Reborn Coffee, Inc.(NASDAQ:REBN) 
Reborn Coffee, Inc. operates and franchises retail locations and kiosks that focus on serving specialty-roasted coffee in California. The company purchases, roasts, and sells coffee, tea and other beverages, and various food items. As of September 30, 2021, it operated 7 retail locations. Reborn Cof...
Website: https://reborncoffee.com
Founded: 2015
IPO Price: $5 (Aug 12, 2022)
Full Time Employees: 24
Sector: Consumer Cyclical
Industry: Restaurants
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At a glance:
- Small-Cap Specialty Coffee Operator Focused on Branded Retail Expansion: Reborn Coffee, Inc. operates a premium coffee concept and is generally positioned as a growth-oriented, small-cap company focused on expanding branded café locations.
- Growth Strategy Tied to New Store Openings and Market Development: A key driver for the company is scaling its footprint through additional cafés and entering new markets, which can accelerate revenue but also increases execution and ramp-up risk.
- Profitability and Cash Use Are Central Investor Watch Items: As an expansion-stage retailer, results are typically sensitive to store-level margins, operating leverage, and ongoing cash needs to fund growth, making liquidity and burn rate important to monitor.
- Consumer Demand and Cost Inflation Can Drive Volatility: Performance may be affected by discretionary consumer spending trends and input-cost pressures (e.g., coffee, dairy, labor, rent), which can impact pricing power and near-term margins.
Bull Thesis:
- Niche Market Appeal & Product Differentiation: Reborn Coffee targets the premium, specialty coffee segment with unique brewing methods (e.g., cold brew, nitro) and innovative offerings, attracting a discerning customer base willing to pay for quality and a distinct experience. This differentiation can foster a loyal customer base.
- Significant Store Expansion & Franchising Potential: With a relatively small current footprint, Reborn Coffee has substantial room for growth through new company-owned store openings and a scalable franchising model. Franchising, in particular, can accelerate market penetration and brand visibility with reduced capital expenditure for the company.
- Growing Revenue & Developing Brand Recognition: Despite its early stage as a public company, Reborn Coffee has demonstrated consistent revenue growth, indicating increasing customer acceptance and a developing brand presence in a competitive market. This suggests successful initial market penetration.
- Focus on Customer Experience & Digital Engagement: Emphasis on a premium in-store experience combined with digital initiatives like a loyalty program and mobile app can foster strong customer loyalty and drive repeat business. This is crucial for long-term success in the competitive coffee industry.
Bear Thesis:
- Intense Competition in a Saturated Market: Reborn Coffee operates in a highly competitive coffee industry dominated by well-established giants (e.g., Starbucks, Dunkin') and numerous local independent players. Differentiating and capturing significant market share against these entrenched competitors is a substantial challenge.
- Persistent Unprofitability & Negative Free Cash Flow: The company continues to report net losses and negative free cash flow, raising concerns about its long-term financial sustainability. This indicates that current operations are not self-funding and require external capital to continue.
- High Operational Costs & Scalability Risks: Rapid expansion, especially with company-owned stores, entails significant capital expenditure for build-outs and increased operational complexities. Maintaining consistent product quality, service, and efficiency across a growing number of locations presents substantial scalability challenges.
- Reliance on Future Capital Raises & Dilution Risk: Given its current cash burn and expansion plans, Reborn Coffee will likely need to raise additional capital in the future. This could lead to significant dilution for existing shareholders through new stock offerings or increased debt burden, impacting shareholder value.
Main Competitors:
- Blue Bottle Coffee (Specialty coffee shops, roasted beans (DTC/wholesale)), Competes directly in the premium, third-wave coffee segment, offering high-quality single-origin and blend coffees, minimalist cafe experiences, and a strong direct-to-consumer presence for roasted beans. They target a similar discerning customer base willing to pay a premium for quality and experience.
- Intelligentsia Coffee (Specialty coffee shops, roasted beans (DTC/wholesale)), A pioneer in the third-wave coffee movement, Intelligentsia competes by emphasizing direct trade, meticulous sourcing, expert roasting, and a distinctive cafe experience. They appeal to coffee connoisseurs and those seeking a high-quality, ethically sourced product, similar to Reborn's target demographic.
- Stumptown Coffee Roasters (Specialty coffee shops, roasted beans (DTC/wholesale), cold brew products), Stumptown competes with its strong brand identity, focus on quality sourcing and roasting, and a presence in both cafes and retail/wholesale channels, including popular ready-to-drink cold brew. They attract customers looking for premium, well-crafted coffee experiences and products.
- Peet's Coffee ($JDEP) (Coffee shops, roasted beans (retail/wholesale), K-Cups), Peet's, an established leader in specialty coffee, competes with Reborn by offering a wide range of high-quality roasted beans and a significant retail cafe footprint. While perhaps less 'third-wave' than Reborn, their focus on quality and a loyal customer base makes them a strong competitor for premium coffee consumers.
