Reborn Coffee Inc
For the period ended Sep 30, 2024. Filed Nov 19, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 19, 2024
REBN$1.21-4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001213900-24-070751
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-19.
0001213900-24-100247
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 73 current paragraphs.
61 unchanged; 12 reworded; 0 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Removed paragraphs (2)
Previous report
This increase in general and administrative expenses was primarily due to the hiring of additional administrative employees, increases in professional services and corporate-level costs to support growth plans, the opening of new restaurants, as well as costs associated with outside administrative, legal and professional fees and other general corporate expenses associated with being a public company.
Previous report
In August 2022, the Company consummated the IPO of 1,440,000 shares of its common stock at a public offering price of $5.00 per share, generating gross proceeds of $7,200,000. Net proceeds from the IPO were approximately $6.2 million after deducting underwriting discounts and commissions and other offering expenses of approximately $998,000.
Reworded paragraphs (12)
Previous wording
Franchise revenues consist of royalty fees and other franchise fees. Royalty fees are based on a percentage of a franchisee’s weekly gross sales revenue at 5%. The Company recognizes the fee as the underlying sales occur. The Company did not have any revenue from royalties or other fees for the three months ended June 30, 2024 and 2023.
Current wording
Franchise revenues consist of royalty fees and other franchise fees. Royalty fees are based on a percentage of a franchisee’s weekly gross sales revenue at 5%. The Company recognizes the fee as the underlying sales occur. The Company did not have any revenue from royalties or other fees for the nine months ended September 30, 2024 and 2023.
Previous wording
Advertising costs are expensed as incurred. Advertising expenses amounted to $76,626 and $49,531 for the six-month periods ended June 30, 2024 and 2023, respectively, and are recorded under general and administrative expenses in the accompanying condensed consolidated statements of operations.
Current wording
Advertising costs are expensed as incurred. Advertising expenses amounted to $110,050 and $49,531 for thenine months ended September 30, 2024 and 2023, respectively, and are recorded under general and administrative expenses in the accompanying condensed consolidated statements of operations.
Previous wording
Three and six months ended June 30, 2024 compared to three and six months ended June 30, 2024
Current wording
Three and nine months ended September 30, 2024 compared to three and nine months ended September 30, 2024
Previous wording
The following table presents selected comparative results of operations from our unaudited financial statements for the three and six months ended June 30, 2024 compared to three and six months ended June 30, 2023. Our financial results for these periods are not necessarily indicative of the financial results that we will achieve in future periods. Certain totals for the table below may not sum to 100% due to rounding.
Current wording
The following table presents selected comparative results of operations from our unaudited financial statements for the three and nine months ended September 30, 2024 compared to three and nine months ended September 30, 2023. Our financial results for these periods are not necessarily indicative of the financial results that we will achieve in future periods. Certain totals for the table below may not sum to 100% due to rounding.
Previous wording
Revenues were approximately $2.9 million for the six-month period ended June 30, 2024, compared to $2.6 million for the comparable period in 2023, representing an increase of approximately $250,000, or 9.5%. Revenues were approximately $1.4 million for the three-month period ended June 30, 2024, compared to $1.5 million for the comparable period in 2023, representing an decrease of approximately $146,000, or -9.6%.
Current wording
Revenues were approximately $4.14 million for thenine months ended September 30, 2024, compared to $4.15 million for the comparable period in 2023, representing a decrease of approximately $5,611, or 0.1%. Revenues were approximately $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 approximately $255,000, or 16.9%.
Previous wording
Product, food and drink costs were approximately $630,000 for the six-month period ended June 30, 2024 compared to $882,000 for the comparable period in 2023, representing an decrease of approximately $252,000 or 28.6%, and were approximately $324,000 for the three-month period ended June 30, 2024 compared to $518,000 for the comparable period in the prior year, representing a decrease of $194,000 or 37.5%. The decrease in costs for the periods was driven by the Company’s cost reduction initiatives throughout the divisions.
Current wording
Product, food and drink costs were approximately $1.1 million for thenine months ended September 30, 2024 compared to $1.3 million for the comparable period in 2023, representing a decrease of approximately $253,000 or 19.1%, and were approximately $441,000 for the three months ended September 30, 2024 compared to $442,000 for the comparable period in the prior year.
Previous wording
General and administrative expenses were approximately $4.3 million for the six-month period ended June 30, 2024 compared to $3.9 million for the comparable period in the prior year, representing an increase of approximately $414,000, or 10.6%, and were approximately $2.3 million for the three-month period ended June 30, 2024 compared to $2.2 million for the comparable period in 2023, representing an increase of approximately $118,000, or 5.4%.
Current wording
General and administrative expenses were approximately $5.8 million for thenine months ended September 30, 2024 compared to $5.7 million for the comparable period in the prior year, representing an increase of approximately $157,000, or 2.8%, and were approximately $1.5 million for the three months ended September 30, 2024 compared to $1.8 million for the comparable period in 2023, representing a decrease of approximately $257,000, or 14.3%.
Previous wording
We have a history of operating losses and negative cash flow in operating activities. We have incurred recurring net losses, including net losses from operations before income taxes of $2.3 million and $2.3 million for the six-month periods ended June 30, 2024 and 2023, respectively. We used $2.9 million and $2.3 million of cash for operating activities for the six-month periods ended June 30, 2024 and 2023, respectively.
Current wording
We have a history of operating losses and negative cash flow in operating activities. We have incurred recurring net losses, including net losses from operations before income taxes of $3.0 million and $3.0 million for thenine months ended September 30, 2024 and 2023, respectively. We used $3.3 million and $3.0 million of cash for operating activities for thenine months ended September 30, 2024 and 2023, respectively.
Previous wording
Net cash used in operating activities during the six-month period ended June 30, 2024 was approximately $2.9 million, which resulted from net loss of $2.3 million and from the changes in operating assets and liabilities.
Current wording
Net cash used in operating activities during thenine months ended September 30, 2024 was approximately $3.3 million, which resulted from net loss of $3.0 million and from the changes in operating assets and liabilities.
Previous wording
Net cash used in investing activities during the six-month periods ended June 30, 2024 and 2023 was $641,000 and $4.4 million, respectively. Net cash used in investing activities for the second quarter of 2024 was primarily related to the purchase of equipment.
Current wording
Net cash used in investing activities during thenine months ended September 30, 2024 and 2023 was $641,059 and $746,416, respectively. Net cash used in investing activities for the third quarter of 2024 was primarily related to the purchase of equipment.
Previous wording
Net cash provided by financing activities during the six-month period ended June, 2024 and 2023 was $4.0 million and $4.0 million, respectively. Net cash flows provided by financing activities for the second quarter of 2024 was primarily proceeds from the issuance of common stock.
Current wording
Net cash provided by financing activities during thenine months ended September 30, 2024 and 2023 was $3.9 million and $1.1 million, respectively. Net cash flows provided by financing activities for the third quarter of 2024 was primarily proceeds from the issuance of common stock.
Previous wording
As of June 30, 2024, the Company had total assets of approximately $10.5 million. Our cash balance as of June 30, 2024 was approximately $617,000.
Current wording
As of September 30, 2024, the Company had total assets of approximately $10.6 million. Our cash balance as of September 30, 2024 was approximately $106,000.