REBNHIGH SIGNALFINANCIAL10-K

REBN shows severe cash depletion (down 77% to $158K) while expanding internationally with new subsidiaries in Korea and Malaysia, creating a critical liquidity versus growth tension.

The company's cash position has dropped to dangerously low levels of $158K while operating cash flow worsened to -$3.5M, creating immediate liquidity concerns. Despite this cash crisis, the company is pursuing international expansion with new coffee stores in Korea and Malaysia, suggesting either aggressive growth strategy or potential desperation moves that could strain resources further.

Comparing 2025-03-31 vs 2024-03-28View on EDGAR →
FINANCIAL ANALYSIS

REBN's financial position deteriorated significantly with cash plummeting 77% to just $158K and operating losses deepening to -$3.5M, while current assets fell 48%. However, stockholders' equity increased 65% to $2.6M and total liabilities decreased 30%, suggesting either equity raises or debt restructuring occurred during the period. The combination of severe cash depletion, worsening operating performance, but improved equity structure indicates the company may have raised capital but is burning through it rapidly while expanding operations.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+343.5%
$29K$129K

Interest expense surged 343.5% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
-76.6%
$676K$158K

Cash declined 76.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Stockholders Equity
Balance Sheet
+65.4%
$1.6M$2.6M

Equity base grew 65.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
-48.2%
$1.7M$863K

Current assets declined 48.2% — monitor working capital adequacy and short-term liquidity.

Accounts Receivable
Balance Sheet
+42.1%
$47K$67K

Receivables surged 42.1% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Total Liabilities
Balance Sheet
-30.2%
$7.4M$5.2M

Liabilities reduced 30.2% — deleveraging improves balance sheet strength and financial flexibility.

Operating Cash Flow
Cash Flow
-23.7%
-$2.8M-$3.5M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Net Income
P&L
-20.2%
-$4.0M-$4.8M

Net income declined 20.2% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-19.1%
-$3.9M-$4.6M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Total Assets
Balance Sheet
-13.5%
$9.0M$7.8M

Total assets contracted 13.5% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2025-03-31
PRIOR — 2024-03-28
ADDED
As of March 31, 2025, there were 4,568,508 shares of common stock, par value $0.0001 per share, issued and outstanding.
The occurrence of any such risks could adversely affect our business, financial condition, results of operations and prospects.
Nasdaq may delist our securities from trading on its exchange, which could limit investors ability to make transactions in our securities and subject us to additional trading restrictions.
(the Reborn Korea ) a Korea corporation located in Daejeon, South Korea formed in October 2023, is a wholly owned subsidiary of Reborn Holdings with one retail coffee store under the brand name of Reborn Coffee.
(the Reborn Malaysia ) a Malaysian corporation located in Kuala Lumpur, Malaysia formed in October 2023, is majority owned subsidiary, with 60% ownership, of Reborn Holdings with one retail coffee store under the brand name of Reborn Coffee.
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REMOVED
As of March 27, 2024, there were 2,716,373 shares of common stock, par value $0.0001 per share, issued and outstanding.
The occurrence of any such risks could adversely affect our business, financial condit ion, results of operations and prospects.
We are not in compliance with the Nasdaq continued listing requirements.
If we are unable to comply with the continued listing requirements of The Nasdaq Capital Market, our common stock could be delisted, which could affect our common stock s market price and liquidity and reduce our ability to raise capital.
In August 2022, the Company consummated its initial public offering (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.
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