UPDATE – Reborn Coffee Provides Fourth Quarter and Full Year 2024 Corporate Update and Financial Results

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]