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
audiobridge, currently available for free on iOS, allows musicians of any talent level to record full multi-track songs and instantly collaborate with anyone, anywhere.
We focus on our users' experience and strive to make the simplest but most powerful audio recording tool the world has ever seen; exclusively on mobile devices.
Musicians of any skill level will be able to rehearse, record, mix, master and distribute professional songs with nothing more than a mobile device and audiobridge.
Although we can't guarantee it, we want to dominate market share for recording platforms that musicians of all skill levels use to create songs. We strive to consistently have our users writings songs that reach the top of the charts.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Milestones
Audiobridge Inc. was incorporated in the State of Delaware in March 2019.
Since then, we have:
- Run by a successful software CEO (former pro musician) and a current world-touring bassist
- Uninterrupted month over month growth for the past 18 months
- For believers in the future of mobile recording. We are the only 100% mobile solution on the market.
Historical Results of Operations
Our company was organized in March 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 $618.74.
Assets. As of December 31, 2019, the Company had total assets of $81,918.86, including $61,918.86 in cash.
Net Loss. The Company has had net losses of $358,003.30 for 2019.
Liabilities. The Company's liabilities totaled $14,620.50 for 2019.
Liquidity & Capital Resources
To-date, the company has been financed with $550,000 in equity and $15,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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 6 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
Audiobridge Inc. cash in hand is $35,000, as of May 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $14,000/month, for an average burn rate of $14,000 per month. Our intent is to be profitable in 15 months.
We have decreased our burn rate by 50% in the past six months now that our initial product discovery phase is complete. We have also engaged with a PR company for outreach purposes so have adjusted our product development burn to accommodate the additional cost.
We anticipate our burn to be between $10K - $15K per month for the next six months. This is consistent with our past six months of operation and will allow us to continue product development at the current pace and keep our outreach and partnership development steady. We do not plan to monetize audiobridge in the next 6 months.
We expect to need $50K-$75K at a minimum in order to reach a revenue generating point. Then, our expected launch is Dec. 2020.
CEO/Founder Matt Miller runs a successful software consultancy that is contracted at a very competitive rate for audiobridge. This is indirect capital but an important consideration regarding audiobridge's advantages in the product development life cycle.
