Help Us Rebuild Southside, Chicago

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’re taking a historic Chicago community that’s been abandoned by banks and businesses and joining with friends, neighbors, and partners to rebuild it into the vibrant hub of Black culture and commerce it once was. We’re developing restaurants celebrating black cuisine from across the globe, launching a co-working facility to lift up the next generation of community enterprises, and operating award-winning garden and bicycling programs to attract visitors and bring residents together.

We're recapturing the Promise of Bronzeville - the notion of a community that reflects the rich culture and diversity of this historic neighborhood, that works for residents of long-standing as much as for urban professionals just moving in, and that provides a unique destination for visitors from near and far. To achieve this vision, we have to build unique, culture- and place-based enterprises, re-connect neighbors and expand economic opportunity in our neighborhood.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

Urban Juncture, Inc. was incorporated in the State of Illinois in November 2003.

Since then, we have:

• We raised $9 million to bring delicious Black cuisine from across the globe to 51st Street and the CTA Green Line station, the heart of Bronzeville.
• We purchased and renovated 16,000 sq. ft of building space and acquired two other nearby properties.
• Our first restaurant, The Bronzeville Jerk Shack, won "Best Jerk Chicken in Chicago" from RedEye.
• We created award-winning community garden and bicycling initiatives that bring neighbors and guests together celebrate Bronzeville.
• We engaged 1000 people per week in events and activities during the 2015 summer season.

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2017, the Company had revenues of $6,268 compared to the year ended December 31, 2016, when the Company had revenues of $213,428. Our gross margin was 100.0% in fiscal year 2017, compared to 100.0% in 2016.
• Assets. As of December 31, 2017, the Company had total assets of $4,578,850, including $153,448 in cash. As of December 31, 2016, the Company had $4,431,580 in total assets, including $6,809 in cash.
• Net Loss. The Company has had net losses of $306,943 and net losses of $76,732 for the fiscal years ended December 31, 2017 and December 31, 2016, respectively.
• Liabilities. The Company's liabilities totaled $4,075,958 for the fiscal year ended December 31, 2017 and $3,635,834 for the fiscal year ended December 31, 2016.

Liquidity & Capital Resources



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. 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

Urban Juncture, Inc. cash in hand is $70,490, as of April 2018. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $26,000/month, for an average burn rate of $26,000 per month. Our intent is to be profitable in 0 months.

There were no material changes in our finances or operations since 12/31/2017.  

We anticipate receiving a payment of $800,000 from City of Chicago in Q2 2018 in reimbursement for development expenses incurred over past several years as well as payment of $200,000 in Q2 or Q3 to cover upcoming development expenses.  These payments required an amendment in our Redevelopment Agreement with the City of Chicago, which passed City Council in the first quarter of 2018.  They are part of a $2 million outstanding Tax Increment Financing grant commitment from the City.

Proceeds from our WeFunder offering are being used to make needed repairs to The Forum building and to build out several shipping containers that are part of our Boxville initiative.   The proceeds have also provided important liquidity as we await closure of our financing deal with the City.