PANGEA

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

Turning Trash into High-Quality Sustainable Products (Campaign Closes Dec 1st!)

I've been camping in the mountains and surfing in the oceans all my life because nature heals me from the stress of the busy city. I traveled the world and saw the terrible effect of plastic pollution on our environment. I recently became a father and made a promise to help build a world where my daughter can one day swim in a plastic-free ocean.

We identify high-demand products for the outdoors and replace them with ecological and carbon-negative alternatives. We sell them online around the world and use part of the funds to clean our planet, plant mangrove trees, and stop ocean pollution by placing river trash barriers.

Have a full line of ecological outdoor gear, 500k+ followers on Social Media, organize 1 cleanup in each country of our planet, and place 1,000 river barriers.
We also want to innovate in material science and R&;D through the PANGEA Innovation Lab to recycle the plastic we collect into patented products and materials, and reach $100M in revenue.

Milestones

PANGEA Movement USA LLC was incorporated in the State of Delaware in September 2021.

Since then, we have:

• Taking on the $20B sunglass industry with a premium one-of-a-kind alternative cleaning the planet
• Our products are 2.5x more profitable than 6 months ago! Profit margin increased from 15% to 40%
• Featured on InvestorPlace's List of The 7 Best Startups You Can Buy on Wefunder Right Now
• 20% returning customers. Launched 4 high quality products in the last 6 months
• Pangea's certified supply chain cleans the planet every step of the way! No 3rd Party outsourcing
• Still early! 1M valuation 2 years ago. Aiming to 5x our valuation in 2 years (not guaranteed)
• Closing signing contract with one of the largest eyewear suppliers in the world!

Historical Results of Operations

Our company was organized in September 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, 2023, the Company had revenues of $134,296 compared to the year ended December 31, 2022, when the Company had revenues of $139,161. Our gross margin was 50.95% in fiscal year 2023, compared to 53.52% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $367,936, including $32,520 in cash. As of December 31, 2022, the Company had $142,978 in total assets, including $7,079 in cash.
• Net Loss. The Company has had net losses of $316,648 and net losses of $225,178 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $273,769 for the fiscal year ended December 31, 2023 and $20,987 for the fiscal year ended December 31, 2022.

Liquidity & Capital Resources

To-date, the company has been financed with $161,500 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 10 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

PANGEA Movement USA LLC cash in hand is $7,153, as of April 2024. Over the last three months, revenues have averaged $54,878/month, cost of goods sold has averaged $124/month, and operational expenses have averaged $39,379/month, for an average net margin of $15,375 per month. Our intent is to be profitable in 8 months.

Since the date covered by our financials, we've made significant strategic shifts, particularly towards intensifying our focus on plastic pellets R&D. This adjustment reflects our commitment to innovation and sustainability, aligning with evolving market demands and environmental imperatives. Additionally, our joint venture project has emerged as a crucial catalyst in propelling our growth trajectory. With this collaborative effort, we anticipate substantial revenue generation, projecting up to $1 million in revenue by 2025. These strategic moves underscore our dedication to pioneering solutions, driving profitability, and fostering impactful partnerships within our industry.

We expect our revenues in the next 6-8 months to be $1M and our expenses to be $550K, yielding a net profit of $450K.


We are not profitable after operations yet, we expect to get there in 3-6 months, and we need around $500K in funding to get there.Our CEO has another successful business in Argentina (www.villajuncal.com.ar) that is profitable and provides funding in the short term, and he also has access to his network of friends and family with high net worth.
All projections in the above narrative are forward-looking and not guaranteed.