Barfresh(US:BRFH)2025-05-01 20:10Revenue Performance - Revenue increased by $101,000, or 4%, to $2,930,000 in Q1 2025 compared to $2,829,000 in Q1 2024, driven by higher sales of bottled Twist & Go smoothies[67]. Cost and Expenses - Cost of revenue rose by $371,000, or 22%, to $2,030,000 in Q1 2025, attributed to trial costs at a new manufacturer and elevated supply costs[69]. - Selling, marketing, and distribution expenses increased by approximately $130,000 (19%) to $824,000 in Q1 2025, with sales and marketing expenses rising by $103,000 (31%)[72]. - General and administrative expenses decreased by approximately $108,000 (13%) to $747,000 in Q1 2025, primarily due to a reduction in legal and consulting fees[74]. Profitability - Gross profit decreased to $900,000 (31% margin) in Q1 2025 from $1,170,000 (41% margin) in Q1 2024, reflecting a 10.7 percentage point reduction in gross margin[70][78]. - Net loss for Q1 2025 was approximately $761,000, an increase of $312,000 from a net loss of $449,000 in Q1 2024[78]. Working Capital and Liquidity - Working capital increased to $2,848,000 as of March 31, 2025, compared to $606,000 at December 31, 2024, mainly due to capital raised through common stock sales[82]. - Liquidity needs will depend on the ability to ramp up sales profitably and control operating expenses[83]. Future Outlook - The company expects gross margin to normalize in the second half of 2025 as new co-manufacturers reach full capacity[78]. - The company raised $2,000,000 through a privately placed convertible debt offering, with $1,390,000 issued and converted into common stock[79][80].