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

Private space companies don't have the billion-dollar infrastructure of NASA. As a result, the commercial space industry lacks a simple space-to-ground communications solution. As an internet service company providing the first-ever commercial Wi-Fi for these companies, we connect space to earth through patent-pending satellite technology. By making cosmic communication easy, we're doing our part to make commercial space travel safer, easier, and more feasible.

With one spaceflight down in 2018 and one more to go, plus a contract with NASA to put a router on the International Space Station, our ambition is to be a part of every commercial space flight in the future. This will make communication, experiments, and travel easier. By proving our effectiveness to multiple commercial space companies, we'll build Solstar into an internationally recognized brand that will be a very attractive acquisition target for the rapidly-growing private space race.

Milestones

Solstar Space Company. was incorporated in the State of Delaware in March 2017.

Since then, we have:

• Provided the first commercial Wi-Fi in history on Jeff Bezos' Blue Origin's New Shepard rocket.
• Only FCC cleared solution for commercial internet and Wi-Fi in space.
• Signed a Space Act Agreement with NASA to test our internet and wi-fi technologies in space, including developing a preliminary design for a commercial space router for the International Space Station.
• Founder has 30+ years of experience in the commercial space industry, including decades at NASA.
• Patent pending on our technology.
• We have established business relationships with all the main commercial rocket developers.

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, 2017, the Company had revenues of $0.
• Assets. As of December 31, 2017, the Company had total assets of $6,917, including $47 in cash.
• Net Loss. The Company has had net losses of $13,755 for 2017.
• Liabilities. The Company's liabilties totaled $14,672 for 2017.

Liquidity & Capital Resources

To-date, the company has been financed with $46,000 in equity and $10,000 in convertibles.

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

Solstar Space Company. cash in hand is $4,000, as of April 2018. Over the last three months, revenues have averaged $1,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $500/month, for an average net margin of $500 per month. Our intent is to be profitable in 24 months, as we expect both revenues and expenses to increase as we ramp up operations and execute on the contracts that we have, and that we are in the process of securing.

There have been no changes or trends in our finances or operations that have occurred since the date that our financials cover.  

We expect to have some revenues in the form of state or federal grants,  including in-kind engineering services (non-revenue), during the next 3-6 months.  There is a possibility of revenues from contracts with government agencies such as NASA and the DOD, which is how we hope to be profitable in 24 months.  There is a possibility to achieve revenues from international contracts. 

To date, the company has been financed by friends and family contributions as personal loans to the founder, as well as through an equity fundraise.  The company has also received in-kind engineering services from Los Alamos National Laboratory, and IP from a SolStar Energy Devices LLC, a company owned wholly by the founder of Solstar Space Company.  The company plans to raise more capital in up to 12 months, in a larger round of funding from strategic partners.  These conversations are already underway, as many of these strategic partners are already business partners.