Barfresh Food (BRFH) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-41228
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		12,934,741
Entity Information, Former Legal or Registered Name	Not Applicable

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 2,837,000	$ 5,533,000
Restricted cash	211,000	142,000
Trade accounts receivable, net	1,142,000	1,223,000
Other receivables	77,000
Inventory, net	602,000	705,000
Prepaid expenses and other current assets	137,000	64,000
Total current assets	5,006,000	7,667,000
Property, plant and equipment, net of depreciation	1,241,000	1,588,000
Operating lease right-of-use assets, net	36,000	87,000
Intangible assets, net of amortization	323,000	370,000
Deposits	7,000	7,000
Total assets	6,613,000	9,719,000
Current liabilities:
Accounts payable	1,802,000	974,000
Accrued expenses	315,000	228,000
Accrued payroll and employee related	231,000	212,000
Lease liability	39,000	81,000
Total current liabilities	2,387,000	1,495,000
Long term liabilities:
Accrued interest		34,000
Lease liability		14,000
Total liabilities	2,387,000	1,543,000
Commitments and contingencies (Note 5)
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; 12,934,741 and 12,905,112 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
Additional paid in capital	60,730,000	60,341,000
Accumulated deficit	(56,504,000)	(52,165,000)
Total stockholders’ equity	4,226,000	8,176,000
Total liabilities and stockholders’ equity	$ 6,613,000	$ 9,719,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	400,000	400,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	23,000,000	23,000,000
Common stock, shares issued	12,934,741	12,905,112
Common stock, shares outstanding	12,934,741	12,905,112

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 2,406,000	$ 1,930,000	$ 7,731,000	$ 4,246,000
Cost of revenue	3,129,000	1,209,000	6,807,000	2,614,000
Gross profit	(723,000)	721,000	924,000	1,632,000
Operating expenses:
Selling, marketing and distribution	815,000	480,000	2,137,000	1,236,000
General and administrative	1,058,000	586,000	2,736,000	1,598,000
Depreciation and amortization	112,000	163,000	390,000	456,000
Total operating expenses	1,985,000	1,229,000	5,263,000	3,290,000
Operating loss	(2,708,000)	(508,000)	(4,339,000)	(1,658,000)
Other (income)/expenses
Gain from derivative liability				(16,000)
Gain from debt extinguishment - Paycheck Protection Program				(568,000)
Loss on debt extinguishment				194,000
Interest				128,000
Total other expense				(262,000)
Net loss	$ (2,708,000)	$ (508,000)	$ (4,339,000)	$ (1,396,000)
Per share information - basic and fully diluted:
Weighted average shares outstanding	12,931,000	12,892,000	12,920,000	12,143,000
Net loss per share	$ (0.21)	$ (0.04)	$ (0.34)	$ (0.11)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Net loss	$ (4,339,000)	$ (1,396,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	407,000	370,000
Stock-based compensation	211,000	52,000
Stock and options issued for services	173,000	75,000
Interest expense related to debt discount		56,000
Gain on debt extinguishment - Paycheck Protection Program		(568,000)
Gain on derivative		(16,000)
Loss on debt extinguishment		194,000
Changes in assets and liabilities
Accounts receivable	81,000	(757,000)
Other receivables	(77,000)
Inventories	103,000	(308,000)
Prepaid expenses and other assets	(78,000)	(30,000)
Accounts payable	828,000	1,064,000
Accrued expenses	106,000	46,000
Accrued interest	(34,000)	72,000
Net cash used in operating activities	(2,619,000)	(1,146,000)
Investing activities
Purchase of property and equipment	(13,000)	(137,000)
Net cash used in investing activities	(13,000)	(137,000)
Financing activities
Proceeds from issuance of stock	5,000	6,000,000
Proceeds from note payable		568,000
Repayment of convertible notes		(840,000)
Net cash from financing activities	5,000	5,728,000
Net change in cash and restricted cash	(2,627,000)	4,445,000
Cash and restricted cash, beginning of period	5,675,000	1,959,000
Cash and restricted cash, end of period	3,048,000	6,404,000
Cash paid during the period for:
Amounts included in the measurement of lease liabilities	60,000	48,000
Non-cash financing and investing activities:
Net carrying value of convertible notes and accrued interest extinguished through issuance of stock		467,000
Accrued interest paid in stock		151,000
Equipment included in accounts payable and accrued liability		85,000
Extinguishment of derivative liability		$ 25,000