- Starbucks Corporation ($SBUX) (Coffee shops, roasted beans, ready-to-drink beverages), As the dominant global coffee chain, Starbucks competes with Reborn through its sheer scale, brand recognition, and particularly its premium offerings like Starbucks Reserve Roasteries and higher-end stores. While Reborn targets a more niche, artisanal market, Starbucks' extensive presence and ability to capture a broad spectrum of coffee drinkers make it a formidable competitor for market share and customer spend.
Moat:
Reborn Coffee operates in the highly competitive specialty coffee market, often referred to as 'third-wave' coffee. Its primary moat lies in its commitment to quality and unique brewing processes (e.g., patented cold brew methods, specific roasting profiles), creating a distinctive product experience. This focus on artisanal craftsmanship and premium ingredients helps differentiate it from mass-market coffee chains. Another potential moat is its brand identity and customer experience within its cafes, aiming for a sophisticated yet approachable atmosphere that fosters loyalty among discerning coffee drinkers. However, the competition is intense. Reborn faces direct competition from established third-wave players like Blue Bottle, Intelligentsia, and Stumptown, who share a similar ethos of quality and craft, often with stronger brand recognition and wider distribution. It also competes with a myriad of local, independent specialty coffee shops that offer unique, community-focused experiences. Indirectly, larger chains like Starbucks (especially their premium Reserve offerings) and Peet's Coffee compete for the broader premium coffee dollar, leveraging their scale, marketing budgets, and extensive store networks. The barrier to entry for a new coffee shop is relatively low, making the market fragmented and requiring constant innovation and strong execution to maintain market share and grow. Reborn's success will depend on its ability to consistently deliver a superior product and experience, build a strong brand community, and efficiently scale its operations while maintaining its core values.
Income Statements:
Quarterly
Annual
| Unit: USD | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 | 2022-06-30 | 2018-03-31 | 2017-12-31 | 2017-09-30 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
net revenues: | ||||||||||||||||||
stores | 1,336,208 | 1,126,751 | 1,810,167 | 1,678,935 | 1,788,519 | 1,118,522 | 1,194,552 | 1,471,654 | 1,621,118 | 1,487,858 | 1,494,603 | 1,109,051 | 845,207 | 827,332 | 775,956 | |||
wholesale and online | -55,232 | 129,858 | 24,625 | 14,326 | -9,878 | 140,407 | 178,349 | 46,408 | 177,365 | 26,401 | 24,320 | 13,270 | 15,445 | 10,913 | 12,520 | |||
license | 25,000 | 100,000 | ||||||||||||||||
total net revenues | 3,209,966 | 1,356,609 | 1,834,792 | 1,693,261 | 1,778,641 | 1,258,929 | 1,372,901 | 1,518,062 | 1,798,483 | 1,514,259 | 1,518,923 | 1,122,321 | 860,652 | 838,245 | 788,476 | |||
operating costs and expenses: | ||||||||||||||||||
product, food and drink costs - stores, wholesale and online | 384,112 | 647,152 | 420,389 | |||||||||||||||
general and administrative | 1,244,720 | 2,231,477 | 2,459,102 | 2,466,254 | 2,499,448 | 1,536,357 | 2,307,436 | 2,000,264 | 2,280,761 | 1,793,246 | 2,189,198 | 1,704,651 | 1,708,953 | 1,486,550 | 1,432,432 | |||
professional fees | 82,925 | 195,767 | 697,587 | 10,650 | 7,162 | |||||||||||||
stock compensation expense | -2,511,276 | 1,330,124 | ||||||||||||||||
total operating costs and expenses | -149,226 | 4,404,520 | 6,242,563 | 3,390,618 | 3,472,316 | 1,983,627 | 2,710,502 | 2,381,634 | 2,792,476 | 2,246,973 | 2,718,333 | 2,074,282 | 2,001,838 | 1,733,877 | 1,716,868 | |||
income from operations | 3,359,192 | -3,047,911 | -4,407,771 | -1,697,357 | -1,693,675 | -724,698 | -1,337,601 | -863,572 | -993,993 | -732,714 | -1,199,410 | -951,961 | -1,141,186 | -895,632 | -928,392 | 28,741 | 16,178 | |
