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

Milestones

Young Mountain Tea Inc. was incorporated in the State of Delaware in January 2022.

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

• Revenues & Gross Margin. For the period ended December 31, 2025, the Company had revenues of $335,199 compared to the year ended December 31, 2024, when the Company had revenues of $298,085. Our gross margin was 32.51% in fiscal year 2025, and 37.96% in 2024.
• Assets. As of December 31, 2025, the Company had total assets of $1,046,537, including $159,525 in cash. As of December 31, 2024, the Company had $998,380 in total assets, including $120,825 in cash.
• Net Loss. The Company has had net losses of $225,794 and net losses of $31,287 for the fiscal years ended December 31, 2025 and December 31, 2024, respectively.
• Liabilities. The Company's liabilities totaled $334,838 for the fiscal year ended December 31, 2025 and $785,123 for the fiscal year ended December 31, 2024.

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 $644,139 in debt, $490,100 in equity, and $292,500 in convertibles.
The Company currently has sufficient cash on hand to support operations for approximately 8 months based on its present operating plan.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". At this time, we do not have other committed sources of capital.
The Company will require additional financing to support operations beyond its current runway. The timing and amount of such financing will depend on a number of factors, including operational performance and market conditions. Except as otherwise described in this Form C, the Company does not have additional committed sources of capital. There can be no assurance that additional capital will be available on acceptable terms, or at all.
Runway & Short/Mid Term Expenses

Young Mountain Tea Inc. cash in hand is $95,745.36, as of March 2026. Over the last three months, revenues have averaged $30,446.99/month, cost of goods sold has averaged $20,991.24/month, and operational expenses have averaged $22,523.65/month, for an average burn rate of $13,067.90 per month. Our intent is to be profitable in 20 months.

There are no material changes or trends in our finances or operations that have occurred since the date that our financials cover.

Forecasts: Revenue 3 Months: $133,645 Revenue 6 Months: $251,463 Expenses 3 Months: $150,086 (Operating Expenses: $66,699, COGS $83,387) Expenses 6 Months: $294,422 (Operating Expenses: $139,902, COGS $154,520)

We are not currently profitable. Based on our current operating plan, we expect to reach profitability during 2027. To support operations and reach that point, we estimate needing approximately $200,000 in additional funding. This capital will be used for inventory purchases, working capital, and continued growth in our wholesale channel, which we expect to drive improved margins and more consistent revenue.

In addition to funds raised through Wefunder, we have structured repayment terms with key partners to help manage cash flow. We are not yet profitable and are covering short-term burn through a combination of existing cash reserves, ongoing revenue from tea sales, and carefully managed expense management while focusing on growing our wholesale channel.

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