Results of Operations

Our company was organized in November 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $247,248 compared to the year ended December 31, 2021, when the Company had revenues of $143,071. Our gross margin was 97.36% in fiscal year 2022, compared to 85.35% in 2021.
• Assets. As of December 31, 2022, the Company had total assets of $526,244, including $78,878 in cash. As of December 31, 2021, the Company had $307,776 in total assets, including $15,508 in cash.
• Net Loss. The Company has had net losses of $61,257 and net losses of $16,854 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
• Liabilities. The Company's liabilities totaled $18,376 for the fiscal year ended December 31, 2022 and $122,453 for the fiscal year ended December 31, 2021.

Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

Liquidity & Capital Resources

To-date, the company has been financed with $55,951 in debt, $80,746 in equity, and $658,790 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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

Aladdin Scheme Inc. cash in hand is $140,000, as of November 2023. Over the last three months, revenues have averaged $25,000/month, cost of goods sold has averaged $6,531/month, and operational expenses have averaged $18,000/month, for an average net margin of $469 per month. Our intent is to be profitable in 36 months.

Since the date of our financials, we intend to launch our new global mobile and web app catering to the payment needs of both individuals and businesses across Africa.

In the next 3 - 6 months, we expect our revenues to average $55,000 monthly and the expenses to be $35,000 monthly as we launch our new global mobile and web app catering to the payment needs of both individuals and businesses across Africa.

Accordingly to the last three months, we have been operating at a slight net margine, but we are not yet consistently profitable on an EBITDA basis. We project to be profitable in 36 months, that is by December 2026. We will need a minimum of $5 Million in funding to become profitable.

Aside from Wefunder, we are also raising funds via Venture Capital firms and Angel networks. We are also raising convertible debt from financial institutions.

All projections in the above narrative are forward-looking and not guaranteed.