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

Wood-fired pizza delivered on-demand in about 15 minutes.

In five years, we hope to have $50M to $100M in revenue with 22% EBIDTA.

Milestones

Fasty Fresh, Inc. was incorporated in the State of Delaware in July 2015.

Since then, we have:

- Exceeded $100,000 in monthly sales by month eight of launch.

- Exceeded $1M in revenue within the first 12 months of operations.

- Increased revenue by 20% in year two

- Launched Firepie proprietary logistics software (Fireorder) in March 2017.  

- Fasty Fresh, Inc. was granted by the United States Patent and Trademark office the following Copywrite trademarks 

"Pizza On Demand" granted on January 31st, 2017

"Firepie" name granted January 24th, 2017

"Firepie torch service mark" January 24th 2017

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $1,282,750 compared to the year ended December 31, 2017, when the Company had revenues of $1,037,724. Our gross margin was 21.65% in fiscal year 2018, compared to 44.88% in 2017.
• Assets. As of December 31, 2018, the Company had total assets of $191,173, including $4,042 in cash. As of December 31, 2017, the Company had $142,757 in total assets, including $4,271 in cash.
• Net Loss. The Company has had net losses of $290,320 and net losses of $131,075 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
• Liabilities. The Company's liabilities totaled $803,798 for the fiscal year ended December 31, 2018 and $465,030 for the fiscal year ended December 31, 2017.

Liquidity & Capital Resources

To-date, the company has been financed with $409,700 in convertibles and $26,000 in debt.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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 12 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

Fasty Fresh, Inc. cash in hand is $12,000, as of January 2020. Over the last three months, revenues have averaged $80,000/month, cost of goods sold has averaged $16,000/month, and operational expenses have averaged $72,000/month, for an average burn rate of $8,000 per month. Our intent is to be profitable in 6 months.

We've been decreasing our burn rate by decreasing expenses and growing revenues.  We hope to become break even by mid-2020.  Around the same time, we're going to increase our marketing spend and position ourselves for growth (opening node #2).  We hope to expand our footprint by the end of 2020, potentially through node #2 or a ghost kitchen.  We'd like to reach 1.2M of revenue per location.  Each additional node costs about $87k to build.

We plan to raise a larger round potentially from equity crowdfunding or institutional investors for about $2M.  If needed, the founder could issue loans to the company to fund short-term operations.