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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.

The Company specializes in all-natural nasal products, exemplified by our proprietary daily-use nasal stick line featuring rapid-acting vapors and invigorating scents, reflecting our commitment to enhancing respiratory well-being and overall health. The products are made with a blend of menthol and essential oils. Users simply twist off the cap, place the stick by each nostril, and inhale deeply for 1-2 seconds. 

Milestones

BoomBoom Naturals Inc. originated on October 10, 2006, established as a Limited Liability Company (LLC) under the appellation Booming Businesses, LLC in the state of California. Subsequently, on July 22, 2020, the organization underwent a legal transformation from an LLC to a Corporation in the state of Delaware. The modified corporate entity is now officially recognized as BoomBoom Naturals Inc.
Since then, we have:

• Proven Traction: $20M in sales since 2018
• Exciting Growth Outlook: $8M Revenue in 2024 projected (not guaranteed)
• Sold in Major Retailers: CVS, Walgreens and Walmart (in 13,000+ doors total)
• Category Creator: Our *daily-use* nasal sticks drive true incremental sales for retail partners
• Viral episode on Shark Tank (Season 10, Episode 4)
• Adding ~4,000 retail doors in 2024 (projected)
• Social Following: 136,000+ Followers on Instagram + TikTok

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $4,255,208 compared to the year ended December 31, 2022, when the Company had revenues of $3,380,149. Our gross margin was 49.45% in fiscal year 2023, compared to 57.6% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $2,050,165, including $619,128 in cash. As of December 31, 2022, the Company had $1,334,049 in total assets, including $302,251 in cash.
• Net Loss. The Company has had net losses of $230,239 and net income of $63,177 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $2,326,469 for the fiscal year ended December 31, 2023 and $1,383,219 for the fiscal year ended December 31, 2022.

Liquidity & Capital Resources

To-date, the company has been financed with $1,116,091 in debt and $691,000 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 $470,997, as of February 2024. Over the last three months, revenues have averaged $503,853/month, cost of goods sold has averaged $231,038/month, and operational expenses have averaged $250,638/month, for an average net margin of $22,177 per month. We are currently profitable.

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 $750,000/mo and expenses to be at $300,000/mo within the next 3-6 months.

Last year we showed a small loss as we continue to fund our way onto retail shelves, but we typically run the business closer to breakeven or slightly profitable. This year (Jan-Feb 2024) we are profitable with a net income of $108,528.

Aside from Wefunder, we have access to a revolving line of credit 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.