BARFRESH FOOD GROUP INC. Q4 FY2024 earnings call

• 2024 was a transformative year with record full year revenue; 2025 expected to be another record year with 35%-55% growth.
• Accomplishments: addressed manufacturing capabilities by securing new co-manufacturers; expanded product portfolio with Pop & Go 100% Juice Freeze Pops in education channel; secured financial foundation via non-dilutive financing and stock sales; built 95% U.S. sales network.
• Challenges: Q4 2024 impacted by costs from onboarding new co-manufacturers and higher supply chain expenses; these to be resolved by end of Q2 2025 when full manufacturing capacity is reached.

For the fourth quarter of 2024, revenue was $2.8 million compared to $1.9 million in the same period of 2023. Full year 2024 revenue was a record $10.7 million vs $8.1 million in 2023. Gross margin in Q4 2024 was 26% vs 33% in 2023's Q4; full year 2024 gross margin was 34% vs 35% in 2023. Adjusted gross margin in Q4 2024 was 30% vs 33% in 2023's Q4; full year 2024 adjusted gross margin was 37% vs 35% in 2023. Selling, marketing and distribution expense in Q4 2024 was $872,000 (31% of revenue) vs $624,000 (32% of revenue) in 2023's Q4; full year 2024 was $3.1 million (29% of revenue) vs $2.6 million (32% of revenue) in 2023. G&A expenses in Q4 2024 were $620,000 vs $624,000 in 2023's Q4; full year 2024 was $3 million vs $2.7 million in 2023. Net loss in Q4 2024 was $852,000 vs $701,000 in 2023's Q4; full year 2024 net loss was $2.8 million comparable to 2023. Adjusted EBITDA in Q4 2024 was a loss of approx $561,000 vs approx $427,000 in 2023's Q4; full year 2024 adjusted EBITDA loss was $1.3 million vs $1.7 million in 2023.

• 2025 revenue growth expected between 35% and 55%.
• Manufacturing capacity to be fully onboarded by end of Q2 2025, enabling full utilization for education channel's high season.
• Pop & Go product expected to contribute meaningfully to revenue in 2025 as manufacturing ramps to full capacity.
• Margin improvement anticipated in the second half of 2025 as operational investments bear fruit.

• Temporary cost pressures in Q4 2024 due to onboarding new co-manufacturers and supply chain sourcing from multiple locations.
• Potential impact of education budget cuts, though no direct negative feedback received yet; however, program cuts could have indirect effects on product reception.

Q: Related to the new Pop & Go Freeze Pops, expectations on how it helps achieve 2025 revenue guidance A: It's early days; product launched late in Q4, had good feedback, bids in process, waiting to see total effect of testing and bid cycle Q: Relationships with customers during production issues in Q4 A: Tested relationships due to supply challenges, but customers love the product; equipment expected to be installed and operational by end of Q2 2025 to resolve issues Q: Feedback from customers on Department of Education budget cuts and budgetary constraints A: No direct negative feedback; some program cuts may have net positive effect on products in schools as subsidized programs may be replaced by less liked substitutes