Description of the Business, Ba

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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. Recent Business Developments The Company’s products are produced to its specifications through several co-manufacturers. One of the Company’s co-manufacturers has provided approximately 58 Over the course of 2022, the Company has experienced quality issues with the case packaging utilized by the co-manufacturer. In July of 2022, the Company began receiving customer complaints about the texture of the Company’s smoothie products produced by the same co-manufacturer. In response, subsequent to September 30, 2022, the Company has withdrawn product from the market and destroyed on-hand inventory. The results for the third quarter of 2022 reflect the estimated accounting impact of such actions, including $ 630,000 932,000 The Company has been attempting to informally resolve the issues. However, on November 4, 2022, in response to a formal proposal of alternate resolutions, the Company received notification from its co-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, claiming that the co-manufacturer has not met its obligations under the Agreement, and seeking economic damages. Due to the uncertainties of litigation, the Company is not able to predict either the outcome or a range of reasonably possible recoveries that could result from its legal action against the co-manufacturer, and no gain contingencies have been recorded. The Company anticipates that the disruption in its supply resulting from the dispute will adversely impact its results of operations and cash flow until a suitable resolution is reached or new sources of reliable supply at sufficient volume can be identified and developed, the timing of which is uncertain. 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 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results may differ from these estimates. Vendor Concentrations The Company is exposed to supply risk as a result of concentrations in its vendor base resulting from the use of a limited number of contract manufacturers. Purchases from the Company’s contract manufacturers as a percent of all finished goods purchased were as follows: Schedule of Company’s Contact Manufacturers of Finished Goods For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Manufacturer A 54 % 31 % 58 % 42 % Manufacturer B 31 % 32 % 28 % 36 % Manufacturer C 9 % 30 % 8 % 15 % Manufacturer D 6 % 7 % 6 % 7 % 100 % 100 % 100 % 100 % 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 Paycheck Protection Program (“PPP”) loan, convertible notes, and derivative liabilities which were settled in 2021. The carrying value of our financial instruments on September 30, 2022, December 31, 2021 and September 30, 2021 approximates their fair values, except for the derivative liability, which was carried at fair value prior to its extinguishment. Restricted Cash At September 30, 2022 and December 31, 2021, the Company had approximately $ 211,000 142,000 Accounts Receivable As of 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, net of rebates and other marketing allowances. 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 and amounts recorded as revenue and accounts receivable reflect such estimates at the time of shipment. Subsequent adjustments to estimates of variable consideration have not been material. 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 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 smoothie beverages. Storage and Shipping Costs Storage and outbound freight costs are included in selling and marketing expense. For the three months ending September 30, 2022 and 2021, storage and outbound freight totaled approximately $ 450,000 316,000 1,208,000 717,000 Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. The Company incurred approximately $ 220,000 34,000 347,000 173,000 Loss Per Share At September 30, 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. Reclassifications Certain reclassifications have been made to the 2021 financial statements to conform to the 2022 presentation, including the presentation of selling and marketing expense apart from general and administrative expense in the condensed consolidated statement of operations, and the presentation of a reconciliation of the components of net cash used in operating activities as well as the inclusion of operating lease payments in operating activities in the condensed consolidated statement of cash flows. 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	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventory	Note 2. Inventory Inventory consists of the following: Schedule of Inventory September 30, December 31, 2022 2021 Raw materials $ 40,000 $ 105,000 Finished goods 562,000 600,000 Inventory, net $ 602,000 $ 705,000

Property Plant and Equipment

Property Plant and Equipment	9 Months Ended
	Sep. 30, 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 Major Classes of Property and Equipment September 30, December 31, 2022 2021 Manufacturing and customer equipment $ 3,815,000 $ 3,800,000 Other property 36,000 36,000 Property and equipment, gross 3,851,000 3,836,000 Less: accumulated depreciation (3,256,000 ) (2,894,000 ) Property and equipment 595,000 942,000 Equipment not yet placed in service 646,000 646,000 Property and equipment, net of depreciation $ 1,241,000 $ 1,588,000 Depreciation expense related to these assets was approximately 105,000 147,000 360,000 407,000 10,000 18,000

