UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number: 000-55131 BARFRESH FOOD GROUP INC. (Exact name of registrant as specified in its charter) Delaware 27-19 ...

Financial Data and Key Metrics Changes - Revenue for Q2 2021 increased 157% to $1.3 million compared to $506,000 for the same period last year, and increased approximately 30% compared to $1 million in Q1 2021 [6] - Gross margins for Q2 2021 were 43% compared to 23% for the same period last year and 34% in Q1 2021 [7] - Net loss for Q2 2021 improved to $297,000 compared to a net loss of $1.2 million in Q2 2020 [8] - Adjusted EBITDA for Q2 2021 decreased to a loss of $386,000 compared to a loss of approximately $900,000 for the same period last year [10] - As of June 30, 2021, the company had approximately $7 million in cash and $1 million in inventory, compared to $1.9 million in cash and $0.87 million in inventory as of December 31, 2020 [8] Business Line Data and Key Metrics Changes - Increased orders for Twist & Go products in the school channel contributed to revenue growth [6] - Gradual returning sales of single serve and bulk products were noted, although bulk customers have been slower to recover due to COVID-19 [11] Market Data and Key Metrics Changes - The company expects continued revenue improvement in the second half of 2021 as schools reopen and single serve customers return [11] - The military and recreation sectors have been the most affected by the pandemic, impacting the recovery of bulk customers [11] Company Strategy and Development Direction - The company aims to double the number of school locations serving its products in the coming year, supported by new regulations and increased demand for healthy food options [12][14] - The company is focusing on expanding its presence in the education channel and maintaining relationships with large restaurant chains and QSRs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth in the second half of 2021 despite industry-wide supply shortages and COVID-19 impacts [11] - The company has made significant changes to improve its cost structure and is positioned for record revenue growth [15] Other Important Information - The company completed a private placement of approximately $6 million in common stock and eliminated all prior convertible debt [9] - The first PPP loan of $568,000 was forgiven, and a second PPP loan is expected to be forgiven, leading to a debt-free status [9][15] Q&A Session Summary Question: Changes in California and Maine regarding school demand - Management noted an increase in demand from schools due to new regulations, with some schools increasing order frequency [17] Question: Update on Twist & Go products in grocery - Management stated that they are working on getting Twist & Go into grocery but no specific updates were provided [18] Question: Current number of schools using Twist & Go and WHIRLZ products - Management did not provide a specific number but mentioned they are now looking at school districts [19] Question: Budget considerations for schools - Management clarified that budget changes are dealt with at the district level, influenced by state regulations [20] Question: Pipeline status with QSRs - Management acknowledged delays due to COVID but confirmed ongoing conversations in the pipeline [21][22]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number: 000-55131 BARFRESH FOOD GROUP INC. (Exact name of registrant as specified in its charter) Delaware 27-1994406 ...

Barfresh Food Group, Inc. (NASDAQ:BRFH) Q1 2021 Results Earnings Conference Call May 17, 2021 4:30 PM ET Company Participants Riccardo Delle Coste - Founder, Chief Executive Officer Conference Call Participants John Kim - Maxim Group William Gregozeski - Greenridge Global Operator Good afternoon. Thank you for participating on today's first quarter 2021 corporate update call for Barfresh Group. Joining us today is Barfresh Group's Founder and CEO, Riccardo Delle Coste. Following prepared remarks, we will op ...

