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

An on-demand platform that connects pet owners with pet stylists for in-home grooming services
In five years we hope to be in 30 cities and performing 1 Mil groomings per year. These projections cannot be guaranteed.

Milestones

Groomit Inc. was incorporated in the State of Delaware in January 2020.  Groomit for Pets LLC is an operating entity. Groomit Inc is the 100% shareholder and holding entity.

Since then, we have:

• Grooming in underserved market
• Proved business model
• Recession proved business

Historical Results of Operations

Our company was re-incorporated in January 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $596,470. Our gross margin was 18.98%.
• Assets. As of December 31, 2019, the Company had total assets of $112,846, including $49,345 in cash.
• Net Loss. The Company has had net losses of $933,072 for 2019.
• Liabilities. The Company's liabilities totaled $1,903,303 for 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 $1,696,653 in debt.

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 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

Groomit Inc. cash in hand is $15,000, as of August 2020. Over the last three months, revenues have averaged $70,000/month, cost of goods sold has averaged $50,000/month, and operational expenses have averaged $35,000/month, for an average burn rate of $15,000 per month. Our intent is to be profitable in 2 months.

Post lockdown we have seen a great improvement in profit/booking, we've see more organic demand from users paying full price (no promotions) that helped increase margin from avg $22 net to now $45 net within the last 2 months. 

We expect the monthly revenue to be flat in summer months until September, averaging between $80,000 to $100000 monthly. We expect averaging 50% growth in Q4 / 2020, average monthly revenue to be $120,000 to $150,000.  We expect our margin to hold steady at about 35% of gross revenue.

Expenses should remain flat in summer months and increase 10% to around $40,000 monthly in the last quarter

We've been funded by founders and friends & family, we expect founders and Friends and Family to add more capital if needed. Also, we are discussing with VC's and family offices.