Barfresh Food (BRFH) 10-Q 28 Apr 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	Apr. 25, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-55131
Entity Registrant Name	BARFRESH FOOD GROUP INC.
Entity Central Index Key	0001487197
Entity Tax Identification Number	27-1994406
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3600 Wilshire Blvd.
Entity Address, Address Line Two	Suite 1720
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90010
City Area Code	310
Local Phone Number	598-7113
Title of 12(b) Security	Common stock, $0.000001 par value
Trading Symbol	BRFH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,919,899
Entity Information, Former Legal or Registered Name	Not Applicable

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash	$ 4,284,168	$ 5,532,840
Restricted cash	250,382	142,382
Trade accounts receivable, net	1,719,937	1,222,476
Other receivables	231,959
Inventory, net	850,802	705,349
Prepaid expenses and other current assets	101,396	63,859
Total current assets	7,438,644	7,666,906
Property, plant and equipment, net of depreciation	1,456,527	1,588,043
Operating lease right-of-use assets, net	70,176	87,391
Intangible assets, net of amortization	354,173	370,278
Deposits	6,746	6,746
Total assets	9,326,266	9,719,364
Current liabilities:
Accounts payable	1,377,590	974,218
Accrued expenses	202,336	228,227
Accrued payroll and employee related	223,292	212,465
Lease liability	76,731	81,295
Total current liabilities	1,879,949	1,496,205
Long term liabilities:
Accrued interest	33,600	33,600
Lease liability		13,701
Total liabilities	1,913,549	1,543,506
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.000001 par value, 5,000,000 shares authorized, none issued or outstanding
Common stock, $0.000001 par value; 295,000,000 shares authorized; 12,919,899 and 12,905,112 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	13	13
Additional paid in capital	60,471,988	60,340,620
Accumulated deficit	(53,059,284)	(52,164,775)
Total stockholders’ equity	7,412,717	8,175,858
Total liabilities and stockholders’ equity	$ 9,326,266	$ 9,719,364

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	295,000,000	295,000,000
Common stock, shares issued	12,919,899	12,905,112
Common stock, shares outstanding	12,919,899	12,905,112

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 2,525,549	$ 1,014,851
Cost of revenue	1,709,873	665,532
Gross profit	815,676	349,319
Operating expenses:
General and administrative	1,549,039	751,601
Depreciation and amortization	161,146	146,933
Total operating expenses	1,710,185	898,534
Operating loss	(894,509)	(549,215)
Other (income)/expenses
Gain from derivative liability		(16,787)
Interest		59,091
Total other expense		42,304
Net loss	$ (894,509)	$ (591,519)
Per share information - basic and fully diluted:
Weighted average shares outstanding	12,909,204	11,471,798
Net loss per share	$ (0.07)	$ (0.05)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Cash Flows [Abstract]
Net cash used in operating activities	$ (1,132,148)	$ (410,574)
Investing activities
Purchase of property and equipment	(13,524)	(4,647)
Net cash used in investing activities	(13,524)	(4,647)
Financing activities
Proceeds from issuance of stock	5,000
Proceeds from note payable		568,131
Net cash from financing activities	5,000	568,131
Net change in cash and restricted cash	(1,140,672)	152,910
Cash and restricted cash, beginning of period	5,675,222	1,959,269
Cash and restricted cash, end of period	4,534,550	2,112,179
Cash paid during the period for:
Cash paid for amounts included in the measurement of lease liabilities	19,648	19,076
Non-cash financing and investing activities:
Equipment included in accounts payable and accrued liability		$ 23,511

