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 provide users a complimentary appetizer when they dine at our partner restaurants.

Our focus is to unquestionably become the go-to platform for people who want enjoy restaurants. Within the first 5 years we aim to have expanded to every major metro region in the US.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

App App, Inc. was incorporated in the State of Delaware in October 2017.

Since then, we have:

• Released MVP in November 2018
• Have 75+ partner restaurants in NYC
• 150+ Monthly Active Users
• User spend per appetizer redemption ~$45 at partner restaurants
• We DO NOT pay for the appetizer - they are covered 100% by the restaurants

Historical Results of Operations

Our company was organized in October 2017 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 $2,331.70 compared to the year ended December 31, 2017, when the Company had revenues of $0.
• Assets. As of December 31, 2018, the Company had total assets of $23,570.57, including $6,925.36 in cash. As of December 31, 2017, the Company had $33,370.05 in total assets, including $24,970.05 in cash.
• Net Loss. The Company has had net losses of $24,799.48 and net losses of $14,371.09 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
• Liabilities. The Company's liabilities totaled $30,000 for the fiscal year ended December 31, 2018 and $15,000 for the fiscal year ended December 31, 2017.

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 $25,000 in debt and $20,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 4 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 1 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

App App, Inc. cash in hand is $0, as of May 2019. Over the last three months, revenues have averaged $300/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $2,000/month, for an average burn rate of $1,700 per month. Our intent is to be profitable in 24 months.

Recently to cut back on expenses, we have left our WeWork Labs location as of 5/1/19.  This will save us approx. $900 per month.  This will reduce our necessary expenses to function to around $500/month.  The decision was made so we can dedicate all extra resources to developing our new software update.   Before we're able to secure funding, we may also finance the business via a personal credit card.

We have begun to run a promotion on the platform, where the premium version is free until 9/1/19.  This is designed to increase user growth while we develop the updated platform.  In the next 3 - 6 months, we expect (although cannot guarantee) our non-development monthly expenses to decrease, our development expenses to increase, and our revenue to be $0 until after 9/1/19.  Depending on the success of the raise (total amount raised), we may see non-development costs relating to salary increase as we bring on additional sales members to grow our restaurant partners.

In lieu of a successful raise, we have other investment conversations we may pursue.  We also may continue to self-finance the business.