Reborn Coffee Reports Slight Decline in Net Revenues, Ongoing Operational Challenges

Reborn Coffee, Inc. reported its financial results for the nine months ending September 30, 2024, revealing a slight decline in net revenues and ongoing operational challenges. The company generated net revenues of $4.15 million, a decrease of $5,611 or 0.1% compared to $4.16 million in the same period of 2023. Notably, revenues from retail stores fell by 7.5% to $3.78 million, down from $4.09 million, while wholesale and online revenues surged significantly by 470.6% to $365,164, up from $63,991.

Total operating costs and expenses for the nine months were $7.08 million, a marginal increase from $7.04 million in the prior year. The company reported a net loss of $3.03 million for the nine months, slightly higher than the $3.01 million loss recorded in 2023. The basic and diluted loss per share improved to $(1.40) from $(1.82) year-over-year.

In terms of cash flow, Reborn Coffee utilized $3.32 million in operating activities, compared to $2.99 million in the previous year. However, the company saw a significant increase in net cash provided by financing activities, totaling $3.90 million, up from $1.08 million in 2023. This increase was attributed to proceeds from the issuance of common stock amounting to $4.88 million.

As of September 30, 2024, total assets rose to $9.64 million from $9.25 million at the end of 2023, while total liabilities decreased from $8.41 million to $6.98 million. Stockholders’ equity saw a substantial increase from $846,406 to $2.67 million, reflecting a positive shift in the company’s financial position.

Strategically, Reborn Coffee has expanded its operations internationally, with the establishment of Reborn Coffee Korea, Inc. and Reborn Malaysia, Inc. in October 2023. The company continues to focus on its core business of specialty coffee, with retail store revenue constituting approximately 92% of total revenue.

Despite these developments, the company faces challenges, including a current liabilities exceeding current assets by approximately $1.95 million and a cumulative net operating loss carryforward of about $4.30 million. Management has indicated plans to raise additional operating funds through equity and/or debt offerings, as substantial doubt exists regarding the company's ability to continue as a going concern.

Reborn Coffee operates twelve retail locations across California, Korea, and Malaysia, emphasizing its commitment to innovation and quality in the specialty coffee market.