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

REJOY is a plant-based functional beverage, aiming to solve two problems for those who have an active lifestyle: 1) Rehydrate in a clean, natural and convenient way and 2) Relieve pain and reduce inflammation from workouts without health risks.

In 5 years, we aim to be generating $50m in net revenue, and this is only including the US market. There are multiple growth drivers, such as launching new products, geographic expansion, etc. These projections are not guaranteed.

Milestones

BLISS BEVERAGES LLC was organized in the State of Florida in March 2017.  In 2020 we converted to a DE LLC.

Since then, we have:

• 🌱REJOY is made with clean plant-based ingredients for superior hydration and recovery.
• 💥Distributed to top natural grocery & convenience grocery stores in 4 States + online nationwide.
• 📱Launching powder drink mixes to focus on online. Growing category => CAGR 20% & +50% margins.
• 💰Plan: $50 mn revenue in 5 yrs with potential venture/exit at 7x-10x multiples (not guaranteed).
• 💪🏻World-class leadership team from Anheuser-Busch InBev & Danone. Endorsed by global top athletes
• 🎾 Launched own sports league: NPL National Padel League = community-building & new revenue stream!

Historical Results of Operations

Our company was organized in March 2017 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $111,063 compared to the year ended December 31, 2020, when the Company had revenues of $74,470. Our gross margin was 17.99% in fiscal year 2021, compared to 16.04% in 2020.
• Assets. As of December 31, 2021, the Company had total assets of $456,078, including $356,339 in cash. As of December 31, 2020, the Company had $200,099 in total assets, including $158,878 in cash.
• Net Loss. The Company has had net losses of $403,706 and net losses of $266,423 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
• Liabilities. The Company's liabilities totaled $688,205 for the fiscal year ended December 31, 2021 and $28,520 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 $37,500 in debt, $570,000 in equity, and $659,439 in convertibles.

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 6 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

BLISS BEVERAGES LLC cash in hand is $55,000, as of October 2022. Over the last three months, revenues have averaged $15,000/month, cost of goods sold has averaged $12,000/month, and operational expenses have averaged $20,000/month, for an average burn rate of $17,000 per month. Our intent is to be profitable in 12 months.

In the last 6 months we have seen supply shortages, as well logistic and input cost going up significantly. This puts pressure in margins and additional working capital needs to continue the growth seen in Q1. To mitigate we have decided to: (i) NOT to continue expanding the distribution of RTD for now, and (ii) accelerate the launch of the REJOY powder online.

In the next 3- 6 months we expect revenues of at 10-15k/month. At the same time we are reducing fix costs from 25k to 15k/month. And we accelerated the development and launching the new line extension (REJOY Powder Mix) on line. This line is expected to be less capital intensive (smaller batches and on line sales) and with healthier margins (+20%) from the start. $50k is needed to be revenue generating with the Powder.

The RTD/can business is not profitable yet. And with the input cost increases it might take longer than expected (18 months, reaching 1M revenue scale and a capital need of approx. $750k). With the launch of REJOY Powder Mixes we expect to be profitable in 8 months (at a much smaller scale), when reaching revenue of $100k/month. This also implies that to reduce fixed costs and working capital needs we will slow down the growth can/RTD business and go full throttle into the Powder business. 

Additional to cash in bank ($55k), we have another $50k in inventories, and if needed we will do members contributions to cover short-term burn throughout the campaign.