yoy | -298.34% | 320.58% | 229.53% | 96.55% | 70.39% | -1.09% | 11.52% | -9.28% | -12.90% | -18.19% | 29.19% | -3412.21% | -7153.94% | |||||
qoq | -210.21% | -30.85% | 159.68% | 0.22% | 133.71% | -45.82% | 54.89% | -13.12% | 35.66% | -38.91% | 25.99% | -16.58% | 27.42% | -3.53% | -3330.20% | 77.65% | ||
operating margin % | Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | Infinity% | Infinity% | |
other income: | ||||||||||||||||||
other income | -24,940 | 6,695 | 80,871 | 83,882 | 5,546 | 13,265 | 28,520 | 7,809 | 1,440 | |||||||||
interest expense including amortization of debt discount | -354,422.25 | -566,979 | ||||||||||||||||
gain on sale of property | -29,327 | 75,000 | ||||||||||||||||
loss on debt extinguishment | -522,639 | |||||||||||||||||
changes in fair value of derivative liability | -4,673.25 | 171,008 | ||||||||||||||||
asset impairment loss | -1,212,754 | -12,506 | -421,969 | |||||||||||||||
total other expense | -456,185.5 | -401,782 | -929,880 | -493,080 | -85,369 | 5,750 | ||||||||||||
income before income taxes | 2,079,969 | -3,449,693 | -5,337,651 | -2,190,437 | -1,779,044 | -718,948 | -1,316,612 | -990,544 | -998,006 | -741,074 | -1,293,642 | -964,164 | -1,130,977 | -920,060 | -937,148 | |||
provision for income taxes | 106,171 | 2,401 | 707 | 800 | -7,028 | 7,828 | ||||||||||||
net income | 1,973,798 | -3,449,693 | -5,340,052 | -2,191,144 | -1,779,044 | -719,748 | -1,316,612 | -990,544 | -990,978 | -748,902 | -1,293,642 | -964,164 | -1,132,577 | -920,060 | -937,148 | |||
yoy | -210.95% | 379.29% | 305.59% | 121.21% | 79.52% | -3.89% | 1.78% | 2.74% | -12.50% | -18.60% | 38.04% | |||||||
qoq | -157.22% | -35.40% | 143.71% | 23.16% | 147.18% | -45.33% | 32.92% | -0.04% | 32.32% | -42.11% | 34.17% | -14.87% | 23.10% | -1.82% | ||||
net income margin % | Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | -Infinity% | NaN% | NaN% | |
loss per share: | ||||||||||||||||||
basic and diluted | -0.54 | -0.68 | -1.15 | -0.47 | -0.26 | -0.3 | -0.48 | -0.6 | -0.07 | -0.06 | -0.1 | -0.08 | -0.09 | -0.08 | -0.08 | |||
weighted-average number of common shares outstanding: | ||||||||||||||||||
basic and diluted | 5,068,011 | 4,638,892 | 4,616,591 | 2,896,960 | 2,420,628 | 2,746,605 | 1,653,826 | 13,230,613 | 13,241,171 | 13,237,580 | 12,173,031 | 12,173,031 | 11,679,523 | 11,667,545 | ||||
stock compensation expenses | 2,665,485 | |||||||||||||||||
interest expense | -669,555 | -181,155 | -65,313 | -7,515 | -7,531 | -134,781 | -4,513 | -18,532 | -94,232 | -12,203 | 10,209 | -24,428 | -10,196 | |||||
gain on debt extinguishment | -200,333 | |||||||||||||||||
derivative expense | 206,106 | -395,807 | ||||||||||||||||
product, food and drink costs - stores | 924,364 | 990,696 | 441,349 | |||||||||||||||
cost of sales—wholesale and online | -17,828 | 5,921 | 78,944 | 75,077 | 77,686 | 11,564 | 10,652 | 5,812 | 6,765 | 4,780 | 5,484 | |||||||
license income | ||||||||||||||||||
product, food and drink costs—stores | 324,122 | 306,293 | 434,029 | 442,163 | 518,483 | 363,819 | 286,120 | 242,547 | 278,952 | |||||||||
total other income | 20,989 | -126,972 | -4,013 | -8,360 | -94,232 | -12,203 | 10,209 | -24,428 | -8,756 | |||||||||
gain on asset disposition | 2,543 | 10,172 | ||||||||||||||||
ppp grant income | ||||||||||||||||||
loss on extinguishment of debt | ||||||||||||||||||
revenue | ||||||||||||||||||
yoy | ||||||||||||||||||
qoq | ||||||||||||||||||
operating expenses | ||||||||||||||||||
administrative expenses | 18,091 | 9,016 | ||||||||||||||||
basic and diluted loss per common share | ||||||||||||||||||
basic and diluted weighted-average number of common shares outstanding | 18,041,600 | 17,990,774 | ||||||||||||||||
the accompanying notes are an integral part of these unaudited financial statements. |
Balance Sheets:
Quarterly
Annual
| Unit: USD | 2026-03-31 | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 | 2022-06-30 | 2018-03-31 | 2017-12-31 | 2017-09-30 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
assets | |||||||||||||||||||
