<SEC-DOCUMENT>0001213900-22-035542.txt : 20220909
<SEC-HEADER>0001213900-22-035542.hdr.sgml : 20220909
<ACCEPTANCE-DATETIME>20220628151108
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001213900-22-035542
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220628

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Reborn Coffee, Inc.
		CENTRAL INDEX KEY:			0001707910
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				474752305
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		17809 GILLETTE AVE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		949-880-2868

	MAIL ADDRESS:	
		STREET 1:		17809 GILLETTE AVE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAPAX INC.
		DATE OF NAME CHANGE:	20170530
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Reborn Coffee, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>580 N. Berry Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Brea, CA 92821</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 28, 2022</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Office of Trade &amp; Services</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">United States Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington DC 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left">Attention:</TD><TD STYLE="text-align: justify">Nicholas Lamparski (202-551-4695), Mara Ransom (202-551-3264),</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 0.5in">Tatanisha Meadows at 202-551-3322 or Adam Phippen
(202) 551-3336</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.5in; text-align: left">RE:</TD><TD STYLE="text-align: justify">Reborn Coffee, Inc.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Amendment No. 2 to Registration Statement on Form
S-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Filed April 19, 2022</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">File No. 333-261937</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Reborn Coffee, Inc. (the &ldquo;<U>Company</U>&rdquo;)
confirms receipt of the letter dated May 16, 2022 from the staff (the &ldquo;<U>Staff</U>&rdquo;) of the Securities and Exchange Commission
(the &ldquo;<U>Commission</U>&rdquo;) with respect to the above-referenced filing. We are responding to the Staff&rsquo;s comment as set
forth below. The Staff&rsquo;s comment is set forth below, followed by the Company&rsquo;s response in bold:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Amendment No. 2 to Registration Statement on Form S-1 Filed April
19, 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prospectus Summary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Our Company, page 1</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1. We note your response to comment 2. However, it doesn&rsquo;t appear
that each place you disclose Adjusted EBITDA margin, you present the comparable GAAP measure with equal or greater prominence. As such,
we re-issue the comment. Refer to Item 10(e)(1)(i)(A) of Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures in response to
the Staff&rsquo;s comment in Amendment No. 3. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Our Growth, page 8</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2. We note your amended disclosure in response to comment 3. Please
balance your disclosure in this section by also discussing the going concern opinion issued by your auditor. In this regard, revise to
support your stated belief of &ldquo;strong . . . financial performance&rdquo; despite the going concern opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosure by also discussing
the going concern opinion in response to the Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3. You mention the need for additional capital in order to open
additional cafes here and on page 70. Revise to quantify the amount of resources needed, if known, for future locations so that
investors can appreciate the cost associated with opening new locations and your ability to execute on your expansion plans. Refer
to Item 303(b)(1)(ii) of Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosure to quantify the
amount of resources needed for future locations in response to Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Risk Factors</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Risks Related to Our Business</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>&ldquo;We have a history of operating losses and negative cash
flow . . .&rdquo;, page 21</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4. We note your amended disclosure in response to comment 7, and
reissue the comment in part. Please amend your risk factor disclosure to specifically address the fact that your auditor has
expressed substantial doubt about your ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised this risk factor further to specifically
address the going concern opinion in response to the Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&ldquo;Interruption of our supply chain of coffee or other ingredients
.. . .&rdquo;, page 27</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5. We note your disclosure that your supply chain may be impacted
by the various reasons you list in the first sentence of this risk factor. Update your risks characterized as potential or hypothetical
if recent supply chain disruptions have impacted your operations, as you seem to indicate in your disclosure on page 62 in connection
with recent price increases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures to clarify
that as of the date of the prospectus, supply chain interruptions have not been material and that the Company attributes recent
price increases to inflation in response to the Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to Our Organizational Structure, this Offering and
Ownership of Our Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&ldquo;Our warrant agreement will designate the courts of the State
of New York or . . .&rdquo;, page 43</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6. We note your amended disclosure in response to comment 9, and reissue
our comment as it relates to our prior request that you discuss the warrant agreement&rsquo;s exclusive forum provision in the Description
of Securities section. Please revise your disclosure accordingly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company is no longer selling Units comprised of Warrants
and therefore, the Warrant Agreement has been removed from the registration statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Capitalization, page 54</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7. Please review the As Adjusted column as it does not appear to
reflect the intended conversion of Class B common stock to Class A common stock or the issuance of shares of common stock in the
offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised the As Adjusted column in response
to the Staff&rsquo;s comments. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Management&rsquo;s Discussion and Analysis of Financial Condition
and Results of Operations</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Key Performance Indicators and Non-GAAP Financial Measures</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Comparable Shop Sales Growth, page 64</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8. We note your amended disclosure in response to comment 21. You
continue to use the terms &ldquo;Comparable location sales growth&rdquo; and &ldquo;Comparable shop sales growth,&rdquo; as if these terms
differ and yet the same quantified data is presented for both terms on pages 19, 58 and 64. Please revise to clarify.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE</B>: <B>The Company has rectified these disclosures in
Amendment No. 3 in response to the Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Quantitative and Qualitative Disclosure of Market Risks</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Impact of Inflation, page 73</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9. We note your indication that you have been able to partially offset
inflation by gradually increasing menu prices. Revise to clarify what you mean by &ldquo;partially&rdquo; with a view to understanding
to what extent your costs may be outpacing your expected revenues and by what margin. Elaborate upon your known future plans, if any,
