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 are designing and building the first multi-purpose commercial space telescope for Earth observation, Space Situational Awareness, and astronomy. This satellite will generate significant revenue as soon as it is launched, addressing three different markets. We plan to build and launch a constellation of these first generation imaging satellites, which will have a ground resolution of 1 meter.

We want to be the largest provider of on-demand space telescope services so that everyone can afford access to powerful multi-purpose space telescopes for personal, educational, and commercial use. 

We also plan to have a constellation of second generation imaging satellites which will have a ground resolution of 31 cm, matching the highest resolution imaging satellites available today.  Both generations of our satellites should be substantially less expensive to build and launch than the equivalent satellites currently on the market. 

We will leverage our space telescope technologies to extend into asteroid mining and exponential space manufacturing. Exponential space manufacturing may make it less expensive to manufacture in space than to manufacture on the Earth, revolutionizing how we build and what we build for space.

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

Milestones

SpaceFab.US, Inc. was incorporated in the State of Delaware in January 2016.

Since then, we have:

• We have designed an advanced space telescope system that is immediately commercially viable and can be the first in a constellation of space telescopes for astronomy, space situational awareness, and high-resolution Earth observation.
• We have patent pending technology for an ion engine accelerator that multiplies ion engine thrust and efficiency.
• We’re working with corporate partners to design and build critical optical and mechanical components.

Historical Results of Operations

Our company was organized in January 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $250 compared to the year ended December 31, 2017, when the Company had revenues of $0. Our gross margin was 100% in fiscal year 2018, compared to NA% in 2017.
• Assets. As of December 31, 2018, the Company had total assets of $101,744, including $97,516 in cash. As of December 31, 2017, the Company had $1,328 in total assets, including $1,328 in cash.
• Net Loss. The Company has had net losses of $56,147 and net losses of $17,743 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
• Liabilities. The Company's liabilities totaled $189,190 for the fiscal year ended December 31, 2018 and $15,918 for the fiscal year ended December 31, 2017.

Liquidity & Capital Resources

After the conclusion of this Offering, ur 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. 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

SpaceFab.US, Inc. cash in hand is $69,146.93, as of April 2019. Over the last three months, revenues have averaged $9/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $5,000/month, for an average burn rate of $4,991 per month. Our intent is to be profitable in 40 months.

We have just started selling a limited number space selfie photographs, which will continue for the next several years. The space selfies will be delivered some time in 2021, when our satellite is in orbit.

In 2017, we purchased equipment and hired summer interns to do development work on our satellite. The average expense was about $7,000 per month over the eight months of 2017.  We expect our 2019 expenses to drop to $5,000 per month until we raise additional funds.

We expect to sell a small amount of space selfies in 2019. 

Officer will loan funds to corporation when needed in order to continue operations until Series A round closes.