Company Bolsters Prescence in Southeast with Additional 82 New Broker Sales People Representing Barfresh's Entire Line of Smoothie Products Move Rapidly Scales Barfresh's Sales Footprint Amid Accelerating Customer Momentum, Driving Barfresh's Projected Record Fiscal Year 2024 Revenue and Year Over Year Margin Expansion LOS ANGELES, May 13, 2024 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the "Company" or "Barfresh") (NASDAQ:BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, today an ...

Barfresh Secures 443 New School Customer Locations Across Multiple States, Serving Barfresh Products to Over 360,000 Students Customer Growth Acceleration Fuels Company's Projected Record Fiscal Year 2024 Revenue and Year Over Year Margin Expansion LOS ANGELES, May 07, 2024 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the "Company" or "Barfresh") (NASDAQ:BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, reinforced its education channel sales momentum today by announcing new multi-st ...

Seasoned Executive Brings Decades of Expertise and Industry Partnerships to Optimize Supply Chain Operations Strategic Hire to Amplify Management's Efforts Towards Significant Sales Uplift Expected in Fiscal Year 2024 LOS ANGELES, May 01, 2024 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the "Company" or "Barfresh") (NASDAQ:BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, today announced the appointment of Marko Matla as Vice President of Supply Chain & Co-Manufacturing. In his rol ...

Company Secures Seven Co-Operatives to Serve Barfresh Twist & Go Smoothies on the Breakfast Menu in Over 2,200 New Schools to Approximately 1.5 Million Students for Fall Company Projects to Achieve Highest Annual Revenue in Fiscal Year 2024 and Year-over-Year Margin Improvement Amid Bottling Recovery Efforts, Propelled by Accelerated Customer Wins Company Expects Confirmation from Many Additional New School Bids Expected to be Won in the Next Few Months to Begin this Fall LOS ANGELES, April 26, 2024 (GLOBE ...

Distribution The Company conducts sales through several channels, including National Accounts, Regional Accounts, and Broadline Distributors. Manufacturing Barfresh utilizes contract manufacturers to manufacture all of its products in the United States. Research and Development The Company incurred approximately $115,000 and $382,000 in research and development expenses for the years ended December 31, 2023 and 2022, respectively. Research and Development expenses in 2022 were primarily attributable to the ...

