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:

• We are starting to generate revenue ($130,000 in Q3 2019)
• 10 machines are on order, with contractual option to sell 65 additional machines within the next 6 months
• Customers include UC Berkeley and a large automotive manufacturer
• Agreement signed with the world's largest food service operator for initial deployment in California
• $600,000 raised

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2019, the Company had revenues of $106,000 compared to the year ended December 31, 2018, when the Company had revenues of $23,267. Our gross margin was 87.26% in fiscal year 2019, compared to 16.45% in 2018.
• Assets. As of December 31, 2019, the Company had total assets of $300,000, including $184,000 in cash. As of December 31, 2018, the Company had $161,263 in total assets, including $13,850 in cash.
• Net Loss. The Company has had net losses of $160,000 and net losses of $177,856 for the fiscal years ended December 31, 2019 and December 31, 2018, respectively.
• Liabilities. The Company's liabilities totaled $570,000 for the fiscal year ended December 31, 2019 and $549,272 for the fiscal year ended December 31, 2018.

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