Invest in Young Mountain Tea

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

Sharing Ownership Of The Tea Trade With Farmers. The Company sells direct-sourced teas from India and Nepal. The Company’s mission is to work with Indian and Nepali communities to raise the quality of their tea, so they can earn more and raise the quality of their lives. One percent (1%) of the Company’s sales goes to launch a farmer owned tea factory in the Himalayas. 

Milestones

Young Mountain Tea, Inc. was incorporated in the State of Delaware on January 7, 2022. The Company was originally organized as Young Mountain Tea, LLC in the State of Oregon on September 17, 2013. Almora Global, Inc. was incorporated in the State of Delaware on March 2, 2022. Almora Global, Inc. is fully owned and operated by Young Mountain Tea, Inc. 
Since then, we have:

• Launched a farmer-owned processing facility in the Himalayas w/ USAID, Acumen, and others
• Secured sales contracts with Fortune 500 companies & a national distributor
• Featured in Forbes, Food Industry Executive
• Company started with a promise: if farmers would grow tea, we'd sell it.
• Certified organic, single-origin teas in sustainable packaging from a BIPOC owned brand
• 1% of sales donated to farmers

Historical Results of Operations

Our company was incorporated in January 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, 2023, the Company had revenues of $261,404 compared to the year ended December 31, 2022, when the Company had revenues of $450,638. Our gross margin was 30.52% in fiscal year 2023, and 37.96% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $721,204, including $159,686 in cash. As of December 31, 2022, the Company had $436,029 in total assets, including $213,290 in cash.
• Net Income. The Company has had net income of $49,691 and net losses of $63,325 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $801,502 for the fiscal year ended December 31, 2023 and $566,207 for the fiscal year ended December 31, 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 $570,770 in debt, $292,500 in convertibles, $1,115,766 in grants, and $121,508 in other funding. 

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 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 1 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

Young Mountain Tea Inc. cash in hand is $50,284.76, as of November 2024. Over the last three months, revenues have averaged $44,290/month, cost of goods sold has averaged $18,740/month, and operational expenses have averaged $29,125/month, for an average burn rate of $3,575 per month. Our intent is to be profitable in 23 months.

Under the Current liabilities section of our CPA reviewed balance sheet, there is a line for "Convertible notes - current portion".  These notes have been extended for another 2 years, till April of 2026.  We plan to convert these notes upon completion of this $500k raise as is stipulated in the convertible note documents.

Forecasts: Revenue 3 Months: $151,401 Revenue 6 Months: $273,939 Expenses 3 Months: $156,261 (Operating Expenses: $65,600, COGS $90,661) Expenses 6 Months: $316,128 (Operating Expenses: $143,019, COGS $173,109)

We were profitable in 2023 and are projected to be profitable in 2024. However profitability in these two years is due to grant revenue that has supported the business, and the grant ended in June 2024.
We project profitability solely through tea sales to be reached September 2026 onwards.  In order to get there, we need the full $500,000 that we are targeting for this raise.

Besides funds raised through Wefunder, we just closed with a lender on a $25,000 term loan as another source of capital to get us through the short-term burn during the campaign.
The company may choose to raise it maximum raise goal to $700,000 at a later date. All projections in the above narrative are forward-looking and not guaranteed.

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