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

Beautifully designed technical apparel to empower women in the outdoors and beyond

The Company utilizes a dual-channel sales model comprising both direct-to-consumer (DTC) and wholesale distribution. Products are sold via the Company’s e-commerce platform, hosted on Shopify, as well as through a national network of retail partners, including REI, Title Nine, and Evo. Revenue is recognized upon the shipment of goods to customers, whether through direct or wholesale channels. Product development is led by a women-centric design team, with all items tested in the mountain environment of Sun Valley. The Company emphasizes the use of sustainable materials, functional product design, and inclusive fit. It holds third-party certifications reflecting its stated environmental and social priorities, including Certified B Corporation status, Climate Neutral Certification, and active participation in 1% for the Planet.

Milestones

“Wild Rye, PBC (“the Company”) is a Delaware-registered Public Benefit Corporation. The business was originally established in 2014 and formally incorporated as Wild Rye Inc. in February 2021 in the State of Delaware.

Since then, we have:

• Sold in every REI, evo, and Title Nine door & 75+ specialty retailers, for a total of 300 doors
• $5.2M projected in 2025 | $15mm in revenue and profitability in 2027 (projections not guaranteed)
• Featured in Forbes, Wall Street Journal, Outside, Women's Health, New York Magazine, and more
• Certified B Corp and Climate Neutral, Members of 1% For the Planet, Protect our Winters and more.
• All-women team of outdoorswomen. We are both Wild Rye's customers and creators
• 43% repeat customer rate (15pts above avg.), but only an 8% product return rate (18pts below avg.)
• CEO & Founder Named Outdoor Retailer Emerging Leader of the Year in 2023

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2025, the Company had revenues of $4,513,421 compared to the year ended December 31, 2024, when the Company had revenues of $4,543,442. 
• Assets. As of December 31, 2025, the Company had total assets of $1,681,132, including $33,158 in cash. As of December 31, 2024, the Company had $1,428,187 in total assets, including $16,738 in cash.
• Net Loss. The Company has had net losses of $1,677,700 and net losses of $1,336,306 for the fiscal years ended December 31, 2025 and December 31, 2024, respectively.
• Liabilities. The Company's liabilities totaled $3,453,875 for the fiscal year ended December 31, 2025 and $2,287,640 for the fiscal year ended December 31, 2024.

Liquidity & Capital Resources

To-date, the company has been financed with $2,048,000 in SAFEs and $2,500,000 in debt.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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 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

Wild Rye, PBC cash in hand is $121,364.86, as of May 2025. Over the last three months, revenues have averaged $407,582/month, cost of goods sold has averaged $217,050/month, and operational expenses have averaged $272,278/month, for an average burn rate of $81,746 per month. Our intent is to be profitable in 12 months.

Since the date our financials cover, the uncertainty and disruption of tariffs has led to an expected increase in shipping costs and COGS.

We expect to generate approximately in $5.6M in gross revenues while incurring a net loss of approximately $1.2M for 2025.

We are not yet profitable. We are simultaneously pursuing a $1M debt facility which we believe will allow us to reach profitability between 2026 and 2027. 

Outside of this Wefunder offering, we could solicit debt facilities and we are concurrently raising capital from accredited investors.

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