• Keurig for smoothies.

• Ready-to-Blend Smoothies: Pre-portioned, individually packaged frozen cups containing fruits, vegetables, and other ingredients designed to be easily blended with liquid into a smoothie.
• Frozen Beverage Bases: Convenient frozen solutions for creating various blended beverages beyond smoothies, such as shakes, frappes, and granitas.

Barfresh Food (BRFH) primarily sells its ready-to-blend smoothie and frappe ingredients to other companies within the foodservice industry, operating on a business-to-business (B2B) model.

Its major customers are national foodservice distributors, who then distribute Barfresh products to a wide range of end-user institutions. While Barfresh's annual reports indicate that one national foodservice distributor accounts for a substantial majority (approximately 76%) of its net revenues, this specific customer is not named in public filings.

However, Barfresh has historically partnered with and distributes its products through major national foodservice distributors. Based on their public disclosures and industry presence, the primary customer companies that distribute Barfresh products include:

• Sysco Corporation (Symbol: SYY)
• US Foods Holding Corp. (Symbol: USFD)
• Performance Food Group Company (Symbol: PFGC)

These distributors, in turn, serve a broad range of institutions that are the ultimate consumers of Barfresh's products, such as:

• Colleges and Universities
• K-12 Schools
• Hospitals and Healthcare Facilities
• Restaurants and Hotels
• Amusement Parks, Airports, and other Travel & Leisure venues

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Riccardo Delle Coste, Chief Executive Officer, President, and Chairman

Riccardo Delle Coste founded Barfresh Food Group Inc. in 2009, having pioneered and developed the proprietary, patented "whirl class" system for blended beverages in 2005. He leads the strategic direction of the company and manages investor relations.

Lisa Roger, Chief Financial Officer and Corporate Secretary

Lisa Roger joined Barfresh as Chief Financial Officer in January 2022. She possesses extensive experience in public manufacturing companies, having successfully managed all aspects of finance, including business development and tax strategy. Notably, she contributed to Fox Factory's growth from $200 million to over $1 billion in annual revenues. Her prior roles include Executive Vice President and Controller of FreshRealm and Vice President of Accounting and Tax for Fox Factory. She has integrated five acquisitions, overseeing tax planning, due diligence, negotiation support, financing, and post-transaction operational and accounting support.

Tony Grossi, Vice President of Sales

Appointed in June 2024, Tony Grossi brings over 25 years of experience in food and beverage sales. His notable tenure includes roles at BakeMark, Performance Foodservice Group, and SK Food Group, where he successfully expanded client bases and significantly increased revenue.

Marko Matla, Vice President of Supply Chain & Co-Manufacturing

Marko Matla was hired in May 2024, with his appointment aimed at enhancing Barfresh's supply chain and co-manufacturing capabilities.

The key risks to Barfresh Food Group (BRFH) are:

1. Financial Challenges and Unprofitability: Barfresh Food Group faces significant financial hurdles, including persistent unprofitability, decreased gross margins, and increased operating expenses, leading to a higher net loss in Q1 2025. The company experienced an adjusted EBITDA loss in Q1 2025 and burned through US$2.9 million of cash in the last year. Its Altman Z-Score indicates financial distress, suggesting a potential risk of bankruptcy, and analysts anticipate a decline in earnings and lower revenues. The company's balance sheet has also been described as "mediocre" with concerns regarding debt levels.
2. Product Quality Issues and Manufacturing/Supply Chain Dependence: Barfresh has experienced operational challenges related to product quality and manufacturing. In 2022, the company incurred significant losses due to product quality issues with a contract manufacturer, leading to product withdrawals, disposal of unsaleable inventory, and a legal dispute. More recently, temporary production inefficiencies and higher supply chain expenses contributed to a decline in gross margin. The company is dependent on contract manufacturers and is currently expanding its manufacturing capacity and onboarding new strategic partners to meet demand, with equipment installation expected by the end of Q2 2025. Supply chain disruptions remain a sector-specific risk.
3. Intense Competition: Barfresh operates within the highly competitive non-alcoholic beverage industry. While the smoothie market is experiencing growth, indicating potential, this also means the company faces numerous rivals vying for market share.

