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

We create news showing both sides of the argument. Our mission is to fuel a paradigm shift in civil discourse with fact-based news and analysis, diversity of thought and groundbreaking media and entertainment. We aim to be a community-owned, independent, decentralized newsroom.

We would like to be cash-flow positive and totally self-sustainable. Ideally we will launch satellite newsrooms globally and have millions of subscribers. 

Milestones

Subverse Inc. was incorporated in the State of Connecticut in June 2019.

Since then, we have:

• 2.7M+ views in 1 month
• 130K+ subscribers
• Founder Tim Pool has 229M+ views and 861K+ subscribers on his Timcast and Tim Pool YouTube channels.
• After announcing Subverse expansion, Tim's video received 167K views and resulted in 1,000+ pitches.
• Tim's reporting has been featured in Vice, Forbes, NYT, the New Yorker, Fox News, Time, and more.

Historical Results of Operations

Our company was organized in June 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended June 30, 2019, the Company had revenues of $11,667.
• Assets. As of June 30, 2019, the Company had total assets of $11,667, including $11,667 in cash.
• Net Income. The Company has had net income of $11,417 for 2019.
• Liabilities. The Company's liabilties totaled $0 for 2019.

Liquidity & Capital Resources

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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 12 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

Subverse Inc. cash in hand is $11,667, as of July 2019. Over the last three months, revenues have averaged $3,889/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $29,880/month, for an average burn rate of $41,547 per month. Our intent is to be profitable in 12 months.

We have launched multiple revenue streams including advertising, subscriptions and events. 

We have multiple other potential sources of capital from friends and family of the business. We expect revenues and expenses to quickly ramp up over the next six months primarily driven by ads, events, subscriptions and licensing. Expenses will increase primarily due to increased staff and operating expenses.   We expect (although cannot guarantee) that revenues and expenses will each increase 10% month over month for the next 12 months.  If needed, we have institutional funding and founding team contributed capital that we may be able to draw on.