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 commercial space telescope for astronomy and Earth observation. This satellite will generate significant revenue as soon as it is launched, addressing both the astronomical and Earth observation markets. We plan to build and launch many more satellites for these markets as well as other markets.

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 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:

• 2017 Q1, we have completed the architectural design for an advanced space telescope systemthat will address the astronomy and high-resolution Earth observation markets.
• 2017 Q3, we released our final optical plan to our telescope optics manufacturing partner.
• 2017 Q4, we finished the design of our secondary mirror deployer.  This deployer design is the key to making our space telescopes smaller and less costly than the competition. 
• 2018 Q1, we exhibited our model satellite at the biggest astronomy conference in the world, promoted our future space telescope services, and received valuable market feedback from researchers at NASA, MIT, and many other institutions. There was great interest in using our space telescope for monitoring exoplanets, supernovae, eclipsing binary stars, and many other objects.

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, 2017, the Company had revenues of $0 compared to the year ended December 31, 2016, when the Company had revenues of $0. Our gross margin was % in fiscal year 2017, compared to % in 2016.
• Assets. As of December 31, 2017, the Company had total assets of $1,328, including $1,328 in cash. As of December 31, 2016, the Company had $3,152 in total assets, including $3,152 in cash.
• Net Loss. The Company has had net losses of $17,743 and net income of $14,497 for the fiscal years ended December 31, 2017 and December 31, 2016, respectively.
• Liabilities. The Company's liabilities totaled $15,918 for the fiscal year ended December 31, 2017 and $17,609 for the fiscal year ended December 31, 2016.

Liquidity & Capital Resources



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. 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 $843.87, as of April 2018. Over the last three months, revenues have averaged $47/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,500/month, for an average burn rate of $1,453 per month. Our intent is to be profitable in 30 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 after 2020, when our satellite is in orbit.

We should have investment of approximately $155,000 by end of April 2017. This will allow us to purchase equipment and hire summer interns. We expect our expenses to increase to an average of 15,000 per month over the next 3 to 6 months.  We also expect to sell an additional $15,000 of space selfies over the next 3 to 6 months. 

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