Record Quarterly Revenue and First Positive Adjusted EBITDA In Company History Highlight Strong First Quarter of 2024 Results Revenue Increased 35% Year-Over-Year to $2.8 Million for the First Quarter of 2024 Achieves 41.4% First Quarter of 2024 Gross Margin - Highest Point Since Early 2021 Company Poised to Achieve Highest Annual Revenue in Fiscal Year 2024 and Year-over-Year Margin Improvement Amid Bottling Recovery Efforts, Propelled by Accelerated Customer Wins LOS ANGELES, May 15, 2024 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the "Company" or "Barfresh") (NASDAQ:BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, is providing a business update for the first quarter ended March 31, 2024. Management Comments Riccardo Delle Coste, the Company's Chief Executive Officer, stated, "Our record financial results this quarter highlight the tremendous momentum we've built across the business. The positive consumer response to our carton offering was the primary driver of our revenue surge, supported by increased carton capacity that allowed us to meet the high demand. Re-introducing our bulk 100% juice concentrates last quarter also contributed to our top-line performance. Additionally, we've been able to successfully re-engage our valued foodservice customers following the difficulties of the pandemic period and our broadened sales broker coverage has enabled us to acquire new customers and widen our distribution footprint." Mr. Delle Coste continued, "Looking ahead, we have strong conviction in our ability to deliver our highest revenue ever in fiscal year 2024. Additionally, once we finalize securing a new bottle manufacturing partnership, we will be well-positioned to significantly increase production volumes and accelerate our revenue trajectory even further. Our carton, bulk and easy pour offerings remain in high demand, and we're capitalizing on opportunities to grow our market share through development of our broker network including the recently announced largest regional sales broker in the Southeast as well as strategic channel expansion. Bolstering our leadership team, with key hires like our new VP of Supply Chain and Contract Manufacturing, will further augment our ability to execute on our growth plans." "After navigating through supply challenges over the past couple of years, we have begun to turn the corner. We have recently added over 2,600 new schools and are well positioned to re-engage and actively target all customer segments with our complete offerings. This expansion of our sales broker network, coupled with a growing pipeline of customer wins positions Barfresh to achieve record revenue levels in fiscal year 2024 and beyond." First Quarter of 2024 Financial Results Revenue for the first quarter of 2024 was $2.8 million, compared to $2.1 million in the first quarter of 2023. The increase in revenue is the result of improved supply due to increased capacity in carton production, improvements in bulk sales, partially offset by a continuation into early February of an industry-wide shortage of 4-ounce and 8-ounce cartons that began in December of 2023. Gross margins for the first quarter of 2024 were 41.4%, compared to 40.9% for the first quarter of 2023. The improvement in gross margins is a result of favorable product mix, pricing actions, and a slight improvement in the cost of supply chain components. Net loss in the first quarter of 2024 was $449,000, as compared to a loss of $889,000 in the first quarter of 2023. The decrease is a result of improved revenue and margins, as well as a reduction in operating expenses due to cost-savings measures. Selling, marketing and distribution expenses for the first quarter of 2024 were $694,000, or 25% of revenue, compared to $667,000, or 32% of revenue, for the first quarter of 2023. G&A expenses in the first quarter of 2024 decreased 14% to $858,000 compared to $994,000 in the first quarter of 2023. The decrease in G&A was driven by a decrease in personnel cost resulting primarily from a reduction in headcount. Non-GAAP Financial Measures The above information is presented in conformity with accounting principles generally accepted in the United States. In order to aid in the understanding of the Company's business performance, the Company has also presented below certain non-GAAP measures, including EBITDA and Adjusted EBITDA, which are reconciled in the table below to comparable GAAP measures. Management believes that Adjusted EBITDA provides useful information to the investor because it is directly reflective of the performance of the Company. The exclusion of certain items including stock compensation, and other non-recurring costs such as those associated with the product withdrawal, the related dispute, and certain manufacturing relocation costs in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of the Company's core business performance. Adjusted EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP. Adjusted EBITDA was approximately $53,000 for the first quarter of 2024, compared to a ...