Reborn Coffee, Inc. (NASDAQ: REBN) (“Reborn”, or the “Company”), a
California-based retailer of specialty coffee
, has
reported its financial and operational results for the first
quarter ended March 31, 2023.
Key Financial and Operational
Highlights
- Revenue increased nearly 51% to $1.1
million in Q1'23 compared to $736 thousand in Q1'22.
- Ended Q1'23 with 12 open locations,
with four other locations in development.
- Company-operated
store sales increased $0.4 million, or 51% in the quarter ended
March 31, 2023, compared to the same period in 2022.
- Company-operated
store gross profit was $0.7 million for the quarter ended March 31,
2023, compared to $0.5 million for the same period in 2022.
Year-over-year company-operated store gross margins improved to 67%
from 61%.
Q1 2023 and Subsequent
Events
- Announced plans
to open new company-owned retail locations in Southern California
and Korea, which, once opened, will bring its total global
footprint to 16 stores.
- Launched of a
new line of Super-Premium Reborn Cold Brew Ice Creams to be
marketed and distributed throughout the Company's retail
locations.
- Appointed Bill
Koschak to its newly created Advisory Board, an experienced
financial executive bringing over 30 years of corporate, finance,
and accounting leadership to Reborn, having spent the last 14 years
as an operating or corporate CFO.
Management Commentary
“The first quarter of 2023 was highlighted by
ongoing revenue growth from company operated store sales, in
conjunction with ongoing location and product expansion,” said Jay
Kim, Chief Executive Officer of Reborn. “We are now highly focused
on the opening of new U.S. and overseas locations, joint R&D
projects, B2B marketing expansion and new product launches. Taken
together, we believe our expansion strategy, driven by sustained
customer demand, new product innovation and effective operational
execution across our retail locations, will support continued
revenue growth for Reborn in the years to come.
“During the first quarter we continued to
advance our retail location expansion, preparing for new
company-owned retail locations in Southern California and new
flagships in states such as Texas, as well as global locations
including South Korea, Austria, and Dubai. We are actively
conducting due diligence and seeking differentiated and prime
locations that will serve as strategic footprints in these new
markets, preparing us for additional expansion, including our
Reborn Café concept which has been well-received and is generating
on average, approximately $18 per customer.
“In addition to new locations, we are
introducing innovative and complementary new products to our
customer base to fuel sales and grow Average Unit Volumes at our
existing stores. Recently we launched a new line of Super-Premium
Reborn Cold Brew Ice Creams that use high quality, natural
ingredients with exceptional flavors, with a rich and creamy
texture that we believe sets it apart from other ice cream brands.
Super-Premium cold brew ice cream is a natural extension of our
brand, mission and innovative specialty roasted coffee, and we are
incredibly excited to begin offering it to customers in preparation
for a major roll out to buyers and consumers in the coming months.
Other new innovative products like our Cascara tea will help to
build additional revenue, differentiate our brand, and broaden our
reach beyond our retail locations into B2B and DTC sales.
“We began 2023 well-positioned to build revenue
and growth, and we are looking to continue to position Reborn for
expansion in new key markets in the U.S. and globally and
developing our franchise opportunities. We believe we can continue
our momentum with a diligent focus on sustained operational
execution and year-over-year revenue growth. I look forward to
additional announcements in the months to come as we strive to
create long-term sustainable growth and shareholder value,”
concluded Kim.
Anticipated Milestones
- Open 4 flagship
Reborn Café locations in the U.S., targeting cities such as San
Francisco, San Diego, Houston, and Kansas City.
- Open 4 overseas
locations outside the U.S., targeting countries such as South
Korea, Malaysia, Austria, and Dubai.
- Joint R&D
projects with coffee farms in locations such as Hawaii and
Colombia.
- Expand B2B
marketing to wholesale clubs and other major outlets and expand
ecommerce marketing.
- Launch new
Reborn-branded products such red tea bag packs and cold brew
cans.
First Quarter 2023 Financial
Results
Revenues were approximately $1.1 million for the
period ended March 31, 2023, compared to approximately $0.8 million
for the comparable period in 2022, representing an increase of 49%.
The increase in sales for the period was primarily driven by the
opening of new locations and the continued focus on marketing
efforts to grow brand recognition.
Company-operated store gross profit was $0.7
million for the three-month period ended March 31, 2023, compared
to $0.5 million for the comparable period in 2022. Q1’23
company-operated store gross margins improved to 67% compared to
61% for the same period in 2022.
