Invest in Sircles

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

The Social Recommendations App Designed To Destroy Yelp! Sircles is a social media company which operates a mobile networking application.

Milestones

Sircles Media, Inc. (the “Company") is a corporation organized on February 12, 2018 under the laws of Delaware. The Company was originally formed under the name Social Circle LLC as a Delaware limited liability company. On December 15, 2019, the Company converted from a Delaware limited liability company to a Delaware corporation and changed its name from Social Circle LLC to Sircles Media, Inc.Since then, we have:

• Raised over $6M in rapid succession.
• Amazon AWS Activate, $100,000 recipient from Nvidia Inception accelerator.
• Over $100k in revenue in 2024
• Over 30,000 unique small businesses have been Favorited on Sircles
• 75,000 + Check in's on Sircles
• #1 Trending App on Kickstarter on launch day.
• March 2024' Kingscrowd staff pick

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2024, the Company had revenues of $106,513 compared to the year ended December 31, 2023, when the Company had revenues of $0. Our gross margin was 49.59% in fiscal year 2024
• Assets. As of December 31, 2024, the Company had total assets of $867,828, including $760,102 in cash. As of December 31, 2023, the Company had $599,405 in total assets, including $472,547 in cash.
• Net Loss. The Company has had net losses of $2,144,615 and net losses of $1,292,781 for the fiscal years ended December 31, 2024 and December 31, 2023, respectively.
• Liabilities. The Company's liabilities totaled $6,815,924 for the fiscal year ended December 31, 2024 and $4,481,770 for the fiscal year ended December 31, 2023. The Company's total liabilities includes SAFEs which account for $6,667,139 of the liabilities for 2024 and $4,362,375 for 2023. 

Liquidity & Capital Resources

To-date, the company has been financed with $75,000 in debt, $318,000 in equity, $327,000 in convertibles, and $6,667,139 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 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 1 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

Sircles Media Inc. cash in hand is $351,740, as of April 2025. Over the last three months, revenues have averaged $9,444/month, cost of goods sold has averaged $5,163/month, and operational expenses have averaged $136,021/month, for an average burn rate of $131,740 per month.

Since the date our financials cover, the Company increased the shares for issuance under its 2021 Stock Incentive plan to an aggregate of 6,000,000 Class B common shares. The Company granted a total of 250,000 stock options to purchase shares of its Class B Common Stock under the 2021 Stock Incentive Plan in connection with services performed for the Company. All 250,000 stock options were fully vested in January 2025.

We expect revenues to average $9,000-$11,000 in the next 3-6 months. Expenses are expected to be $140,000-$180,000 per month for the next six months.

At this early stage we are prioritizing user growth, retention, and engagement as the most important metrics to build value. As we focus on our prioritized metrics, we expect spending to outpace revenue for the foreseeable future. We anticipate this strategy leading to the Company getting acquired by another company, or going public before achieving profitability. Other companies in the social media space have adopted this strategy, such as Snapchat, which didn’t turn their first profit until 2017 well after going public. Such is the nature of our industry, among others where early stage growth of new product offerings precede profitability. We have implemented a monetization strategy through the sale of business subscriptions and merchandise, though we are focused on growth and not pursuing profitability at this time. Our best guess is that with $10-20M in funding we might choose to pursue profitability in 36-48 months, but that is just an estimate and is likely to change.

We anticipate continuing to raise capital through additional equity crowdfunding rounds, private equity, or venture capital funding, particularly if Sircles demonstrates significant exit potential. Short-term burn during the campaign will be covered by existing cash reserves and revenue.

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