Description of the Business, Ba

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies	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 manufacture 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, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 10, 2022. 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. Reverse Stock Split Effective December 29, 2021, the Company amended its certificate of incorporation to implement a 1-for-13 reverse stock split of its issued and outstanding shares of common stock. All the share numbers, share prices, exercise prices and other per share information throughout these financial statements have been adjusted, on a retroactive basis, to reflect the 1-for-13 reverse stock split. 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 consolidated 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. 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, 2021, as filed with the SEC on March 10, 2022 that have had a material impact on our condensed consolidated financial statements and related notes. 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, as well as our PPP loan, convertible notes, and derivative liabilities which were settled in 2021. The carrying value of our financial instruments on March 31, 2022, December 31, 2021 and March 31, 2021 approximates their fair values, except for the derivative liability, which was carried at fair value prior to its extinguishment. Restricted Cash At March 31, 2022 and December 31, 2021, the Company had approximately $ 250,000 142,000 Accounts Receivable As of each of March 31, 2022 and December 31, 2021, the Company’s allowance for doubtful accounts was approximately $ 121,000 Other Receivables Other receivables consist of amounts due from vendors for materials acquired on their behalf for use in manufacturing the Company’s products. 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 smoothie beverages. Shipping and Storage Costs Shipping and handling costs are included in general and administrative expenses. For the three months ending March 31, 2022 and 2021, shipping and handling costs totaled approximately $ 437,000 144,000 Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. The Company incurred approximately $ 31,000 68,000 Loss Per Share At March 31, 2022 and 2021 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.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventory	Note 2. Inventory Inventory consists of the following: Schedule of Inventory March 31, December 31, 2022 2021 Raw materials $ 102,768 $ 105,355 Finished goods 748,035 599,994 Inventory, net $ 850,802 $ 705,349

Property Plant and Equipment

Property Plant and Equipment	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	Note 3. Property Plant and Equipment Property and equipment, net consist of the following: Schedule of Property and Equipment March 31, December 31, 2022 2021 Furniture and fixtures $ 1,524 $ 1,524 Manufacturing equipment and customer equipment 3,813,763 3,800,238 Leasehold improvements 4,886 4,886 Vehicles 29,696 29,696 Property and equipment, gross 3,849,869 3,836,344 Less: accumulated depreciation (3,039,673 ) (2,894,632 ) Property and equipment 810,196 941,712 Equipment not yet placed in service 646,331 646,331 Property and equipment, net of depreciation $ 1,456,527 $ 1,588,043 Depreciation expense related to these assets was approximately 145,000 131,000 6,000 no

Convertible Notes and Derivativ

Convertible Notes and Derivative Liability (Related and Unrelated Party)	3 Months Ended
	Mar. 31, 2022
Convertible Notes And Derivative Liability
Convertible Notes and Derivative Liability (Related and Unrelated Party)	Note 4. Convertible Notes and Derivative Liability (Related and Unrelated Party) In 2018, the Company issued Milestone I and Milestone II Convertible Notes, which were repaid and converted in the second quarter of 2021. The Milestone II Convertible Notes contained variable conversion provisions based on the future price of the Company’s common stock, resulting in the potential issuance of an indeterminate number of shares of common stock upon conversion. The Company measured the fair value of the derivative resulting from the variable conversion provisions each reporting period. The fair value was reported as a derivative liability and the change in value of $ 16,787 was recorded as a gain in the accompanying condensed consolidated statement of operations for the three months ended March 31, 2021.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies The Company leases office space under a non-cancelable operating lease which expires on March 31, 2023 . Our periodic lease cost was approximately $ 20,000 for each of the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, our right of use asset was $ 70,176 . The following table presents the future operating lease payment as of March 31, 2022. Schedule of Estimate Future Maturities of Lease Liabilities 2022 (nine months remaining) $ 60,713 2023 20,238 Total lease payments 80,951 Less: imputed interest (4,220 ) Total lease liability $ 76,731 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. The Company is currently the defendant in one legal proceeding for an amount less than $ 100,000

