BARFRESH FOOD GROUP INC. 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ___________________ Commission File Number: 001-41228 BARFRESH FOOD GROUP INC. (Exact name of registrant as specified in its charter) Delaware 27-1994406 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3600 Wilshire Blvd. , Suite 1720 , Los Angeles , California 90010 (Address of principal executive offices) (Zip Code) 310 - 598-7113 (Registrant’s telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, $0.000001 par value BRFH The Nasdaq Capital Market Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐ If an emerging growth company, indicate by the check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 15,969,281 shares as of November 4, 2025. TABLE OF CONTENTS Page Number PART I - FINANCIAL INFORMATION Item 1. Financial Statements. 3 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 15 Item 3. Quantitative and Qualitative Disclosures About Market Risk. 19 Item 4. Controls and Procedures. 19 PART II - OTHER INFORMATION 20 Item 1. Legal Proceedings. 20 Item 1A. Risk Factors. 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 21 Item 3. Defaults Upon Senior Securities. 21 Item 4. Mine Safety Disclosures. 21 Item 5. Other Information. 21 Item 6. Exhibits. 21 SIGNATURES 22 2 Item 1. Financial Statements. Barfresh Food Group Inc. Condensed Consolidated Balance Sheets September 30, December 31, 2025 2024 (unaudited) (audited) Assets Current assets: Cash $ 1,891,000 $ 235,000 Trade accounts receivable, net 2,489,000 829,000 Other receivables 62,000 55,000 Inventory, net 1,074,000 1,500,000 Prepaid expenses and other current assets 155,000 104,000 Total current assets 5,671,000 2,723,000 Property, plant and equipment, net of depreciation 697,000 333,000 Intangible assets, net of amortization 125,000 178,000 Other non-current assets 302,000 84,000 Total assets $ 6,795,000 $ 3,318,000 Liabilities and Stockholders’ Equity Current liabilities: Line of credit $ 1,736,000 $ 609,000 Accounts payable 1,729,000 1,200,000 Disputed co-manufacturer accounts payable (Note 4) 499,000 499,000 Accrued expenses 222,000 142,000 Accrued payroll and employee related expenses 92,000 67,000 Financing agreements - current 266,000 99,000 Total current liabilities 4,544,000 2,616,000 Financing agreements 330,000 124,000 Total liabilities 4,874,000 2,740,000 Commitments and contingencies - - Stockholders’ equity: Preferred stock, $ 0.000001 par value, 400,000 shares authorized, none issued or outstanding - - Common stock, $ 0.000001 par value; 23,000,000 shares authorized; and 15,940,261 and 14,746,172 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively - - Additional paid in capital 67,473,000 64,199,000 Accumulated deficit ( 65,552,000 ) ( 63,621,000 ) Total stockholders’ equity 1,921,000 578,000 Total liabilities and stockholders’ equity $ 6,795,000 $ 3,318,000 See the accompanying notes to the condensed consolidated financial statements 3 Barfresh Food Group Inc. Condensed Consolidated Statements of Operations For the three and nine months ended September 30, 2025 and 2024 (Unaudited) 2025 2024 2025 2024 For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Revenue $ 4,231,000 $ 3,637,000 $ 8,786,000 $ 7,929,000 Cost of revenue 2,679,000 2,377,000 5,828,000 4,991,000 Gross profit 1,552,000 1,260,000 2,958,000 2,938,000 Operating expenses: Selling, marketing and distribution 941,000 990,000 2,399,000 2,267,000 General and administrative 844,000 705,000 2,264,000 2,423,000 Depreciation and amortization 27,000 65,000 161,000 197,000 Total operating expenses 1,812,000 1,760,000 4,824,000 4,887,000 Loss from operations ( 260,000 ) ( 500,000 ) ( 1,866,000 ) ( 1,949,000 ) Interest expense 30,000 13,000 65,000 24,000 Net loss $ ( 290,000 ) $ ( 513,000 ) $ ( 1,931,000 ) $ ( 1,973,000 ) Per share information - basic and fully diluted: Weighted average shares outstanding 15,940,000 14,744,000 15,750,000 14,655,000 Net loss per share $ ( 0.02 ) $ ( 0.03 ) $ ( 0.12 ) $ ( 0.13 ) See the accompanying notes to the condensed consolidated financial statements 4 Barfresh Food Group Inc. Condensed Consolidated Statements of Cash Flows For the nine months ended September 30, 2025 and 2024 (Unaudited) 2025 2024 Net loss $ ( 1,931,000 ) $ ( 1,973,000 ) Adjustments to reconcile net loss to net cash used in operating activities Stock-based compensation 461,000 757,000 Depreciation and amortization 185,000 217,000 Amortization of debt discount ( 12,000 ) 17,000 Changes in assets and liabilities Accounts receivable ( 1,660,000 ) ( 842,000 ) Other receivables ( 7,000 ) 130,000 Inventories 426,000 444,000 Prepaid expenses and other assets ( 269,000 ) ( 95,000 ) Accounts payable 529,000 ( 379,000 ) Accrued expenses 105,000 180,000 Net cash used in operating activities ( 2,173,000 ) ( 1,544,000 ) Investing activities Purchase of property and equipment ( 42,000 ) ( 61,000 ) Net cash used in investing activities ( 42,000 ) ( 61,000 ) Financing activities Borrowings under line of credit 4,389,000 930,000 Repayment of line of credit ( 3,250,000 ) ( 847,000 ) Issuance of convertible debt - 65,000 Financing agreement payments ( 81,000 ) ( 13,000 ) Issuance of common stock, net of $ 26,000 issuance cost 2,974,000 - Shares repurchased for income tax withholding under stock compensation program ( 161,000 ) ( 20,000 ) Net cash provided by financing activities 3,871,000 115,000 Net increase (decrease) in cash 1,656,000 ( 1,490,000 ) Cash, beginning of period 235,000 1,891,000 Cash, end of period $ 1,891,000 $ 401,000 Non-cash financing and investing activities: Financed acquisition of long-term assets $ 454,000 $ 245,000 Conversion of debt and interest to equity $ - $ 136,000 Convertible notes issued in exchange for trade payables $ - $ 71,000 Cash paid for interest $ 53,000 $ 7,000 See the accompanying notes to the condensed consolidated financial statements 5 Barfresh Food Group Inc. Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) Note 1. Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies Barfresh Food Group Inc., (“we,” “us,” “our,” and the “Company”) was incorporated on February 25, 2010 in the State of Delaware. The Company is engaged in the manufacturing and distribution of ready-to-drink and ready-to-blend beverages, particularly, smoothies, shakes and frappes. