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
Bonbuz is a forward-thinking beverage company redefining the social drinking experience by creating alcohol-free, functional drinks that enhance energy and mood. Their unique formulas are crafted using adaptogens, nootropics, and plant-based ingredients to provide an uplifting, healthier alternative to traditional alcoholic beverages. Bonbuz targets health-conscious consumers seeking mindful drinking options without compromising on flavor or social interaction. By tapping into the growing demand for functional, non-alcoholic drinks, Bonbuz is positioned at the intersection of wellness and lifestyle, offering a modern solution for those who want to enjoy social moments without the negative effects of alcohol.Milestones

Bonbuz, Inc. was incorporated in the State of Delaware in May 2020.

Since then, we have:- Recruited notable celebrity angel investors, such as Ashley Graham (model & entrepreneur) and Emma Grede (Good American, Skims).

• Grown revenue at 100+% year over year (since 2021).
• Been called "the freshest, funnest non-alcoholic spirits brand on the market" by Vice.
• Won awards for our spirits (LA Spirits Awards and Beverage Testing Insitute Silver medallist).
• Pioneered stimulating alcohol-free buzz for the future of drinking in a $29BN market
• Developed a viral, e-commerce product and built a large following (50K+ followers on TikTok, 1.2M likes)
• Become distributed in Bristol Farms, Lazy Acres, and 250+ premier retail doors nationally.

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $379,889.30 compared to the year ended December 31, 2022, when the Company had revenues of $176,720.64. Our gross margin was 58.85% in fiscal year 2023, and 45.78% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $130,430.51, including $92,615.93 in cash. As of December 31, 2022, the Company had $105,455.35 in total assets, including $79,181.76 in cash.
• Net Loss. The Company has had net losses of $164,091.82 and net losses of $222,264.99 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $160,730.21 for the fiscal year ended December 31, 2023 and $33,436.55 for the fiscal year ended December 31, 2022.

Liquidity & Capital Resources

To-date, the company has been financed with $100,000 in debt, $48,500 in equity, $345,000 in convertibles, and $155,000 in SAFEs.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 4 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 1 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

Bonbuz, Inc. cash in hand is $30,000, as of September 2024. Over the last three months, revenues have averaged $22,860/month, cost of goods sold has averaged $10,586/month, and operational expenses have averaged $21,330/month, for an average burn rate of $9,056 per month. Our intent is to be profitable in 5 months.

In 2024, we raised $155K in investment capital, which improved our cash position. In Q3 2024, we transitioned warehousing to reduce our fixed costs, and lower our monthly cash burn. 

We expect revenue to average around $25K per month in the coming 3-6 months. Although we would expect a seasonal spike, both in December 2024 (due to the holidays), and January 2025 (due to "Dry January!"). We expect expenses to decrease in the coming months, due to reductions in warehousing costs, and contract labor. We expect our expenses to be around $25K to $30K per month in the coming 3 to 6 months.

Some months we are profitable, but most months right now, we are not profitable. With the capital we raise through our Wefunder community round, we expect to be able to hit profitability in the coming 3 to 6 months. That being said, we may continue to invest in sales and marketing, to keep growing top-line revenue, even if that means we remain unprofitable for a longer amount of time. In that case, we would raise additional capital to bridge the gap to profitability. 

We have raised from angel investors outside of Wefunder -- through Regulation D. For example, we raised $155K from angel investors before launching on Wefunder, earlier in 2024. 

All projections in the above narrative are forward-looking and not guaranteed.