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

Daily-Use Nasal Sticks That Help You Breathe Better and Feel Refreshed

Milestones

BoomBoom Naturals Inc. was incorporated in the State of Delaware in July 2020.

Since then, we have:

• Proven Traction: $20M in sales since 2018
• Exciting Growth Outlook: $8M Revenue and 4k new retail doors in 2024 projected
• Sold in Major Retailers: CVS, Walgreens, Walmart, and many others (in 13,000+ doors total)
• National Visibility: Viral episode on Shark Tank (Season 10, Episode 4)
• Category Creator: Our *daily-use* nasal sticks drive true incremental sales for retail partners
• Social Following: 136,000+ Followers on Instagram + TikTok

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2024, the Company had revenues of $13,400,685 compared to the year ended December 31, 2023, when the Company had revenues of $4,257,610. Our gross margin was 49.81% in fiscal year 2024, and 49.48% in 2023.
• Assets. As of December 31, 2024, the Company had total assets of $6,023,948, including $2,586,762 in cash. As of December 31, 2023, the Company had $2,106,101 in total assets, including $619,128 in cash.
• Net Income. The Company has had net income of $2,739,095 and net losses of $125,003 for the fiscal years ended December 31, 2024 and December 31, 2023, respectively.
• Liabilities. The Company's liabilities totaled $2,640,863 for the fiscal year ended December 31, 2024 and $1,574,929 for the fiscal year ended December 31, 2023.

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 $1,750,000 in debt and $741,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 36 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 24 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

BoomBoom Naturals Inc. cash in hand is $5,959,098, as of February 2025. Over the last three months, revenues have averaged $3,276,547/month, cost of goods sold has averaged $1,620,974/month, and operational expenses have averaged $783,402/month, for an average net margin of $872,171 per month. 

There have been no material changes or trends in our finances or operations since the date our financials are covered.

We expect revenues to be at $5,000,000 per month with expenses of approx. $825,000 per month.

Yes, we are profitable. We are making significant investments into our supply chain to continue to scale, but should remain profitable.

We have access to a revolving line of credit through Settle along with a relationship with American Express that has built-in spending power from years of ad spend and fulfillment expenses. 

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