Mevo

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 design and manufacture what we believe is the world's best camera and software app for live streaming events. We have created Mevo Plus and plan to ship Mevo Start in April 2020. Mevo Start boasts our #1 customer request — Multi-camera functionality with the Mevo App. Users can mix multiple Mevo cameras to create a truly dynamic multi-POV production. We empower people of all experience levels to take storytelling to the next level with our easy-to-use, affordable, all-in-one cameras.

In five years, we hope (but cannot guarantee) to be selling more than half a million cameras per year and related app services. Additionally, we hope be developing new cameras and features that meet our users' needs in this rapidly growing space.

Milestones

Mevo Inc. was incorporated in the State of Delaware in March 2019.  Mevo, originally created in 2016 as a brand subsidiary of Livestream, became independent in 2019 and is now headquartered in Brooklyn, New York.

Mevo Ukraine, Inc. was incorporated on May 28, 2019 in Ukraine and provides software development for Mevo, Inc. 

Some additional background on the Company:

• With recent travel restrictions, Mevo sales have recently increased fivefold. Help us avoid being out of stock by investing in Mevo.
• Established startup with $5.9M revenue in 2019.  90,000+ Mevo Plus cameras sold on mevo.com, Best Buy, B&H, Adorama & Amazon 

• 30,000+ Mevo owners streaming at least one event each month
• Respected partner and investor: Vimeo Inc.
• Proprietary software: Dedicated iOS and Android apps control your Mevo camera with live editing features like cutting, zooming, and pans 
• Stream events to multiple platforms at once: YouTube, Facebook Live, Twitter, Periscope, Twitch, LinkedIn, Vimeo Livestream and more
• Founder / CEO has 24+ years in software and hardware with two exits. Founded Livestream.com, which was acquired by Vimeo in 2017
• New camera, Mevo Start is in production and will ship to pre-order customers in April. Lower price point ($299) expands the available market.

Historical Results of Operations

Our company was organized in March 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 $4,428,320. Our gross margin was 27.67%.
• Assets. As of December 31, 2019, the Company had total assets of $5,518,184, including $273,200 in cash.
• Net Loss. The Company has had net losses of $3,135,066 for 2019.
• Liabilities. The Company's liabilities totaled $1,266,819 for 2019.

Liquidity & Capital Resources

To-date, the company has been financed through $125,000 in debt instruments and $3,274,790 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 10 months before we need to raise further capital.

We plan to use the proceeds of this Offering as set forth in this Form C under "Use of Funds". We don’t have any other predicted 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 additional operations over the lifetime of the Company. We plan to raise capital 6 months after this Offering. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from this 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

Mevo Inc. cash in hand is $318,357.86, as of March 2020. Over the last three months of 2019, revenues have averaged $681,439.21/month, cost of goods sold has averaged $528,930.35/month, and operational expenses have averaged $387,585.68/month, for an average burn rate of $235,076.82 per month. Our intent is to be profitable in 26 months after the Offering.

Note that Mevo product revenue for 2019 was $5.9M but since the spin-out from Vimeo to Mevo Inc. occurred in April, the Mevo Inc. financials only cover 3 quarters in 2019 and are $4.4M as they exclude Q1. Revenue for Mevo products was $5.9M - however since the spin-out from Vimeo to Mevo Inc. occurred at the end of Q1, the audited financials only represent 3 quarters and are a result lower.

We intend to fund short-term operations from cash flow from accounts receivables from past sales (~$450k today) and new expected receivables from selling existing Mevo cameras inventory (we own more than 5,000 Mevo Plus cameras and 4,000 Mevo Boost accessories - fully paid from past cashflows). 

Outside of this raise, our main source of capital is revenue and cash from selling existing inventory assets of Mevo Plus and Mevo Boost as well as our Mevo Start pre-order on mevo.com. 

In the six months following the launch of this campaign, we project (but cannot guarantee) the following:

Revenue ~$3.25M 
Cash expense to manufacture Mevo Plus and Boost inventory: $0
Cash expense to manufacture Mevo Start inventory: ~$1M
Cash expense for operations: ~$2M

At a minimum, it is going to cost $50k to complete our first production run for  Mevo Start. 1,000 units production has started in March 2020. We paid 50% upfront and will need to pay $50k in March / April 2020 before they leave the factory and ship to our warehouse. Our manufacturing partner has already sourced materials for the first 5,000 Mevo Start units.