Details
1 | We are starting to generate revenue ($130,000 in Q3 2019) |
2 | 10 machines are on order, with contractual option to sell 65 additional machines within the next 6 months |
3 | Customers include UC Berkeley and a large automotive manufacturer |
4 | Agreement signed with the world's largest food service operator for initial deployment in California |
5 | $600,000 raised |
The passion for baking runs in the family, as my grandfather was a baker in France. Le Bread Xpress is my way of continuing what my grandfather started 80 years ago, but with a new, modern twist. Bread is a staple of daily life, not only in France, but across the world.
Photo of my grandfather and father in the 1940s in front of their bakery in Nantes, France
After moving to the US, my daily quest became locating the best bread. Most findings lacked freshness or quality. Meanwhile, an innovative baguette machine in France provided the perfect inspiration, and I resolved to bring this technology and new concept of the micro-bakery to the US market.
New concept: from bread to baked goods
Evolving from our original vending machine concept Le Bread Xpress, we developed "Bakery in a box," a versatile micro-baking machine that can store and deliver a wide range of high-quality, delicious fresh products, 24/7 - anytime and on-demand. Enter the new concept we call Bake Xpress.
Superior products from legendary La Boulangerie
To ensure customer satisfaction, we partnered with San Francisco's high-quality supplier La Boulangerie, known for its authenticity and unrivaled standards. La Boulangerie is currently experiencing a remarkable expansion. Read about it here. Delicious baked goods range from thin-crust pizzas to sweet or savory croissants.
Modern technology
The machine is now available in and released to the US market. Its advanced technology answers the needs of millennials for fast, high-quality fare with:
Standing out above the rest
No other vending machine manufacturers offer our flexibility. Others are typically single product. We offer unlimited selection of food items and adjust the baking time accordingly.
Our other key differentiator is our full solution, from providing the technology to the quality food items and all needed support.
We have multiple IP with the manufacturer as well as several breakthrough IPs currently in progress.
According to Accumen Research, the global intelligent vending machines market is expected to grow at a CAGR of over 14.5% in the coming years. The worldwide shipments are anticipated to exceed 6 million units by 2026. Also, the market is anticipated to reach over USD 34.3 billion by 2026*.
We are already on the map for robotic food vendors:
2019 so far has produced great results, having achieved certifications for our new machine. Additionally, our first multi-products machines start operations in August 2019, with 6 more coming onboard in September 2019.
After successful implementation, we expect orders for 65 machines.
Revenue is generated from:
We are starting to generate revenue ($130 k for Q3 2019).
Revenue breakdown for an operator:
With a pizza sale price of $8, a pizza cost of $2, and selling 50 per day for example, each machine can generate $12,000 of revenue per month
Cost breakdown/profit below is for ONE machine:
We plan to sell 100's machines in 2020.
Existing pizza machines sell between $40,000 and $50,000 in Europe and USA.
Le Bread Xpress has financial statements ending December 31 2019. Our cash in hand is $100,000, as of July 2019. Over the three months prior, revenues averaged $25,000/month, cost of goods sold has averaged $12,000/month, and operational expenses have averaged $33,000/month.
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 cutting edge micro-baking technology in the form of a unique vending machine that can be easily set up in a variety of high-traffic locations. The machine quickly delivers warm, fresh-baked products using French artisan recipes. Target markets include universities, corporate offices, hospitals, hotels, transportation hubs, and retailers who are looking to provide a gourmet alternative to standard packaged snacks.
We hope to be the leader in micro-baking vending technology and the best option for fast and convenient quality food. We hope to sell and manage over 10,000 vending machines in major retail outlets (7/11, Starbucks), universities, hotels, airports, and more.
Milestones
Le Bread Xpress, Inc. was incorporated in the State of California in June 2015.
Since then, we have:
Historical Results of Operations
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 $267,500 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, Inc. cash in hand is $100,000, as of July 2019. Over the last three months, revenues have averaged $25,000/month, cost of goods sold has averaged $12,000/month, and operational expenses have averaged $33,000/month, for an average burn rate of $20,000 per month. Our intent is to be profitable in 6 months.
We have installed 10 machines in USA and 1 in UAE. We successfully completed the proof of concept development at Tesla.
