Barfresh(US:BRFH)2021-05-16 16:00Financial 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].