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 promote enticing offers from food, drink and entertainment vendors in college towns. Our patent-pending process (patent to be owned by Oodles Corporation) incentivizes students to go to these retail outlets together, and the more they share and do together, the more value they get. Because everything on our app is geared toward helping consumers spend more time together, we've created a win-win scenario for both our vendor partners and users.

After opening our first account at the University of Oregon in April 2017, we've now grown to eight total college campuses. We have a rapidly growing user base (currently more than 25,000 students) and bring real value to our vendor partners, so our goal is to grow nationwide. There are around 4,400 college campuses around the United States and we want to establish a vendor & user base in every one. 

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

Milestones

OODLES CORPORATION was incorporated in the State of California in February 2017.

Since then, we have achieved the following:

• Grown our user base to 26,000 students.
• Company revenue is growing at 400% year-over-year, a trend that has accelerated in Q4 '19.
• Restaurant's revenue from app has grown 20% month-on-month on average since company inception.
• We have 4.8 stars on greater than 200 user ratings in Apple's App Store and 4.5 in Google's Play Store.
• A management team with deep expertise in consumer, retail and mobile.
• Grown from operating in one University to eight.
• Successfully filed a full, non-provisional patent for the vendor promotion process.

Historical Results of Operations

Our company was organized in February 2017 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 $42,203. For the period ended December 31, 2018, the Company had revenues of $9,301.
• Assets. As of December 31, 2019 and December 31, 2018, the Company had total assets of $222,359 and $59,211, including $187,683 and $28,910 in cash, respectively.
• Net Loss. The Company has had net losses of $308,121 and $161,565 for the fiscal years ending on December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $46,262 and $29,494 for the fiscal years ending on December 31, 2019 and December 31, 2018, respectively.

Liquidity & Capital Resources

To-date, the company has been financed with $217,689 in SAFEs and $429,500 equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 8 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. If the minimum WeFunder threshold is achieved, we plan to raise capital within 6 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

OODLES CORPORATION cash in hand is $187,683, as of December 2019. Over the last three months, revenues have averaged $5,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $36,000/month, for an average burn rate of $31,000 per month. Our intent is to be profitable in 24 months.

We started receiving revenue from our vendor-partners in November 2017.  As the number of vendors-partners at each University grows, and the number of students transacting via our app grows, this revenue will correspondingly increase.  Expenses should average $30,000/month thru the end of this school year, i.e. May 2019.  Over the summer time, both revenue and expense will decrease as students will no longer be in school.  Please note that currently none of the employees of the company are currently taking salary, the expectation is that a minimum salary will be taken by each employee once this next round of funding is achieved. In addition to the funds raised from this Offering, we can rely on revenues generated for additional capital.