Reborn Coffee Files Q3 2024 10-Q

TL;DR

Reborn Coffee (RBN) filed its 10-Q for Q3 2024. Check financials.

AI Summary

Reborn Coffee, Inc. filed its quarterly report on Form 10-Q for the period ended September 30, 2024. The company, formerly known as CAPAX INC., is incorporated in Delaware and operates in the retail eating places sector. Its principal business address is in Brea, California.

Why It Matters

This filing provides investors with an update on Reborn Coffee's financial performance and operational status for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing financial information, not indicating immediate significant risks.

Key Players & Entities

• Reborn Coffee, Inc. (company) — Registrant
• CAPAX INC. (company) — Former company name
• September 30, 2024 (date) — Quarterly period end date
• 20170530 (date) — Date of name change
• 001-41479 (other) — Commission File Number

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value per share REBN The Nasdaq Sto

Filing Documents

• ea0221604-10q_reborn.htm (10-Q) — 682KB
• ea022160401ex31-1_reborn.htm (EX-31.1) — 10KB
• ea022160401ex31-2_reborn.htm (EX-31.2) — 10KB
• ea022160401ex32-1_reborn.htm (EX-32.1) — 4KB
• ea022160401ex32-2_reborn.htm (EX-32.2) — 4KB
• 0001213900-24-100247.txt ( ) — 4750KB
• rebn-20240930.xsd (EX-101.SCH) — 47KB
• rebn-20240930_cal.xml (EX-101.CAL) — 50KB
• rebn-20240930_def.xml (EX-101.DEF) — 228KB
• rebn-20240930_lab.xml (EX-101.LAB) — 381KB
• rebn-20240930_pre.xml (EX-101.PRE) — 237KB
• ea0221604-10q_reborn_htm.xml (XML) — 482KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4

Controls and Procedures

Controls and Procedures 28 PART II OTHER INFORMATION 29 Item 1

Legal Proceedings

Legal Proceedings 29 Item 1A

Risk Factors

Risk Factors 29 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 6 Exhibits 30 Signature 31 i NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, and objectives for future operations are forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These risks and uncertainties include, among other things, risks related to our expectations regarding the impact of the coronavirus pandemic (the "COVID-19 pandemic"), including the easing of related regulations and measures as the pandemic and its related effects begin to abate or have abated, on our business, results of operations, financial condition, and future profitability and growth; our expectations regarding the impact of the evolving COVID-19 pandemic on the businesses of our customers, partners and suppliers, and the economy,

—FINANCIAL

PART I—FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements. Reborn Coffee, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets September 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 105,863 $ 164,301 Accounts receivable, net of allowance for doubtful accounts of $ 0 and $ 0 , respectively 76,809 56,938 Inventories, net 251,604 185,061 Prepaid expense and other current assets 934,301 359,124 Total current assets 1,368,577 765,424 Property and equipment, net 3,950,555 3,494,050 Operating lease right-of-use asset 3,993,507 4,566,968 Other assets 328,628 425,712 Total assets $ 9,641,267 $ 9,252,154 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 528,693 $ 632,753 Accrued expenses and current liabilities 825,562 611,290 Loans payable to financial institutions, current 97,352 791,352 Loans payable to others 795,813 609,027 Loans payable to shareholders - 100,000 Loan payable, emergency injury disaster loan (EIDL), current 30,060 30,060 Loan payable, payroll protection program (PPP), current 37,494 45,678 Operating lease liabilities, current 1,006,603 1,003,753 Total current liabilities 3,321,577 3,823,913 Loans payable to financial institutions, net of current - 335,147 Loan payable, emergency injury disaster loan (EIDL), net of current 469,940 469,940 Loan payable, payroll protection program (PPP), net of current 24,452 51,595 Operating lease liabilities, net of current 3,159,034 3,725,153 Total liabilities 6,975,003 8,405,748 Commitments and Contingencies Stockholders' equity Common Stock, $ 0.0001 par value, 40,000,000 shares authorized; 3,335,657 and 1,866,174 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 334 187 Preferred Stock, $ 0.0001 par value, 1,000,000 shares authorized; no shares issued and outstanding at September 30, 2024 and December 31

Financial Statements

Financial Statements The accompanying interim unaudited condensed consolidated financial statements ("Interim Financial Statements") of the Company and its 100%-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and are presented in accordance with the requirements of Form 10-Q and Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023 included in the Company's Form 10-K/A. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company's financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting The unaudited condensed consolidated financial statements include Reborn Coffee, Inc. and its wholly owned subsidiaries as of September 30, 2024 and December 31, 2023 and for the three and nine month periods ended September 30, 2024 and 2023. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") as promulgated in the United States of America. The consolidated financial statements include Reborn Coffee, Inc. and its wholly owned subsidiary. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. Mino

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