If you invest, you're betting MiKashBoks will be worth more than $3M in the future.
We have financial statements ending December 31, 2022.
Our cash in hand is $35,000, as of September 2023. Over the three months prior, revenues averaged $3,000/month, cost of goods sold has averaged $800/month, and operational expenses have averaged $16,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of OperationsYou 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.
MilestonesMiKashBoks, Inc was incorporated in the State of Delaware in January 2021.Since then, we have:
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 OperationsOur company was organized in January 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party TransactionRefer to Question 26 of this Form C for disclosure of all related party transactions.Liquidity & Capital ResourcesTo-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 ExpensesMiKashBoks, 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.
We face a country / political risk as we operate in Sierra Leone and Nigeria - those are currently stable environments (although it can change rapidly).
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Regulation - FinTech is still an evolving area in these countries and is often not well understood by central banks and regulators. Regulations can change rapidly.
Currency risk - most revenues are generated in local currency which has been depreciating against the dollar. We seek to mitigate this by (a) having an increasing proportion of our costs in local currency, and (b) looking to secure contracts with international NGOs in USD. However, until we do one or both of those things, this remains a substantial risk.
Financial risk - given that our costs are still higher than our revenues, we are dependent on external funding for ongoing operations. There is no guarantee that we will raise additional funds.
Tech adoption risk - driving FinTech adoption in sub-Saharan African is hard with low literacy levels and low trust in financial service providers. We are dependent on adoption in key markets in order to grow.
Partner risk - we are heavily dependent on establishing successful partnerships with mobile money operators, banks, etc, and so anything that affects their reputation would also affect us.
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.