Company Believes It Has Regained Compliance with Nasdaq Stockholders’ Equity Requirement and Is Awaiting Formal DeterminationBREA, CA, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Reborn Coffee, Inc. (NASDAQ: REBN) today released a comprehensive shareholder update following the premium-priced equity today announced that it has received $6.5 million in gross proceeds from an equity investment priced at $5.45 per share, representing approximately three times the Company’s current market price and reflecting strong inves ...

Reborn Coffee, Inc. (NASDAQ:REBN) announced on Tuesday that it has received a $6.5 million equity investment.The company said that it expects the move to help stabilize its finances and support its goal of reaching profitability in 2026.Reborn Coffee sold nearly 1.2 million common shares at $5.45 per share, a level it described as roughly three times its recent market value.Reborn said the capital raise, combined with year-end balance sheet actions, lifted estimated stockholders' equity to about $3.4 millio ...

Core Insights - Reborn Coffee, Inc. has released a shareholder update detailing its premium-priced equity financings and growth initiatives as it transitions into a technology-driven global coffee brand entering 2026 [1][2] Financial Foundation - The company secured $6.5 million in equity commitments at $5.45 per share, a significant premium to its market price, indicating strong investor confidence in its operating model and long-term value creation [2][3] - These financings enhance stockholders' equity, addressing previous deficiencies and providing working capital to support technology advancements and expansion efforts [3] Technology Transformation - Reborn is undergoing a major technology transformation, creating a unified, scalable platform that integrates POS systems, kiosks, mobile ordering, and store operations [4] - This integrated system allows for real-time visibility into sales and customer behavior, improving operational efficiency and decision-making [5][6] Operational Improvements - The U.S. retail stores are experiencing improved operational momentum due to technology integration, leading to better labor efficiency, service speed, and cost controls [7] - The company anticipates achieving sustainable positive cash flow starting in the first quarter of 2026, supported by these operational enhancements [7][14] Global Expansion Strategy - Reborn's long-term growth strategy focuses on an asset-light global licensing model, with approximately ten countries under licensing agreements and more in discussions [11] - The company is also expanding into distribution licensing for consumer products, broadening its global footprint and generating high-margin revenue streams [12] Flagship Developments - A significant milestone includes the development of a flagship location within Tencent's global headquarters in Shenzhen, showcasing Reborn's technology-forward retail model [13][18] - This location is expected to serve as a brand center and operational hub for international partners [10] Strategic Positioning for 2026 - With a strengthened capital structure, improved operational performance, and an expanding international licensing network, Reborn is positioned for a strong 2026 [14] - The company aims to leverage its integrated technology foundation to drive growth and achieve sustainable positive cash flow [15]

Core Insights - Reborn Coffee, Inc. has released a shareholder update detailing its premium-priced equity financings and growth initiatives as it prepares for 2026 [1][2] Financial Strengthening - The company secured $6.5 million in equity commitments at $5.45 per share, a significant premium to its market price, indicating strong investor confidence [2] - These financings enhance stockholders' equity and address previous deficiencies, providing a stronger foundation for the company as it navigates Nasdaq's hearing process [3] Technology Transformation - Reborn is undergoing a major technology transformation, moving beyond traditional coffee retailing to a fully integrated, omni-channel operating platform [4] - This platform offers real-time insights into sales, labor, and customer behavior, facilitating data-driven decision-making and improving operational efficiency [5][6] Operational Improvements - The U.S. retail stores are experiencing improved operational momentum, with gains in labor efficiency, service speed, and tighter cost controls, leading to more predictable performance [10] - The company anticipates achieving sustainable positive cash flow starting in the first quarter of 2026 [10] Global Expansion Strategy - Reborn's long-term growth strategy focuses on an asset-light global licensing model, with approximately ten countries currently under licensing agreements [11] - The company is also expanding into distribution licensing for Reborn-branded consumer products, creating high-margin revenue streams [12] Flagship Developments - A key milestone is the development of a flagship location within Tencent's global headquarters in Shenzhen, which will showcase Reborn's technology-driven retail model [14] - This location is expected to serve as a brand center and operational hub for supporting international partners [13] Strategic Positioning - With a strengthened capital structure, improving operational performance, and an expanding international licensing network, Reborn enters 2026 from a strong strategic position [15] - The company aims to leverage these initiatives to drive sustainable positive cash flow, marking a significant operational inflection point [15]

