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

Advanced Clean Energy Platform That's Revolutionizing an Antiquated $120B Market

Access to clean, portable, reliable power is a life saving and world changing solution. We urgently need to make power simpler and cleaner.

We design and manufacture battery systems that stack like Lego blocks to ideally size for any and all power applications. We sell to homeowners, food trucks, and music festivals that need reliable clean power. Our systems can be charged from solar or from the grid and last for days.

Joule Case's 5-year vision is to offset 1B pounds of CO2 emissions by providing power solutions for multiple channels and markets. Joule Case will become a household name for reliable, renewable power for all applications.

Milestones

Joule Case Inc was incorporated in the State of Delaware in January 2018.

Since then, we have:

• ⚡Patented, portable award-winning energy storage tech
• 👼Over $3M raised from angel investors to date
• 👥 Team includes 7 successful exits & 20 patents
• 📈 Massive $130B energy storage market is growing at 25% CAGR
• 💰 Over $1.8M in sales since founding (500% YoY growth)
• 🎠 $100M LOI signed with Insomniac Events, organizer of EDC & many of the world's largest festivals
• 💸 LIVE Nation, PG&E, CORT, & PGA are among names in the pipeline

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $2,361,028 compared to the year ended December 31, 2022, when the Company had revenues of $1,112,257. Our gross margin was 48.51% in fiscal year 2023, compared to 42.17% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $2,652,375, including $231,245 in cash. As of December 31, 2022, the Company had $858,901 in total assets, including $171,988 in cash.
• Net Loss. The Company has had net losses of $6,415,396 and net losses of $3,024,941 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $10,385,679 for the fiscal year ended December 31, 2023 and $4,656,012 for the fiscal year ended December 31, 2022.

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 $597,541 in debt, $2,018,993 in equity, and $3,695,412 in convertibles.

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

Joule Case Inc cash in hand is $308,522, as of February 2024. Over the last three months, revenues have averaged $402,000/month, cost of goods sold has averaged $245,000/month, and operational expenses have averaged $356,000/month, for an average burn rate of $199,000 per month. Our intent is to be profitable in 7 months.

Increase in sales and manufacturing scale. We plan to have significant sales in our Enterprise division going forward and will adjust accordingly.

We expect our revenue north of $3.5M in the next 3-6 months. For cash flow, we expect to be close to break even. Our gross expenses will be roughly $4M. This will stem from large orders from strategic customers and additional scaling of manufacturing. 

We are not profitable yet. We project that we need approximately $7.5M in funding to break even in Q2 2025. 

Other forms of funds to cover short-term burn include inventory financing, long term debt financing, convertible note financing, government grants, and customer cash up front financing. 

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