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

The Company plans to make and distribute solar-power, pedal-powered, micro electric vehicles (EVs).

• Organic Transit is re-emerging as a subsidiary of Environmental Transit Authority (ETA)
• Original ELF has traveled 10+ Million Miles, in all 50 states and across 15 countries
• The first Organic Transit delivered 850 ELFs: Manufactured in the USA and $7M+ revenue
• The average car cost is $12k/year. ELF is cheaper, healthier, and ready for all-weather local travel
• Over 8,000 unsolicited soft orders, potentially $80 million in revenue
• The micromobility market is growing fast and projected to be $340 billion by 2030 (not guaranteed)
• Original founder is back in charge, creating the ELF 3.0 for safety, efficiency, comfort and economy

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 incorporated in June 2023 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2025, the Company had revenues of $0 compared to the year ended December 31, 2024, when the Company had revenues of $0.
• Assets. As of December 31, 2025, the Company had total assets of $153,470, including $33,210 in cash. As of December 31, 2024, the Company had $178,006 in total assets, including $57,746 in cash.
• Net Loss. The Company has had net losses of $383,730 and net losses of $266,051 for the fiscal years ended December 31, 2025 and December 31, 2024, respectively.
• Liabilities. The Company's liabilities totaled $787,230 for the fiscal year ended December 31, 2025 and $509,904 for the fiscal year ended December 31, 2024.

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 $303,000 in debt and $204,062 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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 2 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

Environmental Transit Authority, Inc. cash in hand is $38,751.20, as of April 2026. Over the last three months, revenues have averaged $722.09/month, cost of goods sold has averaged $120/month, and operational expenses have averaged $9,100/month, for an average burn rate of $9,000 per month. Our intent is to be profitable in 12 months.

Since December 31, 2024 we've brought on key personnel for engineering, technology, supply chain, service, maintenance and logistics. 

We expect expenses to be $50K over the next 6 months for service and maintenance. We expect significant revenue increase in the following 6-12 months.

We are not profitable as we are not revenue generating at this time. We have expectations to be profitable within 12 months with $1,235,000 raised. 

We may have access to funding through possible outside investors. We intend to cover short term burn with service and maintenance revenue of existing products.

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