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

Kazoo solves three critical customer needs: How do I safely connect and make plans with my closest friends? How do I find my children and closest contacts in an emergency? How do I alert my friends and family when in danger? Kazoo brings together everything you need to plan, track and protect your life in one safe and secure app. Our platform combines technologies to ensure a fluid experience with essential features—messaging, video streaming, event creation, location sharing and tracking.

In five years we hope to be the leading app in safety, security and communications; to be the leading technology that is embedded across US mobile carriers, rideshare platforms and the travel and hospitality industry.  We want to change the way consumers engage their social networks by providing private, cultivated social app experience.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

Kazoo LLC was incorporated in the State of District of Columbia in April 2019.

Since then, we have:

• There's no app today that bundles social, safety, location and communication to stay connected & protect loved ones – except Kazoo.
• Mgmt team includes top-tier talent of experienced entrepreneurs & business leaders who have founded, grown, & sold numerous start-ups.
• The timing could not be better to invest in the mobile app & security markets - a combined $400B market with a 16% growth rate.
• Kazoo’s mobile engineers have developed apps for the world’s biggest brands - Tesla, eBay & Coca-Cola. The same team who built Kazoo.
• Kazoo's award-winning UI team has designed apps for Apple, Twitter, Snapchat & Kanye West. The same team who designed Kazoo.
• Kazoo has secured marketing partnerships with organizations that have a combined audience of 450K (social media channels & email database)
• Kazoo's founders have invested over $300K of their own funds - demonstrating their commitment to Kazoo's rapid growth potential & success.

Historical Results of Operations

Our company was organized in April 2019 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 $0
• Assets. As of December 31, 2019, the Company had total assets of $328,219, including $10,306 in cash.
• Net Loss. The Company has had net losses of $130,226 for 2019.
• Liabilities. The Company's liabilIties totaled $442,350 for 2019.

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 $419,176 in debt and $15,000 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 9 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 9 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

Kazoo LLC cash in hand is $5,000, as of February 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $5,000/month, for an average burn rate of $5,000 per month. Our intent is to be profitable in 12 months.

Kazoo has managed to maintain low fixed operating costs of $5K per month through the extensive beta group period, until launch in March 2020.  There have been no material changes as the company is carefully managing cash flow and ensuring efficient operations during its pre-launch period.  

Over the next three months, the company will continue to manage its cash flows conservatively to minimize expenses as the product launches.  Kazoo has secured two significant marketing channel partnerships to eliminate marketing costs while getting visibility to hundreds of thousands of prospective customers.  The company hopes (but does not guarantee) to be generating revenue in March 2020.  We will be focused initially on securing monthly consumer subscriptions at $6.99 per month / $69.99 per year while simultaneously working with our corporate target audience. We hope (but guarantee) to generate in $25,000 monthly revenues and $25,000 in expenses six months after launch. We can reliably depend on the founding team to contribute funding as needed. Based on the amount generated from this offering, we expect to start taking meetings for an additional raise in September 2020. We can rely on founder contribution for additional capital if necessary.