Convertible Notes and Derivativ

Convertible Notes and Derivative Liability (Related and Unrelated Party)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
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. Upon debt extinguishment the Company’s derivative liability was revalued at approximately $ 25,000 16,000 25,000

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies Lease Commitments The Company leases office space under a non-cancellable operating lease which expires on March 31, 2023 20,000 60,000 36,000 The following table presents the future operating lease payment as of September 30, 2022: Schedule of Estimate Future Maturities of Lease Liabilities 2022 (three months remaining) $ 20,000 2023 20,000 Total lease payments 40,000 Less: imputed interest (1,000 ) Total lease liability $ 39,000 Legal Proceedings As described in Note 1, the Company has filed a lawsuit against its co-manufacturer, Schreiber Foods, Inc., 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. 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	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders’ Equity	Note 6. Stockholders’ Equity The following are changes in stockholders’ equity for the nine months ended September 30, 2021 and September 30, 2022: Barfresh Food Group, Inc. Condensed Consolidated Statements of Stockholders’ Equity Schedule of Changes in Stockholders' Equity Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2020 11,471,797 $ - $ 53,224,000 $ (50,900,000 ) $ 2,324,000 Issuance of stock for capital raise 1,282,051 - 6,000,000 - 6,000,000 Conversion of debt and accrued interest 114,614 - 685,000 - 685,000 Interest paid in shares 19,377 - 151,000 - 151,000 Issuance of stock for services 4,579 - 75,000 - 75,000 Equity based compensation - - 52,000 - 52,000 Shares issued for warrant exercise Shares issued for warrant exercise, shares Net loss - - - (1,396,000 ) (1,396,000 ) Balance September 30, 2021 12,892,418 $ - $ 60,187,000 $ (52,296,000 ) $ 7,891,000 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2021 12,905,112 $ - $ 60,341,000 $ (52,165,000 ) $ 8,176,000 Beginning balance 12,905,112 $ - $ 60,341,000 $ (52,165,000 ) $ 8,176,000 Shares issued for warrant exercise 986 - 5,000 - 5,000 Equity based compensation 5,000 - 211,000 - 211,000 Issuance of stock for services 23,643 - 173,000 - 173,000 Net loss - - - (4,339,000 ) (4,339,000 ) Balance September 30, 2022 12,934,741 $ - $ 60,730,000 $ (56,504,000 ) $ 4,226,000 Ending balance 12,934,741 $ - $ 60,730,000 $ (56,504,000 ) $ 4,226,000 Warrants During the nine months ended September 30, 2022, 102,852 8.82 986 5.07 5,000 Equity Incentive Plan Stock Options The following is a summary of stock option activity for the nine months ended September 30, 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 56,980 $ 5.90 Cancelled/expired (17,644 ) $ 5.08 Outstanding on September 30, 2022 664,352 $ 7.38 3.2 Exercisable, September 30, 2022 577,242 $ 7.64 2.7 The fair value of the options issued was calculated using the Black-Scholes option pricing model, based on the following: Summary of Fair Value of Options Using Black-Sholes Option Pricing Model 2022 Expected term (in years) 5.5 8 Weighted average expected volatility 84.8 % Weighted average risk-free interest rate 2.1 % Expected dividends $ - Weighted average grant date fair value per share $ 4.53 As of September 30, 2022, the Company has approximately $ 180,000 2.2 Restricted Stock The following is a summary of restricted stock award and restricted stock unit activity for the nine months ended September 30, 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 41,554 $ 5.27 Forfeited (4,631 ) $ 5.38 Unvested at September 30, 2022 36,923 $ 5.25 As of September 30, 2022, the Company has approximately $ 104,000 2.1 Performance Stock Units During the nine months ended September 30, 2022, the Company issued performance share units (“PSUs”) that represent shares potentially issuable in the future. Issuance is based upon Company and individual performance over the remainder of 2022. The PSUs vest only upon the achievement of the applicable performance goals and depending on the particular grantee and achievement on the performance goals, the grantee may earn between 0 200 The following table summarizes the activity for the Company’s unvested PSUs for the nine months ended September 30, 2022: Summary of Performance Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2022 - $ - Granted 123,512 $ 4.50 Forfeited (1,889 ) $ 4.50 Unvested at September 30, 2022 121,623 $ 4.50 The stock-based compensation expense recognized each period is dependent upon the Company’s estimate of the number of shares that will ultimately vest based on the achievement of certain performance conditions. Future stock-based compensation for unvested performance-based awards could reach a maximum of $ 547,000

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 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 September 30, 2022, the estimated effective tax rate for the 2022 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 and nine months ended September 30, 2022 and 2021, the Company did not incur any interest and penalties associated with tax positions. As of September 30, 2022, the Company did not have any significant unrecognized uncertain tax positions.