Financial Performance - Revenue increased by $280,971 (38%) from $733,880 in Q1 2020 to $1,014,851 in Q1 2021, driven by "Twist & Go"™ revenue and returning single serve demand [127]. - Cost of revenue for Q1 2021 was $659,423, resulting in a gross profit of $349,319 (34%), down from $396,799 (54%) in Q1 2020; gross profit percentage for the remainder of 2021 is expected to be approximately 40% [128]. - General and administrative expenses decreased by $472,824 (39%) from $1,224,425 in Q1 2020 to $751,601 in Q1 2021, primarily due to lower personnel and marketing expenses [131]. - Operating losses decreased by $428,559 (44%) from $977,774 in Q1 2020 to $549,215 in Q1 2021, mainly due to reduced general and administrative expenses [142]. - Interest expense for Q1 2021 was $59,091, down from $295,394 in Q1 2020, related to unconverted portions of convertible debt totaling $1,071,000 and $168,000 [144]. - The company recorded a net loss of $591,519 in Q1 2021, compared to a net loss of $743,066 in Q1 2020 [145]. - Research and development expenses decreased by $17,283 (20%) from $85,424 in Q1 2020 to $68,141 in Q1 2021, due to reduced labor hours [139]. - Shipping and storage expenses increased by $10,627 (8%) from $133,108 in Q1 2020 to $143,735 in Q1 2021, with expectations of reduction as sales volume increases [140]. - As of March 31, 2021, working capital surplus decreased to $22,435 from $1,196,741 at December 31, 2020, primarily due to convertible debt coming due [146]. - The company anticipates loan forgiveness of up to 100% on a $568,131 PPP loan, which is fully guaranteed by the Federal government [147]. Investment and Funding - Barfresh Food Group Inc. reported a gross proceeds of $10 million from an equity investment by Unibel, purchasing 15,625,000 shares at $0.64 per share [108]. - The company raised $4.3 million during the first quarter of 2019 through a private placement offering, issuing 7,141,454 shares [113]. Agreements and Partnerships - A five-year exclusive sales agreement with PepsiCo North America Beverages was signed, facilitating access to a significant customer base [105]. - Barfresh's exclusive distribution agreement with Sysco Corporation expired on October 2, 2019, allowing for potential expansion with other distributors [103]. - The company has received approval for multiple products to be rolled out to a national restaurant chain with over 2,500 locations [104]. Product Development - The company has developed four product formats, including ready-to-drink bottled smoothies and 100% juice concentrates [101]. - Barfresh owns patents in 13 jurisdictions, including the United States, for its single-serve products [102]. - The company utilizes contract manufacturers for all product manufacturing in the United States [107]. Employee and Operational Information - The company currently has 12 employees and 3 consultants [116]. - Revenue is recognized when a customer obtains ownership of promised goods, in accordance with ASC 606 [117].

Financial Investments - Barfresh reported a gross investment of $10 million from Unibel, with 15,625,000 shares sold at $0.64 per share and warrants for an additional 7,812,500 shares [153]. - The company raised $4.3 million in the first quarter of 2019 through a private placement offering, issuing 7,141,454 shares at $0.60 per share [158]. - In March 2020, Barfresh completed a private placement offering for common shares priced at $0.50 per share, resulting in proceeds of $3.825 million and the issuance of 7,650,000 shares [159]. - The company has financed operations through the sale of securities and convertible debt, indicating a potential need for additional funding [203]. Partnerships and Distribution - The company has exclusive distribution agreements with Sysco Corporation, the largest broadline distributor in the U.S., which includes all Barfresh products in Sysco's national core selection [149]. - The company has a strategic partnership with PepsiCo, facilitating access to a significant customer base through PepsiCo's foodservice sales team [151]. Product Development - Barfresh's new product formats include ready-to-drink bottled smoothies and 100% juice concentrates, expanding its product offerings in the beverage market [146]. - The company has received patent rights in 13 jurisdictions, enhancing its competitive position in the beverage industry [148]. Revenue and Profitability - Revenue decreased by $1,739,238, or 40%, from $4,306,785 in 2019 to $2,567,547 in 2020, primarily due to decreased sales impacted by COVID-19 [174]. - Gross profit for 2020 was $764,072 (30%) compared to $2,313,209 (54%) in 2019, reflecting a significant decline driven by the pandemic and product mix changes [175]. - General and administrative