Full Year 2025 Revenue Grew 37% to
Appointed
Key Financial and Operational Highlights
- Full year 2025 total revenue grew 37% to
$8.1 million , compared to$5.9 million for full year 2024, driven by the launch of new service income and license income revenue streams. - Full year 2025 store revenue grew 7% to
$6.0 million , compared to$5.6 million for full year 2024. - Store, wholesale and online gross margins for the year ended
December 31, 2025 , decreased to 61% compared to 63% for the same period in 2024. - Introduced two new revenue streams in 2025: service income of
$0.9 million from the newly formed Reborn Logistics subsidiary, and license income of$1.1 million related to licensing of the Reborn Coffee brand and system. - Operated 10 company-owned retail locations (nine in
California and one inMalaysia ) and oneCalifornia franchisee as ofDecember 31, 2025 . - Cash and cash equivalents increased to
$2.6 million atDecember 31, 2025 , up from$0.2 million atDecember 31, 2024 , reflecting proceeds from equity issuances and convertible debt financings during the year. Subsequent to year-end, completed a Securities Subscription Agreement with an accredited investor, generating$6.5 million in gross proceeds. - Total stockholders' equity increased to
$4.6 million atDecember 31, 2025 , up from$2.6 million atDecember 31, 2024 .
2025 and Subsequent Events
- Appointed
Jung Jae Lim as Co-Chief Executive Officer alongside founderJay Kim .Mr. Lim brings more than 20 years of leadership experience in logistics and supply chain management, including large-scale distribution networks and enterprise partnerships. - Announced the successful grand opening of its flagship location in
Shenzhen, China located within Tencent's new headquarters campus, reflecting the Company's broader strategy to build a scalable presence across multiple provinces inChina . - Regained compliance with the minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b).
- Completed a Securities Subscription Agreement with an accredited investor for the purchase of 1,192,661 shares of common stock at a purchase price of
$5.45 per share, generating$6.5 million in gross proceeds. - Completed a warrant exchange and termination transaction with prior investors, resulting in the cancelation of outstanding warrants and the elimination of approximately
$1.3 million in derivative liabilities. - Announced the formation of its new advisory board to drive innovation and growth within the company and appointed
Hisham Elkoustaf as its chair. The advisory board will help to shape the strategic direction ofReborn Coffee and ensure that it remains committed to its values of sustainability and quality. Established Reborn Logistics, Inc. , a 51%-owned subsidiary providing freight forwarding, transportation and logistics services. Reborn Logistics contributed$0.9 million of service income and approximately$0.3 million of income from operations in its partial first year.- Signed a
$1 million exclusive licensing agreement withReborn Korea Co., Ltd. to develop and operateReborn Coffee retail locations throughoutSouth Korea . - Signed a
$1.3 million exclusive master licensing agreement withReborn Health Goods (Shenzhen) Co., Ltd. , aChina -based corporation, granting it full rights to develop and sublicenseReborn Coffee locations throughout mainlandChina . - Executed a strategic licensing agreement with
The Arjomand Group andIG International , marking Reborn's expansion into the Republics ofGeorgia andArmenia . - Entered into a master licensing agreement valued at
$1.7 million with theArjomand Group to lead the development ofReborn Coffee -branded retail locations and product lines throughout high-growth markets across theMiddle East ,Europe , and MENA regions. - Established a Central China Supply Chain Headquarters in Dawu County. Reborn
China will oversee the sourcing and distribution of all matcha-based products throughoutAsia and theUAE , in partnership with an agricultural group that operates matcha farms and manufacturing facilities through aChina -Japan joint venture. - Announced that
Bosco Bakery , a well-established bakery inLos Angeles, California , officially joinedReborn Coffee as a franchise. - Partnered with Eachome Shopping, a major retail platform under
Shenzhen Media Group , to expand its retail footprint acrossChina , enablingReborn Coffee to scale its retail presence by integrating with Eachome Shopping's extensive online and offline platforms. - Entered into a securities purchase agreement and a common stock purchase agreement for up to a total of
$60 million in financing commitments withArena Investors, LP andArena Business Solutions Global SPC II, Ltd. - Approved as
U.S. Franchisor, setting the stage for expansive growth acrossU.S. markets.
Management Commentary
“Fiscal 2025 was a transformational year for
“Our decision to establish Reborn Logistics reflects a broader strategic view that supply chain capabilities are a differentiator in both the specialty coffee and broader consumer sectors. Under the leadership of our newly appointed Co-Chief Executive Officer,
“From a capital perspective, during 2025 and in the subsequent period we completed equity and convertible debt financings totaling more than
“Looking to 2026, our priorities are clear: commence franchise sales and target the opening of up to ten franchise locations, further scale Reborn Logistics, complete the structured repayment of the Arena debentures, and continue to build out the supporting infrastructure — including our planned barista training program — that will underpin the next stage of growth. We believe the foundation we built in 2025 puts us in a strong strategic position for the remainder of 2026,” concluded Kim.
