DIAMANTE BLOCKCHAIN

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

Diamante is leveraging proprietary blockchain technology to create a global ecosystem for payments and financing. Diamante’s first product, PayCircle, is a fintech-driven payment solution (www.PayCircle.io) that enables global payments and remittances.  . Management has identified the diamond industry as the ripest for disruption, considering the team’s significant experience and knowledge of the industry..PayCircle is estimated to acquire 3+ million users in the next five years and reach 100+ million in revenues by 2025. 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

Diamante Blockchain, LLC (“the Company”) was formed in Kansas on April 24th, 2018. The company has merged into a newly created Corporation under the laws of Delaware, Diamante Blockchain Holdings Inc on March 2nd, 2021.

Since then we have...

Constructed proprietary technology infrastructure with the ability to process 100 million+ transactions per day.

Developed PayCircle, a unique payments solution, and deployed PayCircle on a proof-of-concept basis involving corporate customers across multiple industries and geographies.

Aiming to deploy payments solution, PayCircle, tentatively by April 2021 

Projected revenue from PayCircle, approximately $100 million+ by 2025 (not guaranteed)

Historical Results of Operations

Our company was organized in April 2018 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 $248,098, including $45,434 in cash. As of December 31, 2019, the Company had $152,639 in total assets, including $16,639 in cash.

Net Loss. The Company has had net losses of $430,605 and net losses of $632,852 for the fiscal years ended December 31, 2020 and December 31, 2019, respectively.

Liabilities. The Company's liabilities totaled $1,043,086 for the fiscal year ended December 31, 2020 and $602,021 for the fiscal year ended December 31, 2019.

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 $412,000 in debt, $529,825 in equity, and $375,000 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

Diamante Blockchain Holdings INC cash in hand is $250,228.68, as of March 2021. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $13,745.84/month, for an average burn rate of $13,745.84 per month. Our intent is to be profitable in 36 months.

Since the date our financials cover, we have signed up with a leading financial institution based out of Nevada, USA i.e. Prime Trust LLC. Our collaboration with Prime Trust LLC gives us an added advantage to run global decentralized payments and finance applications. Additionally, the company has merged into a newly created Corporation under the laws of Delaware, Diamante Blockchain Holdings Inc on March 2nd, 2021. Lastly, we raised $375,000 on a SAFE at a $12,500,000 cap in March 2021.

We expect to start generating revenues from April 2021. We are currently undergoing beta testing of our product PayCircle which should go live in next 30-60 days. The expected revenues for year 2021 are $1,350,000. The expected expenses for year 2021 is $1,800,000. These projections cannot be guaranteed.

We have been raising funds privately through our network and with the help of investment advisors which has seen a good amount of funds flowing in. With the combination of Wefunder and other sources we should be quite comfortable to cover short-term burn. Also the founders of the company have pitched-in when ever there is funding required to support the companies growth.