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

The Company earns revenue using a SaaS platform that leverages proprietary peer-to-peer networking and file streaming technology to enable remote creative teams to share & transfer video files.

Milestones

Strada Media Incorporated was incorporated in the State of Delaware in June 2023.

Since then, we have:

• Proven Team: Serial Entrepreneurs and executives from Adobe, Netflix, Panavision and more.
• Huge Market: $76B video editing community poised for adoption
• Defensibility: Patent Pending Technology
• Traction: 400+ MAU within first 3 months of launch
• 3rd party Validation: Winner of multiple Product of the Year awards
• Technology Disruptor: potential to change the entire landscape of cloud storage and access
• Founders invested $1.2M personal capital—skin in the game

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company's limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

Historical Results of Operations

Our company was incorporated in June 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 $720 compared to the year ended December 31, 2023, when the Company had revenues of $0.
• Assets. As of December 31, 2024, the Company had total assets of $366,762, including $288,001 in cash. As of December 31, 2023, the Company had $1,497,253 in total assets, including $1,439,290 in cash.
• Net Loss. The Company has had net losses of $2,558,291 and net losses of $432,821 for the fiscal years ended December 31, 2024 and December 31, 2023, respectively.
• Liabilities. The Company's liabilities totaled $82,391 for the fiscal year ended December 31, 2024 and $729,576 for the fiscal year ended December 31, 2023.

Related Party Transaction

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

Liquidity & Capital Resources

To-date, the company has been financed with $340,000 in debt, $2,950,490 in equity, $1,465,000 in convertibles, and $725,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 4 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 4 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

Strada Media Incorporated cash in hand and equivalents is $681,000, as of January 2026. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $154,700/month, for an average burn rate of $154,700 per month. Our intent is to be profitable in 18 months.

In 2025 the company began to raise additional capital via a Convertible Note. To-date the company has received $1,465,000 in funding and continues to seek additional investors. The company required an additional $340,000 cash infusion from the company's founders, which is currently structured as a loan on the company's balance sheet. The company initially launched its Agent software in April 2025 for customers to download at the NAB Convention in Las Vegas. Since then, 7,000 users created Strada accounts and ~70% downloaded / activated the Agent software. The software emerged from beta in September 2025. Today, customers who create a Strada account receive a 7day free trial, at which point they choose from one of the company's subscription plans. The Company currently has 100 paid subscribers, who have purchased a combination of monthly and annual subscriptions. 

Over the next 6 months, we anticipate receiving $300,000 - $500,000 in cash, through a combination of subscription revenue and advances on annual subscriptions. During the same timeframe, we estimate cash expenses to exceed $1.5M in aggregate. 

The Company is not currently profitable, as we only started charging customers for the software in late September 2025. Our current monthly expenses exceed $150,000, of which 70%+ comprises payroll & related. Based on the current average revenue per user ("ARPU") of our customers ($21.65), we would require ~6,900 monthly paid subscribers to fully offset our monthly expenses. While we have plans to accelerate our paid account growth rate as well as our ARPU, it will take numerous months for our monthly revenue to exceed our expenses. It is unlikely we will be profitable in 2026, although our monthly "net burn" (measured as monthly revenue less monthly expenses) will continue to decline. 

In addition to raising money via WeFunder, we continue to solicit investments from high net worth investors as well as from strategic partners. To-date we have raised $3.940M from outside investors. We also intend to manage near-term cashflow through bulk license subscriptions & pre-payments. As Strada gains more industry recognition, and as more product features come online, Strada will see an uptick in subscription revenue. 

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