Liquidity

Liquidity	9 Months Ended
	Sep. 30, 2022
Liquidity
Liquidity	Note 8. Liquidity During the nine months ended September 30, 2022 and 2021, the Company used cash for operations of $ 2,619,000 and $ 1,146,000 , respectively. The Company has a history of operating losses and negative cash flow, which were expected to improve with growth, offset by working capital required to achieve such growth. As described more fully in Note 1, our litigation against co-manufacturer has resulted in uncertainty around our ability to procure product, which in turn may inhibit our ability to achieve positive cash flow. Additionally, management has considered that litigation is costly and will require the outlay of cash. However as of September 30, 2022, we have $ 3,048,000

Description of the Business, _2

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Recent Business Developments	Recent Business Developments The Company’s products are produced to its specifications through several co-manufacturers. One of the Company’s co-manufacturers has provided approximately 58 Over the course of 2022, the Company has experienced quality issues with the case packaging utilized by the co-manufacturer. In July of 2022, the Company began receiving customer complaints about the texture of the Company’s smoothie products produced by the same co-manufacturer. In response, subsequent to September 30, 2022, the Company has withdrawn product from the market and destroyed on-hand inventory. The results for the third quarter of 2022 reflect the estimated accounting impact of such actions, including $ 630,000 932,000 The Company has been attempting to informally resolve the issues. However, on November 4, 2022, in response to a formal proposal of alternate resolutions, the Company received notification from its co-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, claiming that the co-manufacturer has not met its obligations under the Agreement, and seeking economic damages. Due to the uncertainties of litigation, the Company is not able to predict either the outcome or a range of reasonably possible recoveries that could result from its legal action against the co-manufacturer, and no gain contingencies have been recorded. The Company anticipates that the disruption in its supply resulting from the dispute will adversely impact its results of operations and cash flow until a suitable resolution is reached or new sources of reliable supply at sufficient volume can be identified and developed, the timing of which is uncertain.
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
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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results may differ from these estimates.
Vendor Concentrations	Vendor Concentrations The Company is exposed to supply risk as a result of concentrations in its vendor base resulting from the use of a limited number of contract manufacturers. Purchases from the Company’s contract manufacturers as a percent of all finished goods purchased were as follows: Schedule of Company’s Contact Manufacturers of Finished Goods For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Manufacturer A 54 % 31 % 58 % 42 % Manufacturer B 31 % 32 % 28 % 36 % Manufacturer C 9 % 30 % 8 % 15 % Manufacturer D 6 % 7 % 6 % 7 % 100 % 100 % 100 % 100 %
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 Paycheck Protection Program (“PPP”) loan, convertible notes, and derivative liabilities which were settled in 2021. The carrying value of our financial instruments on September 30, 2022, December 31, 2021 and September 30, 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 September 30, 2022 and December 31, 2021, the Company had approximately $ 211,000 142,000
Accounts Receivable	Accounts Receivable As of 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, net of rebates and other marketing allowances. 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 and amounts recorded as revenue and accounts receivable reflect such estimates at the time of shipment. Subsequent adjustments to estimates of variable consideration have not been material. 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 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 smoothie beverages.
Storage and Shipping Costs	Storage and Shipping Costs Storage and outbound freight costs are included in selling and marketing expense. For the three months ending September 30, 2022 and 2021, storage and outbound freight totaled approximately $ 450,000 316,000 1,208,000 717,000
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 $ 220,000 34,000 347,000 173,000
Loss Per Share	Loss Per Share At September 30, 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.
Reclassifications	Reclassifications Certain reclassifications have been made to the 2021 financial statements to conform to the 2022 presentation, including the presentation of selling and marketing expense apart from general and administrative expense in the condensed consolidated statement of operations, and the presentation of a reconciliation of the components of net cash used in operating activities as well as the inclusion of operating lease payments in operating activities in the condensed consolidated statement of cash flows.
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.

