teleCalm

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

teleCalm stops problem calls for families living with Alzheimer’s & other cognitive challenges. Our landline and cell phone service empowers families to stop unwanted incoming/outgoing calls, including late-night calls, repeated calls, 911 abuse, and deliberate/targeted fraud.

By 2025, teleCalm's goal is to be the recognized leader in safe phone service, both on cell phones and landlines, for the estimated 34 million Americans living with Alzheimer's, dementia, Autism Spectrum, and other cognitive challenges.

Milestones

teleCalm, Inc. was incorporated in the State of Delaware in January 2016.

Since then, we have:

• Proven solution serving over 4.1M phone calls from over 1500 subscribers across 48 states
• Revenue-generating with over $580K in annual recurring revenue
• $12.4 Billion market with +34 Million potential subscribers in the US alone
• Intellectual property protected by 2 US patents and international patents in the UK and Germany
• Raised over $740K in previous rounds from private investors and won $100K award from MassChallenge Texas
• Expanded our landline service offering with teleCalm Mobile now in private beta
• Our customers love us, as shown in our 95% satisfaction rating and NPS of 89

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $482,771 compared to the year ended December 31, 2020, when the Company had revenues of $264,978. Our gross margin was 65.87% in fiscal year 2021, compared to 60.67% in 2020.
• Assets. As of December 31, 2021, the Company had total assets of $142,488, including $129,089 in cash. As of December 31, 2020, the Company had $128,572 in total assets, including $111,949 in cash.
• Net Loss. The Company has had net losses of $161,645 and net losses of $221,402 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
• Liabilities. The Company's liabilities totaled $974,497 for the fiscal year ended December 31, 2021 and $841,718 for the fiscal year ended December 31, 2020.

Liquidity & Capital Resources

To-date, the company has been financed with $106,900 in debt and $616,862 in convertibles.

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 6-8 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

teleCalm, Inc. cash in hand is $127,950, as of December 2021. Over the last three months, revenues have averaged $48,661/month, cost of goods sold has averaged $13,621/month, and operational expenses have averaged $52,274/month, for an average burn rate of $17,234 per month. Our intent is to be profitable within 19 months.

In April 2021, teleCalm closed the Wefunder crowdfunding round and received the remaining $42,782 of investment funds (there was a rolling close in December 2021 of $82,935).

In August 2021, teleCalm received an EIDL loan modification of $28,700 for a total loan amount of $106,900. The SBA deferred the 1st payment due date to December of 2022.

In September 2021, teleCalm closed a small round through a pilot fundraising platform called Fundr for $12,412.

In December 2021, teleCalm closed a seed round for $100,000.

teleCalm continued to grow in 2021 (avg 3.6% MoM), despite challenges presented due to COVID-19, including lockdowns in senior living communities during the first half of the year, followed by hardware shortages and logistics challenges in the last half of the year. 

teleCalm continued development of teleCalm Mobile service to expand our offering from a landline-only solution, reaching the beta testing phase in late 2021.

Revenues: We anticipate slow MoM subscriber growth during the next 6 months to an estimated $50,000 MRR, with increased growth 2H2021 driven by additional landline service plus new teleCalm Mobile and Priority Response services. 

Expenses: We anticipate a reduction in expenses over the next 6 months to average around $40,000 per month.

With our forecasted growth, we anticipate (but cannot guarantee) to reach cash flow positive late 2022.

Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering.