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 smart waste and recycling bins and robots that make waste and recycling collection autonomous.

Within the next 5 years our company plans to lease over 2,500 robots ($5M MRR) to 375 customers and have sold more than 50,000 smart waste and recycling bins ($13M smart bin sales). Forward-looking projections cannot be 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

Lidbot, inc. was incorporated in the State of Delaware in January 2020.

Since then, we have:

• ⭐️ Techstars Portfolio Company ⭐️
• 🥇 Award Winning Team - $1.6M raised on Kickstarter for previous robotics startup 🥇
• 🇺🇸 Patent Pending in US + Canada 🇨🇦
• ♻ Smart bin technology piloted by Google HQ ♻
• 🤖 CTO has shipped over 12,000 robots at previous startup Scribit 🤖
• 👩🏼‍🎨 Experienced design team who has worked on multi-million dollar projects 👨🏼‍🎨

Historical Results of Operations

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

• Revenues & Gross Margin. For the period ended December 31, 2020, the Company had revenues of $11,096.
• Assets. As of December 31, 2020, the Company had total assets of $14,763, including $14,763 in cash.
• Net Loss. The Company has had net losses of $27,716 for the fiscal year ended December 31, 2020.
• Liabilities. The Company's liabilities totaled $60,000 for the fiscal year ended December 31, 2020.

Liquidity & Capital Resources

To-date, the company has been financed with $165,000 in SAFEs.

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 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

Lidbot, inc. cash in hand is $65,000, as of January 2022. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $3,500/month, for an average burn rate of $3,500 per month. Our intent is to be profitable in 36 months.

Since the date or financials cover, we have mainly been funding our pilots which have been conducted with several customers over the last few months. We also spent around $10,000 on developing our analytics platform.

We will need $1M USD to build a commercially viable robot to begin generating revenue - we believe we can accomplish this by November 2022. We plan to fundraise for this purpose when we complete our MVP and are able to demonstrate its capabilities. We estimate $125,000 in expenses total over the next 6 months.

At this point in time while we are building our products we are not yet profitable. We expect to sell our first 100 robots by the 36 month mark. This would generate $1.5M in sales and $2.46M in annual reoccurring revenues. Being a hardware business, we plan to take most of our profits to scale up production and be able to achieve better economies of scale. Over the next 24 months, we will plan an expansion plan for other geographies around the world.

We are a Techstars backed startup which has raised a total of $160,000 to date. We have been using these funds to support our growth and development of our 2 hardware products and analytics software. Currently we have around 6 months of runway left on our business if we are not able to secure any more funding. 

Any projections in the above narrative are forward-looking and cannot be guaranteed.