current assets: | |||||||||||||||||||
cash and cash equivalents | 266,382 | 2,594,716 | 44,045 | 77,866 | 777,117 | 158,215 | 105,863 | 617,051 | 70,251 | 676,448 | 363,951 | 337,492 | 873,101 | 3,019,035 | 4,730,097 | 149,824 | |||
accounts receivable | 1,218,784 | 946,996 | 147,459 | 68,109 | 69,291 | 67,309 | 76,809 | 67,225 | 192,724 | 47,361 | 13,813 | 2,285 | 3,699 | 780 | 350 | 1,293 | |||
ar from related party | 663,751 | ||||||||||||||||||
inventories | 119,209 | 58,435 | 200,662 | 203,082 | 169,615 | 251,604 | 267,934 | 266,698 | 166,281 | 166,281 | 124,842 | 123,737 | 132,343 | 102,981 | 102,981 | ||||
prepaid expense and other current assets | 665,284 | 550,000 | 540,000 | 507,473 | 467,613 | 934,301 | 704,960 | 1,163,311 | 773,949 | 1,272,155 | 1,284,323 | 1,357,612 | 477,850 | 256,192 | 220,113 | ||||
loan receivable from related party | 4,889,140 | 2,000,000 | |||||||||||||||||
total current assets | 7,822,550 | 6,879,137 | 667,116 | 886,637 | 1,556,963 | 862,752 | 1,368,577 | 1,657,170 | 1,692,984 | 1,664,039 | 1,816,200 | 1,748,942 | 2,358,149 | 3,630,008 | 5,089,620 | 474,211 | 68,645 | 81,208 | 90,303 |
property and equipment | 2,651,527 | 2,894,893 | 3,443,352 | 3,200,578 | 4,017,002 | 4,080,004 | 3,950,555 | 3,962,399 | 4,417,702 | 2,100,146 | 2,129,577 | 5,864,189 | 1,996,559 | 1,581,805 | 1,297,574 | 1,181,365 | |||
operating lease right-of-use asset | 2,159,446 | 2,160,871 | 1,894,592 | 2,098,507 | 2,297,424 | 2,653,179 | 3,993,507 | 4,260,499 | 4,350,335 | 4,227,815 | 4,449,188 | 4,209,267 | 3,575,117 | 3,010,564 | 2,764,258 | 2,937,437 | |||
long-term prepayment | 1,300,000 | 1,000,000 | |||||||||||||||||
other assets | 217,952 | 246,189 | 193,188 | 193,188 | 193,188 | 193,188 | 328,628 | 648,938 | 419,482 | 1,008,419 | 45,977 | 235,164 | 235,164 | 235,164 | |||||
total assets | 14,151,475 | 13,181,090 | 6,198,248 | 6,378,910 | 8,064,577 | 7,789,123 | 9,641,267 | 10,529,006 | 10,880,503 | 9,000,419 | 8,440,942 | 12,057,562 | 8,164,989 | 8,457,541 | 9,151,452 | 4,593,013 | 68,645 | 81,208 | 90,303 |
liabilities and stockholders’ equity | |||||||||||||||||||
current liabilities: | |||||||||||||||||||
accounts payable | 650,655 | 561,457 | 895,738 | 750,819 | 268,910 | 558,444 | 528,693 | 463,998 | 513,008 | 399,346 | 298,279 | 293,911 | 120,818 | 87,809 | 20,977 | 158 | |||
accounts payable - related party | 1,045,846 | ||||||||||||||||||
accrued expenses and current liabilities | 831,201 | 815,245 | 535,142 | 467,483 | 546,798 | 774,826 | 825,562 | 665,197 | 724,693 | 598,468 | 176,202 | 389,513 | 295,780 | 233,053 | 254,586 | 171,070 | |||
loan payable to shareholder | 70,000 | 70,000 | 200,000 | ||||||||||||||||
loans payable to financial institutions, current | 421,310 | 109,247 | 132,164 | 269,119 | 349,018 | 111,300 | 97,352 | ||||||||||||
loans payable to others | 269,026 | 279,026 | 449,027 | 334,508 | 284,581 | 427,073 | 795,813 | ||||||||||||
loan payable to related party | 440,183 | 153,605 | |||||||||||||||||
convertible debt, net of debt discount of 501,596 and 900,198, respectively | 3,665,069 | ||||||||||||||||||
derivative liability | 550,832 | 503,384 | 3,768,692 | 2,994,579 | 3,076,956 | ||||||||||||||
loan payable, emergency injury disaster loan, current | 21,327 | 22,452 | 30,060 | ||||||||||||||||
loan payable, payroll protection program, current | 45,596 | 26,307 | 26,307 | ||||||||||||||||
operating lease liabilities, current | 801,841 | 879,416 | 794,492 | 850,591 | 842,014 | 844,177 | 1,006,603 | ||||||||||||
total current liabilities | 8,812,886 | 6,686,606 | 7,954,708 | 6,463,618 | 5,615,242 | 2,783,374 | 3,321,577 | 3,711,482 | 3,927,447 | 3,012,895 | 2,565,461 | 2,763,392 | 1,283,992 | 1,066,156 | 1,056,161 | 1,627,601 | 4,107 | ||
loan payable, emergency injury disaster loan, net of current | 469,940 | 469,940 | 469,940 | ||||||||||||||||
loan payable, payroll protection program, net of current | 6,430 | 25,718 | 25,718 | ||||||||||||||||
