Genius Juice

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

Our company makes whole coconut smoothies and sells this product to top retailers in the country such as Whole Foods, Safeway, Sprouts, and more.  We blend whole coconut into every bottle and it makes a rich, creamy & filling coconut smoothie

In less than 5 years, we want to be at $20M-$30M in revenue and then have a successful exit for $150M or more.  We have already exceeded $1M and are on our way to $5M or above next year with the retail commitments in 2020 with retail partners.

Milestones

Genius Juice, LLC was incorporated in the State of California in January 2014.

Since then, we have:

• AS SEEN ON SHARK TANK RECENTLY ON JANUARY 19TH, 2020. MASSIVE EXPOSURE AND OVER $120,000 IN ONLINE SALES IN UNDER 24 HOURS AFTER AIRING

• Launched in Whole Foods in 2015 and now in 4 regions of Whole Foods. Also in Albertson's/Vons/Pavilions banner stores, Natural Grocers, Publix, and more to come
• Offered in 2,300 stores. Strong branding and distribution in natural and conventional channels.
• Unique selling proposition and beneficial/healthy product.
• Zero-waste mission: We up-cycle the coconut husks once extracted.

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $648,195 compared to the year ended December 31, 2020, when the Company had revenues of $323,245. Our gross margin was 8.54% in fiscal year 2021, compared to 29.8% in 2020.
• Assets. As of December 31, 2021, the Company had total assets of $411,504, including $13,997 in cash. As of December 31, 2020, the Company had $199,051 in total assets, including $134,186 in cash.
• Net Loss. The Company has had net losses of $635,916 and net losses of $193,592 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
• Liabilities. The Company's liabilities totaled $1,903,818 for the fiscal year ended December 31, 2021 and $1,094,618 for the fiscal year ended December 31, 2020.

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 $1,044,261 in debt, $770,750 in equity, $2,567,453 in convertibles, and $1,075,856 in SAFEs.

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

Genius Juice, LLC cash in hand is $170,000, as of April 2022. Over the last three months, revenues have averaged $173,379/month, cost of goods sold has averaged $149,000/month, and operational expenses have averaged $155,660/month, for an average burn rate of $131,281 per month. Our intent is to be profitable in 12 months.

We have seen a dramatic increase in raw material costs, especially with goods being sourced from overseas.  Freight rates from Thailand to the US have also increase 3-4x in the last year.

We are expecting to be at a $4M run rate by the end of 2022. Expenses will stay relatively constant or decrease slightly.  Cost of Goods are dropping by half due to a transition to overseas manufacturing.

We are not profitable at this point.  We will need another $3.5M in funding to raise revenue and achieve a break even point in 2023.