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 27, 2025. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results for the full fiscal year. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries, Barfresh Inc. and Barfresh Corporation Inc. (formerly known as Smoothie, Inc.). All inter-company balances and transactions among the companies have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates. Vendor Concentrations The Company is exposed to supply risk as a result of concentration in its vendor base resulting from the use of a limited number of contract manufacturers. Purchases from the Company’s significant contract manufacturers as a percentage of all finished goods purchased were as follows: Schedule of Contract Manufacturers Percentage of Finished Goods 2025 2024 2025 2024 For the three months ended September 30, For the nine months ended September 30, 2025 2024 2025 2024 Manufacturer A 36 % 63 % 44 % 58 % Manufacturer B 40 % 37 % 41 % 40 % Other Manufacturers 24 % 0 % 15 % 2 % Concentration percentage 24 % 0 % 15 % 2 % Manufacturer A has notified the Company that it will cease supplying smoothie bottles in February 2026. Manufacturer B, which makes smoothie cartons, is currently installing bottling equipment which is expected to be operational in January 2026 with approximately 400% additional capacity of bottles over Manufacturer A. Manufacturer B will discontinue making smoothie cartons in December 2025 in preparation for the transition to bottles. The Company’s acquisition of Arps (Note 8) is expected to mitigate supply risks associated with co-manufacturing arrangements. 6 Summary of Significant Accounting Policies There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 27, 2025 that have had a material impact on our condensed consolidated financial statements and related notes. Financial Instruments The Company’s financial instruments consist of cash, accounts receivable and accounts payable. The carrying value of the Company’s financial instruments approximates their fair value. Accounts Receivable and Allowances Accounts receivable are recorded and carried at the original invoiced amount less allowances for credits and for any potential uncollectible amounts due to credit losses. We make estimates of the expected credit and collectability trends for the allowance for credit losses based on our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from our customers. Expected credit losses are recorded as general and administrative expenses on our condensed consolidated statements of operations. As of September 30, 2025 and December 31, 2024, there was no allowance for credit losses. There was no credit loss expense for the three and nine months ended September 30, 2025 and 2024. Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains ownership of promised goods. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods. The Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable. For the Company, the contract is the approved sales order, which may also be supplemented by other agreements that formalize various terms and conditions with customers. 2) Identify the performance obligation in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer. For the Company, this consists of the delivery of frozen beverages, which provide immediate benefit to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and is generally stated on the approved sales order. Variable consideration, which typically includes rebates or discounts, are estimated utilizing the most likely amount method. Provisions for refunds are generally provided for in the period the related sales are recorded, based on management’s assessment of historical and projected trends. 4) Allocate the transaction price to performance obligations in the contract Since the Company’s contracts contain a single performance obligation, delivery of frozen beverages, the transaction price is allocated to that single performance obligation. 7 5) Recognize revenue when or as the Company satisfies a performance obligation The Company recognizes revenue from the sale of frozen beverages when title and risk of loss passes and the customer accepts the goods, which generally occurs at the time of delivery to a customer warehouse. Customer sales incentives such as volume-based rebates or discounts are treated as a reduction of sales at the time the sale is recognized. Shipping and handling costs are treated as fulfilment costs and presented in distribution, selling and administrative costs. Payments that are received before performance obligations are recorded are shown as current liabilities. The Company evaluated the requirement to disaggregate revenue and concluded that substantially all of its revenue comes from a single product, frozen beverages. Storage and Shipping Costs Storage and outbound freight costs are included in selling, marketing and distribution expense. For the three months ending September 30, 2025 and 2024, storage and outbound freight totaled approximately $ 491,000 and $ 480,000 , respectively. For the nine months ended September 30, 2025 and 2024, storage and outbound freight totaled approximately $ 1,157,000 and $ 1,061,000 , respectively. Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. The Company incurred approximately $ 33,000 and $ 52,000 in research and development expense for the three months ended September 30, 2025 and 2024, respectively, and $ 82,000 and $ 99,000 for the nine months ended September 30, 2025 and 2024, respectively. Loss Per Share For the three and nine months ended September 30, 2025 and 2024, common stock equivalents have not been included in the calculation of net loss per share as their effect is anti-dilutive as a result of losses incurred. Recent Pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We have not determined if the impact of recently issued standards that are not yet effective will have an impact on our results of operations and financial position. Note 2. Inventory Inventory consists of the following: Schedule of Inventory September 30, December 31, 2025 2024 Raw materials and packaging $ 680,000 $ 505,000 Finished goods 394,000 995,000 Inventory, net $ 1,074,000 $ 1,500,000 8 Note 3. Property Plant and Equipment Property and equipment, net consist of the following: Schedule of Property and Equipment, Net September 30, December 31, 2025 2024 Manufacturing equipment $ 1,556,000 $ 1,376,000 Customer equipment 1,398,000 1,398,000 Construction in progress 468,000 152,000 Property and equipment, gross 3,422,000 2,926,000 Less: accumulated depreciation ( 2,725,000 ) ( 2,593,000 ) Property and equipment, net of depreciation $ 697,000 $ 333,000 Depreciation expense related to these assets was approximately $ 24,000 and $ 55,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 132,000 and $ 168,000 for the nine months ended September 30, 2025 and 2024, respectively. Depreciation expense in cost of revenue was $ 9,000 and $ 6,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 25,000 and $ 19,000 for the nine months ended September 30, 2025 and 2024, respectively. Leased assets amounting to $ 454,000 are included in construction in progress at September 30, 2025. Note 4. Commitments and Contingencies Lease Commitments The Company leases office space under a non-cancellable operating lease which expired on March 31, 2023 , and was extended in a series of short-term amendments through March 31, 2026 . The Company’s periodic lease cost was approximately $ 20,000 for each of the three months ended September 30, 2025 and 2024 and $ 60,000 for each of the nine months ended September 30, 2025 and 2024. Legal Proceedings Schreiber Dispute The Company’s products are produced to its specifications through several contract manufacturers. One of the Company’s contract manufacturers (the “Manufacturer”) provided approximately 52 % and 42 % of the Company’s products in the years ended December 31, 2022 and 2021, respectively, under a Supply Agreement with an initial term through September 2025. Over the course of 2022, the Company experienced numerous quality issues with the case packaging utilized by the Manufacturer. In addition, in July of 2022, the Company began receiving customer complaints about the texture of the Company’s smoothie products produced by the Manufacturer. In response, the Company withdrew product from the market and destroyed on-hand inventory, withholding $ 499,000 in payments due to the Manufacturer. The Company attempted to resolve the issues based on the contractual procedures described in the Supply Agreement. However, on November 4, 2022, in response to a formal proposal of alternate resolutions, the Company received notification from the Manufacturer that it was denying any responsibility for the defective manufacture of the product. In response, on November 10, 2022, the Company filed a complaint in the United States District Court for the Central District of California, Western Division (the “Complaint”), claiming that the Manufacturer had not met its obligations under the Supply Agreement, and seeking economic damages. In response, the Manufacturer terminated the Supply Agreement. On January 20, 2023, the Company filed a voluntary dismissal of the Complaint which allowed the parties to reach a potential resolution outside of the court system. However, as the parties were once again unable to come to an agreement, the Company re-filed the Complaint in California State Court in August 2023 and continues to progress through the court system. 9 In May 2024, the Company entered into a non-recourse litigation financing arrangement which is expected to be adequate to pursue the Complaint to conclusion. Due to the uncertainties surrounding the claim, the Company is not able to predict either the outcome or a range of reasonably possible recoveries that could result from its actions against the Manufacturer, and no gain contingencies have been recorded. The disruption in its supply resulting from the dispute has adversely impacted the Company’s results of operations and cash flow. The Company has mitigated the impact of the supply disruption with the introduction of its single-serve smoothie cartons, the identification of other co-manufacturing sources, and the acquisition of Arps Dairy, Inc. (“Arps”), as described in Note 8. Other legal matters From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently the defendant in one legal proceeding for an amount less than $ 100,000 . Our legal counsel and management believe the probability of a material unfavorable outcome is remote. Note 5. Debt Line of Credit In August 2024, the Company secured receivables financing of $ 1,500,000 (the “Facility”), and amended the facility in September 2025 to increase the available financing to $ 2,500,000 . Under the Facility, the Company may borrow up to 90% of eligible customer account balances. Amounts outstanding bear interest at a rate prime plus 1.2% and collateral fees of 0.15% and are secured by accounts receivable and inventory. The Facility expires on September 5, 2026, and renews automatically, unless notice is given or received. As of September 30, 2025, there was $ 1,759,000 drawn under the Facility, and $ 12,000 in unamortized discount. Financing Agreements In 2024 and 2025, the Company entered into lease and financing agreements to purchase equipment and software as a service, with weighted average imputed or stated interest of 24 %. Amounts due under the agreements are as follows as of September 30, 2025: Schedule of Financing Agreements 2025 (3 months) $ 92,000 2026 368,000 2027 312,000 Total payments due 772,000 Less: interest ( 176,000 ) Financing agreements 596,000 Less: current portion ( 266,000 ) Financing agreements $ 330,000 Commitments under lease financing arrangements amounting to $ 196,000 and $ 304,000 are included in financing agreements – current and financing agreements, respectively, at September 30, 2025. Convertible Notes From July 2023 to March 2024, the Company executed subscription agreements for substantially all of a $ 2,000,000 privately placed convertible debt offering. The debt was available to be drawn in 25% increments, maturing on the anniversary of the draw, bearing interest at 10% per annum for the term, regardless of earlier payment or conversion, and was mandatorily convertible as to principal and interest into shares of the Company’s common stock at any time prior to maturity at the greater of $1.20 or 85% of the volume-weighted average price of the common stock for the ten trading days immediately preceding the written notice of the conversion (the “Conversion Price”). If the Company had not exercised the mandatory conversion, the holder of the debt had the option after six months and on up to four occasions to convert all or any portion of the principal and interest into shares of the Company’s common stock at the Conversion Price. 