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This is the latest earnings report for a coffee chain company called Reborn Coffee that IPOd earlier this year.

Now this is a tiny company. The market cap is only 15 million dollars. And they’ve only got nine locations. Though they do hope to expand to 20 by the end of next year.

Based on the latest report, Reborn made 2.4 million in revenues over the last 9 months from its stores.

But, after operating expenses they actually made a loss of 2.4 million. And stock based compensation was a decent chunk of that at 225 thousand.

The company still has over 4 million in cash but as confirmed by the company's auditor, there are substantial doubts about the company's ability to continue as a going concern.

And all this explains why the stock has dropped 85% since its IPO. Now I haven't tried their coffee but this is clearly a tiny company with a lot of risk.

And Reborn isn’t the only dubious company to hit the public market this year.

If you find this interesting, check out this article where we look at some of the newest stocks on the market.

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