Yahoo Finance

“US wholesale and online ecommerce sales, enhanced by our Amazon presence, drove substantial year over year revenue growth of 432% during the third quarter. Our OMNI-channel strategy to capture a wider online customer base integrates our online and offline presence and underscores our commitment to innovation and strategic expansion across all markets. To support this segment, we introduced a line of IF Design Award-winning patented coffeeware for global distribution, starting with the highly anticipated Reborn Tumbler. The Reborn Coffee Tumbler and additional coffeeware products will be available soon on our online e-commerce platforms and through our B2B partners. In addition, a limited-edition Cold Brew blend, which combines Reborn's signature coffee with tropical Passion Fruit, is set to expand nationwide focusing on retail locations and e-commerce platforms.

“Throughout 2024 we have worked to expand and diversify our global operations with strategic partnerships across Asia, Eastern Europe, and the Middle East. In the Chinese provinces of Liaoning, Guangdong and Sichuan alone, we are targeting the opening of 100 new locations over the next two years. Our ambitions extend beyond these regions, and we have established a target of over 300 locations worldwide within the next two years designed to establish Reborn Coffee as a household name across continents, from Asia to the Americas. As we continue to penetrate new markets, we are poised to redefine the future of specialty coffee on a global scale.

“In China, a strategic MLA with Chengdu Octaday Entertainment Group, facilitated by Reborn China, will establish Reborn Coffee's premier locations in Chengdu, the bustling capital of Sichuan Province, a region known for its rich cultural heritage and home to over 83 million people. Also in China, an MLA with Shenyang Yongsheng Seven Stars Tourism Development Co. will establish Reborn Coffee premier locations in Shenyang, the capital of Liaoning Province. This transformative partnership will establish Reborn Coffee's premier locations in Shenyang, the bustling capital of Liaoning Province, home to over 43 million people. A strategic partnership and joint venture with Penglai Data Store (Shenzhen), a prominent China AI database company led by CEO Alex Guo and Reborn China is poised to transform the coffee industry in China by incorporating advanced AI technology into every new franchise in the region.

“In Thailand, we recently we partnered with Gaingan Humantech in a joint venture to expand our presence in the country with three new Reborn Coffee locations in Bangkok. The flagship location of the joint venture will be at One Bangkok, a landmark mixed-use development in the heart of Thailand's capital.

“Most recently we announced the successful acquisition of a 58% stake in Bbang Ssaem Bakery, a leading bakery chain with 31 locations across South Korea. This acquisition follows the previously signed MOU between the two companies, solidifying our commitment to expanding our offerings and establishing a strong presence in the bakery sector. This acquisition also serves as a launchpad for Reborn Coffee’s entry into the South Korean franchise market, delivering premium coffee and bakery experiences to new locations through a scalable and accessible model. Additionally, the estimated $7 million trailing twelve months revenue generated by Bbang Ssaem through November, 2024, positions Reborn Coffee to leverage the synergies and drive revenue for both companies. Bbang Ssaem Bakery forged a major distribution agreement with a leading Korean coffee chain to enable us to expand to our presence in South Korea through an 8,000 store bakery distribution partnership, significantly increasing our market presence and revenue potential.

“Looking ahead and into 2025, at our US retail locations and ecommerce, we will continue to focus on driving sales and improving gross profit, enhanced by new beverages, complementary product launches, and new company-owned retail locations. Through our global initiatives, we are laying the foundation with our partners for a broader expansion first in Asia, Eastern Europe, and the Middle East in some of the world's fastest-growing coffee markets, with a longer-term goal of establishing a global presence for the Reborn Coffee brand. We look forward to additional updates on our anticipated milestones in the weeks and months to come,” concluded Kim.

Anticipated Milestones

• Expand more rapidly across South Korea, leveraging Bbang Ssaem Bakery 's established presence in the Korean market and a new franchise initiative.

• Capture notable share of the growing RTD coffee segment with the nationwide rollout of Cold Brew line.

• Open three new Reborn Coffee locations in Bangkok, Thailand, including a flagship location at One Bangkok, a landmark mixed-use development.

• Establish flagship store in the iconic New Century Global Center, located in Chengdu, the capital of Sichuan Province.

• Global rollout of patented coffeeware, targeting key markets, including the U.S., China, and Southeast Asia.

• Establish locations in Shenyang, the capital of Liaoning Province, including a flagship store.

• Incorporating advanced AI technology into new franchises in the China region, followed by the United States.

• Establish flagship in Dubai, UAE and 20 more stores across the UAE, plus a distribution center for the Middle East, and roasting and warehouse facilities.

• Establish flagship store in Guangzhou, China, followed by additional locations in Shanghai and Shenzhen.
  

Third Quarter 2024 Financial Results

Revenues were $1.3 million for the three months ended September 30, 2024, compared to $1.5 million for the comparable period in 2023, representing a decrease of 17%. The decrease in sales for the period was primarily due to the closure of underperforming stores. For the nine months ended September 30, 2024, revenues were $4.1 million, compared to $4.2 million in the prior year period, a decrease of 8%.

Company-operated store gross profit was $0.7 million for the three-month period ended September 30, 2024, compared to $1.0 million for the comparable period in 2023. Q3'24 company-operated store gross margins decreased to 61% compared to 70% for the same period in 2023.

Wholesale and online revenue for the third quarter of 2024 was $140,407, an increase of 432% from $26,401 in the third quarter of 2023.

Total operating costs and expenses for the three-month period ended September 30, 2024, were $2.0 million compared to $2.2 million for the comparable period in 2023.

Net loss for the third quarter of 2024 was $0.7 million, compared to a net loss of $0.7 million for the third quarter of 2023.

Net cash used in operating activities for the nine months ended September 30, 2024, was $3.3 million, compared to $3.0 million for the nine months ended September 30, 2023.

Cash and cash equivalents totaled $0.1 million as of September 30, 2024, compared to $0.2 million as of December 31, 2023.

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 recent filings with the Securities and Exchange Commission (“SEC”) including our Form 10-Q for the third quarter of 2024, 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 Tyson
Executive Vice President
MZ North America
REBN@mzgroup.us
949-491-8235

Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com