Financial Performance - Total net revenues for Q3 2025 reached $1,356,609, an increase of 7.8% compared to $1,258,929 in Q3 2024[18] - Net loss for Q3 2025 was $3,449,693, compared to a net loss of $719,748 in Q3 2024, representing a significant increase in losses[18] - Operating costs and expenses for Q3 2025 totaled $4,404,520, up from $1,983,627 in Q3 2024, indicating a rise of 121.1%[18] - Net revenues for the three-month period ended September 30, 2025, were approximately $1.4 million, an increase of 7.8% compared to $1.3 million in 2024, primarily driven by licensing revenue[125] - Total operating costs and expenses for the three-month period were approximately $4.4 million, a significant increase of 122.0% from $2.0 million in the prior year[125] - Net loss for the three-month period was $(3.4) million, a 379.3% increase compared to a net loss of $(719.7) thousand in 2024[125] - For the nine-month period ended September 30, 2025, total net revenues were approximately $4.9 million, an increase of 17.7% from $4.1 million in 2024, driven by license income[131] Cash Flow and Liquidity - Cash and cash equivalents decreased to $44,045 as of September 30, 2025, down from $158,215 as of December 31, 2024[16] - Net cash used in operating activities was $4,794,712 for the nine months ended September 30, 2025, an increase from $3,319,670 in the prior year[27] - The company reported a net cash provided by financing activities of $4,491,041, compared to $3,902,291 in the previous year[27] - Cash and cash equivalents at the end of the period were $44,045, down from $105,863 at the end of the same period in 2024[27] - Net cash provided by financing activities for the nine-month period ended September 30, 2025, was $4.5 million, primarily from loan payables of $4.2 million, offset by debt amortization of $2.9 million[144] Assets and Liabilities - Total assets decreased to $6,198,248 as of September 30, 2025, from $7,789,123 as of December 31, 2024[16] - Total liabilities increased to $9,620,143 as of September 30, 2025, compared to $5,186,381 as of December 31, 2024[16] - The accumulated deficit increased to $(32,543,761) as of September 30, 2025, from $(21,562,872) as of December 31, 2024[16] - Total loans payable to financial institutions as of September 30, 2025, were $132,164, up from $111,300 as of December 31, 2024, representing an increase of approximately 18.7%[61] - Total loan payable to others increased to $449,027 as of September 30, 2025, compared to $427,073 as of December 31, 2024, marking a rise of about 5.1%[62] Stock and Equity - The company issued 100,000 common shares during Q3 2025, contributing to the increase in total stockholders' equity[21] - The weighted average number of common shares outstanding for Q3 2025 was 5,068,011, compared to 2,420,628 in Q3 2024[18] - The Company issued Debentures totaling $3,750,000 to Arena Investors, sold for a purchase price of $4,166,665, reflecting a 10% original issue discount[72] - The Company issued 1,041,667 Warrants in connection with the Debentures issued to Arena Investors[72] Revenue Sources - As of September 30, 2025, retail store revenue accounted for approximately 94.5% of the Company's total revenue for the nine months ended, while wholesale and online revenue made up about 3.5%[119][120] - The Company recognized $100,000 in licensing revenue for the nine months ended September 30, 2025, which constituted approximately 2.0% of total revenue[121] - The retail coffee market in the U.S. is projected to reach $74.3 billion in 2025, driven by a shift towards premium coffee products[117] Operational Developments - The company has established new subsidiaries in Korea and Malaysia, each with one retail coffee store under the Reborn Coffee brand[31] - The Company has 12 retail locations in California and two international locations in South Korea and Malaysia[111][122] - The Company has a focus on continuous Research and Development to innovate coffee processing methods and enhance product offerings[116] - The Company aims to capture a growing portion of the coffee market as consumer awareness of its brand increases[117] Internal Controls and Compliance - Management identified control deficiencies due to inadequate accounting resources and lack of segregation of duties, which may affect the internal control environment[156] - As of September 30, 2025, the company’s disclosure controls and procedures were deemed ineffective, impacting the assurance of timely and accurate reporting[155] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2025, that materially affected the internal control[159] - The company is not currently involved in any litigation that is expected to have a materially adverse effect on its financial condition or results of operations[162] Future Outlook - The company plans to raise additional operating funds through equity and/or debt offerings, although there is no assurance of success[28] - The Company has substantial doubt about its ability to continue as a going concern due to uncertainties regarding revenue generation and financing[30]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Qualigen Therapeutics, Inc. (QLGN) increased by 69% to $6.00 - Inhibrx Biosciences, Inc. (INBX) rose by 62% to $46.04 - MidWestOne Financial Group, Inc. (MOFG) gained 33% to $37.87 - Neuphoria Therapeutics Inc. (NEUP) up by 31% to $5.32 - Nextracker Inc. (NXT) increased by 13% to $102.44 - Avalon Holdings Corporation (AWX) rose by 11% to $2.98 - Beyond Meat, Inc. (BYND) up by 9% to $3.12 - SLM Corporation (SLM) increased by 8% to $29.00 - Reborn Coffee, Inc. (REBN) rose by 7% to $2.40 - Oriental Culture Holding LTD (OCG) increased by 5% to $3.55 [3] Premarket Losers - Picard Medical, Inc. (PMI) decreased by 70% to $3.89 - Fusemachines Inc. Common stock (FUSE) down by 17% to $3.29 - American Rebel Holdings, Inc. (AREB) fell by 16% to $3.14 - Armata Pharmaceuticals, Inc. (ARMP) down by 13% to $6.16 - Coya Therapeutics, Inc. (COYA) decreased by 13% to $6.01 - Deckers Outdoor Corporation (DECK) down by 12% to $90.00 - Safe & Green Holdings Corp. (SGBX) fell by 12% to $2.58 - Beasley Broadcast Group, Inc. (BBGI) decreased by 8% to $5.55 - Booz Allen Hamilton Holding Corporation (BAH) down by 7% to $92.73 - Brera Holdings PLC (SLMT) decreased by 6% to $10.67 [4]

