Invest in MiKashBoks

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

MiKashBoks, Inc. (the "Company") is a corporation organized under the laws of the State of Delaware. The Company operates a digital social finance platform that brings community savings groups online. It derives revenue from licensing fees from organizations that operate these groups, and from transaction fees from users. 

Milestones

MiKashBoks, Inc was incorporated in the State of Delaware in January 2021.

Since then, we have:

• Huge target market of 500m unbanked around the world who save in groups - all offline today
• We make saving and borrowing easy and safe & our users get access to better financial services
• Over 1,000 users after first 3 weeks of launch in Sierra Leone; 14,000 users in Nigeria
• Founder won Queen's award for a payments solution to help end ebola crisis in Sierra Leone

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

Historical Results of Operations

Our company was organized in January 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $25,900 compared to the year ended December 31, 2021, when the Company had revenues of $0. 
• Assets. As of December 31, 2022, the Company had total assets of $174,990.83, including $24,913.83 in cash. As of December 31, 2021, the Company had $158,192.18 in total assets, including $8,115.18 in cash.
• Net Loss. The Company has had net losses of $414,169.35 and net losses of $191,884.82 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
• Liabilities. The Company's liabilities totaled $150,000 for the fiscal year ended December 31, 2022 and $150,000 for the fiscal year ended December 31, 2021.

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 $75,000 in debt, $593,468 in equity, and $150,000 in convertibles.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 4 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 4 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

MiKashBoks, Inc cash in hand is $35,000, as of September 2023. Over the last three months, revenues have averaged $3,000/month, cost of goods sold has averaged $800/month, and operational expenses have averaged $16,000/month, for an average burn rate of $13,800 per month. Our intent is to be profitable in 24 months.

In the period since our financials cover, we have started making revenues from NGO partners and executed our launch campaign in Sierra Leone to gain initial direct users.

Our expected revenues in the next 3-6 months are $30,000 - $40,000 per month.  Our expected expenses are $15,000 - $20,000 per month.  That would be dependent on raising our minimum to continue operations, and then closing 2 NGO contracts that are agreed upon in principle.

We are not currently profitable.  We estimate becoming profitable in mid 2025 and believe we will require a total of around $400,000 to get us to that point. 

In terms of other sources of capital, we have conversations with a number of professional investors ongoing.  We expect short-term burn will be covered by cash at bank and increasing revenues. 

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