Our Bond

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

Personal Security, safety and peace-of-mind service; for you, your loved ones and employees.

TG-17 INC develops a new tier of preventative personal security platform enabled by artificial intelligence and machine learning combined with its security personnel 24/7 through the Bond App.

Milestones

TG-17, Inc. was incorporated in the State of Delaware in April 2017.

Since then, we have:

• Re-affirmed that the problem persistently affects billions globally.
• Built a solution/service that is now proven, unique, hard to copy, affordable and preserves privacy.
• Signed leading corporations that are already adopting our solution for employees.

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $7,192,000 compared to the year ended December 31, 2022, when the Company had revenues of $1,385,000. Our gross margin was 9.87% in fiscal year 2023, compared to -55.6% in 2022. Note: Bond is currently expanding internationally and has established command centers in the UK, France, and Israel. The cost of such international command centers (that initially have very low utilization rates) were factored as part of the cost of offering the Bond services. This has resulted in very low gross margin figures that do not reflect the anticipated future high gross margins for the business.
• Assets. As of December 31, 2023, the Company had total assets of $5,819,000, including $1,437,000 in cash. As of December 31, 2022, the Company had $3,382,000 in total assets, including $1,743,000 in cash.
• Net Income. The Company has had net income of $4,077,000 and net losses of $19,956,000 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $18,354,000 for the fiscal year ended December 31, 2023 and $52,836,000 for the fiscal year ended December 31, 2022.

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 $13,000,000 in debt, $51,612,731 in equity, and $37,281,842 in convertibles (which had since converted to equity).

After the conclusion of this Offering, should we only hit our minimum funding target of $1,000,000, our projected runway is 6 months before we need to raise further capital. Should we meet our goal of $2,040,374 then the company stands a good chance of becoming profitable without needing to raise more capital, but is likely to elect to raise further capital in order to accelerate growth.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". Bond's other sources of funding are its revenues, as well as a capacity to tap existing investors if needed.

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

TG-17, Inc. cash in hand is $1,071,650.29, as of June 2024. Over the last three months, revenues have averaged $672,843/month, cost of goods sold has averaged $471,416/month, and operational expenses have averaged $851,560/month, for an average burn rate of $811,070 per month. Our intent is to be profitable in 9-12 months.

Since the date our financials cover, Bond has been experiencing hypergrowth. This increases our revenue growth and is advancing Bond towards profitability.

Over the course of the next 6 months, we expect to generate ~$8 million in revenues and have about $850k in expenses per month (so, ~$7 million in expenses).

Bonds can achieve profitability in 6–18 months, depending on revenue growth (generating revenues implies more marketing, sales, and operational expenses). Some of the deals that Bond is pursuing are very large and can have an impact on accelerating or postponing profitability. If Bond raises $5 million in this round, we expect that we will not “need” more funding unless we decide to accelerate growth and global expansion, which will require more investment in Bond operations globally. 

Bond has raised approximately $100 million to date since the inception of the company. The sources of funding are the founder/CEO, who is the largest investor to date (~$30 million), a few VC firms, and a large group of family offices (affluent individuals and families who have been investing in the company over the years). This set of loyal investors will continue investing in bonds and ensure that there is sufficient funding to operate. 

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