expenses decreased by $2,470,590 (36%) from $6,850,566 in 2019 to $4,379,976 in 2020, mainly due to lower personnel costs and reduced marketing expenses [176]. Operational Changes - Personnel costs decreased by $1,256,271 (44%) from $2,837,685 in 2019 to $1,581,414 in 2020, with a reduction in full-time employees from 17 to 12 [177]. - Stock-based compensation increased by $51,615 (23%) from $225,026 in 2019 to $276,641 in 2020, attributed to changes in workforce and timing of equity grants [179]. - Interest expense decreased by $734,119 (60%) from $1,213,263 in 2019 to $479,144 in 2020, due to the conversion and repayment of $2,005,366 of convertible notes [189]. - The company recorded a net gain on extinguishment of debt of $379,200, primarily from the conversion of convertible notes to common stock [191]. - The company currently employs 12 employees and 3 consultants, indicating a lean operational structure [162]. Cash Flow and Working Capital - As of December 31, 2020, the company had a working capital surplus of $1,196,741, an increase from $146,337 at the end of 2019, driven by higher cash availability from stock issuance and PPP loan proceeds [194]. - The company used cash of $3,197,782 in operations during the year ended December 31, 2020, while receiving $3,797,800 from stock issuance and $568,131 from a PPP loan [196]. Future Outlook - The company anticipates that shipping and storage expenses as a percentage of sales will continue to decrease in the future due to more efficient distribution arrangements [187]. - The Company experienced significant operational impacts due to COVID-19, particularly affecting sales in the restaurant and school channels [202]. - Supply chain disruptions have been noted as the market begins to recover from COVID-19 [202]. Lease and Financial Arrangements - The aggregate minimum lease requirement under a direct lease is $178,620 as of December 31, 2020 [204]. - There are no off-balance sheet arrangements that materially affect the Company's financial condition [205].

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) Presents unaudited condensed financial statements showing a revenue decrease and net loss due to COVID-19 Condensed Consolidated Balance Sheet Summary (Unaudited) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Restricted Cash | $2,743,523 | $1,091,374 | | Total Current Assets | $4,088,703 | $2,028,394 | | Total Assets | $6,755,264 | $5,125,805 | | **Liabilities & Equity** | | | | Total Current Liabilities | $1,142,959 | $1,882,057 | | Total Liabilities | $3,154,280 | $4,842,081 | | Total Stockholders' Equity | $3,600,984 | $283,724 | | Total Liabilities and Stockholders' Equity | $6,755,264 | $5,125,805 | Condensed Consolidated Statements of Operations Summary (Unaudited) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $707,610 | $1,565,176 | $1,947,766 | $3,782,375 | | Gross Profit | $278,553 | $851,207 | $790,658 | $2,136,957 | | Operating Loss | ($836,384) | ($949,789) | ($2,936,392) | ($3,810,354) | | Net Loss | ($878,257) | ($528,700) | ($2,800,843) | ($3,949,878) | | Net Loss Per Share | ($0.01) | $0.00 | ($0.02) | ($0.03) | Condensed Consolidated Statements of Cash Flows Summary (Unaudited) | Cash Flow Activity | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Net Cash used for Operating Activities | ($2,517,269) | ($3,191,642) | | Net Cash used for Investing Activities | ($52,495) | ($419,341) | | Net Cash from Financing Activities | $4,221,913 | $3,887,528 | | Net Change in Cash and Restricted Cash | $1,652,149 | $276,545 | - The company's business has been **significantly impacted by COVID-19**, affecting sales, though it obtained a **$568,000 PPP loan** to mitigate the impact[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management analyzes a significant revenue decline from COVID-19, narrowed operating losses, and recent capital raising efforts - Revenue for Q3 2020 **decreased 55% YoY to $707,610**, and for the nine months **decreased 49% YoY to $1.95 million** due to COVID-19 impacts[135](index=135&type=chunk)[154](index=154&type=chunk) - Gross profit margin **decreased to 39.4% in Q3 2020** from 54.4% in Q3 2019, attributed to a new lower-margin product mix[136](index=136&type=chunk)[155](index=155&type=chunk) General & Administrative Expenses Breakdown (Nine Months Ended Sep 30) | Expense Category | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Personnel costs | $1,217,690 | $2,286,415 | ($1,068,725) | | Stock based compensation | $240,216 | $338,683 | ($98,467) | | Travel | $69,167 | $282,834 | ($213,667) | | Marketing and selling | $192,006 | $366,937 | ($174,931) | | Shipping and Storage | $356,270 | $616,862 | ($260,592) | | **Total G&A** | **$3,284,673** | **$5,450,522** | **($2,165,849)** | - As