Business Context and Reporting Period
Company: Reborn Coffee, Inc. (REBN)
Filing Type: Form 8-K (Current Report)
Date of Report: September 5, 2023
Reporting Period: Notification received regarding listing status based on financial data as of June 30, 2023.
Key Financial Metrics
- Stockholders' Equity: $2,278,723 (as of June 30, 2023).
- Nasdaq Minimum Equity Requirement: $2,500,000.
- Alternative Compliance Criteria: The filing states the company does not meet the alternative requirements of $35 million in market value of listed securities or $500,000 in net income from continuing operations.
- Minimum Bid Price: The company remains non-compliant with the $1.00 minimum bid price standard.
- Revenue, Profit, Cash Flow, Debt, Liquidity: The filing text does not provide specific values for these metrics beyond the stockholders' equity figure.
Material Changes and Listing Status
On September 5, 2023, the Company received a notification from Nasdaq stating it failed to satisfy the minimum stockholders' equity requirement for continued listing under Rule 5550(b)(1). The current equity of $2,278,723 falls below the required $2,500,000 threshold. Additionally, the Company does not meet alternative listing standards regarding market value or net income. This notification has no immediate effect on the listing of the common stock.
Outlook, Risks, and Management Commentary
- Compliance Plan Deadline: The Company has until October 20, 2023 (45 days from the letter date) to submit a plan to regain compliance.
- Extension Possibility: If the plan is accepted, Nasdaq may grant an extension of up to 180 days (until March 3, 2024) to evidence compliance.
- Delisting Risk: If the Company fails to cure the deficiency or satisfy criteria, Nasdaq may issue a notice of delisting. The Company may appeal such a determination, but there is no assurance of approval.
- Management Action: The Company is monitoring stockholders' equity and evaluating courses of action to achieve compliance, though success is not guaranteed.
Key Facts for Investor Verification
- Verify the current stockholders' equity balance to confirm if it remains below the $2,500,000 threshold.
- Monitor the submission of a compliance plan by the October 20, 2023 deadline.
- Check the current trading price to assess continued non-compliance with the $1.00 minimum bid price rule.
- Review future filings for updates on the acceptance or rejection of the compliance plan by Nasdaq.