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Stockholders’ Equity	Note 6. Stockholders’ Equity The following are changes in stockholders’ equity for the three months ended March 31, 2021 and March 31, 2022: Schedule of Changes in Stockholders' Equity Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2020 11,471,797 $ 12 $ 53,223,803 $ (50,899,629 ) $ 2,324,186 Shares issued for warrant exercise - - Equity based compensation - - (34,585 ) - (34,585 ) Issuance of stock for services - - Net loss - - - (591,519 ) (591,519 ) Balance March 31, 2021 11,471,797 $ 12 $ 53,189,218 $ (51,491,148 ) $ 1,698,082 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2021 12,905,112 $ 13 $ 60,340,620 $ (52,164,775 ) $ 8,175,858 Shares issued for warrant exercise 986 5,000 - 5,000 Equity based compensation - - 28,036 - 28,036 Issuance of stock for services 13,801 98,332 - 98,332 Net loss - - - (894,509 ) (894,509 ) Balance March 31, 2022 12,919,899 $ 13 $ 60,471,988 $ (53,059,284 ) $ 7,412,717 Warrants During the three months ended March 31, 2022, 96,664 9.10 986 5.07 5,000 Equity Incentive Plan The following is a summary of stock option activity for the three months ended March 31, 2022: Summary of Stock Options Activity Number of Options Weighted average exercise price per share Remaining term in years Outstanding on December 31, 2021 625,016 $ 7.55 3.8 Issued 25,385 $ 5.58 Cancelled/expired (11,541 ) $ 4.94 Outstanding on March 31, 2022 638,860 $ 7.52 3.5 Exercisable, March 31, 2022 539,345 $ 7.92 3.0 The fair value of the options issued (approximately $105,000, in the aggregate) was calculated using the Black-Sholes option pricing model, based on the following: Summary of Fair Value of Options Using Black-Sholes Option Pricing Model 2021 Expected term (in years) 5.5 Expected volatility 85.7 % Risk-free interest rate 1.5 1.6 % Expected dividends $ - Weighted average grant date fair value per share $ 4.15 As of March 31, 2022, the Company has approximately $ 189,000 2.2 The following is a summary of restricted stock award and restricted stock unit activity for the three months ended March 31, 2022: Summary of Restricted Stock Award and Restricted Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2022 - $ - Granted 40,554 $ 5.36 Unvested at March 31, 2022 40,554 $ 5.36 As of March 31, 2022, the Company has approximately $ 202,000 2.6

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	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 March 31, 2022, the estimated effective tax rate for the year was zero There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit our tax returns from 2017 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 months ended March 31, 2022 and 2021, the Company did not incur any interest and penalties associated with tax positions. As of March 31, 2022, the Company did not have any significant unrecognized uncertain tax positions.

Description of the Business, _2

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	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, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 10, 2022. 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.
Reverse Stock Split	Reverse Stock Split Effective December 29, 2021, the Company amended its certificate of incorporation to implement a 1-for-13 reverse stock split of its issued and outstanding shares of common stock. All the share numbers, share prices, exercise prices and other per share information throughout these financial statements have been adjusted, on a retroactive basis, to reflect the 1-for-13 reverse stock split.
Principles of Consolidation	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	Use of Estimates The preparation of consolidated 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.
Summary of Significant Accounting Policies	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, 2021, as filed with the SEC on March 10, 2022 that have had a material impact on our condensed consolidated financial statements and related notes.
Fair Value Measurement	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, as well as our PPP loan, convertible notes, and derivative liabilities which were settled in 2021. The carrying value of our financial instruments on March 31, 2022, December 31, 2021 and March 31, 2021 approximates their fair values, except for the derivative liability, which was carried at fair value prior to its extinguishment.
Restricted Cash	Restricted Cash At March 31, 2022 and December 31, 2021, the Company had approximately $ 250,000 142,000
Accounts Receivable	Accounts Receivable As of each of March 31, 2022 and December 31, 2021, the Company’s allowance for doubtful accounts was approximately $ 121,000
Other Receivables	Other Receivables Other receivables consist of amounts due from vendors for materials acquired on their behalf for use in manufacturing the Company’s products.
Revenue Recognition	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 smoothie beverages.
Shipping and Storage Costs	Shipping and Storage Costs Shipping and handling costs are included in general and administrative expenses. For the three months ending March 31, 2022 and 2021, shipping and handling costs totaled approximately $ 437,000 144,000
Research and Development	Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. The Company incurred approximately $ 31,000 68,000
Loss Per Share	Loss Per Share At March 31, 2022 and 2021 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	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.

