Revenue Performance - Revenue increased to $10,717,000 in 2024, up by $2,590,000 or 32% from $8,127,000 in 2023, driven by higher sales of Twist & Go smoothies and bulk products [120]. Cost and Expenses - Cost of revenue rose to $7,049,000 in 2024, an increase of $1,806,000 or 34% compared to $5,243,000 in 2023, primarily due to production line relocation costs [121]. - Selling, marketing, and distribution expenses increased by $525,000 (20%) to $3,139,000 in 2024 from $2,614,000 in 2023 [123]. - General and administrative expenses rose by $357,000 (13%) to $3,043,000 in 2024, with stock-based compensation increasing by $241,000 (44%) [127][129]. - Interest expense increased to $52,000 in 2024 from $8,000 in 2023, attributed to a new receivables-based line of credit [132]. Profitability - Gross profit for 2024 was $3,668,000 (34% margin), compared to $2,884,000 (36% margin) in 2023; excluding relocation costs, gross profit was $3,951,000 (37% margin) [122]. - Net losses were approximately $2,825,000 in 2024, slightly higher than the $2,824,000 loss in 2023 [133]. Working Capital and Financing - Working capital decreased to $606,000 as of December 31, 2024, down from $2,345,000 at the end of 2023, primarily due to losses incurred [136]. - The company executed a $2,000,000 convertible debt offering, with $1,390,000 issued and converted into approximately 820,000 shares of common stock [134]. Operational Efficiency - The introduction of carton packaging in 2023 has not fully mitigated supply loss, but expanded manufacturing capacity is expected to improve efficiency in 2025 [137].
Barfresh(BRFH) - 2024 Q4 - Annual Report