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 create African American content for an under-served community. Our focus is comics, manga, and animations, with an emphasis on history prior to slavery. 

We want to successfully launch our animated properties, distributed through our mobile app, and have 4 million users. If this is achieved, we hope to have a monthly income of 1.2 million USD prior to licensing, micro transactions, and merchandising.

Milestones

Black Sands Entertainment Inc. was incorporated in the State of New York in November 2016.

Since then, we have:

• Endorsed by Michelle Obama, the Schomburg Center, and ReedPOP.
• 140,000 raised through fans on Kickstarter.
• 25,000 books sold.
• If you feel children of color deserve more positive images.
• If you think Hollywood shouldn't dictate what is produced in the black community.
• If you think we should invest in history before slavery.
• 370 five star reviews on Facebook.

Historical Results of Operations

Our company was organized in November 2016 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 $239,431 compared to the year ended December 31, 2017, when the Company had revenues of $45,500. Our gross margin was 70.14% in fiscal year 2018, compared to 31.48% in 2017.
• Assets. As of December 31, 2018, the Company had total assets of $69,653, including $69,211 in cash. As of December 31, 2017, the Company had $11,610 in total assets, including $11,610 in cash.
• Net Income. The Company has had net income of $8,637 and net losses of $24,370 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
• Liabilities. The Company's liabilities totaled $84,451 for the fiscal year ended December 31, 2018 and $35,045 for the fiscal year ended December 31, 2017.

Liquidity & Capital Resources



After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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 15 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

Black Sands Entertainment Inc. cash in hand is $20,000, as of January 2020. Over the last three months, revenues have averaged $18,700/month, cost of goods sold has averaged $2,500/month, and operational expenses have averaged $4,000/month, for an average net margin of $12,200 per month.

We successfully launched our DVD which has exponentially increased online sales. Our projected revenue this month is over 50,000 USD. 

Our business is profitable and we expect to continue to do regular business while acquiring other creative works (licenses for comics, DVDs, etc.) into our company to strengthen our media portfolio. This can change if trends dramatically change but we do not foresee that. In the next 3-6 months, we expect (but not guarantee), an increase of about 50% in sales through brand awareness and additional talent. We also expect an 30% increase in expenses through additional hires and IP acquisitions. If need be, we can rely on the profits of our business as well lines of credit for additional capital.