Description of the Business, _3

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Company’s Contact Manufacturers of Finished Goods	Schedule of Company’s Contact Manufacturers of Finished Goods For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Manufacturer A 54 % 31 % 58 % 42 % Manufacturer B 31 % 32 % 28 % 36 % Manufacturer C 9 % 30 % 8 % 15 % Manufacturer D 6 % 7 % 6 % 7 % 100 % 100 % 100 % 100 %

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following: Schedule of Inventory September 30, December 31, 2022 2021 Raw materials $ 40,000 $ 105,000 Finished goods 562,000 600,000 Inventory, net $ 602,000 $ 705,000

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Major Classes of Property and Equipment	Property and equipment, net consist of the following: Schedule of Major Classes of Property and Equipment September 30, December 31, 2022 2021 Manufacturing and customer equipment $ 3,815,000 $ 3,800,000 Other property 36,000 36,000 Property and equipment, gross 3,851,000 3,836,000 Less: accumulated depreciation (3,256,000 ) (2,894,000 ) Property and equipment 595,000 942,000 Equipment not yet placed in service 646,000 646,000 Property and equipment, net of depreciation $ 1,241,000 $ 1,588,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022: Schedule of Estimate Future Maturities of Lease Liabilities 2022 (three months remaining) $ 20,000 2023 20,000 Total lease payments 40,000 Less: imputed interest (1,000 ) Total lease liability $ 39,000

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Schedule of Changes in Stockholders' Equity	The following are changes in stockholders’ equity for the nine months ended September 30, 2021 and September 30, 2022: Barfresh Food Group, Inc. Condensed Consolidated Statements of Stockholders’ Equity Schedule of Changes in Stockholders' Equity Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2020 11,471,797 $ - $ 53,224,000 $ (50,900,000 ) $ 2,324,000 Issuance of stock for capital raise 1,282,051 - 6,000,000 - 6,000,000 Conversion of debt and accrued interest 114,614 - 685,000 - 685,000 Interest paid in shares 19,377 - 151,000 - 151,000 Issuance of stock for services 4,579 - 75,000 - 75,000 Equity based compensation - - 52,000 - 52,000 Shares issued for warrant exercise Shares issued for warrant exercise, shares Net loss - - - (1,396,000 ) (1,396,000 ) Balance September 30, 2021 12,892,418 $ - $ 60,187,000 $ (52,296,000 ) $ 7,891,000 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2021 12,905,112 $ - $ 60,341,000 $ (52,165,000 ) $ 8,176,000 Beginning balance 12,905,112 $ - $ 60,341,000 $ (52,165,000 ) $ 8,176,000 Shares issued for warrant exercise 986 - 5,000 - 5,000 Equity based compensation 5,000 - 211,000 - 211,000 Issuance of stock for services 23,643 - 173,000 - 173,000 Net loss - - - (4,339,000 ) (4,339,000 ) Balance September 30, 2022 12,934,741 $ - $ 60,730,000 $ (56,504,000 ) $ 4,226,000 Ending balance 12,934,741 $ - $ 60,730,000 $ (56,504,000 ) $ 4,226,000
Summary of Stock Options Activity	The following is a summary of stock option activity for the nine months ended September 30, 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 56,980 $ 5.90 Cancelled/expired (17,644 ) $ 5.08 Outstanding on September 30, 2022 664,352 $ 7.38 3.2 Exercisable, September 30, 2022 577,242 $ 7.64 2.7
Summary of Fair Value of Options Using Black-Sholes Option Pricing Model	The fair value of the options issued was calculated using the Black-Scholes option pricing model, based on the following: Summary of Fair Value of Options Using Black-Sholes Option Pricing Model 2022 Expected term (in years) 5.5 8 Weighted average expected volatility 84.8 % Weighted average risk-free interest rate 2.1 % Expected dividends $ - Weighted average grant date fair value per share $ 4.53
Summary of Performance Stock Unit Activity	The following is a summary of restricted stock award and restricted stock unit activity for the nine months ended September 30, 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 41,554 $ 5.27 Forfeited (4,631 ) $ 5.38 Unvested at September 30, 2022 36,923 $ 5.25
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Summary of Performance Stock Unit Activity	The following table summarizes the activity for the Company’s unvested PSUs for the nine months ended September 30, 2022: Summary of Performance Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2022 - $ - Granted 123,512 $ 4.50 Forfeited (1,889 ) $ 4.50 Unvested at September 30, 2022 121,623 $ 4.50