Core Insights - Reborn Coffee Inc. has established a new advisory board to enhance innovation and growth, appointing Hisham Elkoustaf as its chair [2][6] - The advisory board will consist of a diverse group of professionals aimed at shaping the strategic direction of the company while maintaining its commitment to sustainability and quality [2] Company Leadership - Hisham Elkoustaf brings over 20 years of experience in corporate law, economic development, and foreign policy, having worked in over ten countries [3][4] - Elkoustaf's previous roles include serving as a senior legal, economic, and policy advisor to a prominent GCC country and as General Counsel and Chief Strategy Officer at a professional sports and entertainment company [4] Strategic Vision - The CEO of Reborn Coffee, Jay Kim, expressed excitement about Elkoustaf's appointment, highlighting the value of his extensive experience in pursuing the company's mission [6] - Elkoustaf emphasized the potential for significant impact in the coffee industry through collaboration with the advisory board [6]

Core Viewpoint - Reborn Coffee Inc. has established a new subsidiary, Reborn Logistics, to enhance its supply chain and logistics operations, aiming for an annual revenue potential of approximately $20 million [1][4]. Group 1: Company Overview - Reborn Coffee Inc. is a California-based specialty coffee retailer focused on high-quality, handcrafted coffee experiences and is expanding its global footprint [6]. - The company is redefining the coffeehouse model through premium products and technology-forward initiatives [6]. Group 2: New Subsidiary Details - Reborn Logistics is created to support both current and future store operations, ensuring efficiency and scalability as the company grows [2]. - The subsidiary will be led by Mr. Lim Jae Jung, who has over 20 years of experience in the logistics industry, providing a strong foundation for its success [3]. Group 3: Initial Operations and Partnerships - Reborn Logistics has secured partnerships with leading Korean companies, including Nexen Tire and Han press, with an estimated monthly volume of over 1,550 units [4]. - The contracts with these companies are expected to generate an annual logistics revenue potential of approximately $20 million, marking a significant milestone for the subsidiary [4]. Group 4: Strategic Importance - The formation of Reborn Logistics is seen as a crucial step in strengthening the operational backbone of Reborn Coffee's growth strategy [5]. - The subsidiary aims to enhance operational efficiency, reduce costs, and create new revenue opportunities as the company expands globally [5].

Core Viewpoint - Reborn Coffee Inc. is piloting a digital asset ATM in Southern California to explore customer access to cryptocurrencies and stablecoins, aiming to enhance the in-store experience and evaluate customer interest [1][2][3]. Group 1: Digital Asset Strategy - The digital asset ATM will support transactions in Bitcoin and select U.S. dollar-pegged stablecoins like USD Coin (USDC) [1]. - The ATM will be operated by a licensed third-party provider, allowing customers to buy or sell supported digital assets during regular store hours [2]. - The pilot program is part of a measured approach to integrating digital asset capabilities into operations, focusing on compliance and customer engagement [3]. Group 2: Pilot Program Details - The pilot will be limited to one high-traffic location and will run for a defined evaluation period, with the company reviewing usage data and customer feedback [3]. - This initiative follows previous announcements regarding the company's digital asset strategy and planned crypto payment capabilities via Square POS [4]. Group 3: Company Overview - Reborn Coffee, Inc. is a specialty coffee retailer based in California, dedicated to delivering high-quality coffee experiences and redefining the coffeehouse model through innovation [6].

Core Viewpoint - Reborn Coffee Inc. plans to pilot cryptocurrency payment capabilities in select Southern California locations in 2025 as part of its digital asset strategy [1][2][3] Group 1: Digital Asset Strategy - The pilot program will allow customers to complete transactions using cryptocurrency alongside traditional payment methods [2] - The initiative is the second phase of the company's digital asset strategy, which aims to integrate blockchain-based tools and payment technologies into retail operations [1][3] Group 2: Operational Focus - The pilot will focus on operational integration, transaction flow, and customer engagement to evaluate customer response to crypto payments in a retail setting [2] - The company emphasizes that the scope, timing, and outcome of the pilot program may change based on market conditions, regulatory requirements, and technical integration [2] Group 3: Company Background - Reborn Coffee, Inc. is a California-based specialty coffee retailer known for high-quality, handcrafted coffee experiences and a commitment to innovation [4]