Coco Coders

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

Coco Coders provides online coding classes for kids. The Company was started as a brand expansion of Cypher Coding Limited, a coding school for kids in the UK. The Coco Coders brand launched in Q3 2022 and attracted a large base of US users.  In June 2023, Coco Coders Inc. was formed in Delaware and purchased the Coco Coders' brand IP from Cypher Coding Limited, transferring over the relevant teachers, assets, management & technology.  From July 2023 onwards, Coco Coders Inc. licenses this IP to Cypher Coding Limited to service all previously signed up users under the Coco Coders brand. 
Cypher Coding Limited owns 19% of Coco Coders, Inc. Elizabeth Tweedale (Coco Coders' founder and CEO) is majority owner of Cypher Coding Limited.
Milestones
Coco Coders, Inc ("the Company") was formed in Delaware on June 2nd, 2023. The Company plans to earn revenue using a subscription model for services rendered in an online learning environment teaching children how to code. The Company's headquarters is in Incline Village, Nevada. The Company has an operational office in West Des Moines, Iowa. The Company's customers are located in the United States and United Kingdom.

Since 2023, we have:

• ✅ Annual Recurring Revenue (ARR) accelerating rapidly, now over $500k.
• ⚡️Active Subscriptions are up 200% year-over-year.
• ⌨️ Achieving Top Honors: #1 in Computer Clubs on Trustpilot, Celebrated for Excellence in EdTech.
• ↗️ Our CEO brings a proven track record of scaling 2 other education ventures to impressive heights.
• 🧠 Taught over 12,000 Students between the ages of 6 and 14 with unmatched Customer Satisfaction.
• 🪝 For every $1 spent on ads, the company makes $9 in revenue.
• ⚓ ️️B2C business engine has been built & is ready to scale; next milestone is corporate partnerships

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

Historical Results of Operations

Our company was organized in June 2023 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended June 2, 2023, the Company had revenues of $0.
• Assets. As of June 2, 2023, the Company had total assets of $0, including $0 in cash.
• Net Income. The Company has had net income of $0 for 2023.
• Liabilities. The Company's liabilities totaled $0 for 2023.

Liquidity & Capital Resources

Since the date our financials cover, the Company has raised $741,902 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 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

Coco Coders Inc cash in hand is $193,487.64, as of December 2023. Over the last three months, revenues have averaged $7,200/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $10,900/month, for an average burn rate of $3,700 per month. Our intent is to be profitable in 36 months.

Since the date our financials cover, Coco Coders Inc. purchased relevant brand assets and IP from Cypher Coding Ltd. in the UK and has begun generating revenue from licensing the IP to Cypher Coders. Coco Coders Inc. has also secured SAFE investments totaling $350,000 and has seen an increase in our subscription revenue.

In the next 3-6 months, we expect our revenue & expenses to be in line our current revenue and spend's acceleration. The most substantial change to our spend and therefore our revenue/growth is the additional spend on ads as out lined in our financial model. By tripling our ad spend, our cost-per-click is not projected to increase however we have conservatively modeled a doubling of our customer acquisition cost to ensure runway is not negatively affected by this increased spend.

We are not currently profitable. Based on current projections, we will become profitable after raising our next round with total funding of $6M. It is likely we could become profitable sooner than this if we delay development of our AI technology. The growth and scale of our business is not 100% tied to the development of the AI and therefore is a decision we can make as we get a clearer picture of the funding we can secure.

Outside of funds raised in this offering, we have closed 2 Reg D SAFEs from high net-worth angel investors and 2 VC funds. These funds will help with covering short-term burn throughout the campaign.

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