Management’s Discussion and Analysis of Financial Condition and Results of OperationsYou 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.OverviewTrieu Technologies, Inc provides alternative chemicals to treat medical conditions, clean medical equipment or disinfect surfaces. We replace toxic substances such as bleach, ammonia and alcohol with a saline like solution that is proven to be 150 times more powerful than bleach but yet safe as a leaf. In five years we want to be a top tier leader in alternative chemical applications across medical, health, beauty, sanitation and agricultural applications. I see us as a highly profitable company with sales in excess of $200,000,000 with many companies viewing us as an acquisition target because of our technology and sustainability. These projections cannot be guaranteed.MilestonesTrieu Technologies, Inc was incorporated in the State of Illinois in March 2020.Since then, we have:
- Purchase orders of $400,000 as of 6-24-20, expected (but not guaranteed) to be booked as revenue later in the year.
- Our team consist of patent holders and advanced engineers with over 50 years combined industry experience.
- Covid-19 has sparked a tremendous global demand for disinfectants. Over 160% increase vs 2019.
- Tru Clean is on the CDC list to fight Covid-2 and Sars which causes Covid-19.
- Technology can be expanded for medical uses: infection control and wound care.
- More harmful chemicals are being used due to Covid-19 which increases demand for non toxic products.
Historical Results of OperationsOur company was organized in March 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
- Revenues & Gross Margin. For the period ended May 31, 2020, the Company had revenues of $8,587.
- Assets. As of May 31, 2020, the Company had total assets of $4,048, including $3,514 in cash.
- Net Loss. The Company has had net losses of $11,052 for 2020.
- Liabilities. The Company's liabilities totaled $15,100 for 2020.
Related Party TransactionRefer to Question 26 of this Form C for disclosure of all related party transactions.Liquidity & Capital ResourcesTo-date, the company has been financed with $20,000 in debt.After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 7 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 ExpensesTrieu Technologies, Inc cash in hand is $3,500, as of May 2020. Over the last three months, revenues have averaged $6,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $2,500/month, for an average net margin of $3,500 per month.
Since we've uploaded our startup finances, we have secured over $400,000 in purchase orders which made our need for a successful raise more urgent. Because we are new, we will not get the initial credit from suppliers or the kind of financing terms traditional businesses get. We have to be more creative in our early approach, but expect funding and credit terms to approve with time.
In the next 3 - 6 months, we believe we will average $400,000 in revenues with $230,000 in expenses per month based on order commitments already in hand.
We are approved for A/R financing which will help us with our cash flow allowing us to focus on repeat orders, raw materials and building inventory.