10 On October 23, 2023, the Company drew down $ 1,390,000 in convertible debt and converted a total of $ 1,207,000 of principal into 820,160 shares of common stock. Additionally, on December 19, 2023, the Company drew down $ 470,000 in convertible debt and converted a total of $ 653,000 of principal and $ 4,000 of accrued interest into 495,331 shares of common stock. Finally, on March 27 and 29, 2024 the Company drew down $ 136,000 in convertible debt and converted the total drawn into 124,208 shares, settling all debt. Debt drawdowns included the non-cash settlement of $ 30,000 and $ 71,000 in 2023 and 2024, respectively. Note 6. Stockholders’ Equity The following are changes in stockholders’ equity for the nine months ended September 30, 2024 and 2025: Schedule of Changes in Stockholders’ Equity Shares Amount Capital (Deficit) Total Common Stock Additional paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2023 14,420,105 $ - $ 63,299,000 $ ( 60,796,000 ) $ 2,503,000 Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding 201,859 - ( 20,000 ) - ( 20,000 ) Equity-based compensation expense - - 757,000 - 757,000 Conversion of debt and interest (Note 5) 124,208 - 136,000 - 136,000 Registered issuance of common stock - - - Net loss - - - ( 1,973,000 ) ( 1,973,000 ) Balance September 30, 2024 14,746,172 $ - $ 64,172,000 $ ( 62,769,000 ) $ 1,403,000 Common Stock Additional paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2024 14,746,172 $ - $ 64,199,000 $ ( 63,621,000 ) $ 578,000 Balance 14,746,172 $ - $ 64,199,000 $ ( 63,621,000 ) $ 578,000 Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding 141,296 - ( 161,000 ) - ( 161,000 ) Equity-based compensation expense - - 461,000 - 461,000 Registered issuance of common stock 1,052,793 2,974,000 2,974,000 Net loss - - - ( 1,931,000 ) ( 1,931,000 ) Balance September 30, 2025 15,940,261 $ - $ 67,473,000 $ ( 65,552,000 ) $ 1,921,000 Balance 15,940,261 $ - $ 67,473,000 $ ( 65,552,000 ) $ 1,921,000 On February 5, 2025, the Company entered into securities purchase agreements with several investors, pursuant to which the Company sold an aggregate of 1,052,793 shares of common stock at a price of $ 2.85 per share in a registered direct offering. Warrants There are no warrants outstanding as of September 30, 2025. Equity Incentive Plan As of September 30, 2025, the Company has $ 514,000 of total unrecognized share-based compensation expense relative to unvested options, stock awards and stock units, which is expected to be recognized over the remaining weighted average period of 2.2 years. 11 Stock Options The following is a summary of stock option activity for the nine months ended September 30, 2025: Schedule of Stock Options Activity Number of Options Weighted average exercise price per share Remaining term in years Outstanding on December 31, 2024 710,323 $ 5.04 5.5 Issued 85,979 $ 2.72 Forfeited - Expired ( 35,223 ) $ 8.79 Outstanding on September 30, 2025 761,079 $ 4.60 5.5 Exercisable, September 30, 2025 534,978 $ 5.40 4.1 The fair value of the options issued was calculated using the Black-Scholes option pricing model, based on the following: Schedule of Fair Value of Options Using Black-Sholes Option Pricing Model 2025 Expected term (in years) 8.0 Expected volatility 97.9 % Risk-free interest rate 4.2 % Expected dividends $ - Weighted average grant date fair value per share $ 2.26 Restricted Stock The following is a summary of restricted stock award and restricted stock unit activity for the nine months ended Schedule of Restricted Stock Award and Restricted Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2025 61,873 $ 2.72 Granted 119,169 $ 2.62 Forfeited ( 24,960 ) $ 1.67 Vested ( 39,293 ) $ ( 3.67 ) Unvested at September 30, 2025 116,789 $ 2.45 12 Performance Share Units The Company issues performance share units (“PSUs”) that represented shares potentially issuable based upon Company and individual performance in the years of issuance. The following table summarizes the activity for the Company’s unvested PSUs for the nine months ended September 30, 2025: Schedule of Performance Stock Unit Activity Number of shares Weighted average grant date fair value Unvested January 1, 2025 157,694 $ 1.20 Vested ( 155,157 ) $ 1.20 Issued 143,011 $ 2.74 Unvested at September 30, 2025 145,548 $ 2.70 Note 7. Income Taxes ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all the deferred tax assets will not be recognized. Accordingly, at this time the Company has placed a valuation allowance on all tax assets. As of September 30, 2025, the estimated effective tax rate for 2025 was zero . There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit our tax returns from 2019 through the current period. Our policy is to account for income tax related interest and penalties in income tax expense in the statement of operations. For the three and nine months ended September 30, 2025 and 2024, the Company did not incur any interest and penalties associated with tax positions. As of September 30, 2025, the Company did not have any significant unrecognized uncertain tax positions. Note 8. Subsequent Event – Business Combination The Company entered into a stock purchase agreement (the “Purchase Agreement”) dated September 15, 2025, among the Company, Arps, and the shareholders of Arps (the “Arps Shareholders”). On October 3, 2025, the Company, Arps and the Arps Shareholders completed the closing under the Purchase Agreement. As a result, Arps became a wholly-owned subsidiary of