Fri, Jul 19, 8:24 PM (50 days ago)
Reborn Coffee, Inc. reported a net loss of $991,000 for Q1 2024, slightly higher than the $964,000 net loss in Q1 2023. Revenues increased by 35.2% to $1.5 million, driven by new store openings and enhanced marketing efforts. Gross margin improved by 52.4%, reaching $1,157,000 due to higher sales. However, general and administrative expenses rose by 17.3% to $2 million, reflecting increased hiring, professional services, and costs related to new store openings. Cash flow from operating activities was negative at $1.9 million, with significant cash used in investing activities ($987,000) for property and equipment. The company raised $2.8 million through stock issuance and loans. Despite the revenue growth, the company faces liquidity challenges, with a cash balance of $70,000 and substantial current liabilities. The management plans to raise additional funds through equity or debt offerings to support operations and growth.