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

We produce and bottle Ron Artesano, a premium handmade rum brand crafted in the mountains of Puerto Rico, the Rum Capital of the World.
In 5 years, we hope to be selling Ron Artesano in Puerto Rico, Spain, Germany, Croatia, France and USA.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

Artesano Rum Corporation was incorporated in the State of in June 2020.

Since then, we have:

• Our rum is made by hand by one of the most respected experts in the world of rum, Mr. Javier Herrera
• Intended International distribution: Caribbean, Europe & USA by Q4 2021 (year 1).
• Lean business model should allow profits from year #1 (not guaranteed).
• Artesano is created in Puerto Rico, the Rum Capital of the World.
• A federal law called "Rum Cover Over" returns part of the tax paid to sell in the USA to rum makers
• 51% employee-owned. Now, we will be opening our ownership to our fans worldwide.

Historical Results of Operations

Our company was organized in June 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended June 30, 2020, the Company had revenues of $0.
• Assets. As of June 30, 2020, the Company had total assets of $0, including $0 in cash.
• Net Income. The Company has had net income of $0 for 2020.
• Liabilities. The Company's liabilities totaled $0 for 2020.

Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

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. We plan to raise capital in 12 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

Artesano Rum Corporation cash in hand is $0, as of June 2020. 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 24 months.

We currently do not have any material changes as the company is recently formed and has no transactions to report YTD. 

As we have start up costs, including legal costs, supply and marketing costs. These can vary from $10,000 - $100,000. Depending on available capital, we can expect revenues during the initial 6 months to vary between $50,000-$150,000. We hope to generate revenues by end of 2020. We believe we'll need $50,000 in capital to get to that point. These projections cannot be guaranteed.

For additional capital outside of this offering, we are in conversation with potential equity partners including private equity firms along with personal contributions from founders.