Reborn Coffee, Inc. reported a total revenue of approximately $5.93 million for the fiscal year ending December 31, 2024, marking a 7.6% increase from $5.51 million in the previous year. The growth in revenue was primarily attributed to the opening of new retail locations and enhanced marketing efforts aimed at increasing brand recognition. Despite the revenue increase, the company continued to experience significant operating losses, reporting a net loss of $4.81 million for 2024, compared to a loss of $4.73 million in 2023. The accumulated deficit at the end of 2024 stood at $21.56 million.
Operationally, Reborn Coffee maintained 12 company-owned retail locations, including two international stores in South Korea and Malaysia. The company has plans to expand its footprint further, with expectations to open up to 20 franchise locations in 2025. The total number of employees was not disclosed, but the company emphasized the importance of hiring and retaining qualified staff to support its growth strategy. The company also noted an increase in general and administrative expenses, which rose to approximately $8.34 million in 2024, reflecting higher occupancy and labor costs associated with new store openings.
In terms of strategic developments, Reborn Coffee executed a reverse stock split of 1-for-8 on January 12, 2024, to enhance its stock price and comply with Nasdaq listing requirements. The company has also entered into financing agreements, including a $50 million equity line of credit and a $10 million convertible debenture agreement, to support its operations and growth initiatives. The company has not faced significant liquidity issues in settling payables or repaying loans, although it acknowledged the need for additional capital to fund future operations.
Looking ahead, Reborn Coffee's management expressed optimism about the company's growth potential, driven by the increasing demand for specialty coffee and the expansion of its retail and franchise operations. However, the company also highlighted the risks associated with its business model, including competition in the coffee industry, reliance on consumer preferences, and the ongoing impact of economic conditions. The management's forward-looking statements indicate a commitment to innovation and customer engagement as key components of their strategy to capture a larger share of the growing coffee market.
About Reborn Coffee, Inc.
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