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We have financial statements ending December 31, 2023. Our cash in hand is $2,249, as of May 2024. Over the three months prior, revenues averaged $27,866/month, cost of goods sold has averaged $8,944/month, and operational expenses have averaged $25,073/month.
Management’s Discussion and Analysis of Financial Condition and Results of OperationsYou 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.OverviewBartholomew Jones and Renata Henderson intended to reinstate the origin, purpose, and integrity of cxffee through the knowledge of its Black history and being a part of its Black future, creating Cxffeeblack. They built a coffee roasting company on an all-black supply chain.MilestonesCxffeeblack Inc. ("The Company") was formed in Delaware on July 24th, 2023. The Company had previously operated under Cxffeeblack, LLC, which was founded in Tennessee in December of 2019. The Company wholly owns Cxffeeblack LLCSince then, we have:
The Company is subject to risks and uncertainties common to early-stage companies. Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.Historical Results of OperationsOur company was organized in December 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital ResourcesTo-date, the company has been financed with $256,783 in debt and $180,000 in SAFEs.After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 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 18 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 ExpensesCXFFEEBLACK INC cash in hand is $2,249.26, as of May 2024. Over the last three months, revenues have averaged $27,866/month, cost of goods sold has averaged $8,944/month, and operational expenses have averaged $25,073/month, for an average burn rate of $6,151 per month. Our intent is to be profitable in 12 months.Our Q2 sales are up 91% YoY. This is due to increased brand awareness after two international industry awards, increased traffic at our coffee club, the addition of a weekly email and social media marketing specialist, the release of first RTD product which has sold 500 cans a week since release, and improved turn around times and SOP's in our production and fulfillment. We expect revenues to increase by 6-10% over the next 3-6 months as a result of the opening of the new store, revision of our website, segmented email marketing automation, wholesale launch of our coffee and RTD cans, and greater brand awareness after our Black Barista Exchange Program with Vanderbilt. We expect expenses to increase 12-15% over the next 6-12 monthsWe are not currently profitable. We believe we can be profitable in a minimum of 12 months with the opening of the our retail store, revision of our website, segmented email marketing automation, wholesale launch of our coffee and RTD cans, increased roasting capacity, and greater brand awareness after our Black Barista Exchange Program with Vanderbilt over the next three-six months. We need a approximately $200,000 to purchase the required equipment, complete the built our for our new retail space, and to acquire the necessary personnel and inventory.There are no other sources of capital at the moment. We plan to cover the short term burn through the addition of increased local presence at pop ups, wholesaler distributers for our RTD, and segmented email automation for our website and social media. All projections in the above narrative are forward-looking and not guaranteed.
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.