Schedule of Company_s Contact M

Schedule of Company’s Contact Manufacturers of Finished Goods (Details) - Customer Concentration Risk [Member] - Vendor [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Manufacturer A [Member]
Product Information [Line Items]
Manufacturer percentage	54%	31%	58%	42%
Manufacturer B [Member]
Product Information [Line Items]
Manufacturer percentage	31%	32%	28%	36%
Manufacturer C [Member]
Product Information [Line Items]
Manufacturer percentage	9%	30%	8%	15%
Manufacturer D [Member]
Product Information [Line Items]
Manufacturer percentage	6%	7%	6%	7%
Manufacturer [Member]
Product Information [Line Items]
Manufacturer percentage	100%	100%	100%	100%

Description of the Business, _4

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	Dec. 29, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Companies product holdings				58%
Administrative fees		$ 630,000
Inventory administrative fees payments		932,000
Reverse stock split	1-for-13 reverse stock split
Restricted cash		3,048,000		$ 3,048,000
Allowance for doubtful accounts receivable						$ 121,000
Shipping and handling costs		450,000	$ 316,000	1,208,000	$ 717,000
Research and development expenses		220,000	$ 34,000	347,000	$ 173,000
Co-packing Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Restricted cash		$ 211,000		$ 211,000		$ 142,000

Schedule of Inventory (Details)

Schedule of Inventory (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 40,000	$ 105,000
Finished goods	562,000	600,000
Inventory, net	$ 602,000	$ 705,000

Schedule of Major Classes of Pr

Schedule of Major Classes of Property and Equipment (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,851,000	$ 3,836,000
Less: accumulated depreciation	(3,256,000)	(2,894,000)
Property and equipment	595,000	942,000
Equipment not yet placed in service	646,000	646,000
Property and equipment, net of depreciation	1,241,000	1,588,000
Manufacturing Equipment And Customer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,815,000	3,800,000
Other Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 36,000	$ 36,000

Property Plant and Equipment (D

Property Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 105,000	$ 147,000	$ 360,000	$ 407,000
Depreciation expense in cost of revenue			$ 10,000	$ 18,000

Convertible Notes and Derivat_2

Convertible Notes and Derivative Liability (Related and Unrelated Party) (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Disclosure [Abstract]
Derivative liabilities		$ 25,000		$ 25,000
Gain on derivative				$ 16,000

Schedule of Estimate Future Mat

Schedule of Estimate Future Maturities of Lease Liabilities (Details)	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022 (three months remaining)	$ 20,000
2023	20,000
Total lease payments	40,000
Less: imputed interest	(1,000)
Total lease liability	$ 39,000

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Lease expiration date			Mar. 31, 2023
Operating lease expense	$ 20,000	$ 20,000	$ 60,000	$ 60,000
Operating lease right of use asset	$ 36,000		36,000		$ 87,000
Legal proceeding amount			$ 100,000

Schedule of Changes in Stockhol

Schedule of Changes in Stockholders' Equity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 8,176,000	$ 2,324,000
Issuance of stock for capital raise				6,000,000
Conversion of debt and accrued interest				685,000
Interest paid in shares				151,000
Issuance of stock for services			173,000	75,000
Equity based compensation			211,000	52,000
Shares issued for warrant exercise			5,000
Net loss	$ (2,708,000)	$ (508,000)	(4,339,000)	(1,396,000)
Ending balance	4,226,000	7,891,000	4,226,000	7,891,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance
Beginning balance, shares			12,905,112	11,471,797
Issuance of stock for capital raise
Issuance of stock for capital raise, shares				1,282,051
Conversion of debt and accrued interest
Conversion of debt and accrued interest, shares				114,614
Interest paid in shares
Interest paid in shares, shares				19,377
Issuance of stock for services
Issuance of stock for services, shares			23,643	4,579
Equity based compensation
Shares issued for warrant exercise
Shares issued for warrant exercise, shares			986
Net loss
Ending balance
Ending balance, shares	12,934,741	12,892,418	12,934,741	12,892,418
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 60,341,000	$ 53,224,000
Issuance of stock for capital raise				6,000,000
Conversion of debt and accrued interest				685,000
Interest paid in shares				151,000
Issuance of stock for services			173,000	75,000
Equity based compensation			211,000	52,000
Shares issued for warrant exercise			5,000
Net loss
Ending balance	$ 60,730,000	$ 60,187,000	60,730,000	60,187,000
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(52,165,000)	(50,900,000)
Issuance of stock for capital raise
Conversion of debt and accrued interest
Interest paid in shares
Issuance of stock for services
Equity based compensation
Shares issued for warrant exercise
Net loss			(4,339,000)	(1,396,000)
Ending balance	$ (56,504,000)	$ (52,296,000)	$ (56,504,000)	$ (52,296,000)