operating lease liabilities, net of current | 1,417,006 | 1,352,961 | 1,169,777 | 1,324,067 | 1,537,506 | 1,906,760 | 3,159,034 | ||||||||||||
total liabilities | 10,706,261 | 8,535,225 | 9,620,143 | 8,283,932 | 7,648,995 | 5,186,381 | 6,975,003 | 7,986,318 | 8,309,157 | 7,426,576 | 6,876,121 | 9,778,839 | 4,842,624 | 4,171,012 | 3,948,347 | 4,671,978 | |||
commitments and contingencies | |||||||||||||||||||
stockholders’ equity | |||||||||||||||||||
common stock, 0.0001 par value... | 821 | 785 | 594 | 540 | 428 | 428 | 334 | 324 | 285 | 1,493 | 1,326 | 1,321 | 1,316 | 1,316 | 1,312 | 1,168 | |||
common stock subscription receivables | |||||||||||||||||||
common stock issuable, 0.0001 par value... | 850,000 | 1,460,000 | 1,150,000 | 1,470,000 | 1,470,000 | ||||||||||||||
preferred stock, 0.0001 par value... | |||||||||||||||||||
additional paid-in capital | 35,507,596 | 34,365,043 | 27,589,871 | 25,959,801 | 22,674,095 | 22,674,095 | 22,482,975 | 21,603,006 | 20,303,045 | 17,601,837 | 16,602,004 | 16,567,009 | 16,317,014 | 16,317,014 | 16,101,017 | 9,899,031 | 122,638 | 122,638 | 111,455 |
accumulated deficit | -32,531,681 | -30,704,112 | -32,543,761 | -29,094,068 | -23,754,016 | -21,562,872 | -19,783,828 | -19,064,080 | -17,747,468 | -16,029,487 | -15,038,509 | -14,289,607 | -12,995,965 | -12,031,801 | -10,899,224 | -9,979,164 | -55,796 | -43,233 | |
accumulated other comprehensive income | 71,401 | 78,705 | 25,075 | 21,091 | -33,217 | 3,438 | 15,484 | ||||||||||||
non-controlling interest in subsidiary | 468,478 | 134,149 | |||||||||||||||||
total stockholders’ equity | 3,445,214 | -1,905,022 | 415,582 | 2,602,742 | 2,666,264 | 2,542,688 | 2,571,346 | 1,573,843 | 1,564,821 | 2,278,723 | 3,322,365 | 4,286,529 | 5,203,105 | -78,965 | |||||
total liabilities and stockholders’ equity | 14,151,475 | 6,378,910 | 8,064,577 | 7,789,123 | 9,641,267 | 10,529,006 | 10,880,503 | 9,000,419 | 8,440,942 | 12,057,562 | 8,164,989 | 8,457,541 | 9,151,452 | 4,593,013 | |||||
accounts receivable from related party | 728,990 | ||||||||||||||||||
liabilities and shareholders’ equity | |||||||||||||||||||
convertible debt, net of debt discount of 900,198 | 3,266,467 | ||||||||||||||||||
shareholders’ equity | |||||||||||||||||||
total shareholders’ equity | 4,645,865 | ||||||||||||||||||
total liabilities and shareholders’ equity | 13,181,090 | ||||||||||||||||||
inventory | 200,662 | ||||||||||||||||||
prepaid expenses and other current assets | 274,950 | ||||||||||||||||||
deferred revenue | 70,000 | ||||||||||||||||||
convertible debt, net of debt discount of 2,913,579 | 1,253,086 | ||||||||||||||||||
stockholders' equity | |||||||||||||||||||
total stockholders' equity | -3,421,895 | 68,645 | 81,208 | 86,196 | |||||||||||||||
total liabilities and stockholders' equity | 6,198,248 | 68,645 | 81,208 | 90,303 | |||||||||||||||
convertible debt, net of debt discount of 2,703,275 at june 30, 2025 | 740,741 | ||||||||||||||||||
loan payable, emergency injury disaster loan (eidl), current | 30,060 | 30,060 | 30,060 | 30,060 | |||||||||||||||
loan payable, payroll protection program (ppp), current | 25,718 | 25,718 | 37,494 | 37,494 | |||||||||||||||
loan payable, emergency injury disaster loan (eidl), net of current | 469,940 | 469,940 | 469,940 | 469,940 | |||||||||||||||
loan payable, payroll protection program (ppp), net of current | 26,307 | 26,307 | 26,307 | 24,452 | |||||||||||||||
convertible debt, net of debt discount of 3,142,146 and 0, respectively | 191,187 | ||||||||||||||||||
loans payable to financial institutions, net of current | |||||||||||||||||||
loans payable to shareholders | 150,000 | ||||||||||||||||||
loans payable to financial institutions, current portion | 720,677 | 140,220 | 194,844 | ||||||||||||||||
loan payable to other | 792,775 | 709,027 | 300,000 | ||||||||||||||||
loan payable, emergency injury disaster loan (eidl), current portion | 30,060 | 30,060 | 30,060 | ||||||||||||||||
loan payable, payroll protection program (ppp), current portion | 22,126 | 40,447 | 40,447 | ||||||||||||||||
