Barfresh(US:BRFH)2023-04-26 16:00Revenue Performance - Revenue decreased by $435,000, or 17%, from $2,526,000 in Q1 2022 to $2,091,000 in Q1 2023 due to limited supply from product withdrawal related to quality complaints[88]. Expenses - Research and development expenses were approximately $21,000 for Q1 2023, a decrease of $10,000 (32%) from $31,000 in Q1 2022[94]. - Personnel costs increased by approximately $180,000 (58%) from $309,000 in Q1 2022 to $489,000 in Q1 2023, primarily due to modifications in the performance stock unit program[93]. - Stock-based compensation rose by approximately $124,000 (146%) from $85,000 in Q1 2022 to $209,000 in Q1 2023[93]. - Selling, marketing, and distribution expenses decreased by approximately $8,000 (1%) from $675,000 in Q1 2022 to $667,000 in Q1 2023[91]. - Storage and outbound freight expenses decreased by approximately $75,000 (19%) from $386,000 in Q1 2022 to $311,000 in Q1 2023[92]. Cash Flow and Working Capital - The company incurred cash used for operations of $1,242,000 during Q1 2023, reflecting a history of operating losses and negative cash flow[76]. - Working capital decreased to $1,250,000 as of March 31, 2023, compared to $1,801,000 at December 31, 2022, primarily due to operating losses[95]. Supply Chain Risks - The company faced supply risk due to reliance on a limited number of contract manufacturers, with one manufacturer providing approximately 52% of products in 2022[67]. - The company has an ongoing dispute with a manufacturer regarding product quality, which may impact future supply and revenue[137].