Summary of Stock Options Activi

Summary of Stock Options Activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
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	56,980
Weighted average exercise price per share, Issued | $ / shares	$ 5.90
Number of Options, Cancelled/Expired | shares	(17,644)
Weighted average exercise price per share, Exercisable | $ / shares	$ 5.08
Number of Options, Outstanding, Ending | shares	664,352
Weighted average exercise price per share, Outstanding, ending balance | $ / shares	$ 7.38
Remaining term in years, Outstanding, ending	3 years 2 months 12 days
Number of Options, Exercisable | shares	577,242
Weighted average exercise price per share, Exercisable | $ / shares	$ 7.64
Remaining term in years, Exercisable	2 years 8 months 12 days

Summary of Fair Value of Option

Summary of Fair Value of Options Using Black-Sholes Option Pricing Model (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares
Volatility	84.80%
Weighted average risk-free interest rate	2.10%
Expected dividends
Weighted average grant date fair value per share	$ 4.53
Minimum [Member]
Expected life (in years)	5 years 6 months
Maximum [Member]
Expected life (in years)	8 years

Summary of Restricted Stock Awa

Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Equity [Abstract]
Number of shares, Unvested | shares
Weighted average grant date fair value, Unvested | $ / shares
Number of shares, Granted | shares	41,554
Weighted average grant date fair value, Granted | $ / shares	$ 5.27
Number of shares, Forfeited | shares	(4,631)
Weighted average grant date fair value, Forfeited | $ / shares	$ 5.38
Number of shares, Unvested | shares	36,923
Weighted average grant date fair value, Unvested | $ / shares	$ 5.25

Summary of Performance Stock Un

Summary of Performance Stock Unit Activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Unvested | shares
Weighted average grant date fair value, Unvested | $ / shares
Number of shares, Granted | shares	41,554
Weighted average grant date fair value, Granted | $ / shares	$ 5.27
Number of shares, Forfeited | shares	(4,631)
Weighted average grant date fair value, Forfeited | $ / shares	$ 5.38
Number of shares, Unvested | shares	36,923
Weighted average grant date fair value, Unvested | $ / shares	$ 5.25
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Unvested | shares
Weighted average grant date fair value, Unvested | $ / shares
Number of shares, Granted | shares	123,512
Weighted average grant date fair value, Granted | $ / shares	$ 4.50
Number of shares, Forfeited | shares	(1,889)
Weighted average grant date fair value, Forfeited | $ / shares	$ 4.50
Number of shares, Unvested | shares	121,623
Weighted average grant date fair value, Unvested | $ / shares	$ 4.50

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued	102,852
Exercise price	$ 8.82
Issuance of warrants	$ 5,000
Unrecognized share-based compensation expense	$ 180,000
Unrecognized share-based compensation weighted average period	2 years 2 months 12 days
Unvested stock based compensation	$ 211,000	$ 52,000
Restricted Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized share-based compensation expense	$ 104,000
Unrecognized share-based compensation weighted average period	2 years 1 month 6 days
Performance Shares [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unvested stock based compensation	$ 547,000
Performance Shares [Member] | Minimum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Performance shares percentage	0%
Performance Shares [Member] | Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Performance shares percentage	200%
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued	986
Exercise price	$ 5.07

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Liquidity
Net Cash Provided by (Used in) Operating Activities	$ 2,619,000	$ 1,146,000
Restricted cash	$ 3,048,000