Invest in CxffeeBlack

Honor Your Roots

$226,482

of a $1,240,000 goal

INVEST

min $100

INVESTMENT TERMS

SAFE + Revenue Share Agreement

$5M valuation cap SAFE + Revenue Share offering investors 1.75x paid back from 3% of revenues, or from 4% of revenues for the first $200k of investors

$250, $500, $1K, $10K

cxffeeblack.com

Memphis, TN

Female Founder Food & Beverage Consumer Goods Retail Minority Founder

Financials

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.

At a Glance

Jan 1 – Dec 31, 2023

$333,449

+36%

Revenue

$70,469

Net Profit

$58,189

-57%

Short-Term Debt

$152,754

Raised in 2023

$2,249

+36%

Cash on Hand

Net Margin:

21%

Gross Margin:

61%

Return on Assets:

79%

Earnings per Share:

$0.04

Revenue per Employee:

$83,362.25

Cash to Assets:

Revenue to Receivables:

Debt Ratio:

156%

Cxffee Black Financials and CPA Review Report for 2023 and 2022.pdf

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

Bartholomew 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.

Milestones

Cxffeeblack 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 LLC

Since then, we have:

Reached over six figures in our first year and maintained 50% growth YoY.
Reached over $1M in sales to date and have already raised almost $300,000 pre-seed
Built an all-black supply chain from Ethiopia, shipped by a Black owned company, and roasted by us.
Sold a sitcom to HBO Max based on Cxffeeblack- a rapper turned teacher turned coffee business owner.
Achieved 1.2 million organic streams for the company's coffee-branded music catalog.
Partnered with NBA Player Jae'Sean Tate of Houston Rockets on merch, youth scholarship, and pop-up.

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 Operations

Our company was organized in December 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $333,449 compared to the year ended December 31, 2022, when the Company had revenues of $245,097. Our gross margin was 61.12% in fiscal year 2023, compared to 65.1% in 2022.
Assets. As of December 31, 2023, the Company had total assets of $88,643, including $1,179 in cash. As of December 31, 2022, the Company had $54,294 in total assets, including $1,331 in cash.
Net Income. The Company has had net income of $70,469 and net losses of $72,312 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
Liabilities. The Company's liabilities totaled $138,189 for the fiscal year ended December 31, 2023 and $135,926 for the fiscal year ended December 31, 2022.

Liquidity & Capital Resources
To-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 Expenses

CXFFEEBLACK 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 months

We 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.

Risks

The Company might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case the Company might need to reduce sales & marketing, engineering, or other expenses. Were recurring revenue to decrease, further cuts would be needed and hurt the Company’s ability to meet its goals. Even if the Company raises the entire round successfully, we may need to raise more capital in the future in order to continue. Even if we do make successful offering(s) in the future, the terms of that offering might result in your investment in the company being worth less because of the terms of future investment rounds.

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.

The organic and natural food and products industry is highly competitive. We face competition from distributors of organic and natural products as well as specialty grocery and mass-market grocery distributors and retailers. Consumers have many choices in the club or membership retailer industry, including Costco, Walmart Sam’s Club, and BJ’s. We also compete with national, regional, and local retailers of organic, natural, gourmet and other specialty foods that focus on health-conscious consumers such as The Good Earth, Whole Foods, Sprouts, and Trader Joe’s. Other competitive forces include conventional retail grocery stores. These competitors have been in business longer, have substantially greater financial and other resources, and may be better established in their markets.
We can provide no assurance that our current or potential competitors will not provide products or services comparable or superior to those provided by us or adapt more quickly than we do to evolving industry or market trends. Increased competition may result in price reductions, reduced gross margins and loss of market share, any of which would materially and adversely affect our business, prospects, financial condition or results of operations. We cannot assure investors that we will be able to compete effectively against current and future competitors.

