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BREA, Calif., USA – Reborn Coffee Inc. has reported its financial and operational results for the fourth quarter and year ended December 31, 2024. Revenues were $1.8 million for the three months ended December 31, 2024, compared to $1.4 million for the comparable period in 2023, representing an increase of 31%. The increase in sales for the period was primarily due to increased customer traffic as a result of enhanced brand awareness and expanded marketing efforts.
For the year ended December 31, 2024, revenues were $5.9 million, compared to $5.5 million in the prior year period, an increase of 8%. The increase in sales for the periods were primarily driven by the opening of new locations, and to the continued focus on marketing efforts to grow brand recognition.
Company-operated store gross profit was $0.8 million for the three-month period ended December 31, 2024, compared to $0.7 million for the comparable period in 2023. Q4’24 company-operated store gross margins decreased to 45% compared to 61% for the same period in 2023.
Company-operated store gross profit was $3.5 million for the year ended December 31, 2024, compared to $3.5 million for the comparable period in 2023. Full year 2024 company-operated store gross margins decreased to 63% compared to 66% for the same period in 2023.
Wholesale and online revenue for the fourth quarter of 2024 was ($9,878), compared to $177,365 in the fourth quarter of 2023. The decrease in revenue was due to B2B orders and a strategic shift in marketing focus toward in-store promotions, positioning the company for stronger omnichannel growth in 2025.
Total operating costs and expenses for the three-month period ended December 31, 2024, were $3.5 million compared to $3.0 million for the comparable period in 2023. Total operating costs and expenses for the year ended December 31, 2024, were $10.5 million compared to $10.1 million for the comparable period in 2023, representing an increase of 5%.
Net loss for the fourth quarter of 2024 was $1.8 million, compared to a net loss of $1.7 million for the fourth quarter of 2023. Net loss for the year ending December 31, 2024, was $4.8 million, compared to a net loss of $4.7 million for the year ending December 31, 2023.
Net cash used in operating activities for the year ended December 31, 2024, was $3.5 million, compared to $3.2 million for the year ended December 31, 2023.
Cash and cash equivalents totaled $0.2 million as of December 31, 2024, compared to $0.2 million as of December 31, 2023. On February 6, 2025, Reborn Coffee entered into a securities purchase agreement and a common stock purchase agreement for up to a total of $60 million in financing commitments with Arena Investors, LP (“Arena”) and Arena Business Solutions Global SPC II, Ltd. (“ABS”).