However we had to Furlough our employees due to the Covd19 pandemic. This is to reduce payroll expenseWe have completed the Wefunder raise ($160 k)
We expect a new order from UAE foundation and Aswaaq supermaket in June for 9 machines ($220 k revenue) We also expect $5000 revenue per months from licensing of the machine
Expense are mostly Payroll ($20k per month)
Wefunder proceeds from crowdfunding brought $160k and then we plan to raise up to 5M later this year
1 | Larger competitor may come with more aggressive price or larger offering including full service and operations. this will impact our forecasted sales. |
2 | Our business plan rely mostly on keeping our largest customer which represents more than 2/3 of the sales. |
3 | Tariff with China may increase and lower the profit due to higher tax even if we still have the lowest cost in the industry |
4 | 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. |
5 | Additional certification may be needed to meet certain states requirement or environment regulation which may add delay and cost |
6 | The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions. |
Director | Occupation | Joined |
---|---|---|
jacques herve | retired @ retired | 2015 |
benoit herve | CEO @ Le bread Xpress | 2015 |
Nicholas Lavoie | Finance @ Nestle | 2015 |
Officer | Title | Joined |
---|---|---|
benoit herve | President Treasurer CEO Secretary CFO | 2015 |
Holder | Securities Held | Voting Power |
---|---|---|
benoit herve | 5,100,000 stock | 99.0% |
Date | Amount | Security |
---|---|---|
04/2020 | $164,138 | SAFE |
07/2019 | $50,000 | Loan |
01/2017 | $7,500 | Loan |
02/2019 | $70,000 | Loan |
04/2019 | $150,000 | SAFE |
07/2015 | $200,000 | SAFE |
06/2018 | $130,000 | Loan |
05/2018 | $10,000 | Loan |
08/2017 | $327,000 | SAFE |
Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
---|---|---|---|---|---|---|
Line of Credit | 01/01/2017 | $7,500 | $7,500 | 3.99% | Yes | |
Ty Garibay | 05/30/2018 | $10,000 | $10,000 | 2.0% | 06/01/2020 | Yes |
benoit herve | 06/01/2018 | $130,000 | $130,000 | 3.0% | Yes | |
benoit herve | 02/01/2019 | $70,000 | $70,000 | 5.0% | ||
US Bank | 07/17/2019 | $50,000 | $49,000 | 5.74% | 07/17/2023 | Yes |
Name | Jacques Herve |
Amount Invested | $100,000 |
Transaction type | Safe |
Issued | 07/14/2015 |
Discount rate | 0.0 |
Valuation cap | $2,000,000 |
Relationship | Father |
Father - Board Member | |
Name | Nicolas Lavoie |
Amount Invested | $100,000 |
Transaction type | Safe |
Issued | 08/18/2015 |
Discount rate | 0.0 |
Valuation cap | $2,000,000 |
Relationship | None |
Name | benoit herve |
Amount Invested | $130,000 |
Transaction type | Loan |
Issued | 06/01/2018 |
Outstanding principal plus interest | $130,000 as of 08/2019 |
Interest | 3.0 per annum |
Outstanding | Yes |
Current with payments | Yes |
Relationship | Founder |
Related party loan. There is no set repayment date; the loan is expected to be repaid as the company generates revenue. | |
Name | benoit herve |
Amount Invested | $70,000 |
Transaction type | Loan |
Issued | 01/31/2019 |
Outstanding principal plus interest | $70,000 as of 08/2019 |
Interest | 5.0 per annum |
Outstanding | Yes |
Current with payments | Yes |
Relationship | Founder |
Related party loan. There is no set repayment date; the loan is expected to be repaid as the company generates revenue. | |
$75,000 | 42.5% working capital (including finding and leasing a warehouse, on going expenses, patent applications, legal costs)
50% equipment purchase
7.5% Wefunder intermediary fee |
$500,000 | 50% working capital (including finding and leasing a warehouse, on going expenses, patent applications, legal costs)
42.5% equipment purchase
7.5% Wefunder intermediary fee |
$1,070,000 | 32.5% working capital (including hiring employees, finding and leasing a warehouse, on going expenses, patent applications, legal costs)
40% development of the next generation micro bakery with AI.
20% marketing sales
7.5% Wefunder intermediary fee
|
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Common Stock | 10,000,000 | 5,636,700 | Yes |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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