The clear emerging threat for Barfresh Food (BRFH) is the increasing development and deployment of automated beverage preparation and dispensing machines.

These machines, offered by various companies, are designed to create custom smoothies, frappes, and other blended beverages on demand, often from fresh or frozen ingredients, with minimal human intervention. Their value proposition to institutional foodservice operators (like schools, hospitals, universities, and convenience stores – BRFH's target market) includes reduced labor costs, enhanced consistency, 24/7 availability, and potentially greater customization options for end-users.

This technology directly threatens BRFH's core business model, which simplifies beverage preparation for foodservice staff using pre-portioned, all-inclusive packets. If automated solutions become more cost-effective, reliable, and widely adopted in institutional settings, they could significantly displace the need for BRFH's products by offering an alternative that automates the entire blending process, thereby diminishing the operational benefits BRFH currently provides.

1. Acquisition of Arps Dairy and Expanded In-House Manufacturing Capabilities: The strategic acquisition of Arps Dairy is expected to be a significant driver of future revenue growth. This acquisition provides Barfresh with owned manufacturing capabilities, enhancing its business model and growth trajectory by giving the company direct control over a substantial portion of its production capacity. It will drive both top and bottom-line growth and facilitate the transition of more Barfresh products from co-manufacturers to in-house production, bolstering operational efficiency and market presence.
2. Continued Market Penetration in the Education Channel: Barfresh Food anticipates continued market penetration within the education channel. Expanded school district penetration, successful execution during the back-to-school season, and strategic partnerships with major school districts are poised to drive revenue growth and increased market share in this sector.
3. Growth and Expansion of the Pop & Go Product Line: The Pop & Go product line, launched in the fourth quarter of 2024, has demonstrated strong uptake. Its continued expansion, particularly with new offerings like lunch-daypart Pop & Go Pops, is expected to contribute significantly to future revenue growth.
4. Improved Production Consistency and Increased Bottling Capacity: The company expects revenue growth to be driven by improved production consistency from its co-manufacturing partners and increased bottling capacity. Efforts to resolve manufacturing bottlenecks and upgrade bottling capacity by 2026 are projected to enable higher sales volumes and contribute to long-term margin expansion by reducing per-unit costs.
5. Operational Leverage from the Integrated Manufacturing Model: With the integration of Arps Dairy, Barfresh is set to benefit from operational leverage. This includes enhanced supply chain control, improved operational efficiency, and diversification of its business, which are all expected to drive both revenue growth and profitability in the coming years.

Share Repurchases

• Barfresh Food Group repurchased $161,000 in shares for income tax withholding under a stock compensation program for the nine months ended September 30, 2025.
• For the nine months ended September 30, 2024, the company repurchased $20,000 in shares for income tax withholding under a stock compensation program.

Share Issuance

• Barfresh Food Group issued $100,000 in restricted shares to Arps Dairy shareholders in October 2025, as part of the acquisition agreement.
• The company conducted a 1-for-13 reverse stock split effective December 29, 2021.

Outbound Investments

• Barfresh Food Group completed the acquisition of Arps Dairy on October 3, 2025, which included assuming a $2,198,000 mortgage requiring refinancing by January 1, 2026.
• The acquisition of Arps Dairy provides Barfresh with owned manufacturing capabilities, including a 15,000 square-foot processing facility and a 44,000 square-foot manufacturing site expected to be fully operational in 2026.

Capital Expenditures

• As of June 30, 2025, capital expenditures amounted to -$143,000.
• The company's capital expenditure growth rate has been -6% over the past three years and 6% over the past five years.
• Future capital expenditures are focused on manufacturing capacity and operational improvements, including completing a new facility in 2026 related to the Arps Dairy acquisition.