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 are the a leading provider of touring services in the Israel and Palestine, with extension tours in Jordan and the Sinai. We leverage our partnership with Palestinians and Israelis to enable an in-depth experience for tourists in both societies, providing expert political analysis and unique cultural experiences. The company's ability to mirror two societies which are in conflict has given us the ability to provide tours and experiences for visitors that o other company can match. 

Our business activities are divided into 4 primary categories. The 2018 year end percentage of our overall business was as follows:
1. Day-tours - 60%
2. Package Tours - 27%
3. Volunteer programs - 8%
4. Product sales - 5%

1. Day-tours
These tours provide our bread and butter income. The company started 12 years ago with one day-tour of Jerusalem, and quickly grew to our present offering of 30 tours departing from Tel Aviv, Jerusalem, Bethlehem, Ramallah and Amman. 

2. Package Tours
Our package tours take several forms. We have designed several 'in-house' packages, from 3-10 days, that anyone can sign up for, and begin every Monday, providing our guests with an intimate overview of the Israel/Palestine. Also, pre-organised groups often contact us and we design a tour for them based on their specific needs. Some of our specialised tours for Universities provide college credit, and we conduct tours for Congressional delegations from the USA, and parliamentary delegations from Europe.

3. Volunteer Programs
These programs range from organised summer camps for groups at refugee camps or bedouin villages, to individually curated programs for specialists such as dentists or teachers.

4. Product Sales
This is a relatively minor project at madeinpeace.com that we hope to grow into a significant cash flow generator with wide social impact. In addition to craft items made by local underserved populations,  we sell small self-contained solar lamp on the website, and for every lamp we sell, we donate a lamp to a Bedouin family that lives off the grid in the Negev or Judean/Jerusalem deserts. 

Revenue Collection
Revenue from these activities is largely collected online, with about 90% paid at the point of sale on our website via credit cards or PayPal. For payments over $5,000 we generally request a wire transfer to our US Bank account, resulting in less cost for the company.

When clients make a payment, the revenue goes into our US company which makes payments via wire transfer directly to Palestinian hotels, tour guides, and other vendors. 

Green Olive also has a wholly owned subsidiary in Israel which serves as a vehicle for payments to local staff and Israeli vendors. Generally one or two wire transfers are made to our Israeli company each month.

Overhead is kept to a minimum through operating the company almost entirely through online booking systems, databases, storage facilities and other cloud-based services.

Milestones

Green Olive Collective Inc. was incorporated in the State of Delaware in August 2012.

We originally started our business (pre-incorporation) in 2007 with one day-tour and little cash. As we have grown and evolved since that time, we had the following key milestones in the development of our business:

2007 - Bootstrapping the startup as Tours In English
2008 - Rebranding as Green Olive Tours
2009 - We grow into a full service tour company
2010 - We become a Collective
2013 - Tours to Jordan and Sinai are added
2014 - Testing the waters of crowdfunding resulted in raising a little cash, and developing a membership base of almost 200 people. 
2016 - Tours to Ethiopia are added
2018 - Our best year
2019 - Launch Equity Crowdfunding Campaign

Our Hopes for the Future
December 2019 - With the additional capital from the crowdfunding campaign, the company prepares for restructuring and implementing the plans for growth.
December 2020 - Plans and permits obtained and ready to start renovation the new green Olive Guesthouse in Bethlehem.
December 2021 - Green Olive Guesthouse opens. You are invited to the party. 

Trends of Growth
Our growth has been consistent over the past two years at 55% and 25% respectively, and we expect this to continue.

Historical Results of Operations

- Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $658,615.47 compared to the year ended December 31, 2017, when the Company had revenues of $508,183.07. Our gross margin was 11.58% in fiscal year 2018, compared to 18.75% in 2017.

- Assets. As of December 31, 2018, the Company had total assets of $64,792.40, including $64,792.40 in cash. As of December 31, 2017, the Company had $52,642.22 in total assets, including $52,642.22 in cash.

- Net Income. The Company has had net income of $16,319.18 and net income of $27,500.66 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.

- Liabilities. The Company's liabilities totaled $0 for the fiscal year ended December 31, 2018 and $0 for the fiscal year ended December 31, 2017.

Liquidity & Capital Resources

To-date, the company has been financed with $26,855  in equity.

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 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

Green Olive Collective Inc. cash in hand is $132,122, as of July 2019. Over the last three months, revenues have averaged $62,167/month, cost of goods sold has averaged $29,000/month, and operational expenses have averaged $22,000/month, for an average net margin of $11,167 per month

No material changes have occurred since the financial documents have been prepared. The company's performance continues to be within within the projections for 2019.

Revenues and expenses over the next 3-6 months are expected to be 25% more than the same period last year. The company does not need any injection of capital to continue doing business as usual. The proceeds from the crowdfunding campaign will be entirely used to finance growth.

Low profits are due to plowing income back into outreach and marketing in order to sustain the growth. In addition, as a social enterprise and a collective, we try and balance profits with the needs of all our stakeholders. This includes using company funds to provide for the charitable needs some of the most marginalised communities in Palestine/Israel, including Bedouin and refugees. These strategies have resulted in strong sales, but low profits. 

- We expect to continue to grow our business. Although there is no guarantee that our historical results or cash flows (as described below and in our financial statements) will continue to develop in the same way as they have in the past few years, we expect generally to grow in the coming years. Nonetheless, it may be years before Investors see a return on their investment, if they do at all.

The following trends or uncertainties could affect our financial condition, including the liquidity, cash flow and capital resources described below:
- Government restrictions on our activity
- civil conflict or war
- A decline in tourism due to civil conflict or war