operating lease liabilities, current portion | 1,016,649 | 871,226 | 840,590 | ||||||||||||||||
loans payable to financial institutions, net of current portion | 335,147 | 19,112 | 74,918 | ||||||||||||||||
loan payable, emergency injury disaster loan (eidl), net of current portion | 469,940 | 469,940 | 469,940 | 477,455 | 489,139 | 489,240 | |||||||||||||
loan payable, payroll protection program (ppp), net of current portion | 51,595 | 68,601 | 80,377 | 92,152 | 127,871 | 127,969 | |||||||||||||
operating lease liabilities, net of current portion | 3,418,154 | 3,536,804 | 3,753,007 | 3,540,212 | 2,989,025 | 2,261,004 | 2,427,168 | ||||||||||||
loans payable to financial institutions – current portion | 729,968 | 50,898 | 74,810 | ||||||||||||||||
current portion of loan payable, emergency injury disaster loan | 30,060 | 30,060 | 30,060 | ||||||||||||||||
current portion of loan payable, payroll protection program | 45,678 | 45,678 | 45,678 | ||||||||||||||||
current portion of operating lease liabilities | 975,013 | 847,990 | 624,892 | ||||||||||||||||
loans payable to financial institutions, less current portion | 335,147 | 335,147 | 6,234 | ||||||||||||||||
loan payable, emergency injury disaster loan (eidl), less current portion | 469,940 | 469,940 | 469,940 | ||||||||||||||||
loan payable, payroll protection program (ppp), less current portion | 39,819 | 51,595 | 98,697 | ||||||||||||||||
loans payable to financial institutions | 791,353 | 44,664 | |||||||||||||||||
operating lease liabilities, less current portion | 3,556,999 | 2,529,985 | |||||||||||||||||
line of credit | 1,009,027 | 974,027 | 594,529 | ||||||||||||||||
loan payable, mortgage, net of current portion | 2,850,000 | ||||||||||||||||||
loan payable, emergency injury disaster loan (eidl) – current portion | 22,545 | 10,861 | 10,760 | ||||||||||||||||
loan payable, payroll protection program (ppp) – current portion | 40,447 | 39,267 | 39,169 | ||||||||||||||||
operating lease liabilities – current portion | 753,504 | 654,145 | 655,603 | ||||||||||||||||
loans payable to financial institutions – net of current portion | 14,172 | ||||||||||||||||||
current portion of equipment loan payable | |||||||||||||||||||
equipment loan payable – current portion | 1,515 | 6,312 | |||||||||||||||||
current assets | |||||||||||||||||||
cash and cash equivalent | 68,645 | 81,208 | 90,303 | ||||||||||||||||
liabilities and stockholders' equity | |||||||||||||||||||
payable to related parties | 4,107 | ||||||||||||||||||
the accompanying notes are an integral part of these unaudited financial statements. | |||||||||||||||||||
current liabilities | |||||||||||||||||||
retained deficit | -27,055 | ||||||||||||||||||
the accompanying notes are an integral part of these financial statements. |
Cashflow Statements:
Quarterly
Annual
| Unit: USD | 2026-03-31 | 2025-12-31 | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-03-31 | 2023-12-31 | 2023-09-30 | 2023-06-30 | 2023-03-31 | 2022-12-31 | 2022-09-30 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
cash flows from operating activities: | |||||||||||||
net loss | -1,827,569 | 1,839,649 | -3,449,693 | -5,340,052 | -2,191,144 | -1,779,044 | -990,544 | -990,978 | -748,902 | -1,293,642 | -964,164 | -1,132,577 | -920,060 |
non-controlling interest net income | 334,329 | ||||||||||||
adjustments to reconcile net loss to net cash from operating activities: | |||||||||||||
stock compensation expense | 292,589 | -2,511,276 | 1,330,124 | ||||||||||
interest expense - amortization of debt discount | 398,602 | -186,058 | |||||||||||
operating lease | -12,105 | -5,945 | -15,662 | -74,372 | -456 | 241,122 | 3,510 | 4,123 | 23,099 | -6,578 | 5,557 | ||
asset impairment loss | 80,000 | 1,212,754 | 12,506 | ||||||||||
gain on disposal of assets | 14,777 | ||||||||||||
depreciation | 237,549 | 234,063 | 71,181 | 83,333 | 61,008 | 206,709 | 63,330 | 63,365 | 63,256 | 79,301 | 56,097 | 64,111 | 48,583 |
