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 own and operate a successful Ben & Jerry's Ice Cream franchise on the Venice Beach Boardwalk, the most popular beach in the world, with over 15 million annual visitors. We are now opening a brand new Hot Dog concept right next to our Ben & Jerry's. It will be a unique concept created especially for our Venice Beach location and will be the only Nathan's serving both beef and vegan dogs, and featuring custom premium toppings.

We want to be the 'go to' spot for a fast, affordable, and quality bite to eat on the Venice Boardwalk. Our goal is to operate the most popular Hot Dog Place in California offering the most delicious Nathan's beef dogs and locally sourced vegan dogs. With our perfect location and our extensive franchising experience, we are confident we can achieve these goals over the next 5 years. 

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

Milestones

Surf Dog Inc. was incorporated in the State of Nevada in November 2018.

Since then, we have:

• Founders have taken two companies public and have a very strong track record.
• Founders own and operate the Ben & Jerry's Ice Cream Franchise on the Venice Beach Boardwalk funded on wefunder!
• There are few well known brands on the Boardwalk that serve quaility food at affordable prices.
• Nathan's Hot Dogs are the original Boardwalk Hot Dog, founded over 100 years ago on Coney Island!
• Offering locally sourced vegan hotdogs (that means there will be something for everyone!).
• Over 15 million people visit Venice Beach each year... most of them hungry and with kids! 
• Brand new concept! Offering both Nathan's original Beef Dogs and locally sourced Vegan Dogs. We also plan to offer a variety of exclusive premium toppings

Historical Results of Operations

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

• Revenues & Gross Margin. For the period ended November 30, 2018, the Company had revenues of $0.
• Assets. As of November 30, 2018, the Company had total assets of $0, including $0 in cash.
• Net Income. The Company has had net income of $0 for 2018.
• Liabilities. The Company's liabilities totaled $505 for 2018.

Related Party Transaction

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

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. We plan to raise capital in 48 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

Surf Dog Inc. cash in hand is $0, as of December 2018. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $500/month, for an average burn rate of $500 per month. Our intent is to be profitable in 6 months.

The company was formed on November 8, 2018 and has not conducted any operations to date.  There have been no material changes from the date of the financial statements.

We anticipate opening the shop in January 2019 with the existing space configuration.  This should result in revenue and expenses to the extent that we are successful in attracting customers during the winter months.  We have two directors who have agreed to loan funds to the company should there be a shortfall not covered by our equity sale.

While we cannot guarantee it, we predict that our monthly burn rate once open will be $30,000, but we anticipate that we will break even in month three of operations. Burn rate would then be $0.