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

Chocolate made with a rare variety of cacao from the northern Peruvian jungle.

Milestones

Fortunato Chocolate Inc. was incorporated in the State of Washington in January 2025.

Since then, we have:

• We buy a rare and delicious variety of cacao directly from cacao farmers in northern Peru.
• We know everything we need to know. We know how to make the products and do all the marketing.
• We've already been in this business for 16 years. We know what we are doing.
• Because of supply chain innovation we can sell a world class product for an accessible price.
• This business is our heart and soul and our life's work.

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 incorporated in January 2025 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended January 31, 2025, the Company had revenues of $0. .
• Assets. As of January 31, 2025, the Company had total assets of $0, including $0 in cash.
• Net Income. The Company has had net income of $0 through January 31, 2025.
• Liabilities. The Company's liabilities totaled $0 through January 31, 2025.

Liquidity & Capital Resources



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 48 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

Fortunato Chocolate Inc. cash in hand is $0, as of January 2025. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 6 months.

This is a brand-new entity with no history and no trends. We intend for this corporation to own our retail locations. The big trend in our industry is the rising prices of cacao which is why we feel we need to distribute via retail instead of via e-commerce. Retail is a more affordable and profitable way for us to sell our products and will allow us to offset the price of our primary ingredient. 

I expect us to be generating $150,000 - $500,000 a month in revenue within the next six months, depending on how much capital we raise. We won't need additional capital to become revenue generating. We know how to make the products and sell them. We expect monthly expenses over the next 3-6 months to be around $50,000 - $75,000.

Since the company was started recently we are not profitable yet. We will be cash flow negative while we buy cacao in Peru and produce inventory. Once the inventory is produced, which should take 3-4 months, and we open up our first two or three shops, which we will be working on while we make the inventory, we will be profitable. Inventory is a balance sheet item and won't make us show losses on our profit and loss statement. We expect to need around $125,000 in funding and 6-12 months to reach profitability.

We aren't pursuing any other source of financing. We will launch this business with the capital raised through the campaign. If we raise the capital, we'll get going, if not, we won't.

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