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 provide an end to end robotic infrastructure to restaurants chains & food delivery aggregators

In five years, we want to have an installed robotic infrastructure in the 5,000 more dense zones that allow people to move atoms within 2 miles for less than $1.

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

Milestones

Kiwi Campus Inc was incorporated in the State of Delaware in November 2016.

Since then, we have:

• Raised $4.5M previously. Completed 100,000+ deliveries worldwide. $400K in revenue.
• Key partnerships with the City of San Jose, Shopify, Rappi, the City of Sacramento, and Olo.
• Board includes Joseph Huang
• Advisors include Andrew Savage, founding team member of Lime (partnered with Uber).
• Pre-pandemic fleet of 20 Kiwibots grew to 50 — with 500 more robots in production.

Historical Results of Operations

Our company was organized in November 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 $279,301.69 compared to the year ended December 31, 2018, when the Company had revenues of $136,803.90.
• Assets. As of December 31, 2019, the Company had total assets of $803,502, including $110,849 in cash. As of December 31, 2018, the Company had $687,586 in total assets, including $195,364 in cash.
• Net Loss. The Company has had net losses of $2,299,731 and net losses of $1,344,478 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $4,688,845 for the fiscal year ended December 31, 2019 and $2,273,198 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 $6,000 in debt, $26,808 in convertibles, and $5,196,988 in SAFEs.

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 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

Kiwi Campus Inc cash in hand is $232,561.71, as of June 2020. Over the last three months, revenues have averaged $143/month, cost of goods sold has averaged $10/month, and operational expenses have averaged $71,517/month, for an average burn rate of $71,384 per month. Our intent is to be profitable in 24 months.

-We have a confirmed revenue of ~1.1M in the next 12 months. 

-We reduced the liabilities from ~$450k in 2019 to $160k today.

-We have reduced our burn rate to about $79,000/month.

-Our confirmed revenue in the next 12 months is $1.1M and the potential of being ~$3M with additional deals in our pipeline.  Our expenses are going to be between $80k-$115k/month in the short term

We have venture debt options backed by our B2B contracts and also the possibility to finance our robot manufacturing