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

Hive was created to give a modern, revitalizing take on social media.

Consumers of social media apps like Instagram have become increasingly dissatisfied with their app updates. Criticism turned into desperate questions of what alternative social media apps there were.

I realized there were none, but also realized I could create my own. I wanted people to feel happy using social media again instead of frustrated.

Our company created the next unicorn of social media apps- yes, it's pretty magical.

We want to be the #1 social media app on both the iOS App Store and Google Play Store with millions of users enjoying our app everyday.

Milestones

Hive Social, Inc. was incorporated in the State of Delaware in February 2021.

Since then, we have:

• 📈 $10 billion global social media market annually
• 🔥 Distribution on the iOS App Store 600K app downloads to date
• 🙌 Strategic partnerships with Google Cloud, iHeartMedia, and Universal Music Group

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

Historical Results of Operations

Our company was organized in February 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $1,999 compared to the year ended December 31, 2021, when the Company had revenues of $0.
• Assets. As of December 31, 2022, the Company had total assets of $839, including $839 in cash. As of December 31, 2021, the Company had $1,534 in total assets, including $1,534 in cash.
• Net Loss. The Company has had net losses of $48,126 and net losses of $82,597 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
• Liabilities. The Company's liabilities totaled $130,662 for the fiscal year ended December 31, 2022 and $83,231 for the fiscal year ended December 31, 2021.

Liquidity & Capital Resources

To-date, the company has been financed with $13,000 in debt.

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 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

Hive Social, Inc. cash in hand is $1,500, as of March 2023. Over the last three months, revenues have averaged $1,000/month, cost of goods sold has averaged $300/month, and operational expenses have averaged $3,000/month, for an average burn rate of $2,300 per month. Our intent is to be profitable in 6 months.

Server costs are a constantly changing trend in finances as the cost varies depending on server usage. For example, it would cost more to run a server with 10,000,000 users versus 1,000,000 users. Our cost is dependent on our growth.

I expect Hive to generate revenue of $50K a month within the next 6 months between Google Admob, brand partnerships and ad campaigns, in-app creator subscriptions, and music slots. We expect to incur $5-15k/month in expenses during this time depending on server costs.

We are currently not profitable. The funding we need to become profitable is how much was raised in our WeFunder round. Currently, our two highest expenses are our development and server costs. We have one developer on the team and need to expand to include two or three full time, full stack developers. This is so we can quickly and consistently roll out app updates.

I had capital through past loans I took for Hive. The loans have been exhausted on development costs, meaning the WeFunder capital is all we have at this moment. 

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