Financial Performance - Total net revenues for Q1 2025 were $1,693,261, an increase of 11.5% compared to $1,518,062 in Q1 2024[18] - The company reported a net loss of $2,191,144 for Q1 2025, compared to a net loss of $990,544 in Q1 2024, reflecting a 121.5% increase in losses year-over-year[18] - For the three months ended March 31, 2025, total net sales were $1,693,261, an increase of 12% compared to $1,518,062 for the same period in 2024[39] - The company reported a net loss of $2.2 million for the three months ended March 31, 2025, compared to a net loss of $990,544 for the same period in 2024, representing an increase in loss of 121.2%[132] - Operating costs and expenses for Q1 2025 were $3,390,618, a significant increase from $2,381,634 in Q1 2024, indicating rising operational challenges[18] - Operating costs and expenses increased by 42.4% to approximately $3.4 million for the three months ended March 31, 2025, compared to $2.4 million for the same period in 2024[132] - General and administrative expenses rose by 23.3% to approximately $2.5 million for the three months ended March 31, 2025, compared to $2.0 million for the same period in 2024[135] Assets and Liabilities - Cash and cash equivalents increased significantly to $777,117 as of March 31, 2025, up from $158,215 at the end of 2024[16] - Total current assets rose to $1,556,963, a substantial increase from $862,752 at the end of 2024, indicating improved liquidity[16] - Total liabilities increased to $7,648,995 as of March 31, 2025, compared to $5,186,381 at the end of 2024, highlighting rising financial obligations[16] - The company has an accumulated deficit of $23,754,016 as of March 31, 2025, up from $21,562,872 at the end of 2024[16] - As of March 31, 2025, total long-lived assets were $4,017,002, a slight decrease from $4,080,004 as of December 31, 2024[39] - Total property and equipment as of March 31, 2025, amounted to $5,493,905, a decrease from $5,581,398 as of December 31, 2024, reflecting a reduction of approximately 1.56%[69] Financing and Capital Structure - The company plans to raise additional operating funds through equity and/or debt offerings to support its working capital requirements[28] - The weighted average number of common shares outstanding increased to 4,616,591 in Q1 2025 from 1,653,826 in Q1 2024, reflecting potential dilution[18] - The Company issued convertible notes payable totaling $3,333,333 as of March 31, 2025, with a debt discount of $3,142,146, resulting in a net amount of $191,187[80] - The Company entered into a short-term borrowing agreement for $300,000 at an interest rate of 5.5% per annum, maturing in February 2024[72] - The Company has a total of $500,000 in Emergency Injury Disaster Loans (EIDL) with a maturity date extending to May 16, 2050, and an interest rate of 3.75%[73] - The company secured a Paycheck Protection Program (PPP) loan totaling $115,000 and a second loan of approximately $167,000, with the first loan forgiven prior to December 31, 2021[148] Operational Insights - North America generated net sales of $1,693,261, while Asia reported no sales for the period, down from $153,200 in 2024[39] - Reborn Malaysia, which opened in November 2023, operated at limited capacity, contributing immaterial revenue for the three-month period ended March 31, 2025[36] - The company recognized retail store revenue, which constitutes approximately 99% of total revenue, at the point of sale[43] - Advertising expenses for the three months ended March 31, 2025, were $5,709, down from $10,891 in 2024[49] - The company has not recorded any royalty revenue from franchise operations for the three months ended March 31, 2025, and 2024[45] - The company operates 13 retail locations, with a significant focus on expanding its presence in California and internationally in South Korea and Malaysia[118] Market and Strategic Initiatives - The retail coffee market in the U.S. is projected to reach $74.3 billion by 2025, driven by a shift towards premium coffee products[124] - The company aims to capture a growing portion of the market through innovative products like Reborn Coffee Pour Over Packs, which have seen increased B2B sales[121] - Management identified control deficiencies due to inadequate accounting resources and a lack of segregation of duties, which may affect the accuracy of financial reporting[155] Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was 0%, primarily due to California state income taxes and changes in the valuation allowance[88] - The company reported total deferred tax assets of $11,652,321 as of March 31, 2025, with a valuation allowance of the same amount, indicating that it is unlikely to realize these assets[89] - The company has cumulative net operating loss carryforwards for federal tax purposes of approximately $1.16 million and state tax net operating loss carryforwards of approximately $3,715,000 as of March 31, 2025[91] Corporate Governance and Compliance - The company has incorporated various agreements and certifications in compliance with the Sarbanes-Oxley Act, ensuring regulatory adherence[167] - The company has filed a Certificate of Amendment to its Certificate of Incorporation on January 12, 2024, reflecting corporate governance changes[166] - The company’s Chief Executive Officer, Jay Kim, and Chief Financial Officer, Stephan Kim, signed the report on May 20, 2025, affirming its accuracy[170]

