XY SEC Documentation 2018

Hey Fans!

How do you like the new subscription plan?

How do you like their financial plan?

During the years ended December 31, 2018 and 2017, the Company incurred net losses of $2.5 million and $4.2 million, respectively. The Company has incurred net losses from inception to date. These losses have resulted principally from costs incurred in connection with the development and launch of the Company’s products and services, consulting fees, selling and marketing expenses and general and administrative expenses. The Company expects to continue to incur operating losses for the year as it refines its products and grows its customer base. As a result, the Company will seek to fund its operations through the sale of stock, XYO Tokens and/or debt financings or other sources, as it deems necessary. If the Company fails to raise capital, it would have a negative impact on its financial condition and its ability to pursue its business strategies. Those conditions could raise substantial doubt about the Company’s ability to continue as a going concern.

Source: 2018 Annual Report - XY SEC Documentation

I’m sure this is not unusual for a tech startup and does not concern me.

The challenge is to build the network and then the profit will come.

Building the network was never going to happen overnight.

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It’s a story with two sides. Yes they need time to build to what could be a great thing. Yes, they might never do that and they are losing millions per year. Any kind of start up is high risk/high reward. So both enthusiasm–and skepticism–are warranted.

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Let me make an analogy here. I have the recipe for the most delicious and magical cake ever baked. It is so delicious that some people have actually become comatose after just one bite. It is so beautiful that it will be on the cover of every food or bride magazine and featured on every news program. People will never want to eat regular cake again, and my cake has the added and extra advantage of having no calories and no nasty aftertaste. My cake will revolutionize cake baking in many many ways, including price, because my cake only costs pennies to make.

I am currently selling aprons with my cake logo on them that are worth $2000 for the low introductory price of $500. People who buy these aprons become investors, and will receive a lifetime discount on cakes. I must limit the sales to 10 per investor, but as an investor, you will not only receive a discount, but you can order cakes from a special menu of flavors that are not available to the general public.

Once we buy some ovens and baking equipment and figure out the best place to buy our ingredients, we can start to work on the recipe. We have the concept very clear in our minds, but we’re still playing with ingredients and techniques. It takes time to develop the most delicious and beautiful no calorie cake ever baked.

In the meantime, keep investing in those aprons! they will be quadrupling or better in value any day now. Ignore the faded ink, the cheap fabric, and the tiny size, we didn’t put much thought into the aprons, just the plan to sell the aprons. At some point we will be sending you new and functional aprons or a sewing kit and a new iron on logo.

"I know Katie, and I have faith in her cake baking abilities. I heard her speak at a cake convention, and I was very impressed. Katie is very fashionable and had a lot of gossip to share about her employees sex lives. She does cute tricks on her skateboard. Her cakes will change the world, maybe even Mars… Martha Stewart

I could have done a better job, but you get the drift.