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

Independent, Nationally Distributed Brewery, Highly Awarded for Both Beers and Community Involvement

Milestones

Indian Peaks Brewing Company was incorporated in the State of Colorado in September 1993.
Since then, we are:
- Leading Independent U.S. Craft Brewery for Nitro Beers
- Building an independent platform (Left Hand Collective) to bring brands that resonate in the market together.  Welcome to Dry Dock Brewing!
- Eric Wallace - Most Influential Business Leader 2025, BizWest
- 2022 Craft Brewery of the Year 15,000-100,000 Barrels at the Great American Beer Festival
- 2023 Winner of the Legacy Company Award from Longmont Chamber of Commerce
- 2018 Winner of the Large Company Award from the Longmont Chamber of Commerce
- Eric Wallace Ernst & Young Regional Entrepreneur of the Year 2014
- Eric Wallace inducted into Boulder County Business Hall of Fame 2012
- Left Hand Bike MS Teams Approach $9 Million raised for the National MS Society since 2008

Historical Results of Operations

Revenues & Gross Margin. For the period ended December 31, 2024, the Company had revenues of $10,850,115 compared to the year ended December 31, 2023, when the Company had revenues of $12,301,536. Our gross margin was 35.98% in fiscal year 2024, and 37.37% in 2023.

Assets. As of December 31, 2024, the Company had total assets of $14,941,453, including $346,624 in cash. As of December 31, 2023, the Company had $20,879,300 in total assets, including $116,325 in cash.

Net Loss. The Company has had net losses of $1,279,424 and net losses of $2,042,604 for the fiscal years ended December 31, 2024 and December 31, 2023, respectively.

Liabilities. The Company's liabilities totaled $16,499,401 for the fiscal year ended December 31, 2024 and $22,581,582 for the fiscal year ended December 31, 2023.

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 $20,351,385 in debt and $2,543,941 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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. 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

Indian Peaks Brewing Company cash in hand is $433,955, as of June 2025. Over the last three months (March to May), revenues have averaged $761,245/month, cost of goods sold has averaged $516,623/month, and operational expenses have averaged $325,523/month, for an average net margin of ($80,901) per month. Our intent is to be profitable within the next 12 months we the addition of Dry Dock sales and additional contract production.

There have been no material changes since the date our financials cover. We have disclosed everything of relevance beyond the financial date in the subsequent events portion of our financial review, plus the numbers here.

We expect to see improving revenue to in the warmer months as we onboard Dry Dock production and expand distribution for Dry Dock to new markets.  This should help balance out our historical surge in the cooler months and slowdown in the Summertime.
We are not currently profitable. The present operating environment is very difficult as an independent brewery. We have been highly profitable in the past. Due to declining sales trends across craft brewing as a whole, we are raising these funds to help consolidate other distressed brewery brands and create a profitable, economically sustainable operating platform moving forward. We believe we can be profitable with the addition of roughly 8000 distributed barrels. By producing beer for other breweries, they can offload operating costs and operating leases and we can reduce operating costs per barrel and improve margin. 

We raised capital using Regulation D 506(c) to complement Wefunder. Our initial indications of interest increase confidence in our ability to operate while vetting brewing partners to increase our volume and to improve our financial performance.  Additionally, the Company has a purchase option expiring 3 February, 2026 for Jackman Enterprises, LLC, which is the real estate holding company from which the brewery rents the 1265 Boston property. This property is owned 50/50 by the co-founders of Left Hand Brewing Company.  The purchase price of the company has been agreed to at $4.0 million.  The underlying real estate owned by the company was recently appraised at $5.6 million.

Net of the current outstanding mortgage of approximate $930K, the net cost to the Company will be approximately $2.4 million to $2.5 million, depending on timing.  One of the owners will receive approximately $1.5 million in cash when financing is available to cover the remaining amount after proceeds from the capital raise are in hand.  One of the owners has an agreement to accept Series A Convertible Preferred Stock in the amount of approximately $1.5 million in exchange for his 50% of Jackman Enterprises, LLC.  This will result in an increase of $1.5 million in equity to the balance sheet.

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