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're rethinking the toothbrush with buy one + give one, eco-designed toothbrushes made entirely in the USA. The plastics in almost all toothbrushes are non-recyclable, meaning over 450 million toothbrushes a year in the U.S. alone end up in landfills. Our products are either bio-degradable or made from nearly 100% recycled plastic. When you're done, throw them in your compost or recycle bin—and nature will do its thing.
We're bringing much-needed innovation back to the stagnant toothbrush market—no more useless grips and gimmicks. We're proving you can create an environmentally and socially conscious product that looks good, feels good, and does good. With every brush we sell, we give one to someone in need and take a toothbrush out of landfills.

Milestones

Do., LLC was incorporated in the State of Minnesota in February 2012.

Since then, we have:

• First recyclable & bio-degradable toothbrushes on the market.
• 450 million toothbrushes a year get tossed in landfills from the U.S.
• 80 million Americans don't have access to proper dental care; we donate brushes to low-cost or free dental clinics with every purchase.
• Currently in 25 boutiques around the country.
• Plans for toothbrush subscription model. Dollar Shave Club for clean teeth :)

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2017, the Company had revenues of $24,506.18 compared to the year ended December 31, 2016, when the Company had revenues of $25,443.31. Our gross margin was -20.08% in fiscal year 2017, compared to 37.69% in 2016.
• Assets. As of December 31, 2017, the Company had total assets of $28,665.99, including $2,150.07 in cash. As of December 31, 2016, the Company had $88,092.23 in total assets, including $47,574.67 in cash.
• Net Loss. The Company has had net losses of $74,940.42 and net losses of $32,374.50 for the fiscal years ended December 31, 2017 and December 31, 2016, respectively.  Please see notes below on items driving the higher net losses in 2017.
• Liabilities. The Company's liabilities totaled $222,793.51 for the fiscal year ended December 31, 2017 and $207,279.33 for the fiscal year ended December 31, 2016.  Focusing on 2017, while liabilities were $222,793.51: 86,137.68 is non-interest bearing contributions from Heather McDougall and John McDougall, $56,491.96 is related to Wefunder SAFE Agreement Investment (conversion to class B equity in 2018), and $21,019.90 in high interest rate debt (paid off in 2018).  The remainder is a mix of accounts payable and other interest bearing liabilities.

Liquidity & Capital Resources



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. 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

Do., LLC cash in hand is $2,150.07, as of December 2017. Over the last three months, revenues have averaged $1,622.92/month, cost of goods sold has averaged $6,212.98/month, and operational expenses have averaged $5,604.02/month.

In Q4, 2017 a few material journal entries were made to account for the a) inventory which was used for promotional purposes, sales kits and give partners YTD thus impacting Q4 COGs and b) accruals of professional fees related to our recent successful fundraising round.  The investment into the firm from this fundraising round has begun in Q1, 2018.  This investment in provides us the liquidity to purchase larger tooling, expand product lines, pay off short term high interest debt, buy inventory of the new products, launch coordinated marketing campaigns, hire staff, pay professional fees related to closing the fund round amongst other investments.    As a result of the focus on fundraising, less focus was put on proactively selling older inventory, marketing dollars and time were temporarily re-appropriated to other parts of the business.  

There is a phased approach to the financials over the course of 2018.  In the 6-8 months of 2018, we will be deploying the investment into the firm for tooling, inventory, hiring necessary staff, developing marketing campaigns and preparing for the new launch of product lines.  Therefore, Q1 through the beginning of Q3 will primarily be in outflows per our Use of Funds schedule with the new investment we have received.  By end of Q3, beginning of Q4, new inventory will be sold, marketing campaigns will be fully launched and revenues should materially positively change.