Anticipated Milestones
- Commence franchise sales activities in 2026 and target the opening of up to ten franchise locations across
the United States . - Scale Reborn Logistics operations to further expand freight forwarding, transportation and supply chain services to both affiliated and third-party customers.
- Complete the structured repayment of the outstanding convertible debentures pursuant to the Amended and Restated Forbearance Agreement with
Arena Investors , targeting full repayment or conversion bySeptember 30, 2026 . - Launch a dedicated barista training program designed to support quality and consistency across company-operated and future franchised locations.
- Expand domestic roasting capacity and paper goods supply infrastructure to support anticipated franchisee-driven demand, with an emphasis on eco-friendly products.
- Evaluate opportunities to refresh and selectively expand the company-operated retail footprint in core
Southern California markets. - Continue to pursue additional strategic financings, as needed, to fund ongoing operations and growth initiatives.
Full Year 2025 Financial Results
Total net revenues for the year ended
Store, wholesale and online gross profit was approximately
Total operating costs and expenses for the year ended
Net loss attributable to
Net cash used in operating activities for the year ended
Cash and cash equivalents totaled approximately
About
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-K for the year ended
Contacts
Investor Relations Contact:
Executive Vice President
REBN@mzgroup.us
949-491-8235
Company Contact:
ir@reborncoffee.com
CONSOLIDATED BALANCE SHEETS | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,594,716 | $ | 158,215 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 946,996 | 67,309 | ||||||
| Accounts receivable from related party | 728,990 | - | ||||||
| Inventories, net | 58,435 | 169,615 | ||||||
| Prepaid expense and other current assets | 550,000 | 467,613 | ||||||
| Loan receivable from related party | 2,000,000 | - | ||||||
| Total current assets | 6,879,137 | 862,752 | ||||||
| Property and equipment, net | 2,894,893 | 4,080,004 | ||||||
| Operating lease right-of-use asset | 2,160,871 | 2,653,179 | ||||||
| Long-term prepayment | 1,000,000 | - | ||||||
| Other assets | 246,189 | 193,188 | ||||||
| Total assets | $ | 13,181,090 | $ | 7,789,123 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 561,457 | $ | 558,444 | ||||
| Accrued expenses and current liabilities | 815,245 | 774,826 | ||||||
| Loan payable to shareholder | 70,000 | - | ||||||
| Loans payable to financial institutions, current | 109,247 | 111,300 | ||||||
| Loans payable to others | 279,026 | 427,073 | ||||||
| Loan payable to related party | 153,605 | - | ||||||
| Convertible debt, net of debt discount of | 3,266,467 | - | ||||||
| Derivative liability | 503,384 | - | ||||||
| Loan payable, emergency injury disaster loan, current | 22,452 | 30,060 | ||||||
| Loan payable, payroll protection program, current | 26,307 | 37,494 | ||||||
| Operating lease liabilities, current | 879,416 | 844,177 | ||||||
| Total current liabilities | 6,686,606 | 2,783,374 | ||||||
| Loan payable, emergency injury disaster loan, net of current | 469,940 | 469,940 | ||||||
| Loan payable, payroll protection program, net of current | 25,718 | 26,307 | ||||||
| Operating lease liabilities, net of current | 1,352,961 | 1,906,760 | ||||||
| Total liabilities | 8,535,225 | 5,186,381 | ||||||
| Commitments and Contingencies (Note 13) | ||||||||
| Shareholders’ equity | ||||||||
| Common Stock, | 785 | 428 | ||||||
| Common stock issuable, | 850,000 | 1,470,000 | ||||||
| Preferred Stock, | - | - | ||||||
| Additional paid-in capital | 34,365,043 | 22,674,095 | ||||||
| Accumulated deficit | (30,704,112 | ) | (21,562,872 | ) | ||||
| Accumulated other comprehensive income | - | 21,091 | ||||||
| Non-controlling interest in subsidiary | 134,149 | - | ||||||
| Total shareholders’ equity | 4,645,865 | 2,602,742 | ||||||
| Total liabilities and shareholders’ equity | $ | 13,181,090 | $ | 7,789,123 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Years Ended | ||||||||
| 2025 | 2024 | |||||||
| Net revenues: | ||||||||
| Stores | $ | 5,952,061 | $ | 5,573,247 | ||||
