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 a cage free dog boarding and daycare facility. Our mission is to provide a safe space for dogs to run free outdoors and live their best lives.

We would like to be grossing $3 million and expanding to additional locations.

Milestones

Divine Dog Ranch LLC was incorporated in the State of Maryland in June 2007.

Since then, we have:

• $10M revenue since company was founded. Growing 30% Year-Over-Year.
• We have 2000+ happy and loyal customers; 75% are repeat customers.
• We bought 88 acres of land. We are excited for better flooring, better heating and cooling, and more space for the dogs and staff!
• Help us provide the best possible experience for the dogs.
• We lease a 16-acre property with a 5600 sq ft warehouse and a 3200 sq ft house, both of which are used to house over 100 dogs per day.
• 35 employees, including certified dog trainers, vet techs, animal shelter workers and volunteers and experienced animal care workers.
• 4.9 stars from 200+ Google Reviews

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $1,610,066 compared to the year ended December 31, 2018, when the Company had revenues of $1,608,595. Our gross margin was 100.0% in fiscal year 2019, compared to 100.0% in 2018.
• Assets. As of December 31, 2019, the Company had total assets of $224,952, including $62,427 in cash. As of December 31, 2018, the Company had $226,089 in total assets, including $56,291 in cash.
• Net Loss. The Company has had net losses of $83,068 and net income of $163,593 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $306,994 for the fiscal year ended December 31, 2019 and $201,961 for the fiscal year ended December 31, 2018.

Liquidity & Capital Resources

To-date, the company has been financed with $1,359,802 in debt.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 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 3 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

Divine Dog Ranch LLC cash in hand is $6,091.54, as of October 2019. Over the last three months, revenues have averaged $137,375/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $206,505/month, for an average burn rate of $69,130 per month. Our intent is to be profitable in 12 months.

In 2019, the business has spent a significant amount of money (about $250K) on the purchase of the new property and associated expenses for permits and construction. 

We expect our revenue to increase in November and December, as these holiday months are very busy for us. At this time, we do not have any additional sources of capital. There will be additional construction expenses for the new facility, which we hope to cover through our Wefunder campaign.