Black Sands Entertainment

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

The most popular independent black comic book publisher in the nation!Personally, I decided to tell these stories because I was sick and tired of agenda-driven media coverage of the black experience. The industry is extremely risk-averse when it comes to our content so we needed a bold new experience to break through these clear barriers. Thankfully, we did it.
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. Every person deserves a legacy they can be proud of.

We want to successfully launch our animated properties, and expand into school distribution. If this is achieved, we hope to have a monthly income of $200,000 prior to the films dropping.

Milestones

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

Since then, we have:

• Over thousands of Investors and hundreds of thousands of social media followers.
• $4 million in lifetime sales
• 250,000 units sold
• Thousands of 5 star reviews online
• Parents and Educators approved

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $486,498 compared to the year ended December 31, 2022, when the Company had revenues of $807,509. Our gross margin was 57.29% in fiscal year 2023, compared to 72.25% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $1,556,912, including $998,357 in cash. As of December 31, 2022, the Company had $890,597 in total assets, including $827,052 in cash.
• Net Loss. The Company has had net losses of $284,040 and net losses of $539,742 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $19,379 for the fiscal year ended December 31, 2023 and $42,957 for the fiscal year ended December 31, 2022.

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 12 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 $1,080,000, as of August 2024. Over the last three months, revenues have averaged $35,000/month, cost of goods sold has averaged $8,000/month, and operational expenses have averaged $20,000/month, for an average net margin of $7,000 per month. Our intent is to be profitable in 0 months.We have no material changes or trends as of the dates the financials cover. We expect to have more wholesale accounts, but this is normal operations.
We expect our revenues to be on average 50,000 a month with an expenditure of 20,000 a month.  We are not in need of capital to generate revenue.We are currently profitable. We have very good margins for our products and are extremely popular with a target audience that has expendable income.
We have only raised capital through Wefunder. In times of development, we may use campaigns on Kickstarter, but those campaigns are more preorders, than capital. 
All projections in the above narrative are forward-looking and not guaranteed.