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 creating an interconnected universe of Wuxia characters and stories based on one of the most popular Chinese libraries through comics. When we have a sizeable community, the IP is turned into films, tv, games and merchandising. Like the next Marvel.
In 5 years we are the global home for Wuxia (Martial-hero-fantasy) entertainment and known for taking an authentic and modern version of the genre to the mainstream through an innovative all media approach. We hope to have an active comics first hub with over 50 titles published and a robust subscription-based business there, and to have successfully delivered multiple episodics, films, and immersive content that is now driving us into lifestyle and other related verticals. These are forward looking projections and are not guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

Immortal Studios, Inc was incorporated in the State of Delaware in June 2020.

Since then, we have:

• Building a martial arts fantasy universe to become the next Marvel
• Exclusive rights to the 60+ IP library of top Wuxia creator Shiao Yi with 30+ films/tv produced
• Funded first comic book in 3 hours on Kickstarter with proven product-market fit
• Sales of $35K in 1st Kickstarter campaign; additional $40K expected by year end from 2nd campaign
• Founding team includes veterans from Marvel, DC, Shaolin Temple and Hollywood studios
• Hollywood is hungry for genre IP based offerings with comparable deals with 9-10 digit exits
• Proved out comic-first engagement model for safe, cost-effective, and exponential value creation

Historical Results of Operations

Our company was organized in June 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended June 23, 2020, the Company had revenues of $37,165.
• Assets. As of June 23, 2020, the Company had total assets of $0, including $0 in cash.
• Net Income. The Company has had net income of $0 for 2020.
• Liabilities. The Company's liabilities totaled $91,089 for 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 $91,089 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 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

Immortal Studios, Inc cash in hand is $69,685, as of October 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $21,000/month, for an average burn rate of $21,000 per month. Our intent is to be profitable in 30 months.

Since June 23, 2020, Immortal Studios Ltd. (a Hong Kong company) loaned the Company an additional $87,718 to fund the company’s operating needs. Since then, the company has spent ~$60,000 of that financing on operating the business and IP development.

In the next 6 months, we hope to achieve revenues of $70K to $100K in total , deriving from two additional Kickstarter campaigns in which we sell our product. We anticipate expenses of around $126K in total, with average monthly expenses of $21K.  We are already operational and can begin generating significant revenue with $50K in total. 

We've done a Kickstarter campaign with revenues of $35K. Those funds have just recently been disbursed to us. We will be conducting another Kickstarter campaign in the next few weeks, and hope to run 2 in total over the next 6 months. Throughout the Wefunder campaign, we will continue funding ourselves with the Kickstarter funds and, if necessary, a loan from an existing shareholder. Bank financing and/or any other related SBA programs are also possibilities.