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

We develop and distribute the Micro-Bakery, a unique vending machine which delivers freshly baked products using French artisan recipe. The Bread Xpress is headquartered in San Jose, CA. We select the baked food from qualified best-in-class bakeries and sell the machines to operators and  food service companies. Target markets are universities, corporate offices, hospitals, hotels, transportation hubs and any retailers who are looking to provide a gourmet alternative to snack, 24/7.

We hope to be the leader of automatic Baking vending machine, be known by the Millennial's as the new best option for fast and convenient quality food and the leader in oven based vending machines, and be the largest vendor of Pizza and croissants in USA while providing unmatched quality.

We hope to sell and manage more than 10,000 vending machines in major retails (7/11, Starbucks), Universities, Retailers, and Hotel chains (Hilton, Marriott).

Milestones

Le Bread Xpress, Inc. was incorporated in the State of California in June 2015.

Since then, we have:

• We are generating revenue ($130,000 in Q3)
• Orders received for 10 machines and intent for 65 more in the next 6 months
• Customers include UC Berkeley and Tesla
• Agreement signed with largest food service company in the world for initial deployment in California
• $600,000 already raised

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $3,953 compared to the year ended December 31, 2017, when the Company had revenues of $23,267. Our gross margin was -79.05% in fiscal year 2018, compared to 16.45% in 2017.
• Assets. As of December 31, 2018, the Company had total assets of $153,434, including $19,685 in cash. As of December 31, 2017, the Company had $161,263 in total assets, including $13,850 in cash.
• Net Loss. The Company has had net losses of $169,303 and net losses of $177,856 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
• Liabilities. The Company's liabilities totaled $710,746 for the fiscal year ended December 31, 2018 and $549,272 for the fiscal year ended December 31, 2017.

Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

Liquidity & Capital Resources

To-date, the company has been financed with $260,000 in debt and $677,000 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

Le Bread Xpress cash in hand is $100,000, as of July 2019. Over the last three months, revenues have averaged $1,500/month, cost of goods sold has averaged $1,000/month, and operational expenses have averaged $9,000/month, for an average burn rate of $8,500 per month. Our intent is to be profitable in 6 months.

We got our first PO for 6 machines  for delivery in September.  We expect (although cannot guarantee)  that we will reach profitability by end of Q4 2019 . Additional order for 30 -50 machines are expected by year end from a large machine operator. We signed a Proof of concept agreement for up to 75 machines from June to Dec 2019. We have negotiated equipment loan if needed.