PLFF Orpheum Property Inc (CE)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Management’s experience in the coffee industry is that as typical for coffee brokerage and small specialty coffee sales, we do not have long term sales contracts. We do not have any written contracts for the sale of our product.  We produce and ship as purchase orders are received.  We must wait for future purchase orders to make sales in the future.  Because coffee prices are variable and demand can also be variable, we believe that selling under long term contracts would not be practicable in our industry.  Our invoices are due net 30 days, but currently we are receiving payment immediately on shipment. The sales in the six months ended September 30, 2007 were $115,417, compared to $9,460 for the same period in 2006, an increase caused by the acquisition of Coscina Brothers Coffee on November 2, 2006.  The gross margin as a percentage of sales improved from 12% to 51% due to the acquisition of Coscina Brothers Coffee in 2006. Our general and administrative expenses primarily consisted of legal and professional fees related to our status as a public company.  These expenses increased in 2007 primarily due to the general and administrative costs of Coscina Brothers Coffee, and secondarily due to higher costs associated with our public company status. Our net loss from operations was $114,473 and our net loss in total was $120,888 for the six months ended September 30, 2007.

Our plan of operation for fiscal 2008 will depend on whether we obtain outside funding.  If we do not receive outside funding, our plan of operations will be simple.  Based entirely on our communications with our primary customer, management believes, and has no reason to doubt, that we will continue to achieve the current level of sales without any significant marketing expenditures.  However, we cannot be certain of any future sales.  Management is confident that Pacific Land and Coffee can continue to enjoy at least its

limited level of sales.  Yet we are still developing our planned principal operations.  Management will use its current business contacts to attempt to achieve additional sales.  In particular, Mr. Coscina has 28 years experience in the coffee industry.   There are no contingencies or conditions to the above sales other than our performance under purchase orders.  We will not require any outside funding to accomplish these sales, nor will we need to make any capital expenditures or hire employees and expect that we will slowly obtain additional  specialty coffee orders and green bean brokerage transactions.  Business expenses will be advanced by the officers.  It’s very difficult for management to project our sales for fiscal 2008.  Management is hopeful that sales will gradually increase but cannot guarantee sales will remain at current levels, sales will not decrease, nor that any increase will occur.

We hope to be able to expand our operations if we can receive significant outside funding.  We are seeking $500,000 in funding for 12 months of our business plan as follows:

Marketing

$200,000

General and Administration

$280,000

Research and Development

$ 20,000

Upon receipt of the full amount of the funding Pacific Land and Coffee will commence marketing primarily of our specialty coffee and green bean brokerage services.  We will develop proprietary coffee blends from research and development funds.  We believe we can develop several blends and attractive packaging with such amount.  Marketing expenses will be comprised of printing of marketing materials and media costs, and salaries for sales representatives or sales associates.  General and administrative costs include salaries estimated at an aggregate of $10,000 per month for 12 months, lease expense, telephone and travel expense.  In the event we obtain such funding we believe that lead time will be 2-3 months from funding until the commencement of increased sales.  With full funding we will be able to hire sales assistants and to undertake marketing via tradeshows and advertisements in industry publications.  If we receive less than the full $500,000 we need, we will not be able to complete this plan in full.  If we receive $100,000 in funding, most of this amount will be used for salaries of sales associates or sales representatives.  The receipt of $200,000 will enable us to advertise, to utilize trade shows and conventions, to market as well as direct mail, but we will not be able to pay management salaries.

We do not have any agreements or understandings with respect to sources of capital.  We have not identified any potential sources.  Investors cannot expect that we will be able to raise any funds whatsoever. Even if we are able to find one or more sources of capital, its likely that we will not be able to raise the entire amount required initially, in which case our development time will be extended until such full amount can be obtained.  Even if we are successful in obtaining the required funding, we probably will need to raise additional funds at the end of 12 months.

Information included in this report includes forward looking statements, which can be identified by the use of forward-looking terminology such as may, will, expect, anticipate, believe, estimate, or continue, or the negative thereof or other variations thereon or comparable terminology. The statements in "Risk Factors" and other statements and disclaimers in this report constitute cautionary statements identifying important factors, including risks and uncertainties, relating to the forward-looking statements that could cause actual results to differ materially from those reflected in the forward-looking statements.

Since we have not yet generated significant and consistent revenues, we are a development stage company as that term is defined in paragraphs 8 and 9 of SFAS No. 7.  Our activities to date have been limited to seeking capital; seeking supply contracts and development of a business plan.  Our auditors have included an explanatory paragraph in their report on our financial statements, relating to the uncertainty of our business as a going concern, due to our lack of operating history or current revenues, its nature as a start up business, management's limited experience and limited funds.  We do not believe that conventional financing, such as bank loans, is available to us due to these factors.  We have no bank line of credit available to us.  Management believes that it will be able to raise the required funds for operations from one or more future offerings, in order to effect our business plan.   Management has refrained from discussions regarding specific equity or debt offerings commencing on the filing of a pending Registration Statement.  However, prior to such filing management found significant interest from individual investors in making investments in Pacific Land and Coffee provided that a listing on a public market was obtained.  No terms have been discussed, and we cannot predict the price or terms of any offering nor the amount of dilution existing shareholders may experience as a result of such offering.

Forward looking information

Our future operating results are subject to many factors, including:

O

the impact of rapid and persistent fluctuations in the price of coffee beans;  

O

fluctuations in the supply of coffee beans;

O

general economic conditions and conditions which affect the market for coffee;

O

our success in implementing our business strategy or introducing new products;

O

our ability to attract and retain customers;

O

 the effects of competition from other coffee manufacturers and other beverage alternatives;

O

changes in tastes and preferences for, or the consumption of coffee;

O

our ability to obtain additional financing; and

O

other risks which we identify in future filings with the SEC.

In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "predict," "potential," "continue," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate" and similar expressions (or the negative of such expressions). Any or all of our forward looking statements in this report and in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Consequently, no forward looking statement can be guaranteed. In addition, we undertake no responsibility to update any forward-looking statement to reflect events or circumstances which occur after the date of this report.

Item 3.

Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. The Company’s principal executive officer and its principal financial officer, based on their evaluation of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-14(c) and 15d -14 (c) as of a date within 90 days prior to the filing of this Quarterly Report on Form 10QSB, have concluded that the Company’s disclosure controls and procedures are adequate and effective for the purposes set forth in the definition in Exchange Act rules.

(b) Changes in internal controls. There were no significant changes in the Company’s internal controls or in other factors that could significantly affect the Company’s internal controls subsequent to the date of their evaluation.