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


Real-time conversation at the speed of culture. The Company is a social media platform that uses AI and blockchain technology to curb hate speech aimed at historically marginalized communities and monetizes through advertising and consumer insights reports for major brands. The Company’s headquarters is in CA and is only qualified to do business in CA. The Company’s users are around the world.

Milestones

Real Spill Corporation was incorporated in the State of Delaware in January 2023.

Since then, we have:

• Raised over $6M from early stage VCs (including, MaC VC, Kapor, Collide, Greylock, Bessemer)
• Hit #1 in the Apple App Store within 3 weeks of beta launch in July '23 with over 500,000 downloads to date
• Early advertising customers include Paramount+, CBS, Showtime, Sony Pictures, Amazon Prime & more
• Major press coverage includes CNN, Time, TechCrunch, Essence, AfroTech and Inc Mag Cover (Nov 2024)
• Named Apple's App of the Day (Feb 2024) and one of Fast Company's Most Innovative Companies of 2024
• Q4 2024 was strongest growth and revenue month since launch, projecting 200% YoY increase in revenue in 2025 (not guaranteed)

Historical Results of Operations

Our company was incorporated in January 2023 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2024, the Company had revenues of $235,557 compared to the year ended December 31, 2023, when the Company had revenues of $0. Our gross margin was 96.2% in fiscal year 2024.
• Assets. As of December 31, 2024, the Company had total assets of $592,662, including $449,866 in cash. As of December 31, 2023, the Company had $2,584,927 in total assets, including $2,439,995 in cash.
• Net Loss. The Company has had net losses of $2,253,533 and net losses of $2,487,526 for the fiscal years ended December 31, 2024 and December 31, 2023, respectively.
• Liabilities. The Company's liabilities totaled $21,520 for the fiscal year ended December 31, 2024 and $27,363 for the fiscal year ended December 31, 2023.

Liquidity & Capital Resources

To-date, the Company has been financed with $5,287,500 in SAFE and $10,540 in debt.

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. 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

Real Spill Corporation cash in hand as of Feb 28, 2025, cash on hand is $697,988.66. Over the last three months, revenues have averaged approximately $50,000/month, cost of goods sold has averaged approximately $0/month, and operational expenses have averaged approximately $180,000/month, for an average approximate burn rate of $130,000 per month.
Since the date of our financials, we have reduced our burn rate.

We’ve contracted for $400K in revenue in Q1 and Q2 of 2025. We expect to incur approximately $900K in expenses during that same period.

We are not yet profitable. Besides this Wefunder offering, we could potentially solicit angels and institutional investors for additional sources of capital if necessary.

All projections in the above narrative are forward-looking and not guaranteed.