Financial Data and Key Metrics Changes - The company generated its second-highest fiscal year revenue in 2023 with $8.1 million, despite a full year without its largest Twist & Go bottle manufacturer, which previously accounted for over 50% of purchases [19][37] - Gross margin for the full year of 2023 was 36%, compared to 16% for the same period in 2022, attributed to higher-margin carton sales and pricing actions [24] - Net loss for the fourth quarter of 2023 was $701,000, an improvement from a net loss of $1.9 million in the fourth quarter of 2022 [24][52] - Adjusted EBITDA loss for the fourth quarter of 2023 was approximately $427,000, nearly half of the loss in the same period of 2022 [53] Business Line Data and Key Metrics Changes - The company experienced a slight setback in production due to a national carton shortage that began in December and affected sales into early February [20][51] - Selling, marketing, and distribution expenses for the fourth quarter of 2023 were $624,000, nearly unchanged from $625,000 in the fourth quarter of 2022 [38] - The company expanded its product offerings with the relaunch of its 100% juice concentrates, which are USDA reimbursable and compliant for schools [21] Market Data and Key Metrics Changes - The company expects to have sales coverage across 49 out of 50 states by the end of the first quarter of 2024, enhancing its market presence [22] - The revenue for the fourth quarter of 2023 was $1.9 million, an increase from $1.4 million in the fourth quarter of 2022, driven by improved supply and increased capacity [51] Company Strategy and Development Direction - The company is focused on expanding both carton and bottle capacity, with engineering changes made to increase carton capacity to approximately 25 million to 30 million units per year [1] - The company plans to market its newly relaunched WHIRLZ 100% Juice Concentrates through sales brokers to the general food service market and education channel [22] - The company is also exploring options to expedite securing additional bottle capacity, expecting resolution before the new school year in August 2024 [2] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record first-quarter revenue for 2024, having already achieved over $2 million in sales with a month remaining in the quarter [36] - The company believes there is significant growth potential in the education channel and is optimistic about future sales due to increased capacity and expanded sales networks [36][60] - Management noted that the carton supply issue has been fully resolved, allowing for a return to full production [56] Other Important Information - The company is in the final stages of signing with a new co-manufacturer to replace the loss of its largest one, which was unable to execute the contract due to internal issues [34] - The company is also working on a national agreement to provide coverage for all U.S. Military bases, which is expected to significantly boost sales [50] Q&A Session Summary Question: Impact of carton shortage on gross margins and future plans - Management indicated that the carton supply issue has been resolved and they are back to full production, although there may be some compression on margins in the first quarter due to higher SKU counts [55][56] Question: Update on bottle manufacturing capacity and other opportunities - Management confirmed they are exploring multiple options for bottle manufacturing and are confident in resolving capacity issues quickly, with several opportunities on the table [44][58] Question: Military channel and other opportunities outside of schools - Management highlighted ongoing efforts to establish a dedicated military channel team and emphasized the importance of high-volume accounts in recreation and amusement locations [45][50]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Barfresh achieved **$8.1 million** in FY2023 revenue with **36%** gross margins, overcoming supply chain issues and projecting record Q1 2024 - Achieved the second-highest fiscal year revenue in company history at **$8.1 million**, despite supply chain disruptions[2](index=2&type=chunk) - Fourth-quarter results were negatively impacted by an industry-wide carton shortage, which has since been resolved but affected the first six weeks of fiscal 2024 sales[3](index=3&type=chunk) - The company is focused on securing a new bottle manufacturing partner before the new school year begins in August 2024 to support long-term growth plans[3](index=3&type=chunk) - Barfresh is projected to generate record revenue in the first quarter of 2024 compared to any prior first quarter[2](index=2&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Barfresh's 2023 financial performance showed mixed results, with full-year revenue declining to **$8.1 million** but gross margins improving to **36%**, and net losses narrowing [Fourth Quarter 2023 Financial Results](index=1&type=section&id=Fourth%20Quarter%20of%202023%20Financial%20Results) Q4 2023 revenue increased to **$1.9 million** with **33%** gross margin, while net loss significantly narrowed to **$701,000** due to reduced G&A expenses Q4 2023 vs Q4 2022 Financials | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.9 million | $1.4 million | +35.7% | | Gross Margin | 33% | 36% | -3 p.p. | | Net Loss | $(701,000) | $(1,900,000) | +63.1% | | G&A Expenses | $629,000 | $912,000 | -31.0% | - The increase in