of September 30, 2020, the company had **$2.74 million in cash**, and management believes it has mitigated substantial doubt about its going concern status[173](index=173&type=chunk)[174](index=174&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is not required as the company qualifies as a smaller reporting company - The company is a smaller reporting company and is **not required to provide these disclosures**[177](index=177&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls were not effective due to a material weakness in segregation of duties - Disclosure controls and procedures were concluded to be **not effective** as of September 30, 2020[179](index=179&type=chunk) - A **material weakness** was identified in internal control related to inadequate segregation of duties due to insufficient personnel[180](index=180&type=chunk) - No material changes were made to internal controls during the nine months ended September 30, 2020[182](index=182&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings.) The company reports no material pending legal proceedings - The company is **not a party to any material pending legal proceedings**[185](index=185&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors.) This disclosure is not required as the company is a smaller reporting company - Disclosure is **not required** because the company is a smaller reporting company[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No unregistered sales of equity securities were made that were not previously reported - No unregistered sales of equity securities were made during the period that were not already reported on a Form 8-K[187](index=187&type=chunk) [Defaults Upon Senior Securities](index=25&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reports no defaults upon senior securities - None[189](index=189&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This section is not applicable to the company - Not applicable[191](index=191&type=chunk) [Other Information](index=25&type=section&id=Item%205.%20Other%20Information.) Discloses the resignation of the President of its subsidiary, Barfresh Corporation, Inc - On November 12, 2020, **Joseph Cugine resigned as President** of the subsidiary, Barfresh Corporation, Inc, but remains a director[192](index=192&type=chunk) [Exhibits](index=26&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the report, including officer certifications and XBRL data - The report includes officer certifications and furnished XBRL data files[194](index=194&type=chunk)[195](index=195&type=chunk) [Signatures](index=27&type=section&id=SIGNATURES) - The report was signed on November 16, 2020, by the **CEO and Vice President of Finance**[199](index=199&type=chunk)

PART I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 and H1 2020, detailing financial performance impacted by COVID-19 and balance sheet changes from financing activities Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2020 ($) | December 31, 2019 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 4,637,376 | 2,028,394 | | **Total Assets** | 7,435,635 | 5,125,805 | | **Total Current Liabilities** | 1,091,040 | 1,882,057 | | **Total Liabilities** | 2,039,142 | 3,289,934 | | **Total Stockholders' Equity** | 4,353,549 | 283,724 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2020 ($) | Three Months Ended June 30, 2019 ($) | Six Months Ended June 30, 2020 ($) | Six Months Ended June 30, 2019 ($) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 506,276 | 1,382,665 | 1,240,156 | 2,217,199 | | **Gross Profit** | 115,306 | 851,046 | 512,105 | 1,285,750 | | **Operating Loss** | (1,122,234) | (1,089,848) | (2,100,008) | (2,860,565) | | **Net Loss** | (1,179,520) | (573,916) | (1,922,586) | (3,421,178) | | **Net Loss Per Share** | (0.01) | 0.00 | (0.01) | (0.03) | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2020 ($) | Six Months Ended June 30, 2019 ($) | | :--- | :--- | :--- | | **Net Cash Used for Operating Activities** | (1,930,045) | (2,354,225) | | **Net Cash Used for Investing Activities** | (38,658) | (319,339) | | **Net Cash from Financing Activities** | 4,275,605 | 3,900,310 | | **Net Change in Cash** | 2,306,902 | 1,226,746 | | **Cash and Restricted Cash, End of Period** | 3,398,276 | 2,268,315 | - The company received a **$568,131** loan under the Paycheck Protection Program (PPP), which is eligible for forgiveness, with no forgiveness income recorded as of June 30, 2020[66](index=66&type=chunk) - In March 2020, the company completed a **$3.825 million** private placement of common stock and restructured its convertible notes, converting some to equity and extending maturities on others[67](index=67&type=chunk)[71](index=71&type=chunk)[76](index=76&type=chunk) - The