Tally Kids

Nutritious plant-based milk and toddler formula for kids!

Last Funded September 2023

$70,850

raised from 49 investors

Financials

We have financial statements ending December 31, 2022. Our cash in hand is $11,336, as of May 2023. Over the three months prior, revenues averaged $275/month, cost of goods sold has averaged $200/month, and operational expenses have averaged $8,714/month.

At a Glance

Aug 18 – Dec 31, 2022
$0
Revenue
-$47,568
Net Loss
$136,371
Short-Term Debt
$112,845
Raised in 2022
$11,336
Cash on Hand
Net Margin:
0%
Gross Margin:
0%
Return on Assets:
-44%
Earnings per Share:
-$0.01
Revenue per Employee:
$0
Cash to Assets:
35%
Revenue to Receivables:
~
Debt Ratio:
144%
Tally Foods Financials and CPA Review Report 2021 and 2022 55 .pdf

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

Nutritious plant-based milk and toddler formula for kids!

Milestones

Tally Foods Inc. was incorporated in the State of Delaware in August 2022.

Since then, we have:

- Market Opportunity: Expand $3B Plant-Based Milk Market to the densest milk consumers: KIDS!

- Team: A Nutritional Biochemist, CEO, and President who are experienced plant-based operators.

- Sales Traction: First purchase orders totaling $28,478 shipped early May 2023.

- First Customers: Dozens of stores through UNFI and KeHE (food distributors)

- Innovation: Launching Tally Organic Oatmilk Toddler Formula (powder) July 2023 with great margins.

- Press: Featured in BevNet and Vegconomist. Search "Tally Kids BevNet" and "Tally Kids Vegconomist"

- Awareness: 300+ following on e-mail list and @drink_tally on Instagram

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 organized in August 2022 and has limited operations upon which prospective investors may base an evaluation of its performance.

  • Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $0.
  • Assets. As of December 31, 2022, the Company had total assets of $108,883, including $38,469 in cash.
  • Net Loss. The Company has had net losses of $47,568 for 2022.
  • Liabilities. The Company's liabilities totaled $156,371 for 2022.

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 $117,845 in debt and $45,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 8 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 8 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

Tally Foods Inc. cash in hand is $11,336.51, as of May 2023. Over the last three months, revenues have averaged $275.31/month, cost of goods sold has averaged $200/month, and operational expenses have averaged $8,714/month, for an average burn rate of $8,638.69 per month. Our intent is to be profitable in 12 months.

The Company has evaluated events subsequent to December 31, 2022, to assess the need for potential recognition or disclosure in this report. Such events were evaluated through May 2, 2023, the date these financial statements were available to be issued. The company issued $25,000 in promissory notes at 10% interest for 6-month term due in 2023. The company issued a $15,000 SAFE Note at $10M company valuation with 20% discount to Kari Watts and Seth VanHeukelom.

Revenue expected is $60,000 over next 3 months, and $120,000 over next 6 months. Expenses expected at $200,000 over next 6 months primarily driven by the next production of 32oz Tetra Tally Kids Milk and new 22oz Organic Oatmilk Toddler Formula. 

We are not profitable until we can fund our production runs with profits from the business, which we expect to occur in 2026 at $25M in annual revenue. 

In terms of other capital we can rely on, we have $89,000 in Promissory Notes with a 10% borrower fee. $45,000 in SAFE Notes at a $10M company valuation with 20% discount rate. For a total of $134,000 in capital raised.  We also have $28,748.40 in accounts receivable in May.

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

Risks

1

Limited Operating History

The Company is an early-stage company. Accordingly, the Company’s operations are subject to all the risks inherent in the establishment of a new business enterprise, including potential operating losses. Any investment in the Company must be considered in light of the risks, expenses and difficulties frequently encountered by companies in an early stage of development in new and rapidly evolving markets. These risks include the Company's substantial dependence on acceptance into a highly competitive marketplace surrounded by better funded and more established companies, our need to conduct product development, and our need to expand our sales and support organizations, respond to competition, manage changing operations, develop strategic relationships, control costs and expenses, maintain and enhance our brand, expand our product and service offerings, improve function and benefits, attract, integrate, retain and motivate qualified personnel, and rely upon acceptance and growth in our targeted markets. In addition to being subject to all of the risks associated with the creation of a new business, the Company will be subject to factors affecting business generally, such as general economic conditions, increasing government regulatory activity, scarcity of environmental resources, and competition. The Company believes that the estimates prepared by them as to capital, personnel, equipment and facilities required for their operations are reasonable, but until their operations have continued for a period of time, it will be impossible to determine the accuracy of such estimates. No assurance can be given as to the ultimate success of the Company. The likelihood of the success of the Company must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with the formation of a new business.