Total operating costs and expenses for the
three-month period ended March 31, 2023, were approximately $2.1
million compared to approximately $1.3 million for the comparable
period in 2022, representing an increase of approximately 56%.
Net loss for the first quarter of 2023 was
approximately $1.0 million, compared to a net loss of approximately
$0.6 million for the first quarter of 2022.
Net cash used in operating activities for the
three months ended March 31, 2023, was approximately $1.7 million,
compared to approximately $0.5 million for the three months ended
March 31, 2022.
Cash and cash equivalents totaled approximately
$0.9 million as of March 31 2023, compared to approximately $3.0
million as of December 31, 2022.
About Reborn Coffee
Reborn Coffee, Inc. (NASDAQ: REBN) is focused on
serving high quality, specialty-roasted coffee at retail locations,
kiosks, and cafes. Reborn is an innovative company that strives for
constant improvement in the coffee experience through exploration
of new technology and premier service, guided by traditional
brewing techniques. Reborn believes they differentiate themselves
from other coffee roasters through innovative techniques, including
sourcing, washing, roasting, and brewing their coffee beans with a
balance of precision and craft. For more information, please visit
www.reborncoffee.com.
Forward-Looking Statements
All statements in this release that are not
based on historical fact are “forward-looking statements.” While
management has based any forward-looking statements included in
this release on its current expectations, the information on which
such expectations were based may change. Forward-looking statements
involve inherent risks and uncertainties which could cause actual
results to differ materially from those in the forward-looking
statements, as a result of various factors including those risks
and uncertainties described in the Risk Factors and Management’s
Discussion and Analysis of Financial Condition and Results of
Operations sections of our recently filed Annual Report on Form
10-K, which can be found on the SEC’s website at www.sec.gov. Such
risks, uncertainties, and other factors include, but are not
limited to, the Company’s ability to continue as a going concern as
indicated in an explanatory paragraph in the Company’s independent
registered public accounting firm’s audit report as a result of
recurring net losses, among other things, the Company’s ability to
successfully open the additional locations described herein as
planned or at all, the Company’s ability to expand its business
both within and outside of California (including as it relates to
increasing sales and growing Average Unit Volumes at our existing
stores), the degree of customer loyalty to our stores and products,
the impact of COVID-19 on consumer traffic and costs, the
fluctuation of economic conditions, competition and inflation. We
urge you to consider those risks and uncertainties in evaluating
our forward-looking statements. We caution readers not to place
undue reliance upon any such forward-looking statements, which
speak only as of the date made. The Company undertakes no
obligation to update these statements for revisions or changes
after the date of this release, except as required by law.
Contacts
Investor Relations Contact:Chris TysonExecutive
Vice PresidentMZ North AmericaREBN@mzgroup.us 949-491-8235
Company Contact:Reborn Coffee,
Inc.ir@reborncoffee.com
Unaudited Condensed Consolidated Balance
Sheets |
As of |
|
March 31, 2023 |
|
|
December 31,2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
873,101 |
|
|
$ |
3,019,035 |
|
Accounts receivable, net of allowance for doubtful accounts of $0
and $0, respectively |
|
|
3,699 |
|
|
|
780 |
|
Inventories, net |
|
|
123,737 |
|
|
|
132,343 |
|
Prepaid expense and other current assets |
|
|
1,357,612 |
|
|
|
477,850 |
|
Total current assets |
|
|
2,358,149 |
|
|
|
3,630,008 |
|
Property and equipment, net |
|
|
1,996,559 |
|
|
|
1,581,805 |
|
Operating lease right-of-use asset |
|
|
3,575,117 |
|
|
|
3,010,564 |
|
Other assets |
|
|
235,164 |
|
|
|
235,164 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
8,164,989 |
|
|
$ |
8,457,541 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
120,818 |
|
|
$ |
87,809 |
|
Accrued expenses and current liabilities |
|
|
295,780 |
|
|
|
233,053 |
|
