Çava Health

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

Çava is on a mission to bring non-invasive solutions to consumers and make personal health monitoring part of everyday life with the world's first health-tracking toilet seat.

Ultimately, we plan to expand internationally with smart features ranging from urinalysis to in-home health sensors. We see a pathway to a multi-billion dollar business. These projections cannot be guaranteed.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

PoddiCo Inc. was incorporated in the State of Delaware in July 2019.

Since then, we have:

• Team includes former Sony, Nike, Google and Jawbone execs + Harvard & MIT Ph.Ds.
• Raised $1.3M from notable investors including 2 Nasdaq-listed company CEOs.
• First toilet seat/bidet capturing advanced health data (EKG, HRV, Hydration, GI health, BMI, etc.).
• Test ad campaigns returned 10x above average CPC and Conversion Rates—high demand & low competition.
• COVID-19 has led to unprecedented demand for personal hygiene and effective wellness tracking.
• Positioned for fast growth in a $30 billion total addressable market.

Historical Results of Operations

Our company was organized in July 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2020, the Company had revenues of $0 compared to the year ended December 31, 2019, when the Company had revenues of $0.
• Assets. As of December 31, 2020, the Company had total assets of $84,844, including $84,834 in cash. As of December 31, 2019, the Company had $19,648 in total assets, including $19,648 in cash.
• Net Loss. The Company has had net losses of $557,327 and net losses of $847,569 for the fiscal years ended December 31, 2020 and December 31, 2019, respectively.
• Liabilities. The Company's liabilities totaled $1,392,137 for the fiscal year ended December 31, 2020 and $773,696 for the fiscal year ended December 31, 2019.

Liquidity & Capital Resources

To-date, the company has been financed with $935,000 in SAFEs and $159,690 in debt.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 5 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 6 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

PoddiCo Inc. cash in hand is $320,000, as of April 2021. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $17,000/month, for an average burn rate of $17,000 per month. Our intent is to be profitable in 33 months.

There have been no material changes or trends in our operations since the date of our financial statements, however $300K were raised via SAFE note.

We expect to need a total of $7M in capital in order to eventually reach a revenue generating point, funding which is intended to be raised partially from Venture Capital entities and pre-orders through a crowdfunding campaign scheduled for early Q4 2021. Based on our planned marketing spend and historical data from similar start-ups, we expect to generate $1M in pre-orders from crowdfunding. We plan to raise the remainder of the capital  needed from VC firms at the end of Q4 2021.

Six months after having reached a revenue-generating point, we hope to generate $12.25M in revenue and incur $8.5M in expenses. We’ve calculated these projections based on a cost of acquisition generated from test marketing campaigns, COGS based on our current bill of material with costing from our suppliers and G&As based team size. These projections cannot be guaranteed. 

For additional sources of capital, we could potentially solicit accredited investors in our network.