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following: Schedule of Inventory March 31, December 31, 2022 2021 Raw materials $ 102,768 $ 105,355 Finished goods 748,035 599,994 Inventory, net $ 850,802 $ 705,349

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consist of the following: Schedule of Property and Equipment March 31, December 31, 2022 2021 Furniture and fixtures $ 1,524 $ 1,524 Manufacturing equipment and customer equipment 3,813,763 3,800,238 Leasehold improvements 4,886 4,886 Vehicles 29,696 29,696 Property and equipment, gross 3,849,869 3,836,344 Less: accumulated depreciation (3,039,673 ) (2,894,632 ) Property and equipment 810,196 941,712 Equipment not yet placed in service 646,331 646,331 Property and equipment, net of depreciation $ 1,456,527 $ 1,588,043

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Estimate Future Maturities of Lease Liabilities	The following table presents the future operating lease payment as of March 31, 2022. Schedule of Estimate Future Maturities of Lease Liabilities 2022 (nine months remaining) $ 60,713 2023 20,238 Total lease payments 80,951 Less: imputed interest (4,220 ) Total lease liability $ 76,731

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Schedule of Changes in Stockholders' Equity	The following are changes in stockholders’ equity for the three months ended March 31, 2021 and March 31, 2022: Schedule of Changes in Stockholders' Equity Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2020 11,471,797 $ 12 $ 53,223,803 $ (50,899,629 ) $ 2,324,186 Shares issued for warrant exercise - - Equity based compensation - - (34,585 ) - (34,585 ) Issuance of stock for services - - Net loss - - - (591,519 ) (591,519 ) Balance March 31, 2021 11,471,797 $ 12 $ 53,189,218 $ (51,491,148 ) $ 1,698,082 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2021 12,905,112 $ 13 $ 60,340,620 $ (52,164,775 ) $ 8,175,858 Shares issued for warrant exercise 986 5,000 - 5,000 Equity based compensation - - 28,036 - 28,036 Issuance of stock for services 13,801 98,332 - 98,332 Net loss - - - (894,509 ) (894,509 ) Balance March 31, 2022 12,919,899 $ 13 $ 60,471,988 $ (53,059,284 ) $ 7,412,717
Summary of Stock Options Activity	The following is a summary of stock option activity for the three months ended March 31, 2022: Summary of Stock Options Activity Number of Options Weighted average exercise price per share Remaining term in years Outstanding on December 31, 2021 625,016 $ 7.55 3.8 Issued 25,385 $ 5.58 Cancelled/expired (11,541 ) $ 4.94 Outstanding on March 31, 2022 638,860 $ 7.52 3.5 Exercisable, March 31, 2022 539,345 $ 7.92 3.0
Summary of Fair Value of Options Using Black-Sholes Option Pricing Model	The fair value of the options issued (approximately $105,000, in the aggregate) was calculated using the Black-Sholes option pricing model, based on the following: Summary of Fair Value of Options Using Black-Sholes Option Pricing Model 2021 Expected term (in years) 5.5 Expected volatility 85.7 % Risk-free interest rate 1.5 1.6 % Expected dividends $ - Weighted average grant date fair value per share $ 4.15
Summary of Restricted Stock Award and Restricted Stock Unit Activity	The following is a summary of restricted stock award and restricted stock unit activity for the three months ended March 31, 2022: Summary of Restricted Stock Award and Restricted Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2022 - $ - Granted 40,554 $ 5.36 Unvested at March 31, 2022 40,554 $ 5.36

Description of the Business, _3

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Allowance for doubtful accounts receivable	$ 121,000		$ 121,000
Shipping and handling costs	437,000	$ 144,000
Research and development expenses	31,000	$ 68,000
Co-packing Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Restricted cash	$ 250,000		$ 142,000

Schedule of Inventory (Details)

Schedule of Inventory (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 102,768	$ 105,355
Finished goods	748,035	599,994
Inventory, net	$ 850,802	$ 705,349

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,849,869	$ 3,836,344
Less: accumulated depreciation	(3,039,673)	(2,894,632)
Property and equipment	810,196	941,712
Equipment not yet placed in service	646,331	646,331
Property and equipment, net of depreciation	1,456,527	1,588,043
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,524	1,524
Manufacturing Equipment and Customer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,813,763	3,800,238
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,886	4,886
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 29,696	$ 29,696

Property Plant and Equipment (D

Property Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 145,000	$ 131,000
Depreciation expense in cost of goods sold	$ 0	$ 6,000

Convertible Notes and Derivat_2

Convertible Notes and Derivative Liability (Related and Unrelated Party) (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Convertible Notes And Derivative Liability
Derivative, Gain (Loss) on Derivative, Net		$ 16,787

