Barfresh(US:BRFH)2022-11-13 16:00Revenue Growth - Revenue increased by approximately $476,000 (25%) from approximately $1,930,000 in 2021 to approximately $2,406,000 in 2022, driven by growth in "Twist & Go"™ revenue[81] - Revenue for the nine months ended September 30, 2022, increased by approximately $3,485,000 (82%) from approximately $4,246,000 in 2021 to approximately $7,731,000 in 2022[94] Cost of Revenue - Cost of revenue for 2022 was approximately $3,129,000 compared to approximately $1,209,000 in 2021, with a gross profit of approximately ($723,000) (-30%) for 2022[82] - Cost of revenue for the nine months ended September 30, 2022, was approximately $6,807,000 compared to approximately $2,614,000 in 2021, resulting in a gross profit of approximately $924,000 (12%) for 2022[95] Operating Expenses - Selling and marketing expense increased approximately $201,000 (123%) from approximately $164,000 in 2021 to $365,000 in 2022, primarily due to hiring new employees and increased participation in trade shows[84] - General and administrative expense increased by 81%, or approximately $472,000, from approximately $586,000 in 2021 to approximately $1,058,000 in 2022, driven by research and development and personnel costs[87] - General and administrative expense for the nine months ended September 30, 2022, increased by 71%, or approximately $1,138,000, from approximately $1,598,000 in 2021 to approximately $2,736,000 in 2022[100] - Stock-based compensation for the three months ended September 30, 2022, was approximately $118,000 compared to $42,000 for the same period in 2021, reflecting an increase due to staffing and a performance-based program[89] - Stock-based compensation increased to approximately $211,000 for the nine months ended September 30, 2022, up from $52,000 in the same period of 2021, reflecting a staffing increase and a new performance-based program[102] - Legal, professional, and consulting fees rose by approximately $98,000 (40%) from $244,000 in 2021 to $342,000 in 2022, primarily due to corporate development activities[103] Research and Development - Research and development expense increased approximately $186,000 (547%) from approximately $34,000 in 2021 to $220,000 in 2022, due to materials consumed in pre-production runs[90] - Research and development expenses increased by approximately $174,000 (101%) from $173,000 in 2021 to $347,000 in 2022, mainly due to materials for pre-production runs of the new Twist & Go™ product[104] Operating Losses - Operating loss for the three-month period ended September 30, 2022, was approximately $2,708,000, an increase of approximately $2,200,000 (433%) compared to the same period in 2021[92] - Operating losses were approximately $4,339,000 for the nine months ended September 30, 2022, compared to $1,658,000 in 2021, an increase of approximately $2,681,000 (162%) due to product quality issues and rising operating expenses[106] Net Losses - Net losses were approximately $4,339,000 for the nine months ended September 30, 2022, compared to $1,396,000 in 2021, with the primary change attributed to a $568,000 gain on forgiveness of the PPP loan in 2021[111] Working Capital and Cash Flow - Working capital decreased to approximately $2,619,000 as of September 30, 2022, from approximately $6,172,000 at December 31, 2021, primarily due to operating losses[112] - Cash used in operations during the nine months ended September 30, 2022, was approximately $2,619,000, with an additional $13,000 spent on equipment purchases[113] Other Financial Information - The company incurred approximately $175,000 in one-time costs related to the uplisting of its common stock to the NASDAQ in 2022[105] - Interest expense was approximately $128,000 for the nine months ended September 30, 2021, but no interest expense was incurred in the same period of 2022[110] - The company has no off-balance sheet arrangements that could materially affect its financial condition[116]