company's business was significantly impacted by COVID-19, as dining bans at restaurants and school closures directly affected sales channels for its single-serve and bulk products[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant operational and financial impacts of COVID-19, including revenue decline and successful cost-cutting measures, alongside strategic actions like capital raises and debt restructuring to mitigate liquidity concerns - The company's business focuses on ready-to-blend frozen beverages, with products supplied to over **400** school locations and over **150** military bases[107](index=107&type=chunk)[108](index=108&type=chunk) - In March 2020, the company raised **$3.825 million** through a private placement of common stock and restructured its convertible notes to improve its capital structure[117](index=117&type=chunk)[118](index=118&type=chunk) - The company has a history of operating losses and negative cash flow, but management believes substantial doubt about its ability to continue as a going concern was mitigated by recent financing and debt restructuring[170](index=170&type=chunk) - As of June 30, 2020, the company had **$3.4 million** in cash and restricted cash and had reduced G&A expenses by **39%** in H1 2020 compared to H1 2019 through cost reduction measures, including reduced headcount[171](index=171&type=chunk) [Results of Operations (Q2 2020 vs Q2 2019)](index=27&type=section&id=Results%20of%20Operation%20for%20Three%20Months%20Ended%20June%2030%2C%202020%20as%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202019) Q2 2020 revenue decreased by **63%** to **$506,276** due to COVID-19, with gross margin falling to **22.8%**, while general and administrative expenses were reduced by **39%**, leading to an increased net loss Q2 Revenue and Gross Profit Comparison (2020 vs. 2019) | Metric | Q2 2020 ($) | Q2 2019 ($) | Change ($) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 506,276 | 1,382,665 | (876,389) | (63%) | | **Gross Profit** | 115,306 | 851,046 | (735,740) | (86%) | | **Gross Margin** | 22.8% | 61.6% | - | - | Q2 General & Administrative Expense Breakdown (2020 vs. 2019) | Expense Category | Q2 2020 ($) | Q2 2019 ($) | Change ($) | | :--- | :--- | :--- | :--- | | **Personnel costs** | 427,500 | 687,994 | (260,494) | | **Marketing and selling** | 57,837 | 146,106 | (88,269) | | **Travel** | 12,917 | 99,108 | (86,191) | | **Shipping and Storage** | 96,425 | 192,628 | (96,203) | | **Total G&A** | **1,084,040** | **1,785,820** | **(701,780)** | [Results of Operations (H1 2020 vs H1 2019)](index=29&type=section&id=Results%20of%20Operation%20for%20Six%20Months%20Ended%20June%2030%2C%202020%20as%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202019) H1 2020 revenue decreased by **44%** to **$1,240,156** due to COVID-19, but a **39%** reduction in general and administrative expenses significantly improved the net loss to **$1,922,586** H1 Revenue and Gross Profit Comparison (2020 vs. 2019) | Metric | H1 2020 ($) | H1 2019 ($) | Change ($) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,240,156 | 2,217,199 | (977,043) | (44%) | | **Gross Profit** | 512,105 | 1,285,750 | (773,645) | (60%) | | **Gross Margin** | 41% | 58% | - | - | H1 General & Administrative Expense Breakdown (2020 vs. 2019) | Expense Category | H1 2020 ($) | H1 2019 ($) | Change ($) | | :--- | :--- | :--- | :--- | | **Personnel costs** | 847,680 | 1,646,860 | (799,180) | | **Marketing and selling** | 136,812 | 305,535 | (168,723) | | **Travel** | 51,836 | 210,867 | (159,031) | | **Total G&A** | **2,308,465** | **3,789,264** | **(1,480,799)** | - Net loss for the six-month period improved significantly to **$1,922,586** in 2020 from **$3,421,178** in 2019, largely due to reduced operating expenses[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide market risk disclosures - Disclosure is not required because Barfresh Food Group Inc is a smaller reporting company[174](index=174&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of June 30, 2020, due to a material weakness in internal control over financial reporting related to inadequate segregation of duties - Management concluded that as of June 30, 2020, the company's disclosure controls and procedures were not effective[176](index=176&type=chunk) - A material weakness was identified in internal controls: Inadequate Segregation of Duties due to an insufficient number of personnel[177](index=177&type=chunk)[178](index=178&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[180](index=180&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings involving itself or its subsidiaries - The Company is not party to any material pending legal proceedings[183](index=183&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Barfresh