2

Highly Competitive Market

We face competition with respect to our key products that we seek to develop or commercialize in the future. Our competitors to our plant-based milk and toddler formula for kids include major companies worldwide, including Danone North America, Nestle, Oatly, HP Hood, Chobani and others. Many of our competitors have significantly greater financial, technical and human resources. These competitors may also in the future compete with us in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, our competitors may commercialize products more rapidly or effectively than we are able to, which would adversely affect our competitive position, the likelihood that our products will achieve initial market acceptance and our ability to generate meaningful additional revenues from our products.

3

Highly Competitive Market

The organic and natural food and products industry is highly competitive. We can provide no assurance that our current or potential competitors will not provide products or services comparable or superior to those provided by us or adapt more quickly than we do to evolving industry or market trends. Increased competition may result in price reductions, reduced gross margins and loss of market share, any of which would materially and adversely affect our business, prospects, financial condition or results of operations. We cannot assure investors that we will be able to compete effectively against current and future competitors.


Other Disclosures

The Board of Directors

Director Occupation Joined
Kyle Watts CEO @ Tally Foods Inc. 2022
John Gabayzadeh President @ Tally Foods Inc. 2022

Officers

Officer Title Joined
Kyle Watts CEO 2022
John Gabayzadeh President 2022

Voting Power

Holder Securities Held Power
Kyle Watts 4,000,000 Common Stock 50.0%
John Gabayzadeh 4,000,000 Common Stock 50.0%

Past Fundraises

Date Security Amount
SAFE $100
3/2023 Loan $2,000
3/2023 SAFE $15,000
2/2023 Loan $5,000
1/2023 Loan $5,000
1/2023 SAFE $10,000
1/2023 Loan $1,000
1/2023 Loan $5,000
1/2023 Loan $5,000
1/2023 Loan $2,000
12/2022 Loan $28,845
12/2022 Loan $2,000
12/2022 Loan $10,000
11/2022 Loan $2,000
11/2022 Loan $10,000
11/2022 Loan $2,000
11/2022 Loan $2,500
11/2022 Loan $5,000
11/2022 Loan $5,000
11/2022 Loan $2,000
11/2022 Loan $2,000
11/2022 Loan $3,500
11/2022 Loan $10,000
11/2022 Loan $4,000
11/2022 Loan $1,000
11/2022 Loan $3,000
10/2022 SAFE $20,000

Outstanding Debts

Issued Lender Outstanding
11/16/22 Dan Adams
$3,000
11/16/22 Brad Wollner
$1,000
11/17/22 Matthew Bender
$3,500
11/17/22 Michael Haslett
$4,000
11/17/22 Drew Rauch
$10,000
11/18/22 Kyle McMahon
$2,000
11/18/22 Daniel Macke
$5,000
11/18/22 Scott Pusateri
$2,000
11/21/22 Joseph Powell
$5,000
11/23/22 Jared Perry
$2,000
11/23/22 Michael Reis
$2,000
11/23/22 Kelsey Malaika
$10,000
11/23/22 Cody Crutchley
$2,500
12/7/22 Robert Maefs
$11,000
12/15/22 Andrew Bott
$2,200
12/31/22 Kyle Watts and Jon Gabayzadeh
$0
1/6/23 Eric Barnitz
$5,500
1/6/23 Keri Felton
$2,200
1/8/23 Brad Hannah
$5,500
1/14/23 Scott Pusateri
$1,100
1/28/23 Brad Hannah
$5,500
2/5/23 Steve Teraikian
$5,500
3/28/23 Cody Crutchley
$2,200

Related Party Transactions

Use of Funds

$50,000 Fully funds the trial production run of Tally Organic Oatmilk Toddler Formula; producing 350 sample units to present to retailers nationwide. Inclusive of 7.5% WeFunder fee.

$300,000 Fully funds the large scale production run of Tally Kids 32oz Chickpea Milk to produce 14,000 cases for immediate retail distribution in addition to the trial production run of Tally Organic Oatmilk Toddler Formula. Inclusive of 7.5% WeFunder fee.

$600,000 Fully funds the large scale production run of Tally Kids 32oz Chickpea Milk to produce 14,000 cases for immediate retail distribution and the trial production run of Tally Organic Oatmilk Toddler Formula, plus allows for marketing support of the current retail distribution of Tally Kids 32oz Chickpea Milk and partially funds a scaled production run of Tally Organic Oatmilk Toddler Formula for Q3 2023. Inclusive of 7.5% WeFunder fee.

$800,000 Fully funds scaled production runs for all Tally products and provides an additional 6 months runway for the company to operate, pursue and support key accounts and gain retail distribution. Inclusive of 7.5% WeFunder fee.

Capital Structure

Class of Security Securities (or Amount) Authorized Securities (or Amount) Outstanding
Common Stock 10,000,000 8,000,000

Form C Filing on EDGAR

The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.

Details