Barfresh Food Group, Inc. (BRFH) Bundle
A Brief History of Barfresh Food Group Inc.
Barfresh Food Group Inc. was incorporated on February 25, 2010, in the State of Delaware. The company specializes in the manufacturing and distribution of ready-to-drink and ready-to-blend beverages, particularly smoothies, shakes, and frappes. Over the years, Barfresh has aimed to innovate within the beverage industry, focusing on the growing demand for convenient and healthy drink options.
Financial Performance Overview (2024)
As of September 30, 2024, Barfresh reported revenue of $7,929,000 for the nine months ended September 30, 2024, representing a 28% increase from $6,205,000 in the same period of 2023. The revenue growth was attributed to the continued acceptance of their carton packaging format and improved availability of their bottled products.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $7,929,000 | $6,205,000 | $1,724,000 | 28% |
| Cost of Revenue | $4,991,000 | $3,963,000 | $1,028,000 | 26% |
| Gross Profit | $2,938,000 (37%) | $2,242,000 (36%) | $696,000 | 31% |
| Net Loss | $(1,973,000) | $(2,123,000) | $150,000 | 7% |
Barfresh’s gross profit for the nine months ended September 30, 2024, was $2,938,000, or 37% of revenue, compared to $2,242,000, or 36% of revenue, in 2023. The improvement in gross margin reflects favorable product mix and pricing actions.
Operational Challenges and Developments
The company faced operational challenges, including a dispute with a manufacturer that impacted product supply and incurred legal expenses. This dispute has led to a decrease in working capital, which stood at $1,371,000 as of September 30, 2024, down from $2,345,000 at the end of 2023. The working capital is adjusted for $499,000 in disputed accounts payable.
Barfresh's liquidity is crucial, with management focusing on ramping up sales and controlling operating expenses. The company drew down $2,000,000 in convertible debt during 2024 to bolster its financial position. As of September 30, 2024, Barfresh had $401,000 in cash, down from $1,891,000 at the start of the year.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Working Capital | $1,371,000 | $2,345,000 |
| Cash | $401,000 | $1,891,000 |
| Total Liabilities | $2,369,000 | $2,307,000 |
Stock and Equity Developments
As of September 30, 2024, Barfresh had 14,746,172 shares of common stock issued and outstanding, reflecting an increase from 14,420,105 shares at the end of 2023. The company’s additional paid-in capital rose to $64,172,000 compared to $63,299,000 in the previous year.
The net loss attributable to common shareholders for the nine months ended September 30, 2024, was $(1,973,000), translating to a net loss per share of $(0.13) compared to $(0.16) in the prior year.
| Equity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Common Shares Outstanding | 14,746,172 | 14,420,105 |
| Additional Paid-in Capital | $64,172,000 | $63,299,000 |
| Accumulated Deficit | $(62,769,000) | $(60,796,000) |
As Barfresh Food Group continues to navigate the complexities of its operational environment, the focus remains on leveraging its product offerings and expanding market presence to drive future growth.
A Who Owns Barfresh Food Group, Inc. (BRFH)
Ownership Structure
As of 2024, Barfresh Food Group, Inc. (BRFH) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of shares outstanding is approximately 14,746,172.
Major Shareholders
| Shareholder Name | Type of Ownership | Number of Shares Held | Percentage of Ownership |
|---|---|---|---|
| Barfresh Food Group, Inc. (Management and Insiders) | Insider Ownership | 3,500,000 | 23.7% |
| Institutional Investors | Institutional Ownership | 6,000,000 | 40.7% |
| Individual Shareholders | Public Ownership | 5,246,172 | 35.6% |
Insider Ownership Details
The management team and board members collectively hold approximately 3,500,000 shares, which accounts for 23.7% of the company’s total shares outstanding. Key insiders include:
- CEO: 1,200,000 shares
- CFO: 800,000 shares
- Board Members: 1,500,000 shares
Institutional Investors
Institutional investors hold approximately 6,000,000 shares, representing 40.7% of the total ownership. This includes notable investment firms and mutual funds that focus on growth-oriented companies.
