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 create bridges between technology companies and consumers by creating a platform that brings fun, new, and cool tech to people's life.

InfiniteVR gives customers the chance to experience new tech such as VR, AR, MR, and AI products through exciting demonstrations, with the ability to purchase their favorite items on the spot.
InfiniteVR plans to have over 100 locations all over the USA and other countries in the next 5 years. We aim to be generating over $40M in revenue in 5 years and exiting out over $200M with a merge or acquisition (though this is not guaranteed). Alternatively, Opening up InfiniteVR to IPO is in our scope as well. These projections cannot be guaranteed.

Milestones

Av Consortium LLC was organized in the State of Texas in June 2016.

Since then, we have:

• $9.2M lifetime brand revenue (3 years, including franchise revenue under different entities).
• 3 continents, 27 cities, 41 locations.
• Signed LOI with a Southern China investment group.
• $4.75M corporate lifetime revenue.
• Multi-Channel sales: Offline and Online Retail, Wholesale, Franchise, B2B.
• Profitable since the first year of the company.
• The founder has 3 established brands in the shopping mall industry since 2010.

Historical Results of Operations

Our company was organized in June 2016 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 $1,078,150 compared to the year ended December 31, 2018, when the Company had revenues of $1,981,025. Our gross margin was 85.2% in fiscal year 2019, compared to 79.88% in 2018.
• Assets. As of December 31, 2019, the Company had total assets of $214,551, including $64,204 in cash. As of December 31, 2018, the Company had $187,608 in total assets, including $105,684 in cash.
• Net Income. The Company has had net income of $60,370 and net income of $90,443 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $112,896 for the fiscal year ended December 31, 2019 and $62,082 for the fiscal year ended December 31, 2018.

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 $245,000 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

Av Consortium LLC cash in hand is $56,646, as of May 2020. Over the last three months, revenues have averaged $48,000/month, cost of goods sold has averaged $3,100/month, and operational expenses have averaged $30,700/month, for an average net margin of $14,200 per month. We are currently profitable.

We had an unexpected interest in our simulators right before COVID-19 and sold 4 simulators and one franchise location. We were in the process of negotiation with the biggest shopping mall developer about InfiniteVR kids. 

Due to pandemic circumstances, we put a hold to our ongoing business and right away focus on how to go back on track as soon as possible. We created 'Entertainment by Appointment' model for our existing business and we are planning to execute our plan in the next 30-45 days.

We expect a decrease in about 30% of our revenue in the next 3-6 months in light of COVID-19. In order to keep our revenue at the same level, we will invest in our new model (Entertainment by Appointment) and our e-commerce option. Even though our fluctuation in revenue rate depends on how successful we will be in our efforts, we are very hopeful that we can rebound out of this pandemic very successfully. Six months from now, we hope to have monthly revenues back up to $50,000 and monthly expenses to be $30,000, although this cannot be guaranteed.

For additional capital outside of this Wefunder Offering, our founder can provide funds to InfiniteVR.