October 04, 2022 08:31 ET | Source: REBORN COFFEE, INC. REBORN COFFEE, INC.
BREA, Calif., Oct. 04, 2022 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2022.
“The second and third quarters of 2022 were significant milestones for our company with our transition to a public company and the addition of new capital to accelerate our growth strategy,” said Jay Kim, Chief Executive Officer of Reborn. “We believe our Nasdaq listing will help elevate the Company's public profile, expand our stockholder base, improve liquidity and enhance stockholder value. The net proceeds to Reborn from the IPO amounted to $6.2 million, which will provide us with the financial capability to achieve our goals.”
“During the second quarter we delivered strong revenue performance from strong customer demand for our high quality, specialty-roasted coffee in shopping plazas and upscale areas at our nine retail locations. As pioneers of the emerging ‘Fourth Wave’ movement, we are redefining specialty coffee as an experience that demands much more than premium quality. We are committed to constantly developing our bean processing methods, researching design concepts, reinventing new ways of drinking coffee at our locations, and growing wholesale and online operations.”
“Looking ahead, with support from the IPO capital, we will continue to execute on our rapid growth as we strategically expand our footprint in existing and new markets. We are focused on expanding our customer base at new retail stores with inviting atmospheres designed for comfort and convenience, as well as through sales of pour over packs and whole bean ground coffee bags. We have four additional company-owned retail locations in Southern California in development (which, once opened, will bring our total count to thirteen) and are developing our franchise opportunity. We expect to provide additional announcements on our new location pipeline timeline in the coming weeks.”
Stephan Kim, Chief Financial Officer of Reborn, added, “Combined with our successful IPO, we expect that current cash and cash equivalents will be sufficient to support current operations into 2023. We believe we now have sufficient cash to meet our current pipeline of new locations without the need to raise additional funds.”
“As a fully reporting public company, and from a best practices perspective, we will commence a cadence of quarterly and year-end financial results conference calls for analysts and investors. We look forward to this additional communication as we work to bring long-term value to our stockholders,” concluded Kim.
Revenues were approximately $0.8 million for the three-month period ended June 30, 2022, compared to $0.5 million for the comparable period in 2021, representing an increase of 63%. The increase in sales was primarily driven by the opening of the Corona Del Mar, Laguna Woods and Santa Anita locations during 2021, and to the continued focus on marketing efforts to grow brand recognition.
Total operating costs and expenses for the three-month period ended June 30, 2022, were $1.7 million compared to $0.8 million for the comparable period in 2021, representing an increase of approximately 115%, primarily due to increases in product, food and drink costs, and general and administrative expenses. These increases were driven by opening of new locations, general inflationary pressures and the seasonal fluctuations in cost of ingredients, and expenses associated with preparing to become a public company.
Net loss for the second quarter of 2022 was $0.9 million, compared to a net loss of $0.3 million for the second quarter of 2021.
Net cash used in operating activities for the six months ended June 30, 2022 was approximately $1.2 million, compared to approximately $0.5 million for the six months ended June 30, 2021.
Cash and cash equivalents totaled $0.15 million as of June 30, 2022, which does not include net proceeds from the Company’s IPO, which was completed in August 2022.
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.
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 section of our recently filed registration statement on Form S-1 and in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our recently filed 10-Q, 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 successfully open additional locations as planned (including in domestic and overseas markets where we have little or no operating experience), the Company’s consummation of joint R&D projects with coffee farms, consumer acceptance of the Company’s existing and new 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.
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
Reborn Coffee, Inc. Balance Sheets (Unaudited)
Reborn Coffee, Inc. Statements of Operations (Unaudited)
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