Loans payable to financial institutions – current portion |
|
|
50,898 |
|
|
|
44,664 |
|
Loan payable, emergency injury disaster loan (EIDL) – current
portion |
|
|
22,545 |
|
|
|
30,060 |
|
Loan payable, payroll protection program (PPP) – current
portion |
|
|
40,447 |
|
|
|
45,678 |
|
Operating lease liabilities – current portion |
|
|
753,504 |
|
|
|
624,892 |
|
Total current liabilities |
|
|
1,283,992 |
|
|
|
1,066,156 |
|
Loans payable to financial institutions – net of current
portion |
|
|
- |
|
|
|
6,234 |
|
Loan payable, emergency injury disaster loan (EIDL), net of current
portion |
|
|
477,455 |
|
|
|
469,940 |
|
Loan payable, payroll protection program (PPP), net of current
portion |
|
|
92,152 |
|
|
|
98,697 |
|
Operating lease liabilities, net of current portion |
|
|
2,989,025 |
|
|
|
2,529,985 |
|
Total liabilities |
|
|
4,842,624 |
|
|
|
4,171,012 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Common Stock, $0.0001 par
value, 40,000,000 shares authorized; 13,163,126 shares issued and
outstanding at March 31, 2023 and December 31, 2022 |
|
|
1,316 |
|
|
|
1,316 |
|
Preferred Stock, $0.0001 par
value, 1,000,000 shares authorized; no shares issued and
outstanding at March 31, 2023 and December 31, 2022 |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
16,317,014 |
|
|
|
16,317,014 |
|
Accumulated deficit |
|
|
(12,995,965 |
) |
|
|
(12,031,801 |
) |
Total stockholders’ equity |
|
|
3,322,365 |
|
|
|
4,286,529 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
8,164,989 |
|
|
$ |
8,457,541 |
|
Unaudited Condensed Consolidated Statements of
Operations |
For the Three Months Ended March 31, |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
Stores |
|
$ |
1,109,051 |
|
|
$ |
735,996 |
|
Wholesale and online |
|
|
13,270 |
|
|
|
17,154 |
|
Total net revenues |
|
|
1,122,321 |
|
|
|
753,150 |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Product, food and drink costs—stores |
|
|
363,819 |
|
|
|
284,954 |
|
Cost of sales—wholesale and online |
|
|
5,812 |
|
|
|
7,513 |
|
General and administrative |
|
|
1,704,651 |
|
|
|
1,036,015 |
|
Total operating costs and expenses |
|
|
2,074,282 |
|
|
|
1,328,482 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(951,961 |
) |
|
|
(575,332 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Other income |
|
|
- |
|
|
|
15,000 |
|
Interest expense |
|
|
(12,203 |
) |
|
|
(4,780 |
) |
Total other income (expense), net |
|
|
(12,203 |
) |
|
|
10,220 |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(964,164 |
) |
|
|
(565,112 |
) |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(964,164 |
) |
|
$ |
(565,112 |
) |
|
|
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
12,173,031 |
|
|
|
11,634,523 |
|
Unaudited
Consolidated Statements of Cash Flows |
For the Three Months Ended March 31, |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(964,164 |
) |
|
$ |
(565,112 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Operating lease |
|
|
23,099 |
|
|
|
3,494 |
|
Depreciation |
|
|
56,097 |
|
|
|
49,134 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,919 |
) |
|
|
(1,272 |
) |
Inventories |
|
|
8,606 |
|
|
|
15,586 |
|
Prepaid expense and other current assets |
|
|
(879,762 |
) |
|
|
(28,324 |
) |
Accounts payable |
|
|
33,009 |
|
|
|
(3,495 |
) |
Accrued expenses and current liabilities |
|
|
62,727 |
|
|
|
44,232 |
|
Net cash used in operating activities |
|
|
(1,663,307 |
) |
|
|
(485,757 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(470,851 |
) |
|
|
(149,896 |
) |
Net cash used in investing activities |
|
|
(470,851 |
) |
|
|
(149,896 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Repayment of loans |
|
|
(11,776 |
) |
|
|
(81,410 |
) |
Repayment of equipment loan payable |
|
|
- |
|
|
|
(4,797 |
) |
Net cash provided by financing activities |
|
|
(11,776 |
) |
|
|
(86,207 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash |
|
|
(2,145,934 |
) |
|
|
(721,860 |
) |
|
|
|
|
|
|
|
|
|
Cash at beginning of
period |
|
|
3,019,035 |
|
|
|
905,051 |
|
|
|
|
|
|
|
|
|
|
Cash at end of period |
|
$ |
873,101 |
|
|
$ |
183,191 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Lease liabilities |
|
$ |
266,188 |
|
|
$ |
202,458 |
|
Interest |
|
$ |
7,515 |
|
|
$ |
217 |
|
Income taxes |
|
$ |
- |
|
|
$ |
- |
|
Reborn Coffee (NASDAQ:REBN)
過去 株価チャート
から 4 2024 まで 5 2024
Reborn Coffee (NASDAQ:REBN)
過去 株価チャート
から 5 2023 まで 5 2024