Core Insights - Reborn Coffee Inc. has signed a Memorandum of Understanding (MOU) with Tori AI to enhance operational efficiency and customer interactions through AI technology [1][4] - The partnership aims to implement smart retail solutions, including drive-thru automation and personalized customer experiences [2][4] - Reborn Coffee is positioning itself as a leader in café innovation by integrating advanced technology into its operations [5] Company Overview - Reborn Coffee, Inc. is a California-based specialty coffee retailer focused on high-quality, handcrafted coffee experiences [7] - The company is dedicated to innovation and is redefining the coffeehouse model through technology-forward initiatives [7] Technology and Implementation - Tori AI provides plug-and-play systems that will help Reborn Coffee reduce labor costs and enhance upselling through real-time data [2] - The technology includes dynamic ordering prompts, inventory automation, and personalized menu suggestions to improve customer journeys and backend decision-making [2][4] - The first AI-enhanced drive-thru location is set to launch at 5050 W Russell Rd. in Las Vegas, NV [4] Strategic Positioning - This MOU positions Reborn Coffee as a forward-thinking leader in the café industry, with plans for additional initiatives and experiential rollouts [5] - Tori AI's expertise in smart automation and environment optimization will support Reborn Coffee's goals of enhancing operational efficiency and customer engagement [6]

Core Insights - Reborn Coffee Inc. has entered into a Memorandum of Understanding with Otonomus Hotel to innovate hospitality and retail coffee service through AI technology [1][2] - The partnership aims to develop an autonomous drive-thru coffee experience and premium in-suite coffee offerings for hotel guests [2][3] Partnership Details - The collaboration will integrate Reborn Coffee's specialty coffee expertise with Otonomus Hotel's AI-driven hospitality vision [2] - An autonomous drive-thru will be located at the front of the Otonomus Hotel, accessible to both guests and the public [2] - In-room offerings will include cold brew cans, single-serve coffee capsules, and smart coffee machines, enhancing guest experience [3] Innovation and Technology - The partnership will explore features such as loyalty perks and room charge capabilities for seamless transactions [4] - In-room QR codes will allow guests to reorder or subscribe to Reborn products easily, with additional sales opportunities at the hotel's gift shop [4] Strategic Vision - The MOU is seen as a step towards shaping the future of hospitality, focusing on guest satisfaction and operational excellence [5] - The agreement is non-binding and will last for an initial term of six months while operational and revenue-sharing details are finalized [5] Company Background - Otonomus Hotel is a next-generation hospitality brand that emphasizes AI integration and autonomous services [6] - Reborn Coffee, Inc. is a California-based specialty coffee retailer known for high-quality, handcrafted coffee experiences and innovative initiatives [7]

Core Insights - Reborn Coffee Inc. has established a Central China Supply Chain Headquarters in Dawu County, enhancing its position as a leading matcha distributor in Asia [1][6] - The company will oversee the sourcing and distribution of matcha-based products throughout Asia and the UAE, in collaboration with a China-Japan joint venture agricultural group [2][7] - Reborn China aims to set a new standard of quality in the global matcha market by leveraging premium matcha sources from China and Japan [3] Company Developments - CEO Jay Kim formalized the partnership with local government officials during a visit to Dawu County, emphasizing long-term alignment and cooperation [5] - The partnership is supported by the Dawu County government, which is committed to fostering international collaboration and promoting regional agricultural excellence [6] - A strategic supply agreement has been confirmed with a China-Japan joint venture manufacturer, ensuring a consistent pipeline for large-scale international distribution of matcha products [7] Market Strategy - Reborn Coffee plans to deliver matcha products across key Asian markets, including Singapore, Thailand, Vietnam, Indonesia, and Korea, while utilizing Dubai and Malaysia as distribution gateways [7] - The company is positioned to bridge the gap between top matcha-producing regions and the growing demand in Asia and the Middle East, enhancing product quality and reliability [8] - Reborn Coffee continues to focus on delivering exceptional beverage experiences through carefully sourced ingredients and a commitment to global excellence [8]

