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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

We're building the definitive mobile-first operating system for contractors. We don't just address the problems within the organizational unit, we connect and facilitate the collaboration of contractors.

Milestones

Contractor Plus, Inc. was incorporated in the State of Delaware in February 2020.

Since then, we have:

• $360K Annual Run Rate Revenue, 85%+ Gross Margins, 162% YoY growth
• Multiple Revenue Streams: Subscriptions, Payment Facilitation, Financing, Insurance Referrals & more
• $60B market opportunity with a CAGR of 19%
• Available on all platforms with native applications for Web, iOS and Android Phones & Tablets
• Partnerships & integrations with Thumbtack, Intuit Quickbooks, 1build, CompanyCam, 1build & Square
• Patent-pending Contractor+ Assistant AI & Strategic network effects for exponential growth
• $24K MRR, $6k monthly one-time revenue. 40k free users, 5500 MAUs, 800+ active paying customers

Historical Results of Operations

• Revenues. For the period ended December 31, 2023, the Company had revenues of $234,363 compared to the year ended December 31, 2022, when the Company had revenues of $102,977. 
• Assets. As of December 31, 2023, the Company had total assets of $53,959, including $18,344 in cash. As of December 31, 2022, the Company had $19,839 in total assets, including $13,306 in cash.
• Net Loss. The Company has had net losses of $129,827 and net losses of $82,296 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $358,894 for the fiscal year ended December 31, 2023 and $194,944 for the fiscal year ended December 31, 2022.

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 $252,844 in convertibles and $28,704 in debt.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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 16 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

Contractor Plus, Inc. cash in hand is $31,013, as of February 2024. Over the last three months, revenues have averaged $27,325/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $47,795/month, for an average burn rate of $20,470 per month. Our intent is to be profitable in 12 months.

Since the date of our financials, we have applied for a non-provisional patent on our AI assistant. Further, we have raised $45,000 through private angel investors.

We expect our revenue to reach $50k MRR within 6 months of closing our round, and our expenses to be ~$81k/month in the same time frame.

We are not yet profitable, and therefore, we are raising $1.5m to become profitable within the next 12 months, and continue our MRR growth to $350k within 24 months of closing the round. Between accelerating customer acquisition efforts, and increasing our unit pricing, we should achieve profitability within 12 months of closing this round. 

For additional sources of capital aside from Wefunder, we can rely on private investors in our network, as well as loans through Stripe, the founders, and other sources. We also have accounts receivable and lines of credit to cover short-term burn during this offering.

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