| Summary of Significant Accounting Policies | Note 1. 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. We are engaged in the
manufacturing and distribution of ready to blend beverages, particularly, smoothies, shakes and frappes. The accompanying consolidated financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Basis 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. Concentration of Credit Risk The amount of cash on deposit with financial institutions
can be in excess of the $250,000 federally insured limit. However, we believe that cash on deposit that exceeds $250,000 in the financial
institutions is financially sound and the risk of loss is minimal. Restricted Cash At March 31, 2021 and December 31, 2020, the Company
had $142,382 and $142,382, respectively, in restricted cash related to a co-packing agreement. Fair Value Measurement Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides
a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically,
ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the
highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value
inputs. ASC 820 defines the hierarchy as follows: Level 1 – Quoted prices are available in active
markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly
liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 – Pricing inputs are other than quoted
prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities
in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 – Significant inputs to pricing that
are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant
management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value. Our financial instruments consist of cash, accounts
receivable, accounts payable, advanced payments, restricted cash, PPP loan, convertible notes, and derivative liabilities. The carrying
value of our financial instruments approximates their fair value, except for the derivative liability in which carrying value is fair
value. The PPP loan and convertible notes approximate fair value as forgiveness and repayment is expected in the near term. Accounts Receivable Accounts receivable are typically unsecured. Our credit
policy calls for payment generally within 30 days. The credit worthiness of a customer is evaluated prior to a sale. As of March 31, 2021
and December 31, 2020, the Company’s allowance for doubtful accounts was $133,424 and $133,424, respectively. The allowance was
estimated based on evaluation of collectability of outstanding accounts receivable. Inventory Inventory consists of raw materials and finished goods
and is carried at the lower of cost or net realizable value on a first in first out basis. The Company monitors the remaining useful life
of its inventory and establishes a reserve of obsolescence where appropriate. As of March 31, 2021 and December 31, 2020, the Company’s
inventory reserve was $55,701 and $59,093, respectively. Intangible Assets Intangible assets are comprised of patents, net of
amortization and trademarks. The patent costs are being amortized over the life of the patent, which is twenty years from the date of
filing the patent application. In accordance with ASC Topic 350 Intangibles – Goodwill and Other (“ASC 350”), the costs
of internally developing other intangible assets, such as patents, are expensed as incurred. However, as allowed by ASC 350, costs associated
with the acquisition of patents from third parties, legal fees and similar costs relating to patents have been capitalized. In accordance with ASC 350 legal costs related to
trademarks have been capitalized. We have determined that trademarks have an indeterminable life and therefore are not being amortized. Long-Lived Assets and Other Acquired Intangible
Assets We evaluate the recoverability of property and equipment
and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such
assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent
of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts
to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property
and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded
any impairment charges during the periods presented. Property, Plant, and Equipment Property, plant, and equipment is stated at cost less
accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight-lined basis over the estimated
useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term
that includes any expected renewal periods that are deemed to be reasonably assured. The estimated useful lives used for financial statement
purposes are: Furniture and fixtures: 5 years Manufacturing equipment and customer equipment:
3 years to 7 years Vehicles: 5 years 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 volume-based rebates or discounts, are estimated utilizing the most likely
amount method. 4) Allocate the transaction price to performance
obligations in the contract Since our contracts contain a single performance
obligation, delivery of frozen beverages, the transaction price is allocated to that single performance obligation. 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 fulfillment 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. Research and Development Expenditures for research activities relating to product
development and improvement are charged to expense as incurred. We incurred $68,141 and $85,424, in research and development expenses
for the three months ending March 31, 2021 and 2020, respectively. Shipping and Storage Costs Shipping and handling costs are included in general
and administrative expenses. For the three months ending March 31, 2021 and 2020, shipping and handling costs totaled $143,735 and $133,108,
respectively. Lease: We determine if an arrangement is a lease upon inception.
A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits
of the underlying asset and the right to direct how and for what purpose the asset is used. After adoption of ASU 2016-02 and related standards,
operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over
the lease term. Lease expense is recognized on a straight-line basis over the lease term. As a lessee, the Company leases office space. Income Taxes The provision for income taxes is determined in accordance
with the provisions of ASC Topic 740, Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies
should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken
on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not
the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured
as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority
assuming full knowledge of the position and relevant facts. 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 of the deferred
tax assets will not be recognized. Derivative Liability The Company evaluates its convertible instruments,
options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives
to be separately accounted for under ASC Topic 815, “Derivatives and Hedging.” The result of this accounting treatment is
that the fair value of any derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair
value is recorded as a liability, the change in fair value is recorded in the statement of operations as gain/loss from derivative liability.
Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair
value is reclassified to equity. We analyzed the derivative financial instruments in accordance with ASC 815. The objective is to provide
guidance for determining whether an equity-linked financial instrument is indexed to an entity’s own stock. This determination is
needed for a scope exception which would enable a derivative instrument to be accounted for under the accrual method. The classification
of a non-derivative instrument that falls within the scope of ASC 815-40-05 “Accounting for Derivative Financial Instruments Indexed
to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s
own stock. A non-derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted
for as a liability. There is a two-step approach in determining whether an instrument or embedded feature is indexed to an entity’s
own stock. First, the instrument’s contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument’s
settlement provisions. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as
the amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing
parties, that is, other than in a forced or liquidation sale. Debt Extinguishment The Company evaluates its convertible instruments
in accordance with ASC 470-50, “Debt Modifications and Extinguishments.” For all extinguishments of debt, ASC 470-50 requires
the difference between the reacquisition price (including any premium) and the net carrying amount of the debt being extinguished (including
any deferred debt issuance costs) to be recognized as a gain or loss when the debt is extinguished. Accordingly, the Company recorded
a net gain of $0 and $379,200, respectively, non-cash gain on extinguishment of debt in its statements of operations for the three months
ended March 31, 2021 and 2020. Earnings per Share We calculate net loss per share in accordance with
ASC Topic 260, Earnings per Share Stock Based Compensation We calculate stock compensation in accordance with
ASC Topic 718, Compensation-Stock Based Compensation |