Food Group Inc is not required to provide risk factor disclosures - Disclosure is not required because the company is a smaller reporting company[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not issue or sell any unregistered equity securities during the period not previously reported on a Form 8-K - No unregistered equity securities were issued or sold during the period that were not previously reported on a Form 8-K[186](index=186&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None reported[188](index=188&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[190](index=190&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this item - None reported[192](index=192&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications by executive officers and XBRL data files - The exhibits include certifications from the Principal Executive Officer and Principal Accounting Officer pursuant to Sections **302** and **906** of the Sarbanes-Oxley Act of **2002**[195](index=195&type=chunk) - XBRL (Extensible Business Reporting Language) data files are also included as exhibits[195](index=195&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ | --- | --- | |---------------------------------------------------------------------------------------|----------- ...

Financial Data and Key Metrics Changes - For the full year 2019, net sales increased by 2% to over $4.3 million, although sales would have been higher if not for shifts in sales focus and waiting for USDA approvals [13][14] - Gross margins expanded by 3% to 54%, with expectations for 2020 gross profit margins to be comparable to 2019 [16] - General and administrative expenses were reduced by 12% to $6.9 million, and operating loss decreased by 16% to $5.2 million [16] - Adjusted EBITDA for 2019 was a loss of $4 million, an improvement from a loss of $4.8 million in 2018 [17] Business Line Data and Key Metrics Changes - The company expanded its sales channels, particularly in the military and school segments, with significant growth in the military side despite lower overall sales in Q1 2020 [10][31] - The introduction of the new ready-to-drink product, Twist & Go, is expected to enhance sales in the school channel, with initial orders from Pasco County School District for 240,000 bottles in the first month [19][28] Market Data and Key Metrics Changes - The company reported approximately $700,000 in gross revenue for Q1 2020, down from $890,000 in Q1 2019, primarily due to order cancellations related to COVID-19 [10] - The military channel remains stable, with ongoing sales in U.S. and international dining facilities [31][57] Company Strategy and Development Direction - The company is focusing on expanding its product offerings and sales channels, particularly in the school and military markets, while also managing costs effectively [33] - The launch of the Twist & Go product is seen as a significant growth opportunity, particularly in the school segment, which has a vast potential market [30][56] Management's Comments on Operating Environment and Future Outlook - Management noted that while there have been some disruptions due to COVID-19, the company has not experienced material disruptions in manufacturing or supply chain logistics [9] - The company expects continued improvement in financial results throughout 2020, driven by cost reductions and new product launches [17][20] Other Important Information - The company raised approximately $5.8 million through a combination of common stock sales and debt conversion, which is expected to support growth initiatives [20] - The USDA approved the new product packaging, which will enhance the bulk platform and facilitate sales in schools [15] Q&A Session Summary Question: What took so long for the national accounts and school progress? - Management acknowledged the delays but expressed satisfaction with the current progress [36] Question: Can the success in Pasco County be extrapolated to other districts? - Management indicated that the new product's approval and distribution model would allow for rapid expansion across other districts [37][39] Question: Is the recent funding sufficient for future plans? - Management confirmed that the current funding is sufficient to execute their plans without the need for additional raises in the near future [49] Question: What is the competition like for the Twist & Go product? - Management stated that while there are competitors, the unique formulation and distribution requirements create a significant barrier to entry [54][56] Question: Are military installations operating as usual? - Management confirmed that military operations are largely business as usual, with no significant disruptions reported [57]