Roombus

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 build beautiful, intelligent and affordable homes in a factory. Our first product is a Smart House is called Nest.
We want to set the pace and lead the smart housing market. This means continually imagining the future of housing and constantly executing on our vision.

In 5 years, we believe that smart home automation will be a must-have for single and multi-family dwellings. Most housing developers do not have capacity to build and manage their own automation software. We plan to scale our home automation system (RoomOS) for licensing as a subscription service to real estate developers across the world. These projections are not guaranteed.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

Roombus, Inc was incorporated in the State of Delaware in June 2019.

Since then, we have:

• 🔥 Strong early demand for our smart houses across the US 🔥
• Highly experienced leadership team with multiple successful businesses and exits
• Desirable product with established market fit. People absolutely LOVE our smart houses! ❤️
• Potential for substantial ARR from our upcoming subscription model. ✨📈
• Disaster-proof smart house that survives storms and performs exceptionally well from coast to coast
• A multi-model business that caters to home buyers, renters and various hybrid models in-between
• Potential future play in renewable energy with our High-Density Energy Storage batteries

Historical Results of Operations

Our company was organized in June 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $0.
• Assets. As of December 31, 2019, the Company had total assets of $95, including $95 in cash.
• Net Loss. The Company has had net losses of $1,877 for 2019.
• Liabilities. The Company's liabilities totaled $0 for 2019.

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 $100,000 in equity.

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

Roombus, Inc cash in hand is $1,400, as of December 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $800/month, for an average burn rate of $800 per month. Our intent is to be profitable in 12 months.

In 2018 and prior to incorporation, we invested $100K into the concept and spent it on working with architects and structural engineers, and building our first pre-production prototype.

Since the date our financials cover, we issued 100K more shares of Common stock. All 5 of our current FT employees are also working without compensation. Otherwise, no material changes or trends have occurred in our finances.

For timeline, we’re looking to complete building the alpha unit by February '21 and start selling by March. Our planned parallel production run can meet 20 units per month, so we’re conservatively targeting selling between 5-10 units each month at $90k each. This equates to about $1.35m — $2.7m for the next 3 months ranging March — June ’21. Based on current demand, 5-10 units a month is highly conservative.

Our expected (but not guaranteed) revenue in 6 months is around $2M with accompanying expenses of about $750k. We need to raise $1M in order to achieve these projections. With $100K, we can begin the production prototype and conduct our roadshow, in which we show our product to potential customers around the country and generate leads.

If we are unable to raise the target $1M through Wefunder, we plan to reach out to angel investors to source the rest. We also have $300K committed from a single investor that is expected to close on Dec. 31, 2020, though not guaranteed. The founding team has committed to personally source necessary capital (if needed) to meet our minimum funding requirement.