| Wholesale and online | 113,577 | 355,286 | ||||||
| Service income – related party | 928,990 | - | ||||||
| License income | 1,100,000 | - | ||||||
| Total net revenues | 8,094,628 | 5,928,533 | ||||||
| Operating costs and expenses: | ||||||||
| Product, food and drink costs - stores, wholesale and online | 2,376,017 | 2,204,574 | ||||||
| Cost of service income – subcontractors, related party | 650,293 | - | ||||||
| General and administrative | 7,751,594 | 6,862,729 | ||||||
| Professional fees | 1,626,238 | 693,563 | ||||||
| Stock compensation expense | 1,484,333 | 787,213 | ||||||
| Total operating costs and expenses | 13,888,475 | 10,548,079 | ||||||
| Loss from operations | (5,793,847 | ) | (4,619,546 | ) | ||||
| Other income (expenses): | ||||||||
| Other income | 146,508 | 55,140 | ||||||
| Interest expense | (156,093 | ) | (215,140 | ) | ||||
| Interest expense - debt discount | (1,067,028 | ) | - | |||||
| Gain on sale of property | 45,673 | - | ||||||
| Loss on debt extinguishment | (722,972 | ) | - | |||||
| Derivative expense | 297,176 | - | ||||||
| Asset impairment loss | (1,647,229 | ) | (25,602 | ) | ||||
| Total other expenses, net | (3,103,965 | ) | (185,602 | ) | ||||
| Loss before income taxes | (8,897,812 | ) | (4,805,148 | ) | ||||
| Provision for income taxes | 109,279 | 800 | ||||||
| Net loss | (9,007,091 | ) | (4,805,948 | ) | ||||
| Net income attributable to non-controlling interest | 134,149 | - | ||||||
| Net loss attributable to | $ | (9,141,240 | ) | $ | (4,805,948 | ) | ||
| Per common share basic and diluted: | ||||||||
| Net loss per common share attributable to | $ | (1.73 | ) | $ | (1.66 | ) | ||
| Number of weighted average shares - basic and diluted | 5,294,587 | 2,896,960 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Years Ended | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (9,141,240 | ) | $ | (4,805,948 | ) | ||
| Non-controlling interest net income | 134,149 | - | ||||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Stock compensation expense | 1,484,333 | 787,213 | ||||||
| Loss on settlement of debt | 722,972 | |||||||
| Interest expense - amortization of debt discount | 1,067,028 | - | ||||||
| Operating lease | (26,252 | ) | (64,180 | ) | ||||
| Asset impairment loss | 1,647,229 | 25,602 | ||||||
| Loss on disposal of assets | (45,673 | ) | - | |||||
| Depreciation | 449,585 | 391,263 | ||||||
| Derivative expense | (297,176 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Decrease in accounts receivable | (1,608,677 | ) | (10,371 | ) | ||||
| Increase in inventories | 111,180 | 15,446 | ||||||
| Decrease in prepaid expense and other assets | (135,388 | ) | 98,433 | |||||
| Decrease in accounts payable | (907,915 | ) | (53,218 | ) | ||||
| Increase in accrued expenses and liabilities | 40,419 | 163,536 | ||||||
| Net cash used in operating activities | (6,505,426 | ) | (3,452,224 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Acquisition of property and equipment | (51,195 | ) | (1,109,374 | ) | ||||
| Proceeds from sale of assets | 75,000 | 132,157 | ||||||
| Long-term prepayment | (1,000,000 | ) | - | |||||
| Loan receivables from related party | (2,000,000 | ) | - | |||||
| Net cash used in investing activities | (2,976,195 | ) | (977,217 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from loan payable to others | (148,045 | ) | (181,954 | ) | ||||
| Net borrowings from related party | 637,605 | - | ||||||
| Proceeds from issuances of common stock | 8,380,000 | 4,283,980 | ||||||
| Proceeds from common stock issuable | - | 1,470,000 | ||||||
| Proceeds from loan payable to shareholder | 70,000 | (100,000 | ) | |||||
| Borrowings from convertible debt | 2,999,999 | - | ||||||
| Repayments from loan payable to financial institutions | (2,053 | ) | (1,015,199 | ) | ||||
| Repayments on loan payable to PPP | (19,384 | ) | (33,472 | ) | ||||
| Net cash provided by financing activities | 11,918,122 | 4,423,355 | ||||||
| Net increase (decrease) in cash | 2,436,501 | (6,086 | ) | |||||
| Cash at beginning of year | 158,215 | 164,301 | ||||||
| Cash at end of year | $ | 2,594,716 | $ | 158,215 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 75,215 | $ | 134,781 | ||||
| Income taxes | $ | 109,279 | $ | 1,600 | ||||
2026 GlobeNewswire, Inc., source
