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

Untapped Global is pioneering a new way to invest safely and profitably in frontier markets like those in Africa, Latin America, and Asia.

We call it Smart Asset Financing™, and it uses technology and data to make it easier, safer, and faster for small businesses in emerging markets to access growth capital and scale. At the same time, it allows investors from all over the world to invest in local entrepreneurs and track their investments earn good returns.

In 5 years, we aim to have $100M of smart assets deployed in Africa, Latin, America, and Asia with hundreds of thousands of small investors, both large and small, investing and making their money count. Forward-looking projections cannot be guaranteed. 

Gary Ford currently serves as President & CEO of MCE Social Capital. Since 2006, MCE has made over $75MM in loans to microfinance institutions and small and medium enterprises in 30 countries. Gary will join Untapped as a Board Director on January 1, 2022

Milestones

Untapped Invest, Inc. was incorporated in the State of Delaware in January 2021.

Since then, we have:

• Profitable (EBITDA positive) in the first 10mo, with $1M ARR and 40% month-to-month growth
• Closed $1M in equity from accredited investors in October 2021
• Consistent 24% IRR on our investments: every $100 we invest pays us back $124 in cash
• Committed and purpose-driven team of 20 across Africa, Latin America, and the US
• Have established over 20 operating partners in East, West, and Southern Africa

Historical Results of Operations

Our company was organized in January 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended September 30, 2021, the Company had revenues of $237,063. Our gross margin was 100.0%.
• Assets. As of September 30, 2021, the Company had total assets of $3,308,064, including $5,490 in cash.
• Net Loss. The Company has had net losses of $89,303 for 2021.
• Liabilities. The Company's liabilities totaled $3,397,367 for 2021.

Liquidity & Capital Resources

To-date, the company has been financed with $4,327,500 in debt from 12 investors and $1,049,500 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 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 5 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

Untapped Invest, Inc. cash in hand is $1,250,840, as of November 2021. Over the last three months, revenues have averaged $62,190/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $63,401/month, for an average burn rate of $1,211 per month. Our intent is to be profitable in 1 month.

We raised over $1.25 million dollars in 18-month notes for for deployment of capital for our smart asset financing agreements

Revenue in six months is expected to $502,081 (with $391,581 of that revenue in previously signed agreements.) The corresponding expenses are expected to be $461,036.

We achieved EBITDA positive earnings in September and October 2021.  However, with this equity fundraising round, we intend to ramp up our tech team to build the investment platform that in 2022 will allow investors to invest smaller tickets into Smart Asset Financing.  These will elevate costs and we will no longer be EBITDA positive.  We anticipate reaching profitability at the end of 2022. However, at any given time, our current business without tech development is already sustainable and, if needed, we can eliminate the costs of tech development to re-achieve profitability if we deem it necessary.

In October, 2021, we raised completed a raise of just over $1 million dollars in equity from accredited investors. We also have raised over $4 million in promissory notes to fund our Smart Asset Financing capital deployments. 

Any projections in the above narrative are forward-looking and cannot be guaranteed.