|1||To become a part of a proven company with solid growth.|
|2||Strategic partnerships with brands such as Straus Creamery, Four Barrel Coffee, Valrhona Chocolate and Central Milling.|
Anthony's Cookies started with a simple idea, making the best gourmet cookies around! Countless rounds of r&d lead to some of our signature flavors like cookies and cream. From the beginning Anthony worked hard to perfect his craft and began selling his cookies to friends and family. The reception was great so he began selling his great tasting cookies in his community. When the time was right he took the necessary steps to open his first retail store in San Francisco and the rest is history.
In 2009 we opened our first retail store on Valencia St. in one of San Francisco's Mission neighborhood. This location served as our retail store and manufacturing hub for retail and wholesale channels. While this store was opened in an up and coming neighborhood, it was several blocks from what many considered to be the "hot spot." This store quickly became a destination for customers as they had to travel farther to grab one of our fresh baked cookies.
With the success of the San Francisco store we found the need to expand and open our second location. The concept behind this location was to greatly expand the manufacturing capabilities for future growth while expanding our retail presence. A simple retail location would have been easy to find but this property took some work to track down. We started with a blank canvas and built out the entire location to our exact needs. Working with architects and kitchen designers we were able to build the Berkeley store to serve as our launch pad into the future. This location primarily serves as a manufacturing facility for our dough and cookie production. Also working as a retail location the public can come in to purchase our products and watch the magic happen! The rear third of this store serves as our shipping and receiving area which also has enough room for a full size truck to back up and pick up product. In the end this building has the space and resources to produce dough, bake, and distribute our products for several retail locations, wholesale accounts and e-commerce sales. We feel everything is now in place to grow the company exponentially.
Each year we bake more and more cookies to meet the demands of our customers. While it was not always easy to keep up with demand, the last few years have really shown us the possibilities of all the systems we've put in place. Long before the Berkeley store we would have to close the San Francisco store for a day to produce cookies for large 10,000 and 15,000 cookie orders. We've always worked with large local companies who place orders throughout the year for special events but since the Berkeley store opened we've been able to produce for these large orders with ease. In 2017 our revenue was just north of $601,000 and then jumped to $727,000 the following year. We feel we'll be able to expand on our work to take every aspect of the company to the next level.
With our two stores opened and operating we're excited for the next steps! There are six key areas where we're looking to grow with the help of this campaign.
- Plan and build the next two to three retail stores in the Bay Area.
- Develop and launch our new website and e-commerce platform.
- Procure equipment to reduce any future production bottlenecks.
- Acquire a refrigerated vehicle to further develop the hub and spoke model.
- Work with wholesalers to carry our line of gourmet products.
- Hire key staff members to help grow the business.
Anthony's Cookies has financial statements ending December 31 2019. Our cash in hand is $18,765, as of December 2019. Over the three months prior, revenues averaged $67,000/month, cost of goods sold has averaged $5,750/month, and operational expenses have averaged $50,000/month.
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.
We are a 22 year old gourmet cookie company based in San Francisco. It all started with one cookie and our goal of making the best cookies around. Our first retail store showed to be successful so we opened a second retail store to also serve as a manufacturing hub for future expansion. We source the best ingredients when possible and never stop working on new flavors and products. Now we are looking to take the business beyond the Bay Area so everyone can enjoy our delicious cookies!
We plan to open two to three retail stores to further capture the local market and grow the brand. We also plan to grow our wholesale network and launch an e-commerce platform to get our cookies into everyone's homes.
Anthony's Cookies was incorporated in the State of California in January 2015. The company was originally formed as an LLC in 1998.
Since then, we have:
Historical Results of Operations
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is infinite as the business is currently profitable.
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 have no plans to raise further capital. 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
Anthony's Cookies cash in hand is $18,765, as of December 2019. Over the last three months, revenues have averaged $67,000/month, cost of goods sold has averaged $5,750/month, and operational expenses have averaged $50,000/month, for an average net margin of $11,250 per month. We are currently profitable.
Our finances and operations have remained stable since the date that is covered by our financials.
We expect expenses to remain fairly stable while continuing to increase revenues over the next three to six months. Six months following the raise, we hope that monthly revenues are at about $74k / month. With the addition of new machinery to increase production we'll be able to push our cost of goods even lower allowing us to increase profits. We're a currently profitable business, and if needed will continue to grow based off of business profits.
The Company may run into issues if management or key staff are not able to fulfill their roles and duties. The Company relies on management and key staff members to grow and run the the business on a day to day basis. We are aware that disruptions happen and are prepared to use our proven systems to take necessary measures or employ contingency plans.
The Company may find a change in market conditions where the product and or product category is not favorable to the consumer market. In the off chance that the public deems our product unfavorable we'll need to adjust to new demand levels and take the appropriate actions for the success of the business.
Future economic conditions beyond the control of The Company may affect the ability to maintain and grow future sales goals. An economic downturn could have an effect on future sales as consumers change their tastes or needs.
Supply chain disruptions may have an adverse effect on how The Company is able to grow or maintain sales goals.
Any issues or damage to equipment used to manufacture the product may have a negative effect on how The Company is able to manage production.
Future growth may be limited or delayed due to shifts in the commercial real estate market. With several future store openings we're planning stores in key markets to grow the brand.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
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