INVEST
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If you invest, you're betting hobbyDB will be worth more than $18.798M in the future.
We have financial statements ending December 31, 2023. Our cash in hand is $60,013, as of November 2023. Over the three months prior, revenues averaged $58,486/month, cost of goods sold has averaged $5,753/month, and operational expenses have averaged $54,903/month.
Management’s Discussion and Analysis of Financial Condition and Results of OperationsYou 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.OverviewCollectibles is a completely underserved, $500 billion market comprised of 75 million collectors. This market is ripe for disruption and with more than 80 years of combined experience, we know how to build THE resource for collectors that will become the next eBay/Etsy of the future.Built by collectors for collectors (and now owned by collectors), hobbyDB is the ultimate home for collectors and fans worldwide. With a powerful and detailed database of collectibles super-powered with a price guide, you can explore any fandom, track your collection, and use our secure marketplace to safely buy and sell.With more than 100 million items in the database and 20 million price points in our price guide we hope to be the Wikipedia/Kelly Blue Book of collecting. The default place everyone goes for information on collectibles and fandoms - and the most trusted collectors’ marketplace for 10 million users. With our user base growing fast and $5.7B worth of items in their collections already, we’re well on our way. These future projections cannot be guaranteed.MilestonesHobbydb Corp. was incorporated in the State of Delaware in October 2013.Since then, we have:
Historical Results of Operations- Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $698,844 compared to the year ended December 31, 2022, when the Company had revenues of $467,776. Our gross margin was 88.51% in fiscal year 2023, compared to 87.6% in 2022.- Assets. As of December 31, 2023, the Company had total assets of $322,702, including $49,622 in cash. As of December 31, 2022, the Company had $240,657 in total assets, including $45,261 in cash.- Net Loss. The Company has had net losses of $101,156 and net losses of $259,925 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.- Liabilities. The Company's liabilities totaled $369,409 for the fiscal year ended December 31, 2023 and $270,203 for the fiscal year ended December 31, 2022.Related Party TransactionRefer to Question 26 of this Form C for disclosure of all related party transactions.Liquidity & Capital ResourcesTo-date, the company has been financed with $583,497 in debt and $5,003,278 in equity.Deferred revenue: During 2022, the Company received a prepayment of $46,800 from a client for services. As of December 31, 2022, $28,045 had yet to be delivered.After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 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 ExpensesHobbydb Corp. cash in hand is $60,013.84, as of November 2023. Over the last three months, revenues have averaged $58,486.67/month, cost of goods sold has averaged $5,753/month, and operational expenses have averaged $54,903.56/month, for an average burn rate of $2,169.89 per month. Our intent is to be profitable in 3 months.Since the date our financials cover, we signed multiple new paying clients for advertising services, increasing monthly revenue. We hired a new programatic advertising partner who has grown monthly revenue from programatic display by 30% so far. We took a new loan from QuickBooks for $85,000 at 16% APR.Revenue and expenses for the next few months will remain constant as we roll out three new revenue initiatives - Direct Links (an affiliate program), the Local Directory, and passive selling on the marketplace.Hobbydb Corp. had a profitable month in November. We believe it will take approximately three months for the business to have continuous profitability. We would like to have $30,000 of additional investments to reach that point.Hobbydb Corp. had a $85,000 loan from Quickbooks at a 16% APR. We hope to not have to rely on any other source of capital throughout the campaign. All projections in the above narrative are forward-looking and not guaranteed.
The SEC requires that we identify risks that are specific to our business and financial condition. We are still subject to all the same risks that all companies in our business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). You should consider general risks as well as specific risks when deciding whether to invest.
We operate in a highly competitive space and competition presents an ongoing threat to the success of our business. There have been many entrants trying to reach sub-segments of our target audience and provide similar services. Additionally, we recognize that the large ecommerce firms such as Amazon or eBay might move into our field, potentially disrupting the space. Those large platforms have access to greater financial, technical, and marketing resources, which we may not be able to contend with.
Our business depends on our ability to maintain and scale our technical infrastructure.
Our reputation and ability to attract, retain, and serve our users depend on the reliable performance of our site and its underlying technical infrastructure. Our systems may not be adequately designed with the necessary reliability and redundancy to avoid performance delays or outages that could be harmful to our business. If hobbyDB is unavailable when users attempt to access it, users may not continue using our services.
We have historically experienced net operating losses and may not be consistently profitable for the foreseeable future.
We have experienced past net operating losses since inception of hobbyDB and we may continue to see such losses as we undertake our business plan. While we anticipate that we will eventually get to consistent profitability, we cannot guarantee that result and we do not have the operational history to support any assumption about future profitability.
Computer malware, viruses, hacking, phishing attacks, and spamming could harm our business.
As social-network hosting information that may be used to identify users and their networks, we may be the subject of computer malware, viruses, hacking, phishing attacks, and spamming. Should we be unable to effectively manage these attacks and threats to user information, we may experience harm to our reputation and our ability to retain existing users and attract new users.
An investment in our securities is speculative and there can be no assurance of any return on investment.
Investors will be subject to substantial risks involved in an investment in the company, including the risk of losing their entire investment. An investment in our securities is speculative and may not result in a positive return. Investors should only invest an amount that they are willing to lose entirely.
Changes to Legislation and TaxesVarious U.S. States had enacted marketplace facilitator laws and more states might do so. We will have to be compliant when relevant thresholds are met and are currently changing our business model so that we are not regulated by these marketplace facilitator laws.
You will not have significant influence on the management of the company.
The day to day management, as well as big-picture decisions, will be made exclusively by our executive officers and directors. You will have a very limited ability, if at all, to vote on issues of company management and will not have the right or power to take part in the management of the company and will not be represented on the board of directors of the company. Accordingly, no person should purchase our stock unless he or she is willing to entrust all aspects of management to our executive officers and directors.
Our future plans rely upon assumption and analyses prepared by our management.
Our management has prepared assumptions and analyses that are driving our business plan. If these assumptions prove to be incorrect, or the analyses are applied incorrectly, our financial results may be negatively impacted. Whether actual operating results and business developments will be consistent with our management’s assumptions and analyses depend on a number of factors, many of which are outside our control, including, but not limited to:
- Whether we can obtain sufficient capital to sustain and grow its business- Our ability to manage the company’s growth- Whether we can manage relationships with key vendors that are needed to provide our services- Competition- Our ability to retain existing key management, to integrate future hires and to attract, retain and motivate qualified personnel- The overall strength and stability of domestic and international economies- Consumer spending habits
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