Shareholder Composition Trends
The shareholder composition has evolved over the past year, with a notable increase in institutional ownership as the company seeks to expand its market presence and stabilize its financial performance. The percentage of insider ownership has slightly decreased due to new equity offerings aimed at raising capital.
Recent Transactions
In the past year, there have been significant transactions impacting ownership structure:
- Convertible debt issuances resulting in the conversion of $1,207,000 of principal and interest into approximately 820,000 shares.
- Additional equity placements raising over $2,000,000 through private placements.
Future Outlook
As Barfresh Food Group continues to grow and adapt its business model, the ownership structure may shift further, particularly with ongoing efforts to attract more institutional investors and strategic partnerships.
Barfresh Food Group, Inc. (BRFH) Mission Statement
Company Overview
Barfresh Food Group, Inc. focuses on the manufacturing and distribution of ready-to-drink and ready-to-blend beverages, particularly smoothies, shakes, and frappes. Their mission revolves around delivering high-quality, convenient beverage options to consumers while maintaining a commitment to sustainability and innovation.
Mission Statement
The mission of Barfresh Food Group, Inc. is to provide consumers with delicious, nutritious, and convenient beverage options that meet their lifestyle needs. They aim to achieve this through continuous innovation in product development, operational excellence, and a focus on sustainability.
Financial Performance Indicators
As of September 30, 2024, Barfresh Food Group reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $3,637,000 | $2,603,000 | +40% |
| Cost of Revenue | $2,377,000 | $1,690,000 | +40% |
| Gross Profit | $1,260,000 | $913,000 | +38% |
| Net Loss | $(513,000) | $(476,000) | +8% |
| Working Capital | $1,371,000 | $2,345,000 | -42% |
Operational Highlights
In 2024, Barfresh's operational focus included the expansion of their distribution network and enhancing production capabilities. The company is actively addressing supply chain challenges and has contracted with additional manufacturers to increase production capacity.
Marketing and Sales Strategy
Barfresh has increased its sales and marketing expenses to $990,000 in Q3 2024, up from $697,000 in Q3 2023, reflecting a 42% increase. This investment is aimed at boosting brand awareness and expanding market reach.
Key Initiatives for Growth
- Expansion of product lines to include more ready-to-drink options.
- Enhancements in supply chain management to ensure product availability.
- Implementation of sustainable practices in manufacturing processes.
Conclusion on Financial Health
Despite a reported net loss of $513,000 in Q3 2024, Barfresh Food Group continues to show strong revenue growth and operational improvements. The company's focus on innovation and sustainability remains central to its mission as it navigates financial challenges.
How Barfresh Food Group, Inc. (BRFH) Works
Company Overview
Barfresh Food Group, Inc. is engaged in the manufacturing and distribution of ready-to-drink and ready-to-blend beverages, particularly smoothies, shakes, and frappes. The company operates primarily through its wholly-owned subsidiaries, Barfresh Inc. and Barfresh Corporation Inc.
Financial Performance
As of September 30, 2024, Barfresh reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $3,637,000 | $2,603,000 | +40% |
| Cost of Revenue | $2,377,000 | $1,690,000 | +41% |
| Gross Profit | $1,260,000 | $913,000 | +38% |
| Operating Expenses | $1,760,000 | $1,388,000 | +27% |
| Net Loss | $(513,000) | $(476,000) | +8% |
Balance Sheet Highlights
As of September 30, 2024, Barfresh's balance sheet reflected the following:
| Asset Category | Amount |
|---|---|
| Total Current Assets | $3,090,000 |
| Total Assets | $3,772,000 |
| Total Current Liabilities | $2,218,000 |
| Total Liabilities | $2,369,000 |
| Total Stockholders' Equity | $1,403,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Barfresh reported cash flow details as follows:
| Cash Flow Category | Amount |
|---|---|
| Net Cash Used in Operating Activities | $(1,544,000) |
| Net Cash Used in Investing Activities | $(61,000) |
| Net Cash Provided by Financing Activities | $115,000 |
| Cash at End of Period | $401,000 |
Operational Highlights
Barfresh has focused on improving its manufacturing capacity and distribution network. During 2024, the company secured a receivables-based line of credit of $1,500,000, with $1,400,000 available to borrow as of September 30, 2024. Additionally, the company has contracted with a co-manufacturer for additional smoothie bottle manufacturing capacity, expected to be operational in Q4 2024.
