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

I'll tell jokes while you make money. Smack Talks LLC is the business vehicle for the live standup comedy performances and other comedy content created by Pete Smack, the stage name of Pete McEntegart.

Milestones

Smack Talks, LLC was organized in the State of North Carolina in August 2024.

Since then, we have:

• You can't have a truly diversified portfolio if you're not directly invested in a standup comedian
• Likely your ONLY chance to invest in a promising comedian. Seriously, search everywhere; we'll wait
• Pete's a "clean" (i.e. not dirty) comic, which opens up more $ opportunities, such as corporate gigs
• His past: Goldman Sachs, Sports Illustrated writer, TV/film comedy writer, startup co-founder
• That varied history uniquely positions him to target non-traditional but profitable audiences
• Pete will do everything in his power to make this work—or die trying (kidding! kinda)

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 organized in August 2024 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended August 27, 2024, the Company had revenues of $0. .
• Assets. As of August 27, 2024, the Company had total assets of $0, including $0 in cash.
• Net Income. The Company has had net income of $0 through August 27, 2024.
• Liabilities. The Company's liabilities totaled $0 through August 27, 2024.

Liquidity & Capital Resources

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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. 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

Smack Talks, LLC cash in hand is $0, as of September 2024. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 9 months.

My LLC (Smack Talks LLC) was formed on Aug. 27, 2024. That is why the balance sheet is dated as of that date. As a newly formed entity, it has no prior financials. As noted on the campaign page, once I close on a tranche of financing from this Wefunder campaign, we will begin tracking revenues (and ultimately sharing them annually according to the terms of the investment contract), expenses, etc.

We expect revenues for the next 6 months to be $10-$20K. We expect expenses of $25-$30K (including fees directly tied to the fundraise, such as legal, etc.) for the same period. 

We are not yet profitable (indeed we just formed the LLC). I don't anticipate needing additional funding to reach profitability, though that could depend in part on how much I ultimately raise. I expect to reach profitability in 9-12 months. 

Besides funds raised through Wefunder, I have revenue from comedy performances (albeit still relatively nominal). I have been and will continue to cover short-term burn until I receive funding from the Wefunder campaign via savings.

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