Jurny

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

Hospitality Automation Powered by AI

Milestones

Jurny, Inc. was incorporated in the State of Delaware in November 2018.

Since then, we have:

• Jurny doubled its SaaS recurring revenue in 6 months and is on track to triple it by year-end.
• Jurny partners with Airbnb, Expedia, VRBO, and other global hospitality solutions.
• Nia Multiagent 2.0 aims to automate 90% of the $112B the industry spends on manual processes.
• Full-time Airbnb hosts spend 12.5+ hours weekly per listing; Jurny's AI, Nia, cuts this by 75%.
• Nia's fully autonomous mode saw a 3,000% adoption increase by internal customers this year alone.
• Ranked among the Top 5 Best AI Apps by GenerativeAI, highlighting Jurny's innovative technology.
• +$12mm raised from tops VC's (Mucker Capital, Okapi VC, etc) and 2000 crowdfunding investors.

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $1,182,714 compared to the year ended December 31, 2022, when the Company had revenues of $1,383,766. Our gross margin was 66.44% in fiscal year 2023, and 58.64% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $726,654, including $95,803 in cash. As of December 31, 2022, the Company had $2,066,899 in total assets, including $479,546 in cash.
• Net Loss. The Company has had net losses of $3,951,478 and net losses of $4,053,472 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $8,148,118 for the fiscal year ended December 31, 2023 and $5,635,131 for the fiscal year ended December 31, 2022.

Liquidity & Capital Resources

To-date, the company has been financed with $3,000,000 in debt, $8,069,416 in equity, and $4,040,000 in convertibles.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 8 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

Jurny, Inc. cash in hand is $198,000, as of August 2024. Over the last three months, revenues have averaged $50,000/month, cost of goods sold has averaged $19,000/month, and operational expenses have averaged $155,000/month, for an average burn rate of $124,000 per month. Our intent is to be profitable in 12 months.

In June 2024, we closed an equity crowdfunding campaign raising approximately $1mm in new capital into the business.  Additionally, in May 2024, the Company closed the property management side of its business to focus solely on the growth and development of its software platform.  The Company was originally founded to manage short-term rental properties.  However, over time, it saw the need for a consolidated solution to assist in managing its properties.  It then developed a proprietary AI-powered software platform to assist with this.  Historically, the property management side of the business generated most of the Company's revenue, however, the cost of that business exceeded revenues.  Therefore it has now shuttered that side of the business to focus entirely on the software platform, which does generate profits from a gross margin perspective.

We expect our revenue to grow to approximately $500K over the next 3-6 months as we increase marketing and sales activities. We expect our expenses to remain roughly the same as the prior few months ($115K per month) as we shift internal resources more towards sales and marketing and away from other areas.

We are not currently profitable and we expect that an additional $500k-$1mm in net capital may get us to profitability, although this also is dependent on any changes to our operating expenses, growth activities, and costs of goods sold. We expect to reach profitability by the end of Q2 2025.

In addition to this Offering, the Company is in the process of closing an additional tranche of capital via a concurrent financing round offering a yet-to-be-authorized series of Series Seed-3 Preferred Stock. This concurrent raise is expected to net up to $550,000.

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