We rely on various intellectual property rights in order to operate our business.
Our intellectual property rights, including registered trademarks, may not be sufficiently broad or otherwise may not provide us a significant competitive advantage. In addition, the steps that we have taken to maintain and protect our intellectual property may not prevent it from being challenged, invalidated, circumvented or designed-around, particularly in countries where intellectual property rights are not highly developed or protected. In some circumstances, enforcement may not be available to us because an infringer has a dominant intellectual property position or for other business reasons. Any failure by the Company to obtain or maintain intellectual property rights that convey competitive advantage, adequately protect our intellectual property or detect or prevent circumvention or unauthorized use of such property, could adversely impact our competitive position and results of operations. We also rely on nondisclosure and noncompetition agreements with vendors, consultants and other parties to protect, in part, trade secrets and other proprietary rights. There can be no assurance that these agreements will adequately protect our trade secrets and other proprietary rights and will not be breached, that we will have adequate remedies for any breach, that others will not independently develop substantially equivalent proprietary information or that third parties will not otherwise gain access to our trade secrets or other proprietary rights. As we expand our business, protecting our intellectual property will become increasingly important. The protective steps we have taken may be inadequate to deter our competitors from using our proprietary information. In order to protect or enforce our intellectual property rights, we may be required to initiate litigation against third parties, such as infringement lawsuits. Also, these third parties may assert claims against us with or without provocation. These lawsuits could be expensive, take significant time and could divert management’s attention from other business concerns. The law relating to the scope and validity of claims in the technology field in which we operate is still evolving and, consequently, intellectual property positions in our industry are generally uncertain. We cannot assure you that we will prevail in any of these potential suits or that the damages or other remedies awarded, if any, would be commercially valuable.

Other Disclosures

The Board of Directors

Director	Occupation	Joined
Renata Henderson	Vice President @ Cxffeeblack	2019
Maurice Alex Henderson II (Bartholomew Jones)	CEO @ Cxffeeblack	2019

Officers

Officer	Title	Joined
Renata Henderson	Vice President and Secretary	2019
Maurice Alex Henderson II (Bartholomew Jones)	CEO	2019

Voting Power

Holder	Securities Held	Power
Renata Henderson	1,020,000 Common	51.0%
Maurice Alex Henderson II (Bartholomew Jones)	960,000 Common	48.0%

Past Fundraises

Date	Security	Amount
Current	Custom	$161,382
3/2024	SAFE	$50,000
3/2024	SAFE	$50,000
3/2024	Loan	$9,400
1/2024	Loan	$7,000
11/2023	Loan	$7,000
10/2023	SAFE	$40,000
10/2023	Loan	$7,000
8/2023	Loan	$5,000
7/2023	Loan	$3,000
7/2023	Loan	$5,000
6/2023	SAFE	$40,000
5/2023	Loan	$7,500
3/2023	Loan	$16,000
2/2023	Loan	$400
2/2023	Loan	$21,854
11/2022	Loan	$4,000
10/2022	Loan	$12,000
9/2022	Loan	$10,000
4/2022	Loan	$900
4/2022	Loan	$10,000
4/2022	Loan	$12,500
4/2022	Loan	$52,500
3/2022	Loan	$10,000
12/2021	Loan	$3,600
11/2021	Loan	$16,887
5/2021	Loan	$1,770
5/2021	Loan	$15,000
12/2020	Loan	$11,000
9/2020	Loan	$5,300
5/2020	Loan	$1,622
3/2020	Loan	$550

Outstanding Debts

Issued	Lender	Outstanding	Maturity
4/22/22	Pathway Lending	$37,488 Not Current	5/1/27
4/22/22	Pathway Lending	$12,483	4/22/24
4/22/22	Pathway Lending	$7,135	5/1/27
3/21/23	Paypal	$5,653	1/30/25
3/1/24	8Fig	$1,056	6/30/24

Related Party Transactions

None.

Use of Funds

$50,000	80% towards equipment and build out fees, 12.1% towards working capital, 7.9% Wefunder fees.
$400,000	20% towards equipment and cafe build out fees, 21% towards marketing, 25% towards strengthening roasting and supply chain capacity, 5% towards social impact programing, 9% working capital, 12.1% towards staff, 7.9% Wefunder fees.
$1,235,000	20% towards equipment and cafe build out fees, 21% towards marketing, 25% towards strengthening roasting and supply chain capacity, 5% towards social impact programing, 9% working capital, 12.1% towards staff, 7.9% Wefunder fees. Raising our maximum allows us to complete a full marketing campaign to reach new customers and create financial runway to bring on industry experts to expand wholesale and media offerings.

Capital Structure

Class of Security	Securities (or Amount) Authorized	Securities (or Amount) Outstanding	Voting Rights
Common	10,000,000	2,000,000	Yes

The Funding Portal

CxffeeBlack is conducting a Regulation Crowdfunding offering via Wefunder Portal LLC. CRD Number: #283503.

Form C Filing on EDGAR

The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.