to continue to absorb these costs and how you intend to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures in Quantitative
and Qualitative Disclosure of Market Risks in response to the Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Business, page 75</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10. We note that you have filed your long term kiosk license agreements
with Tyler Mall Limited Partnership, Stonestown Shopping Center, LP, and Glendale I Mall Associates, LP as exhibits 10.8, 10.9, and 10.10,
respectively. Please revise your disclosure to discuss the material terms of these agreements, or tell us why you believe you are not
required to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has determined that the long term kiosk license
agreements with agreements with Tyler Mall Limited Partnership, Stonestown Shopping Center, LP, and Glendale I Mall Associates are not
material and has removed them from the filing.</B> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Our Retail Locations, page 76</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11. We note your response to comment 28 indicating that you do not
currently have specific plans to open 47 corporate-owned locations in 2022. Yet your disclosure on pages 1, 60, and 75 continues to indicate
that you &ldquo;expect to open up to 40 company-operated retail locations&rdquo; in 2022 and that you are currently &ldquo;developing 3
retail locations and have identified an additional 2 locations for expansion.&rdquo; Please revise this disclosure so that the disclosure
in the filing is consistent with your response, which indicates that you don&rsquo;t have plans for 47 locations. In this regard, your disclosure
around future growth indicates an intent to open additional locations; if you no longer have plans to open additional locations in 2022,
please explicitly state as much in each place in which you discuss your intentions to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures throughout for
consistency. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Consolidated Shareholders&rsquo; Equity (Deficit), page F-5</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12. We note the 3,187,500 shares of common stock issued during 2021
with no impact on total shareholders&rsquo; equity. Please disclose the nature of this common stock issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures in response to
Staff&rsquo;s comment. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Consolidated Statements of Cash Flows, page F-6</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13. Please tell us where the 2021 non-cash loss on extinguishment
of debt of $982,383 is reflected in the 2021 Consolidated Statement of Cash Flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures in response to
Staff&rsquo;s comment. The recorded loss from extinguishment of debt, which was resultant from a conversion of debt into equity, had
not been separated from proceeds from issuance of common stock in the prior cash flow presentation. The loss has now been reclassified
to properly reflect as an addback in operating cash flows.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Revenue Recognition, page F-8</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">14. Please tell us the provisions in ASC 606 on which you relied
in determining the proper accounting for your customer loyalty program or demonstrate for us the insignificance of the rewards
granted to customers under the program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company analyzed the provisions of ASC 606 related
to separation of performance obligations within sales transactions as it applies to our customer loyalty program. Based on that analysis,
the company determined the program is currently immaterial in regards to revenue should such an allocation be performed. The historical
value of discounts applied from customer use of the program has amounted to 2% to 2.5% of total revenues, or approximately $55,000 for
2021 and $17,000 for the three-month period ended March 31, 2022. In addition to this, most rewards are accumulated and used in the same
fiscal period, meaning that any potential deferral of revenue from date of initial transaction to date of reward usage would result in
an insignificant change to any periods reported revenues. Lastly, the costs to the company to perform on any outstanding obligations
for unused rewards is estimated at 35% to 40% of the sales value, so the net value of any obligation to perform would be insignificant
to the balance sheet at period ends as well. The Company will continue to monitor the potential effects of this program on its
financial statements.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>12. Shareholders&rsquo; Equity</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Issuance of Common Stock in Settlement of Antidilution Provisions,
page F-22</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">15. Please disclose how you account for the antidilution provisions
in the share exchange agreement with Capax and its pre-merger shareholders including the related share issuances pursuant to the antidilution
provisions. With reference to the specific guidance on which you relied, please tell us the basis in GAAP for your accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company has revised its disclosures in response to
the Staff&rsquo;s comment. The original agreement with Capax included the clause for non-dilution of shares, protecting their 5% ownership
through a defined period of time until an eventual public offering. This meant that the legacy Capax shareholders would be due additional
shares of stock each time the Company issued shares for other purposes. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The incremental shares that would have been issuable to Capax shareholders
were considered to be part of the cost of each respective transaction and would have been merged into the accounting impact ascribed
to those transactions. Thus, the net recorded value of the historical transactions would not have changed since the proceeds were fixed,
but the per share value applied for accounting purposes would have been diluted. The additional shares to be issued to Capax shareholders
had not been issued and were formalized at a later date, so they were not shown as issued at that time. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><B>The agreement was modified in January 2022 to eliminate the non-dilution
provision and set a fixed number of shares to make those Capax shareholders whole. Since the number of shares was at that point fixed,
we considered the modification to be a Type 1 subsequent event per the definition in ASC 855-10-20. As such it was considered a recognized
subsequent event and the shares were shown as issued during the year ended December 31, 2021.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16. Please file the Form 1-K for your fiscal year ended December 31,
2021. In this regard, we note that following the qualification of your Form 1-A (File no. 024-11518) on June 4, 2021, Rule 257(b) of
Regulation A requires you to file periodic and current reports, including the Form 1-K for your fiscal year ended December 31, 2021,
which was due on April 30, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RESPONSE: The Company acknowledges its obligation to file a Form
1-K and intends to do so soon. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">We trust that this response satisfactorily responds
to your request. Should you require further information, please contact our legal counsel, Matthew Ogurick, at 212/536-4085.</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Very truly yours,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>/s/ Jay Kim</I></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Jay Kim, Chief Executive Officer</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 36%; text-align: justify">&nbsp;</TD></TR>
  </TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">cc:</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Matthew
Ogurick, Esq.</FONT></TD>
</TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">5</P>

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