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SIPUP CORP - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations. Management's Discussion and Analysis
[July 21, 2014]

SIPUP CORP - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations. Management's Discussion and Analysis

(Edgar Glimpses Via Acquire Media NewsEdge) This section of the Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

Corporate History Sipup Corporation ("Sipup" or the "Company") was incorporated on October 31, 2012, under the laws of the State of Nevada. The Company is in the development stage as defined under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 915, "Development Stage Entities". The Company intends to produce, pack and sell flavored yogurts.

Description of Business We are a development stage company which is in the business of producing, packing, and selling flavored yogurts. We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. Since incorporation, we have not made any significant purchase or sale of assets.

We intend to build our business through delivering high quality flavored yogurts. Our business strategy is to keep producing different flavored yogurts to gather the interest of new customers and eventually leading to steady income.

RESULTS OF OPERATIONS Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Three and Six Month Period Ended May 31, 2014 Compared to the Three and Six Month Period Ended May 31, 2013 Our net loss for the three and six month period ended May 31, 2014 was $2,550 and $3,890, respectively, compared to a net loss of $39,653 and 43,321during the three and six month period ended May 31, 2013, respectively. During the three and six month period ended May 31, 2014 and 2013, we did not generate any revenue.

During the three and six month period ended May 31, 2014, we incurred officer's compensation of $nil, computer and internet expenses of $nil, professional fees of $2,550 and $3,820, respectively and other expense of $nil as compared to officer's compensation of $32,640 and $32,640, respectviely, computer and internet expenses of $nil and $89, respectively, professional fees of $6,627 and 10,063, respectively, and other expense of $386 and $439, respectively. Other expenses and professional fees incurred during these periods were generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting, developmental costs, and marketing expenses.

- 11 - The weighted average number of shares outstanding, basic and fully diluted, was 4,000,000 for the six month period ended May 31, 2014.

Working Capital May 31, November 30, 2014 2013 $ $ Current Assets 0 0 Current Liabilities 8,625 4,735 Stockholders'(Deficit) (8,625 ) (4,735 ) Cash Flows Six months Six months ended May 31, ended May 31, 2014 2013 $ $ Cash Flows used by Operating Activities (1,860 ) (43,091 ) Cash Flows provided by Financing Activities 1,860 44,678 Net Increase (decrease) in Cash During Period 0 1,587 Operating Revenues From the Company's inception on October 31, 2012 to May 31, 2014, the Company did not earn any operating revenues.

Operating Expenses and Net Loss During the six month period ended May 31, 2014, the Company incurred operating expenses of $3,890 compared with $43,231 for the six month period ended May 31, 2013.

Liquidity and Capital Resources At May 31, 2014, the Company had cash of $nil as compared to cash of $nil at November 30, 2013, and total assets of $nil as compared with cash of $nil at May 31, 2013.

At May 31, 2014, the Company had total liabilities of $8,625 compared with $4,735 at November 30, 2013.

The Company had a deficit of $73,693 at May 31, 2014 compared with $69,803 at November 30, 2013. The increase in the deficit is due to increases in day-to-day operating expenses.

Cash flow from Operating Activities During the six month period ended May 31, 2014, the Company used $1,860 of cash for operating activities compared with $43,091of cash for operating activities during the six month period ended May 31, 2014.

Cash flow from Investing Activities During the six month period ended May 31, 2014, the Company did not have any investing activities.

- 12 - Cash flow from Financing Activities During the six month period ended May 31, 2014, the Company received $1,860 in financing activities.

Plan of Operation and Funding We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements.

Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.

Going Concern We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

Future Financings We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing.

Off-Balance Sheet Arrangements We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

- 13 - Critical Accounting Policies Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

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