revenue was attributed to improved supply from increased carton production capacity and the return of customers lost due to the previous year's bottle manufacturer issue[3](index=3&type=chunk) [Fiscal Year 2023 Financial Results](index=1&type=section&id=Fiscal%20Year%202023%20Financial%20Results) FY2023 revenue was **$8.1 million**, down from **$9.2 million** in 2022, but gross margin improved to **36%**, and net loss significantly reduced to **$2.8 million** FY 2023 vs FY 2022 Financials | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $8.1 million | $9.2 million | -12.0% | | Gross Margin | 36% | 16% | +20 p.p. | | Net Loss | $(2.8 million) | $(6.1 million) | +54.1% | | G&A Expenses | $2.7 million | $3.5 million | -24.0% | - The decline in annual revenue was a result of limited supply and lost customers from the loss of its largest bottle manufacturer, compounded by a carton shortage late in the year[10](index=10&type=chunk) - The 2022 net loss was impacted by **$1.8 million** in charges related to a product withdrawal and a **$746,000** non-cash asset impairment charge[5](index=5&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA loss narrowed for both FY2023 to **$1.7 million** from **$2.4 million**, and for Q4 to **$427,000** from **$833,000** Adjusted EBITDA Reconciliation Summary | Period | Net Loss | Adjusted EBITDA | Year-over-Year Improvement | | :--- | :--- | :--- | :--- | | **Q4 2023** | $(701,000) | $(427,000) | 48.7% | | **Q4 2022** | $(1,858,000) | $(833,000) | - | | **FY 2023** | $(2,824,000) | $(1,674,000) | 31.5% | | **FY 2022** | $(6,134,000) | $(2,445,000) | - | [Balance Sheet](index=4&type=section&id=Balance%20Sheet) As of December 31, 2023, Barfresh maintained a cash position of approximately **$1.9 million** and held about **$1.2 million** in inventory Key Balance Sheet Items (as of Dec 31, 2023) | Account | Value | | :--- | :--- | | Cash | $1.9 million | | Inventory | $1.2 million | [Business Updates and Outlook](index=1&type=section&id=Business%20Updates%20and%20Outlook) Barfresh is addressing manufacturing and supply chain challenges, pursuing a new bottle manufacturer, managing a legal dispute, and forecasts record revenue with high **30s** gross margins for 2024 [Operational Update](index=1&type=section&id=Operational%20Update) Barfresh increased capacity with existing manufacturers, with carton production reaching **25-30 million** units annually, and is actively seeking a new bottle partner by August 2024 - Carton manufacturer has increased annual capacity to approximately **25 million to 30 million units**[3](index=3&type=chunk) - The company is actively seeking a new bottle manufacturing partner with the goal of having one in place before the new school year in August 2024[3](index=3&type=chunk) [Supplier Dispute](index=4&type=section&id=Supplier%20Dispute) Barfresh is engaged in an ongoing legal dispute with a former manufacturer over Q3 2022 textural consistency issues, having re-filed a complaint in California State Court in August 2023 - The dispute stems from customer complaints in Q3 2022 about the textural consistency of the Twist & Go™ product from one manufacturer, leading to a product withdrawal[17](index=17&type=chunk) - After initial legal filings and attempts at resolution, Barfresh re-filed a complaint in California State Court in August 2023, and the case is progressing[17](index=17&type=chunk) [2024 Outlook](index=4&type=section&id=Commentary%20and%20Outlook%20for%202024) Barfresh has a positive outlook for fiscal year 2024, expecting to achieve record annual revenue and gross profit margins in the high **30s** - Expects to achieve record fiscal year revenue for fiscal year 2024[16](index=16&type=chunk) - Gross profit margins for 2024 are expected to be in the high **30s**[16](index=16&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call) The company scheduled a conference call and webcast for February 29, 2024, at 4:30 pm Eastern Time to discuss the financial results - A conference call to discuss the results was held on Thursday, February 29, 2024, at 1:30 pm Pacific Time (4:30 pm Eastern Time)[18](index=18&type=chunk)

See the accompanying notes to the consolidated financial statements Value of shares relinquished in modification of stock-based compensation awards (Note 7) $ 24,000 $ - Use of Estimates Summary of Significant Accounting Policies Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value and unobservable (i.e., supported by little or no market activity). Other Receivables A contract with a customer exists when (I) the Company enters into an enforceable contract ...

Barfresh Food Group, Inc. (NASDAQ:BRFH) Q2 2023 Earnings Conference Call August 14, 2023 4:30 PM ET Company Participants Riccardo Delle Coste - Founder and CEO Lisa Roger - CFO Conference Call Participants Nick Sherwood - Maxim Group Operator Good afternoon, everyone, and thank you for participating on today's Second Quarter 2023 Corporate Update Call for Barfresh Food Group. Joining us today is Barfresh Food Group's Founder and CEO, Riccardo Delle Coste; and Barfresh Food Group's CFO, Lisa Roger. [Operator ...

Item 1. Legal Proceedings. From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently the defendant in one legal proceeding for an amount less than $100,000. Our legal counsel and management believe a material unfavorable outcome to be remote. Not required because we are a smaller reporti ...