the Company. The Company repaid approximately $ 1.3 million of certain existing debt of Arps, including an asset-based revolving facility, and is in the process of refinancing a $ 2.2 million mortgage loan (the “Mortgage”). The Company utilized a portion of its secured receivables financing facility, which had been recently increased to $ 2.5 million, to effect the debt repayment. To obtain the forbearance agreement from the existing mortgage lender, the Company provided its guaranty of the Mortgage loan and issued restricted shares of its common stock, valued at $ 100,000 , to the Arps Shareholders in exchange for continuing their guarantees with the mortgage lender. Prior to the closing, the Arps Shareholders reduced the outstanding balance of the revolving facility as required by the Purchase Agreement. The Company and Arps have agreed to repay the advances made by the Arps Shareholders within six months of the Closing, secured by a second mortgage on real estate owned by Arps. 13 Arps, which currently operates a dairy processing facility in Defiance, Ohio, had commenced construction on a 44,000 -square foot new facility but was unable to complete construction. The Company plans to complete construction and installation of the processing equipment in the new facility in 2026 (the “New Facility”). In October 2025, the Company incurred additional lease financing of $ 245,000 to procure equipment. The Company has commenced manufacturing of certain of its own products at Arps’ existing facility and expects to expand production during the fourth quarter of 2025 and into 2026, thereby eliminating fees previously paid to third-party manufacturers, reducing freight costs, enabling the more efficient procurement of ingredients, and lowering cold storage costs. To obtain the forbearance from Arps’ existing mortgage lender, WesBanco Bank, Inc., until January 1, 2026, the Company provided its guaranty of the Mortgage loan. The outstanding balance of the Mortgage was $ 2,198,000 as of October 3, 2025. Concurrently with the Company’s acquisition of Arps, certain advances to Arps from its former shareholders were formalized with the Company assuming joint and several responsibility for the obligations. The Company and Arps issued notes in the aggregate principal amount of $ 800,000 to the Arps Shareholders, which consisted of $ 400,000 of debt previously owed by Arps (the “Existing Loans”) and $ 400,000 representing the recent advances used to reduce the outstanding balance of the revolving facility (the “New Advances”). The Existing Loans are to be repaid by April 3, 2026 and may be convertible into shares of the Company’s common stock at the option of the Company, using the 15-day volume-weighted average trading price to determine the value of the shares. If the New Advances are not paid by January 3, 2026, interest shall accrue at the rate of 7 % per annum from October 3, 2025. Note 9. Liquidity During the nine months ended September 30, 2025, the Company used $ 2,173,000 in operations. As of September 30, 2025, the Company had $ 1,626,000 in working capital, including $ 1,891,000 in cash. As a result of the Arps acquisition (Note 8), the Company has assumed a $ 2,198,000 Mortgage that must be refinanced by January 1, 2026. Additionally, the Company has obligations outstanding under finance agreements of $ 841,000 , including $ 245,000 borrowed in October 2025. The Company has a history of operating losses and negative cash flow, which are expected to improve with growth. As described more fully in Note 4, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in the Company’s ability to procure certain products necessary to achieve our growth projections and in elevated legal costs. To mitigate the impact of procurement constraints, the Company builds inventory in anticipation of third quarter seasonal requirements, and has invested in materials necessary to carry out trials and initial production runs at new co-manufacturers and acquired Arps in October 2025. The Company has an available receivables-based line of credit of $ 2,500,000 , with $ 1,759,000 in outstanding borrowing as of September 30, 2025. Management expects that the cash cycle will shorten as additional contracted and owned capacity improves production volume and efficiency in the fourth quarter of 2025 and beyond. Additionally, in May 2024, the Company obtained non-recourse litigation financing to allow vigorous pursuit of the complaint against the Manufacturer without further expense to the Company. Finally, as described in Note 6, the Company raised $ 3,000,000 through the sale of the Company’s common stock in February 2025. The financial position at September 30, 2025, historical results and obligations incurred in association with the Arps acquisition raise substantial doubt about the Company’s ability to continue as a going concern. As described, the Company has completed steps to mitigate dispute related issues and raise capital. The Company is undertaking steps to refinance the Mortgage on a long-term basis and complete construction of the New Facility. The actions taken have resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern. 14 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion should be read in conjunction with the financial information included elsewhere in this Quarterly Report on Form 10-Q (this “Report”), including our unaudited condensed consolidated financial statements and the related notes and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 27, 2025, and other reports that we file with the SEC from time to time. References in this Quarterly Report on Form 10-Q to “us”, “we”, “our” and similar terms refer to Barfresh Food Group Inc. Cautionary Note Regarding Forward-Looking Statements This discussion includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as “anticipate”, “estimate”, “plan”, “continuing”, “ongoing”, “expect”, “believe”, “intend”, “may”, “will”, “should”, “could” and similar expressions are used to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise. Critical Accounting Policies Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Results of Operations Results of Operation