Core Insights - Reborn Coffee Inc. has signed a $1.3 million exclusive master licensing agreement with Reborn Health Goods (Shenzhen) Co., Ltd. to expand its presence in mainland China [1][2] - The agreement allows Reborn Health Goods to oversee national operations, including direct store developments and regional sublicensing partnerships [2][3] - The partnership aims to unify brand execution across China, with plans to establish over 300 global locations within the next two years [3][4] Company Overview - Reborn Coffee, Inc. is a California-based specialty coffee retailer focused on high-quality, handcrafted coffee experiences [5] - The company is dedicated to innovation and is redefining the coffeehouse model through premium products and technology-forward initiatives [5] Market Strategy - The strategic partnership supports Reborn Coffee's broader international vision and strengthens its presence in the Asia-Pacific region, where demand for premium specialty coffee is rising [4]

Core Insights - Reborn Coffee Inc. has signed a strategic licensing agreement with The Arjomand Group and IG International to expand into Georgia and Armenia, reflecting its international growth strategy [1][2] - The partnership aims to leverage the growing consumer demand in these emerging markets, aligning with European economic standards [2][3] - The agreement allows IG International exclusive rights to develop Reborn Coffee-branded locations, indicating a focus on local adaptation while maintaining brand standards [2][5] Regional Business Environment - Rising business confidence in Georgia is highlighted by the Prime Minister's reaffirmation of the country's European integration process, which is expected to attract foreign investment [3] - Both Georgia and Armenia are positioned as economic gateways between Europe and Asia, with pro-business environments and a growing café culture [4] Operational Strategy - IG International will oversee the rollout of Reborn Coffee stores in key metropolitan areas, including Tbilisi, Batumi, and Yerevan, adapting offerings to local preferences [5] - The licensing model includes an initial fee and a milestone-based payment schedule, promoting alignment and facilitating rapid expansion without significant capital investment from Reborn [6] Growth Validation - This licensing agreement further validates Reborn's international growth model, which is expanding across the Middle East, Asia, and Europe through similar agreements [7]

Core Insights - Reborn Coffee Inc. has entered a master licensing agreement valued at $1.7 million with the Arjomand Group, marking a strategic entry into the MENA and European markets [1][2] - The agreement will facilitate the development of Reborn Coffee-branded retail locations and product lines in high-growth markets, supporting the company's global expansion strategy [2][3] - A milestone-based payment structure is included in the agreement, reflecting a long-term partnership commitment [3] Market Expansion - Reborn Coffee is finalizing a flagship drive-thru store at the Abu Dhabi Group's headquarters, which is a key component of its entry into the Gulf region [4] - The partnership will extend distribution to 17 hotels and several thousand corporate employees, enhancing brand visibility in the UAE [4] Company Overview - Reborn Coffee, Inc. is a California-based specialty coffee retailer focused on high-quality, handcrafted coffee experiences [5] - The company aims to redefine the coffeehouse model through premium products and technology-driven initiatives [5]

Core Insights - Reborn Coffee Inc. has reported a significant 32% increase in store-level sales for Q2 2025 compared to the same period last year, driven by strong customer demand and improved operational efficiency [2] - The company is executing a multi-channel expansion strategy, including international market entry, product innovation, and franchise infrastructure development [2] Sales Performance - The average sales increase of approximately 32% in company-operated stores reflects effective product mix and operational improvements [2] Product Development - The Ready-to-Drink (RTD) Cold Brew program is nearing completion, with a direct sourcing agreement established for premium Colombian green coffee beans [3] - A collaboration with Okayama Bakery aims to enhance in-store offerings and increase average ticket size [4] Training and Development - The Reborn Coffee Academy is being developed to elevate the skills of baristas and franchise partners, with potential collaboration with the Specialty Coffee Association [5][7] Infrastructure and Expansion - New branded store interiors are in final production stages, aiming to create a unified global aesthetic and reduce buildout time [8] - Reborn Coffee is launching operations in Turkey, aligning with peak summer demand and leveraging local partnerships [9]

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]

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][5][12] - The company has been approved as a U.S. franchisor and signed commitments for 33 new 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 marketing efforts to enhance brand recognition [4][10] Financial Performance - Q4 2024 revenues were $1.8 million, a 31% increase from $1.4 million in Q4 2023, driven by increased customer traffic and marketing efforts [12] - Full-year 2024 revenues reached $5.9 million, an 8% increase from $5.5 million in 2023, attributed to new location openings and marketing initiatives [12] - Company-operated store gross margins decreased to 63% in 2024 from 66% in 2023, reflecting the impact of higher food costs [5][14] Expansion Initiatives - The company is targeting the opening of over 100 franchise locations across the U.S. within three years, with recent commitments for 33 new locations in states like California, Florida, and Georgia [5][6] - Reborn Coffee is expanding internationally, with plans for flagship locations in Europe, including Vienna, Florence, and Prague, and a partnership with Eachome Shopping to enhance retail presence in China [7][9] - The acquisition of a 58% stake in Bbang Ssaem Bakery in South Korea is part of the strategy to enter the South Korean franchise market [5][9] Product Development - Reborn Coffee is launching a new Ready-To-Drink (RTD) 4th Wave Cold Brew product line in collaboration with Finlays, targeting the growing demand for convenient coffee options [8][21] - The company aims to enhance its omnichannel revenue streams through expanded wholesale, ecommerce, and RTD product sales [21] Future Outlook - The company has set a target of over 300 locations worldwide within the next two years, focusing on strategic partnerships and initiatives in fast-growing coffee markets [9] - Continued emphasis on marketing and operational efficiency is expected to drive sales and improve gross profit in the U.S. retail and ecommerce segments [10][21]