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

⚡️ Enhancing Coffee with Superfoods—for
Energy, Mood, & Stress Relief

Milestones

Jibby Coffee, Inc. was incorporated in the State of Delaware in July 2020.

Since then, we have:

• ⚡️ 450% YoY revenue growth
• ⭐️ 4.7 average rating across 100K+ cans sold
• ☕️ Taking on the $465B global coffee market
• Featured in VICE, Thrillist, US News, and other leading tastemakers
• ✌️ 1% for the Planet Members for sustainable coffee farming & mental health support
• Defining the emerging CBD Coffee category with over 350+ retailers in the US
• Gen Z and minority founding team backed by industry veterans from PepsiCo, Celsius, & Boomchickapop

Historical Results of Operations

Our company was organized in July 2020 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 $219,604.27 compared to the year ended December 31, 2022, when the Company had revenues of $30,776. Our gross margin was 42.82% in fiscal year 2023, compared to 58.82% in 2022.
• Assets. As of December 31, 2023, the Company had total assets of $93,779.68, including $75,089.97 in cash. As of December 31, 2022, the Company had $263,163 in total assets.
• Net Loss. The Company has had net losses of $178,258.90 and net losses of $104,519 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
• Liabilities. The Company's liabilities totaled $28,031.13 for the fiscal year ended December 31, 2023 and $346,086 for the fiscal year ended December 31, 2022.

Liquidity & Capital Resources

To-date, the company has been financed with $49,814 in debt and $673,932.00 in SAFEs.

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 12-16 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

Jibby Coffee, Inc. cash in hand is $52,500, as of January 2024. Over the last three months, revenues have averaged $31,229/month, cost of goods sold has averaged $14,172/month, and operational expenses have averaged $15,249/month, for an average net margin of $1,808 per month. Our intent is to be total net profitable in 4-6 months.

At our last update, our goal was to hit $25k/mo in revenue—which we've quickly achieved and surpassed.  Our new product line for Amazon and DTC has had significantly healthier gross margins, and we see our GM% increasing every month as we increase efficiency in production, processes, and shipping.

At our current growth rate, we project to be doing a profitable $60-80K/mo in the next 4-6 months (with the ultimate goal this year of reaching a $1M run rate, or $83K/mo).

Our higher gross margin product line means that we're approaching profitability faster than ever and we expect to be within the next 4-6 months. 

We have relationships with a handful of inventory financing companies (two of which we've used in the past), and now that we're out of the regulated products market (CBD), our available universe of lenders is much larger.

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