for the Three Months Ended September 30, 2025 as Compared to the Three Months Ended September 30, 2024 Revenue and cost of revenue Revenue increased $594,000, or 16%, to $4,231,000 in 2025 as compared to $3,637,000 in 2024. Revenue increased as a result of growth in our Twist & Go products and the introduction of Pop & Go in the fourth quarter of 2024. We have been able to expand our capacity on a limited basis at our existing smoothie bottle manufacturer and have been developing an additional manufacturer relationship since the fourth quarter of 2024. With the acquisition of Arps, we expect expanded capacity to become available in the fourth quarter of 2025, subject to the risks and uncertainties associated with early-stage production activities. Cost of revenue increased $302,000, or 13%, to $2,679,000 in 2025 as compared to $2,377,000 in 2024. Cost of revenue increased at a lower rate compared to revenue due to the non-recurrence in 2025 of manufacturing relocation expenses incurred in 2024, partially offset by inventory costs. Our gross profit was $1,552,000 (37%) and $1,260,000 (35%) for 2025 and 2024, respectively. Excluding production relocation costs, our gross profit was $1,386,000 in 2024 (38%). The reduction in gross margin is a result of product mix and inventory costs, partially offset by the non-recurrence of manufacturing relocation costs. 15 Selling, marketing and distribution expense Three months ended September 30, Three months ended September 30, 2025 2024 Change Percent Sales and marketing $ 450,000 $ 510,000 $ (60,000 ) -12 % Storage and outbound freight 491,000 480,000 11,000 2 % $ 941,000 $ 990,000 $ (49,000 ) -5 % Selling, marketing and distribution expense decreased approximately $49,000 (5%) from approximately $990,000 in 2024 to $941,000 in 2025. Sales and marketing expense decreased approximately $60,000 (12%) from approximately $510,000 in 2024 to $450,000 in 2025. Storage and outbound freight expense increased approximately $11,000 (2%) from approximately $480,000 in 2024 to $491,000 in 2025, a slower pace than the 16% increase in revenue, primarily due to efficiencies resulting from larger average shipments. General and administrative expense Three months ended September 30, Three months ended September 30, 2025 2024 Change Percent Personnel costs $ 271,000 $ 312,000 $ (41,000 ) -13 % Stock-based compensation 163,000 179,000 (16,000 ) -9 % Legal, professional and consulting fees 122,000 36,000 86,000 239 % Research and development 33,000 52,000 (19,000 ) -37 % Other general and administrative expenses 255,000 126,000 129,000 102 % $ 844,000 $ 705,000 $ 139,000 20 % General and administrative expenses increased approximately $139,000 (20%) from approximately $705,000 in 2024 to $844,000 in 2025. Personnel cost represents the cost of employees including salaries, bonuses, employee benefits and employment taxes. Personnel cost decreased by approximately $41,000 (13%) from approximately $312,000 in 2024 to $271,000 in 2025. The decrease in personnel cost resulted from a decreased head count. Stock-based compensation decreased by approximately $16,000 from $179,000 in 2024 to $163,000 in 2025 as a result of a reduction in the size of our board of directors. Legal, professional and consulting fees increased by approximately $86,000 (239%) from $36,000 in 2024 to $122,000 in 2025 due to costs incurred in association with the Arps acquisition. Research and development decreased by approximately $19,000 (37%) from $52,000 in 2024 to $33,000 in 2025 due to a decrease in development activities following the introduction of our Pop & Go product, and a decrease in co-manufacturer development activities in anticipation of our acquisition of Arps. Other general and administrative expenses increased by approximately $129,000 (102%) due to costs incurred in association with the acquisition of Arps. 16 Net loss We had net losses of approximately $290,000 and $513,000 for the three-month periods ending September 30, 2025 and 2024, respectively. The decrease in net loss of approximately $223,000 was primarily due to the increase in revenue and gross margin, and the reduction in operating expense exclusive of Arps acquisition expenses. Results of Operation for the Nine months Ended September 30, 2025 as Compared to the Nine months Ended September 30, 2024 Revenue and cost of revenue Revenue increased $857,000, or 11%, to $8,786,000 in 2025 as compared to $7,929,000 in 2024. Cost of revenue increased $837,000, or 17%, to $5,828,000 in 2025 as compared to $4,991,000 in 2024. Cost of revenue increased at a higher rate compared to revenue due to trial costs at our new manufacturer and elevated costs to supply product in a sub-optimal manner while the production process at a new manufacturer is under development. Our gross profit was $2,958,000 (34%) and $2,938,000 (37%) for 2025 and 2024, respectively. Excluding production relocation costs, our gross profit was $3,114,000 in 2024 (39%). The reduction in gross margin is a result of product mix and new manufacturer trial and development costs. Selling, marketing and distribution expense Nine months ended June 30, Nine months ended June 30, 2025 2024 Change Percent Sales and marketing $ 1,242,000 $ 1,206,000 $ 36,000 3 % Storage and outbound freight 1,157,000 1,061,000 96,000 9 % $ 2,399,000 $ 2,267,000 $ 132,000 6 % Selling, marketing and distribution expense increased approximately $132,000 (6%) from approximately $2,267,000 in 2024 to $2,399,000 in 2025. Sales and marketing expense increased approximately $36,000 (3%) from approximately $1,206,000 in 2024 to $1,242,000 in 2025. The increase is a result of broker commissions on increased revenue. Additionally, sample expense increased as a result of the launch of our Pop & Go product. Storage and outbound freight expense increased approximately $96,000 (9%) from approximately $1,061,000 in 2024 to $1,157,000 in 2025, primarily because of the 11% increase in revenue, offset by shipping efficiencies. 