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

Albi is a smart personal assistant — freeing your teams to be creative and engaged in meetings by removing the tedious task of capturing and summarizing meeting notes. Using advanced natural language processing and artificial intelligence, Albi never misses an important moment, allowing you and your team to focus, create, and deliver.
We want every person at every company to have their oven version of Albi. We see Albi joining millions of meetings a day and helping people discover insights about themselves that make them a better co-worker. We want the name Albi to be synonymous with productivity software like Zoom, Slack and Microsoft Teams.

Milestones

Speak Technologies Inc. was incorporated in the State of Oregon in July 2018.

Since then, we have:

• 30+ beta customers including. Nike, Verizon, J.P. Morgan Chase, etc.
• Co-founders worked at startups with exits to Oracle, Cisco, TransUnion.
• Integrated with (Google Calendar, Google Hangouts and Zoom)
• We have 55M meetings daily — but note-taking remains manual, inefficient.
• Infrastructure Support by Google Cloud

Historical Results of Operations

Our company was organized in July 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $0 compared to the year ended December 31, 2018, when the Company had revenues of $0. Our gross margin was % in fiscal year 2019, compared to % in 2018.
• Assets. As of December 31, 2019, the Company had total assets of $70,064, including $70,064 in cash. As of December 31, 2018, the Company had $27,650 in total assets, including $27,650 in cash.
• Net Loss. The Company has had net losses of $58,586 and net losses of $24,320 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $0 for the fiscal year ended December 31, 2019 and $0 for the fiscal year ended December 31, 2018.

Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

Liquidity & Capital Resources

To date, we have been financed with $150,000 of contributed capital from the founders.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 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

Speak Technologies Inc. cash in hand is $30,653, as of April 2020. Over the last three months, revenues have averaged $1,100/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $7,000/month, for an average burn rate of $5,900 per month. Our intent is to be profitable in 3 months.

We've been signing up customers and are beginning to get revenue.  We have a customer pipeline of over 30+ accounts where 1 enterprise deal with any could move us to revenue positive.

Beyond additional customer revenue, we have additional interested angel investors who plan to participate.  We expect expenses will increase as we expand engineering and sales. Six months following the raise, we expect (although cannot guarantee) to have 20k-25k of monthly revenues, and for expenses to stay within 15-20% of revenue until we've proven our CAC.