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Reborn Coffee , Inc. (NASDAQ:REBN), based in Brea, California, has been notified by the Nasdaq Stock Market that its stockholders’ equity has fallen below the required minimum for continued listing. According to a filing with the Securities and Exchange Commission, the company’s equity was reported at $415,582 as of March 31, 2025, significantly below the $2.5 million threshold mandated by Nasdaq Listing Rule 5550(b)(1). The company, currently valued at $13.86 million in market capitalization, faces liquidity challenges with a current ratio of 0.28, indicating short-term obligations exceed liquid assets, according to InvestingPro data.
The notification, received on May 29, 2025, indicates that Reborn Coffee does not meet alternative criteria related to market value of listed securities or net income from continuing operations. Despite this, the company’s stock remains listed on Nasdaq, with a deadline of July 13, 2025, to submit a plan to regain compliance. While facing these challenges, InvestingPro analysis shows some positive indicators, including impressive gross profit margins of 55% and projected revenue growth of 3.27% for fiscal year 2025.
Should Reborn Coffee’s compliance plan be accepted, Nasdaq may grant an extension until November 25, 2025, to meet the equity requirement. If the plan is rejected, the company can appeal to a Nasdaq Hearings Panel. However, there is no assurance that such an appeal would be successful.
The company is currently evaluating options to address the equity shortfall but acknowledges there is no guarantee of regaining compliance. This information is based on a press release statement from Reborn Coffee, Inc.
In other recent news, Reborn Coffee Inc. has announced a strategic expansion into the matcha market by establishing its Central China Supply Chain Headquarters in Dawu County. This move is part of a collaboration with a China-Japan joint venture, securing a stable supply of high-quality matcha for distribution throughout Asia and the UAE. In addition, Reborn Coffee has partnered with Eachome Shopping to extend its retail operations across China, enhancing its brand visibility through Shenzhen Media Group’s platform. The company has also signed a Memorandum of Understanding with Tori AI to integrate artificial intelligence into its operations, aiming to improve efficiency and customer experience, particularly in drive-thru services. Furthermore, Reborn Coffee has entered into a partnership with Otonomus Hotel to co-develop an autonomous drive-thru coffee service, which will also include in-suite premium coffee offerings. Both partnerships with Tori AI and Otonomus Hotel reflect Reborn Coffee’s commitment to leveraging technology to enhance customer interactions and streamline operations. These developments underscore Reborn Coffee’s ongoing efforts to innovate and expand its presence in the global beverage market.
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