Schedule of Estimate Future Mat

Schedule of Estimate Future Maturities of Lease Liabilities (Details)	Mar. 31, 2022USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022 (nine months remaining)	$ 60,713
2023	20,238
Total lease payments	80,951
Less: imputed interest	(4,220)
Total lease liability	$ 76,731

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Lease Expiration Date	Mar. 31, 2023
Operating Lease, Expense		$ 20,000
Operating Lease, Right-of-Use Asset	$ 70,176		$ 87,391
Legal proceeding amount	$ 100,000

Schedule of Changes in Stockhol

Schedule of Changes in Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance December 31, 2021	$ 8,175,858	$ 2,324,186
Shares issued for warrant exercise	5,000
Equity based compensation	28,036	(34,585)
Issuance of stock for services	98,332
Net loss	(894,509)	(591,519)
Balance March 31, 2022	7,412,717	1,698,082
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance December 31, 2021	$ 13	$ 12
Balance, shares	12,905,112	11,471,797
Shares issued for warrant exercise, shares	986
Equity based compensation
Issuance of stock for services, shares	13,801
Net loss
Balance March 31, 2022	$ 13	$ 12
Balance, shares	12,919,899	11,471,797
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance December 31, 2021	$ 60,340,620	$ 53,223,803
Shares issued for warrant exercise	5,000
Equity based compensation	28,036	(34,585)
Issuance of stock for services	98,332
Net loss
Balance March 31, 2022	60,471,988	53,189,218
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance December 31, 2021	(52,164,775)	(50,899,629)
Shares issued for warrant exercise
Equity based compensation
Issuance of stock for services
Net loss	(894,509)	(591,519)
Balance March 31, 2022	$ (53,059,284)	$ (51,491,148)

Summary of Stock Options Activi

Summary of Stock Options Activity (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Equity [Abstract]
Number of Options, Outstanding, Beginning | shares	625,016
Weighted average Exercise price per share, Outstanding, Beginning | $ / shares	$ 7.55
Remaining term in years, Outstanding, Beginning	3 years 9 months 18 days
Number of Options, Issued | shares	25,385
Weighted average exercise price per share, Issued | $ / shares	$ 5.58
Number of Options, Cancelled/Expired | shares	(11,541)
Weighted average Exercise price per share, Exercisable | $ / shares	$ 4.94
Number of Options, Outstanding, Ending | shares	638,860
Weighted average Exercise price per share, Outstanding,ending balance | $ / shares	$ 7.52
Remaining term in years, Outstanding, ending	3 years 6 months
Number of Options, Exercisable | shares	539,345
Weighted average Exercise price per share,Exercisable | $ / shares	$ 7.92
Remaining term in years, Exercisable	3 years

Summary of Fair Value of Option

Summary of Fair Value of Options Using Black-Sholes Option Pricing Model (Details)	3 Months Ended
	Mar. 31, 2021$ / shares
Equity [Abstract]
Expected life (in years)	5 years 6 months
Volatility	85.70%
Risk Free interest rate. minimum	1.50%
Risk Free interest rate, maximum	1.60%
Expected dividends
Weighted average grant date fair value per share	$ 4.15

Summary of Restricted Stock Awa

Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Equity [Abstract]
Number of shares, Unvested | shares
Weighted average grant date fair value, Unvested | $ / shares
Number of shares, Granted | shares	40,554
Weighted average grant date fair value, Granted | $ / shares	$ 5.36
Number of shares, Unvested | shares	40,554
Weighted average grant date fair value, Unvested | $ / shares	$ 5.36

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)$ / sharesshares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued | shares	96,664
Exercise price | $ / shares	$ 9.10
Issuance of warrants	$ 5,000
Unrecognized share-based compensation expense	$ 189,000
Unrecognized share-based compensation weighted average period	2 years 2 months 12 days
Restricted Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized share-based compensation expense	$ 202,000
Unrecognized share-based compensation weighted average period	2 years 7 months 6 days
Warrant one [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued | shares	986
Exercise price | $ / shares	$ 5.07

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)
Income Tax Disclosure [Abstract]
Estimated effective tax rate	$ 0