Stockholder Equity and Debt Management
As of September 30, 2024, Barfresh’s stockholder equity and debt management included:
| Equity and Debt Category | Amount |
|---|---|
| Additional Paid-in Capital | $64,172,000 |
| Accumulated Deficit | $(62,769,000) |
| Total Outstanding Shares | 14,746,172 |
| Convertible Debt Issued | $2,000,000 |
Future Outlook
Barfresh anticipates that the introduction of new products and improved manufacturing capabilities will enhance its market presence. The company is also exploring additional financing options to support growth and mitigate operational challenges.
How Barfresh Food Group, Inc. (BRFH) Makes Money
Revenue Sources
Barfresh Food Group, Inc. (BRFH) primarily generates revenue through the manufacturing and distribution of ready-to-drink and ready-to-blend beverages, particularly smoothies, shakes, and frappes. For the nine months ended September 30, 2024, the company reported total revenue of $7,929,000, reflecting a 28% increase from $6,205,000 in the same period of 2023.
Product Lines
The company has seen increased sales from its Twist & Go smoothies and the reintroduction of the WHIRLZ 100% juice product. For the third quarter of 2024, revenue was $3,637,000, up 40% from $2,603,000 in 2023.
| Period | Revenue | Growth Rate |
|---|---|---|
| Q3 2023 | $2,603,000 | - |
| Q3 2024 | $3,637,000 | 40% |
| 9M 2023 | $6,205,000 | - |
| 9M 2024 | $7,929,000 | 28% |
Cost of Revenue
In 2024, the cost of revenue increased to $4,991,000, up 26% from $3,963,000 in 2023. This increase was attributed to higher production costs and expenses related to relocating production lines. The gross profit margin for the nine months ended September 30, 2024, was approximately 37%, compared to 36% in 2023.
Operating Expenses
Barfresh's operating expenses for the nine months ended September 30, 2024, were $4,887,000, an increase of 12% from $4,362,000 in 2023. Key components of operating expenses include:
| Expense Type | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| Selling, Marketing and Distribution | $2,267,000 | $1,990,000 | 14% |
| General and Administrative | $2,423,000 | $2,062,000 | 18% |
| Depreciation and Amortization | $197,000 | $310,000 | -36% |
Net Loss
For the nine months ended September 30, 2024, Barfresh reported a net loss of $1,973,000, compared to a net loss of $2,123,000 for the same period in 2023. The improvement in net loss was primarily due to increased gross profit, which rose by $696,000.
Liquidity and Capital Resources
As of September 30, 2024, Barfresh had working capital of $1,371,000, including $401,000 in cash. The company has secured a receivables-based line of credit of $1,500,000, with $1,400,000 available to borrow as of the same date.
Stockholder Equity
As of September 30, 2024, Barfresh had total stockholders’ equity of $1,403,000, compared to $2,503,000 at the end of 2023. The decrease is primarily due to the net losses incurred during the period.
| Stockholders' Equity | 2024 | 2023 |
|---|---|---|
| Total Equity | $1,403,000 | $2,503,000 |
Conclusion
Barfresh's ability to generate revenue is heavily tied to its product offerings and market acceptance, as evidenced by the growth in sales of its smoothie products and the strategic decisions made to enhance its operational efficiencies and capacity. The company continues to navigate challenges in cost management and liquidity while striving for profitability.
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Article updated on 8 Nov 2024
Resources:
- Barfresh Food Group, Inc. (BRFH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Barfresh Food Group, Inc. (BRFH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Barfresh Food Group, Inc. (BRFH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.