Core Insights - Reborn Coffee Inc. reported a 31% increase in Q4 2024 revenue to $1.8 million, compared to $1.4 million in Q4 2023, and an 8% increase in full-year revenue to $5.9 million from $5.5 million in 2023 [1][6][14] - The company has been approved as a U.S. franchisor and has signed commitments for 33 new franchise locations, aiming for over 100 franchise locations nationwide within the next three years [5][6][10] - Despite challenges such as rising input costs and increased consumer price sensitivity, the company is focusing on global expansion and innovative product launches, including a new Ready-To-Drink (RTD) cold brew product line [4][9][10] Financial Performance - Q4 2024 revenue was $1.8 million, a 31% increase from $1.4 million in Q4 2023, driven by increased customer traffic and enhanced marketing efforts [6][14] - Full-year revenue for 2024 reached $5.9 million, up 8% from $5.5 million in 2023, attributed to new location openings and marketing initiatives [6][14] - Company-operated store gross margins decreased to 63% in 2024 from 66% in 2023, reflecting higher food costs [6][16] Operational Highlights - The company ended Q4 2024 with 11 open locations and one in development, reinforcing its national growth strategy [6] - Wholesale and online sales grew by 47% to $0.4 million in 2024, up from $0.2 million in 2023, as Reborn Coffee scales its omnichannel footprint [6] - The company has partnered with Eachome Shopping in China to expand its retail presence and is establishing flagship locations in Europe, including Vienna, Florence, and Prague [8][10] Strategic Initiatives - Reborn Coffee is targeting the opening of over 300 locations worldwide within the next two years, aiming to establish itself as a household name [10] - The company is collaborating with Finlays to launch a new RTD cold brew product line, which is expected to cater to the growing demand for convenient coffee options [9] - A securities purchase agreement for up to $60 million in financing commitments has been entered into with Arena Investors, LP, and Arena Business Solutions Global SPC II, Ltd. [20]

Financial Performance - Total net revenues for the year ended December 31, 2024, were approximately $5.9 million, an increase of $0.4 million or 7.6% compared to $5.5 million in 2023, driven by new location openings and marketing efforts [260]. - The company reported a net loss of approximately $4.8 million for the year ended December 31, 2024, compared to a net loss of $4.7 million in 2023, reflecting a 1.7% increase in losses [260]. - Net cash used in operating activities was approximately $3.5 million for the year ended December 31, 2024, compared to $3.2 million in 2023, indicating ongoing cash flow challenges [268][269]. Revenue Composition - Retail store revenue accounted for approximately 98% of total revenue, while wholesale and online revenue made up between 4% to 6% of total revenue [253][254]. Cost and Expenses - Product, food, and drink costs for stores increased to approximately $2.1 million in 2024, up 15.7% from $1.8 million in 2023, influenced by new location openings and increased sales [261]. - General and administrative expenses rose to approximately $8.3 million in 2024, a 1.2% increase from $8.2 million in 2023, primarily due to higher occupancy and labor costs [262]. Cash Flow and Financing - The company utilized $1.0 million in investing activities in 2024, down from $2.4 million in 2023, primarily for property and equipment purchases related to location openings [270]. - Financing activities provided net cash of $4.4 million in 2024, an increase from $2.7 million in 2023, mainly from common stock issuances [271]. Going Concern and Risks - The company has a history of operating losses and negative cash flow, raising substantial doubt about its ability to continue as a going concern [264]. - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk [282]. Taxation - The company files income tax returns in the U.S. federal and California state jurisdictions, as well as in South Korea and Malaysia, where income taxes are not material [277]. - Upon closing of the offering, the company will be taxed at the prevailing U.S. corporate tax rates and will record a provision for anticipated tax consequences [278]. Accounting and Reporting - Management utilizes estimates and judgments in preparing financial statements, affecting reported amounts of assets, liabilities, revenues, and expenses [280]. - The company does not have any off-balance sheet arrangements that require disclosure, but enters into operating lease commitments and other contractual obligations recognized in financial statements [279]. - All other issued but not yet effective accounting pronouncements are determined to be inapplicable or insignificant to the company [281]. Stock and Corporate Actions - A reverse stock split of 1-for-8 was executed on January 12, 2024, with trading adjusted accordingly on January 22, 2024 [257].