derivative expense | 47,448 | -206,106 | 395,807 | ||||||||||
changes in operating assets and liabilities: | |||||||||||||
accounts receivable | -206,549 | -135,786 | -33,548 | -11,528 | 1,414 | -2,919 | -430 | 943 | |||||
inventories | -60,774 | -81,637 | 0 | -41,439 | -1,105 | 8,606 | -29,362 | 0 | |||||
prepaid expense and other assets | -87,047 | ||||||||||||
accounts payable | 89,198 | -104,261 | 101,067 | 4,368 | 173,093 | 33,009 | 66,833 | 20,819 | |||||
accrued liabilities | 15,956 | ||||||||||||
accounts payable from related party | 1,045,846 | ||||||||||||
derivative liability | |||||||||||||
net cash from operating activities | 362,250 | -1,710,714 | -1,621,384 | -3,637,934 | 464,606 | -132,554 | -1,933,908 | 199,836 | -707,691 | -619,794 | -1,663,307 | -1,300,358 | -796,721 |
capital expenditures | -138,554 | 34,304 | 0 | 0 | 0 | -468,315 | -986,982 | -272,927 | 3,671,356 | -3,946,931 | -470,851 | -348,342 | -164,792 |
free cash flows | 223,696 | -1,676,410 | -1,621,384 | -3,637,934 | 464,606 | -600,869 | -2,920,890 | -73,091 | 2,963,665 | -4,566,725 | -2,134,158 | -1,648,700 | -961,513 |
cash flows from investing activities: | |||||||||||||
acquisition of property and equipment | -138,554 | 34,304 | 0 | -468,315 | |||||||||
long-term prepayment | -300,000 | ||||||||||||
proceeds from sale of assets | 49,594 | -200,000 | 0 | 273,006 | 1,994 | ||||||||
loan receivables from related party | -2,889,140 | ||||||||||||
net cash from investing activities | -3,278,100 | -3,165,696 | 0 | 187,507 | 1,994 | -336,158 | -986,982 | -272,927 | 3,671,356 | -3,946,931 | -470,851 | -348,342 | -164,792 |
cash flows from financing activities: | |||||||||||||
net proceeds from loan payable to others | -10,000 | ||||||||||||
net borrowings from related party | 286,578 | ||||||||||||
borrowings from convertible debt | |||||||||||||
adjustment of debt discount for notes payable | -3,264,481 | ||||||||||||
borrowings (repayments) from loan payable to financial institutions | 312,063 | ||||||||||||
repayments on loan payable to ppp | -1,125 | ||||||||||||
net cash from financing activities | 587,516 | 7,427,081 | 1,587,563 | 2,751,176 | 152,302 | 521,064 | 2,826,840 | 385,588 | -2,937,206 | 4,031,116 | -11,776 | -62,362 | 5,541,786 |
net increase in cash | -2,328,334 | -699,251 | 618,902 | 52,352 | -94,050 | 312,497 | 26,459 | -535,609 | -2,145,934 | -1,711,062 | 4,580,273 | ||
cash at beginning of year | 2,594,716 | 0 | 158,215 | 0 | |||||||||
cash at end of year | 266,382 | -699,251 | 777,117 | 52,352 | |||||||||
supplemental disclosure of cash flow information: | |||||||||||||
cash paid during the period for: | |||||||||||||
interest | 21,683 | -75,495 | -700,000 | 810,872 | 39,838 | 65,173 | 134,781 | 4,033 | 18,532 | 98,920 | 7,515 | -48 | 8,211 |
income taxes | |||||||||||||
loss on settlement of debt | |||||||||||||
loss on disposal of assets | |||||||||||||
decrease in accounts receivable | 1,182 | -1,982 | 9,500 | ||||||||||
increase in inventories | |||||||||||||
decrease in prepaid expense and other assets | -328,051 | 265,050 | |||||||||||
decrease in accounts payable | |||||||||||||
increase in accrued expenses and liabilities | |||||||||||||
proceeds from issuances of common stock | |||||||||||||
proceeds from common stock issuable | |||||||||||||
proceeds from loan payable to shareholder | |||||||||||||
repayments from loan payable to financial institutions | |||||||||||||
settlement of debt | 0 | ||||||||||||
noncash operating lease | |||||||||||||
changes in fair value of derivative liability | |||||||||||||
increase in accounts receivable | |||||||||||||
increase in inventory | |||||||||||||
increase in accounts payable | -243,724 | 714,032 | -285,550 | 84,059 | |||||||||
increase in accrued liabilities | 67,659 | -79,315 | -228,028 | -50,741 | |||||||||
increase in deferred revenue | |||||||||||||
proceeds from issuance of common stock | 0 | -595,999 | 2,700,000 | 0 | |||||||||
net borrowings from loan payable to financial institutions | |||||||||||||
