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.Overview
JogAlong Stroller manufacturers and sells the world’s only stroller that enables you to move your arms in an ergonomic back and forth motion while pushing the stroller.
Continuing to build and improve the world’s best jogging stroller. One that inspires and enables parents to be active and outdoors with their children. JogAlong delivers value at the intersections of activity, outdoors, ergonomics, and time management. We also have plans for complementary products in the pipeline.Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.MilestonesJogAlong Stroller LLC was incorporated in the State of Kansas in July 2014. Our patents are owned by the founder, Michael J. Dresher.Since then, we have:
- 10 Million views of our product video
- 12,000+ people have joined our email list
- JogAlong is the only stroller to offer reciprocating arms to maintain proper running form.
- JogAlong holds 4 global patents: US, UK, Germany, and Canada.
- JogAlong is a 3-in-1 product. A jogging stroller, bicycle trailer, and traditional stroller.
- Manufacturing, distribution and logistics supported by a seasoned team of professionals.
Historical Results of Operations
- Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $0 compared to the year ended December 31, 2018, when the Company had revenues of $0.
- Assets. As of December 31, 2019, the Company had total assets of $121, including $121 in cash. As of December 31, 2018, the Company had $516 in total assets, including $516 in cash.
- Net Loss. The Company has had net losses of $57,394 and net losses of $32,096 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
- Liabilities. The Company's liabilities totaled $132,920 for the fiscal year ended December 31, 2019 and $75,921 for the fiscal year ended December 31, 2018.
Liquidity & Capital ResourcesTo-date, the company has been financed with $129,478 in debt.After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 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. 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 ExpensesJogAlong Stroller LLC cash in hand is $4,063, as of March 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $2,720/month, for an average burn rate of $2,720 per month. Our intent is to be profitable in 24 months.
There has not been a change to our finances since the 2019 financial statement. Marketing efficiency has improved for the first five months of 2020. Our client sign-up rate has increase by 64% per dollar spent, compared to the previous five months of 2019.
In the next 3 - 6 months we expect marketing and general expenses will remain consistent with levels seen in the 2019 financial statement, around $2700/month for three months while we raise capital and finalize the design. After raising capital, expenses for tooling and testing will be incurred at month four, approximately 50% upfront and the remainder upon tool completion around month six for a total of approximately $500,000. Revenues will be $0 for the next six months.
We expect to begin generating revenue 6-8 months after completion of the capital raise.
$834,000 is needed to get us to that point. Baby products cannot be sold without being certified, and for good reason, those certifications have to be performed on production tooled parts, not prototypes. The majority of this amount covers the injection molding tooling, testing, and certifications.
The founder loans the company capital on an as needed basis to cover general expenses. This loan is a 0% loan, considered long term debt, due 13 months after demand.