Core Insights - Reborn Coffee Inc. has officially welcomed Bosco Bakery as a franchise, marking a strategic expansion into the artisan bakery segment [1][2][3] - The integration aims to enhance Reborn Coffee's specialty coffee offerings by combining them with Bosco's traditional baked goods, creating a full-scale café experience [2][3] - This expansion aligns with Reborn Coffee's vision of growing into the bakery sector while maintaining its focus on premium specialty coffee [3][5] Company Strategy - The new franchise bakery in Los Angeles serves as a key step in Reborn Coffee's mission to scale its franchise operations and attract future franchisees [5][6] - The flagship location exemplifies the brand's adaptability in high-demand urban markets, providing a model for future hybrid café-bakery locations [6][7] - Reborn Coffee emphasizes a commitment to quality, innovation, and community through the integration of its offerings with Bosco Bakery's heritage [7] Product Offering - The upgraded menu at Bosco Bakery will feature over 40 varieties of fresh-baked pastries and bread, paired with Reborn's specialty coffee selections [3][6] - Reborn Coffee focuses on delivering high-quality, specialty-roasted coffee and aims to differentiate itself through innovative techniques in sourcing, washing, roasting, and brewing [8]

Core Insights - Reborn Coffee Inc. has partnered with Eachome Shopping to expand its retail presence in China and potentially Southeast Asia [1][3][4] - The collaboration aims to leverage Eachome Shopping's media resources to enhance brand visibility and consumer engagement [3][4] - This strategic alliance reflects Reborn Coffee's commitment to global branding and market expansion [4] Company Overview - Reborn Coffee, Inc. is focused on providing high-quality specialty-roasted coffee through various retail formats [6] - The company differentiates itself through innovative techniques in sourcing, washing, roasting, and brewing coffee [6] Eachome Shopping Overview - Eachome Shopping is a retail platform under Shenzhen Media Group, offering a diverse range of products and services [5] - The platform aims to enhance consumer lifestyles through quality products and seamless shopping experiences [5]

Core Insights - Reborn Coffee Inc. is expanding its global presence by opening flagship locations in Europe, specifically in Vienna, Florence, and Prague, with Prague set to open in June 2025 to coincide with peak tourist season [1][2][7] - The expansion is led by Reborn Coffee Dubai, which has been instrumental in the brand's success in the Middle East and is now applying its expertise to the European market [3][5] - The company is also seeking franchise and licensing partners in Europe and the Middle East, providing investment opportunities in the specialty coffee sector [4] Expansion Details - The Prague flagship store will serve as a showcase for the brand in Central Europe, aiming to attract international tourists [7] - Reborn Coffee Vienna will combine traditional coffee culture with modern specialty coffee innovations, while the Florence location will enhance the brand's presence in Italy, building on the success of its first store [7] Brand Commitment - Reborn Coffee emphasizes its commitment to excellence, sustainability, and innovation, ensuring that new locations adhere to high quality standards and signature brewing techniques [3][5] - The company differentiates itself through innovative techniques in sourcing, washing, roasting, and brewing coffee, aiming to enhance the overall coffee experience [5]

Core Viewpoint - Reborn Coffee Inc. has secured up to $60 million in financing commitments to enhance its operational liquidity and support expansive growth initiatives, including flagship store openings and product innovation [1][4][3]. Financing Details - The financing structure includes a Debenture Offering of up to $10 million and an Equity Line of Credit (ELOC) of $50 million, aimed at providing working capital and supporting future growth [2][8]. - The Debenture Offering consists of 10% original issue discount secured convertible debentures, with a purchase price of up to $9 million, expected to close in four tranches [8]. - The ELOC allows Reborn Coffee to issue and sell up to $50 million in shares of common stock, providing flexibility for capital raising [8]. Strategic Growth Plans - The company plans to accelerate national expansion, focusing on flagship store openings and enhancing its retail presence, while also introducing new products to meet changing consumer demands [4][3]. - The funding is seen as a critical foundation for scaling operations and driving innovation within the specialty coffee market [3][4]. Company Overview - Reborn Coffee, Inc. specializes in high-quality, specialty-roasted coffee and aims to differentiate itself through innovative sourcing, washing, roasting, and brewing techniques [6].