Prepdeck

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

"Bring Back The Joy of Cooking" — that's our guiding principle. Whether you are cooking for one or for a family dinner, it can be hard to stay organized in the kitchen. We want to help you cook more and enjoy even more delicious meals with the ones you love.

Milestones

Prepdeck LLC was incorporated in the State of California in October 2018.

Since then, we have:

• 🦈 Recently featured on Shark Tank!
• 💰 Over $16M in revenue already generated
• 📈 500% revenue growth in the past 36 months
• 🤗 Prepdeck has over 150,000 enthusiastic customers and supporters
• ⭐️ Projecting (although not guaranteed) $30M revenue by 2025!
• 🌳 Growth phase is focusing on retail expansion and international reach
• 💪 Cutting edge kitchen solutions positioned to dominate the sector

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $5,271,290 compared to the year ended December 31, 2020, when the Company had revenues of $5,979,452. Our gross margin was 44.86% in fiscal year 2021, compared to 45.82% in 2020.
• Assets. As of December 31, 2021, the Company had total assets of $2,072,379, including $998,265 in cash. As of December 31, 2020, the Company had $1,676,586 in total assets, including $1,019,280 in cash.
• Net Loss. The Company has had net losses of $610,945 and net income of $224,388 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
• Liabilities. The Company's liabilities totaled $2,308,555 for the fiscal year ended December 31, 2021 and $1,301,817 for the fiscal year ended December 31, 2020.

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 $1,885,700 in debt and $400,000 in equity.

The Company had accounts receivable from a shareholder in the amount of $150,000. The amount does not accrue interest. The Company also had a loan receivable from a company owned by the CEO. The amount does not accrue interest and is due on demand. The balance of the loan receivable was $15,406 as of December 31st, 2021.

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. We plan to raise capital in 8 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

Prepdeck LLC cash in hand is $181,000, as of November 2022. Over the last three months, revenues have averaged $410,000/month, cost of goods sold has averaged $215,000/month, and operational expenses have averaged $216,000/month, for an average burn rate of $21,000 per month. Our intent is to be profitable in 12 months.

There are no material changes to our financials that have taken place since the date our financials cover.

We expect to generate $3.1-$3.5m in revenue over the next 6 months. Operating expenses during that period are expect to be average $240k per month. These are projections and can't be guaranteed.

We are not currently profitable. We will need to raise $2.5M total, including finds raised in this Wefunder round, to reach profitability, which we believe we can accomplish in 12 months. These are projections and can't be guaranteed.

The business has access to varying debt partners as needed. Our monthly burn continues to reduce month over month. We are also heading into our biggest selling season (the holidays) where we historically have generated 45%+ of our annual revenues.