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.OverviewWe deliver food and retail items in 10 U.S airports.
In five years, we hope to be operating in over 100 airports across the U.S. and internationally which will greatly be accelerated by our partnership with Grab.MilestonesAtYourGate, Inc. (the "Company") was formed on October 30, 2019, as the parent company of @YourGate, LLC ("@YG LLC"), which was formed in May, 2015. The business operated by @YG LLC will continue to be operated within the Company. AtYourGate, Inc. was originally organized as an LLC in 2015.
Since then, we have:
- Proven delivery concept in 10 U.S. airports: SAN, EWR, JFK, LGA, BOS, MSP, PDX, SJC, ONT, BUR
- Opportunity for rapid airport expansion both domestically and internationally
- Essential solution for social distancing and safe travel in airports post COVID-19.
- World class customer satisfaction scores across our over 100,000 deliveries
- 4.9/5.0 rating in the app store...free app download in the App Store and Google Play Store
- Concessions partners include McDonald's, Jersey Mike's, Shake Shack, Panda Express, Burger King
Historical Results of OperationsOur company was organized in October 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
- Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $199,091.
- Assets. As of December 31, 2019, the Company had total assets of $1,688,584, including $49,172 in cash.
- Net Loss. The Company has had net losses of $3,876,193 for 2019.
- Liabilities. The Company's liabilities totaled $8,386,282 for 2019.
Liquidity & Capital ResourcesTo-date, the company has been financed with $1,165,711 in equity, $5,117,500 in SAFEs, and $620,000 in debts.After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 2 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 month. 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 ExpensesAtYourGate, Inc. cash in hand is $65,000, as of July 2020. Over the last three months, revenues have averaged $3,500/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $130,000/month, for an average burn rate of $126,500 per month. Our intent is to be profitable in 18 months.
Our financials for Q2 2020 were significantly impacted by COVID-19 as we are domiciled in airports and affected by reduced air travel with revenues reduced by 80%
We are forecasting travel at 40% of historical levels through the Q3 2020 and 50% of historical levels through the Q4 2020.
Q3 2020: Revenues at $70,000 per month and Total Expenses at $323,000 per month
Q4 2020: Revenues at $400,000 per month and Total Expenses at $640,000 per month
We are actively seeking bridge loans totally $500,000 as well as marketing a private placement for $10 Million which we expect to close in 60 days. We anticipate needing a minimum of $2M of additional investments to reach a break-even point.