17 General and administrative expense Nine months ended June 30, Nine months ended June 30, 2025 2024 Change Percent Personnel costs $ 936,000 $ 916,000 $ 20,000 2 % Stock based compensation 461,000 696,000 (235,000 ) -34 % Legal, professional and consulting fees 233,000 250,000 (17,000 ) -7 % Research and development 82,000 99,000 (17,000 ) -17 % Other general and administrative expenses 552,000 462,000 90,000 19 % $ 2,264,000 $ 2,423,000 $ (159,000 ) -7 % General and administrative expenses decreased approximately $159,000 (7%) from approximately $2,423,000 in 2024 to $2,264,000 in 2025. Personnel cost increased by approximately $20,000 (2%) from approximately $916,000 in 2024 to $936,000 in 2025. Stock-based compensation decreased by approximately $235,000 from $696,000 in 2024 to $461,000 in 2025 as a result of lower expected attainment under our performance stock unit program and a reduction in the size of our board of directors. Legal, professional and consulting fees decreased by approximately $17,000 (7%) from $250,000 in 2024 to $233,000 in 2025 due to funding the Schrieber litigation through non-recourse litigation funding starting in Q3 2024, partially offset by Arps acquisition costs incurred in Q3 2025. Research and development decreased by approximately $17,000 (17%) from $99,000 in 2024 to $82,000 in 2025 due to a decrease in development activities following the introduction of our Pop & Go product, and a decrease in co-manufacturer development activities in anticipation of our acquisition of Arps. Other general and administrative expenses increased by approximately $90,000 (19%) due to costs associated with the acquisition of Arps, partially offset by the non-recurrence of recruitment costs incurred in the second quarter of 2024. Net loss We had net losses of approximately $1,931,000 and $1,973,000 for the nine-month periods ended September 30, 2025 and 2024, respectively, an improvement of $42,000. While revenue increased 11% and operating expenses were reduced by $63,000, these improvements were partially offset by the 3.4 percentage point decrease in gross margin and a $41,000 increase in interest expense. Liquidity and Capital Resources From July 2023 to March 2024, we executed subscription agreements for substantially all of a $2,000,000 privately placed convertible debt offering. The debt was available to be drawn in 25% increments, maturing on the anniversary of the draw, bearing interest at 10% per annum for the term, regardless of earlier payment or conversion, and was mandatorily convertible as to principal and interest into shares of our common stock at any time prior to maturity at the greater of $1.20 or 85% of the volume-weighted average price of the common stock for the ten trading days immediately preceding the written notice of the conversion (the “Conversion Price”). If we had not exercised the mandatory conversion, the holder of the debt had the option after six months and on up to four occasions to convert all or any portion of the principal and interest into shares of our common stock at the Conversion Price. On October 23, 2023, we issued $1,390,000 of convertible notes pursuant to the subscription agreements, and immediately converted $1,207,000 of principal and interest into approximately 820,000 shares of common stock. Additionally, on December 19, 2023, we drew down $470,000 in convertible debt and converted a total of $653,000 of principal and $4,000 of accrued interest into 495,331 shares of common stock. Finally, on March 27 and 29, 2024, we drew down $136,000 in convertible debt and converted the total drawn into 124,208 shares, settling all debt. 18 On February 5, 2025, we entered into securities purchase agreements with several investors, pursuant to which we sold an aggregate of 1,052,793 shares of common stock at a price of $2.85 per share in a registered direct offering. During the nine months ended September 30, 2025, we used $2,173,000 in operations. Our net loss adjusted for non-cash operating expenses was a loss of $1,297,000, while changes in current assets and liabilities used $876,000. The increase in revenue resulted in a $1,660,000 increase in accounts receivable, while we reduced our investment in inventory by $426,000. The changes reflect the education channel’s seasonal revenue peak, and the draw down of inventory built over the summer school break to minimize the impact of production capacity constraints. Additionally, accounts payable increased by $529,000 due to timing of material purchases and amounts due for Arps acquisition costs incurred. As of September 30, 2025, we had working capital of $1,626,000 compared with $606,000 at December 31, 2024, both excluding disputed accounts payable of $499,000 resulting from our dispute with the Manufacturer. The increase in working capital is primarily due to capital raised in the nine months ended September 30, 2025 through the sale of common stock, partially offset by losses incurred in the nine months ended September 30, 2025. Our liquidity needs will depend on how quickly we are able to profitably ramp up sales, as well as our ability to control and reduce variable operating expenses, and to continue to control fixed overhead expense. Our operations to date have been financed by the sale of securities, the issuance of convertible debt and the issuance of short-term debt. If we are unable to generate sufficient cash flow from operations with the capital raised we will be required to raise additional funds either in the form of equity or in the form of debt. There are no assurances that we will be able to generate the necessary capital to carry out our current plan of operations. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expense, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders. Item 3. Quantitative and Qualitative Disclosures About Market Risk. Not required because we are a smaller reporting company. Item 4 . Controls and Procedures. Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Securities and Exchange Act of 1934 Rule 13(a)-15(e). Disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed in the reports that we file or submit under the Exchange Act has been appropriately recorded, processed, summarized, and reported on a timely basis and are effective in ensuring that such information is accumulated and communicated to the Company’s management, as appropriate to allow timely decisions regarding required disclosure. Based on the evaluation of our disclosure controls and procedures as of September 30, 2025, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level. Changes in Internal Control over Financial Reporting None. 19 PART II- OTHER INFORMATION Item 1. Legal Proceedings. As described in Note 4, the Company has an on-going dispute with the Manufacturer, the outcome of which cannot be predicted at this time. From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently the defendant in one legal proceeding for an amount less than $100,000. Our legal counsel and management believe a material unfavorable outcome to be remote. Item 1A. Risk Factors. Our risk factors are described in our Annual Report on Form 10-K, as filed with the SEC on March 27, 2025, as updated below. Disruption within our supply chain, contract manufacturing or distribution channels could have an adverse effect on our business, financial condition and results of operations. Our ability, through our suppliers, business partners, contract manufacturers, independent distributors and retailers, to produce, transport, distribute and sell products is critical to our success. Damage or disruption to our suppliers or to manufacturing or distribution capabilities due to weather, natural disaster, fire or explosion, terrorism, pandemics such as COVID-19 and influenza, labor strikes or other reasons, could impair the manufacture, distribution and sale of our products. Many of these events are outside of our control. Failure to take adequate steps to protect against or mitigate the likelihood or potential impact of such events, or to effectively manage such events if they occur, could adversely affect our business, financial condition and results of operations. Our experience with the Manufacturer demonstrates how our reliance on a limited number of manufacturers and suppliers further increases this risk. Most of our suppliers and manufacturers produce similar products for other companies, and our products may represent a small portion of their businesses. Further, it takes a newly engaged manufacturer typically up to nine months of retrofitting/ preparation before it can begin producing our products. In 2023 and 2024 we did not have contracts in place to produce sufficient units to meet projected demand. If one of our manufacturers fails to perform or renew our contract, we could be faced with a significant interruption in our supply chain. If one of our manufacturers or suppliers fails to perform or deliver products or renew our contract, for any reason, our sales and results of operations could be adversely affected. Furthermore, if we are unable to meet our customers’ demands due to a disruption in our supply chain, we may lose that customer which could adversely affect our business, financial condition and results of operations. We have received notification that a contract manufacturer of our Twist & Go smoothie bottles will not renew our contract and will cease providing product on February 1, 2026. We are working with both new and existing manufacturers, including Arps, which we acquired in October 2025, to replace and increase that volume. However, there can be no assurance that our plans to replace the lost volume will be successful. 20 We completed our first acquisition in the fourth quarter of 2025. Growth by acquisitions involves risks, and we may not be able to effectively integrate the business we acquired or complete necessary financing and development activities to achieve the objectives of the acquisition. We completed the acquisition of Arps Dairy, Inc. in October 2025. The acquisition is subject to various risks and uncertainties and could have a negative impact on our business, financial condition, or results of operations. These risks include the inability to integrate effectively the operations, products, and personnel of the acquired company which is located a significant distance from our existing business, the inability to complete construction that was in progress on the New Facility at the time of the acquisition within the anticipated timeframe and budget, the inability to achieve anticipated cost savings or operating synergies, the management of risks associated with manufacturing operations including product quality and safety, and the risk we may not be able to effectively manage our operations at an increased scale of operations resulting from the acquisition. We are obligated to refinance $2,198,000 of mortgage debt assumed in the acquisition and secured by New Facility. If we are unable to complete the refinancing, we risk foreclosure. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds None. Item 3. Defaults Upon Senior Securities. None. Item 4. Mine Safety Disclosures. Not applicable. Item 5. Other Information. None. Item 6. Exhibits. Exhibit No. Description 2.1 Stock Purchase Agreement dated September 15, 2025 (incorporated by reference to Exhibit 2.1 to the registrant’s current report on Form 8-K filed September 18, 2025) 31.1 Certification of Principal Executive Officer pursuant to Rule 13a-14(a) (filed herewith) 31.2 Certification of Principal Financial Officer pursuant to Rule 13a-14(a) (filed herewith) 32.1 Certification pursuant to 18 U.S.C. Section 1350 (furnished herewith) 101.INS Inline XBRL Instance Document* 101.SCH Inline XBRL Taxonomy Extension Schema Document* 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document* 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document* 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document* 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document* 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) *XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. In accordance with SEC Release 33-8238, Exhibit 32.1 is furnished and not filed. 21 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BARFRESH FOOD GROUP INC. Date: November 6, 2025 By: /s/ Riccardo Delle Coste Riccardo Delle Coste Chief Executive Officer (Principal Executive Officer) Date: November 6, 2025 By: /s/ Lisa Roger Chief Financial Officer (Principal Financial Officer) 22