net borrowings on loan payable to others | |||||||||||||
repayment of borrowings from shareholder | |||||||||||||
net borrowings from convertible notes payable | |||||||||||||
repayment of loan payable, ppp | 0 | 0 | -11,776 | ||||||||||
net increase in cash and cash equivalents | |||||||||||||
cash and cash equivalents at beginning of period | |||||||||||||
cash and cash equivalents at end of period | |||||||||||||
debt discount expense | 618,405 | 122,336 | |||||||||||
decrease in inventories | 2,420 | -33,467 | 81,989 | ||||||||||
proceeds from line of credit | -9,027 | 35,000 | 0 | 91,432 | |||||||||
proceeds from loan payable to financial institutions | 67,168 | ||||||||||||
repayemnts on loan payable to others | |||||||||||||
borrowings from convertible notes payable | -583,333 | 3,333,333 | |||||||||||
supplemental disclosures of non-cash investing and financing activities: | |||||||||||||
settlement of debt to common stock equity | |||||||||||||
decrease in other assets | -39,861 | 602,128 | |||||||||||
increase in derivative liability | 2,681,149 | ||||||||||||
(repayment) proceeds from loan payable to others | -142,492 | ||||||||||||
repayment of loans | -73,160 | -11,775 | -11,776 | -150,000 | |||||||||
repayments of loan payable to financial institutions | 237,718 | 13,948 | |||||||||||
conversion of credit line to common stock issuances | |||||||||||||
cash paid during the years for: | |||||||||||||
lease liabilities | 258,950 | 216,633 | 354,589 | 280,201 | 266,188 | ||||||||
stock compensation | 0 | 35,000 | 216,001 | 0 | |||||||||
stock issued for services | |||||||||||||
proceeds from disposal of assets | |||||||||||||
repayent of borrowings from shareholder | |||||||||||||
proceeds frm loan payable to others | |||||||||||||
proceeds frm line of credit | |||||||||||||
repayent of loan payable, ppp | |||||||||||||
proceeds from loan payable to others | |||||||||||||
proceeds from loan payable, mortgage | 0 | ||||||||||||
repayment of loan payable, mortgage | |||||||||||||
issuance of common shares for compensation | 35,000 | ||||||||||||
converting credit line to equity | |||||||||||||
lease liabilities and assets | |||||||||||||
prepaid expense and other current assets | -797,957 | -464,236 | 201,355 | 73,289 | -879,762 | -456,822 | -36,079 | ||||||
accrued expenses and current liabilities | 113,403 | 1,283,044 | -213,311 | 93,733 | 62,727 | -21,533 | 83,516 | ||||||
purchases of property and equipment | -986,982 | -272,927 | 3,671,356 | -3,946,931 | -470,851 | -348,342 | -164,792 | ||||||
proceeds from borrowings from loan to others | 100,000 | ||||||||||||
proceeds from borrowings from loan to shareholder | 100,000 | ||||||||||||
cash at beginning of period | 164,301 | 0 | 0 | 0 | 3,019,035 | 0 | 0 | ||||||
cash at end of period | 70,251 | 312,497 | 26,459 | -535,609 | 873,101 | -1,711,062 | 4,580,273 | ||||||
payment for offering costs | |||||||||||||
repayment of line of credit | 0 | ||||||||||||
proceeds from loans | 23,233 | ||||||||||||
repayments of loans | |||||||||||||
repayments of equipment loan payable | |||||||||||||
supplemental disclosures of non-cash financing activities: | |||||||||||||
issuance of common shares for service | |||||||||||||
payment of ipo stock issuance | |||||||||||||
repayment loan payable to financial institutions | |||||||||||||
repayment of equipment loan payable | -4,797 | ||||||||||||
proceeds from loan payable to shareholders | |||||||||||||
loss on extinguishment of debt | |||||||||||||
forgiveness of paycheck protection program (ppp) loan | |||||||||||||
reacquisition of store | |||||||||||||
issuance of common shares for repurchase of lease and leasehold improvements | |||||||||||||
conversion of debt to common stock issuances | |||||||||||||
forgiveness of ppp loan | |||||||||||||
reacquisition of lease and leasehold improvements | |||||||||||||
converting debt to equity | |||||||||||||
issuance of common shares for repurchase of store |