Barfresh Food (BRFH) 10-Q 26 Oct 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 25, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
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		13,924,774
Entity Information, Former Legal or Registered Name	Not Applicable

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 1,011,000	$ 2,808,000
Restricted cash		211,000
Trade accounts receivable, net	1,159,000	126,000
Other receivables	116,000	101,000
Inventory, net	748,000	1,048,000
Prepaid expenses and other current assets	167,000	79,000
Total current assets	3,201,000	4,373,000
Property, plant and equipment, net of depreciation	487,000	801,000
Operating lease right-of-use assets, net		18,000
Intangible assets, net of amortization	258,000	306,000
Deposits	7,000	7,000
Total assets	3,953,000	5,505,000
Current liabilities:
Accounts payable	1,692,000	1,534,000
Disputed co-manufacturer accounts payable (Note 5)	499,000	499,000
Accrued expenses	229,000	286,000
Accrued payroll and employee related	240,000	233,000
Lease liability		20,000
Total current liabilities	2,660,000	2,572,000
Total liabilities	2,660,000	2,572,000
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; 13,104,614 and 12,934,741 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
Additional paid in capital	61,388,000	60,905,000
Accumulated deficit	(60,095,000)	(57,972,000)
Total stockholders’ equity	1,293,000	2,933,000
Total liabilities and stockholders’ equity	$ 3,953,000	$ 5,505,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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	13,104,614	12,934,741
Common stock, shares outstanding	13,104,614	12,934,741

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 2,603,000	$ 2,406,000	$ 6,205,000	$ 7,731,000
Cost of revenue	1,690,000	3,129,000	3,963,000	6,807,000
Gross profit	913,000	(723,000)	2,242,000	924,000
Operating expenses:
Selling, marketing and distribution	697,000	860,000	1,990,000	2,236,000
General and administrative	578,000	1,013,000	2,065,000	2,637,000
Depreciation and amortization	114,000	91,000	310,000	327,000
Total operating expenses	1,389,000	1,964,000	4,365,000	5,200,000
Net loss	$ (476,000)	$ (2,687,000)	$ (2,123,000)	$ (4,276,000)
Per share information - basic and fully diluted:
Weighted average shares outstanding - basic	13,036,000	12,931,000	13,005,000	12,920,000
Weighted average shares outstanding - diluted	13,036,000	12,931,000	13,005,000	12,920,000
Net loss per share - basic	$ (0.04)	$ (0.21)	$ (0.16)	$ (0.33)
Net loss per share - diluted	$ (0.04)	$ (0.21)	$ (0.16)	$ (0.33)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Cash Flows [Abstract]
Net loss	$ (2,123,000)	$ (4,276,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	325,000	344,000
Stock-based compensation	496,000	211,000
Stock and options issued for services	11,000	173,000
Changes in assets and liabilities
Accounts receivable	(1,033,000)	81,000
Other receivables	(15,000)	(77,000)
Inventories	300,000	103,000
Prepaid expenses and other assets	(27,000)	(78,000)
Accounts payable	195,000	828,000
Accrued expenses	(137,000)	72,000
Net cash used in operating activities	(2,008,000)	(2,619,000)
Investing activities
Purchase of property and equipment		(13,000)
Net cash used in investing activities		(13,000)
Financing activities
Proceeds from issuance of stock		5,000
Net cash provided by financing activities		5,000
Net decrease in cash and restricted cash	(2,008,000)	(2,627,000)
Cash and restricted cash, beginning of period	3,019,000	5,675,000
Cash and restricted cash, end of period	1,011,000	3,048,000
Cash paid during the year for:
Amounts included in the measurement of lease liabilities	20,000	60,000
Non-cash financing and investing activities:
Value of shares relinquished in modification of stock-based compensation awards (Note 7)	$ 24,000

Description of the Business, Ba

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
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 manufacturing 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, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 2, 2023. 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. 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 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. 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 significant contract manufacturers as a percentage of all finished goods purchased were as follows: Schedule of Company’s Contract Manufacturers of Finished Goods For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Manufacturer A 55 % 0 % 47 % 0 % Manufacturer B 37 % 31 % 44 % 28 % Manufacturer C 8 % 6 % 9 % 6 % Manufacturer D 0 % 54 % 0 % 58 % Manufacturer E 0 % 9 % 0 % 8 % 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, 2022, as filed with the SEC on March 2, 2023 that have had a material impact on our condensed consolidated financial statements and related notes. Fair Value Measurement and Financial Instruments Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value and unobservable (i.e., supported by little or no market activity). The Company’s financial instruments consist of cash, restricted cash, accounts receivable and accounts payable. The carrying value of the Company’s financial instruments approximates their fair value. Restricted Cash At December 31, 2022, the Company had approximately $ 211,000 Accounts Receivable and Allowances Accounts receivable are recorded and carried at the original invoiced amount less allowances for credits and for any potential uncollectible amounts due to credit losses. We make estimates of the expected credit and collectability trends for the allowance for credit losses based on our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from our customers. Expected credit losses are recorded as general and administrative expenses on our condensed consolidated statements of operations. As of September 30, 2023 and December 31, 2022, there was no Other Receivables Other receivables consist of the Company’s 2021 Employer Retention Tax Credit claim, amounts due from vendors for materials acquired on their behalf for use in manufacturing the Company’s products, vendor rebates and freight claims. 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 rebates or discounts, are estimated utilizing the most likely amount method. Provisions for refunds are generally provided for in the period the related sales are recorded, based on management’s assessment of historical and projected trends. 4) Allocate the transaction price to performance obligations in the contract Since the Company’s 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 a single product, frozen beverages. Storage and Shipping Costs Storage and outbound freight costs are included in selling, marketing and distribution expense. For the three months ending September 30, 2023 and 2022, storage and outbound freight totaled approximately $ 370,000 273,000 932,000 1,040,000 Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. The Company incurred approximately $ 32,000 220,000 88,000 347,000 Loss Per Share For the three and nine months ended September 30, 2023 and 2022 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 2022 financial statements to conform to the 2023 presentation, namely the presentation of selling, marketing and distribution expense apart from general and administrative expense in the consolidated statement of operations, the reclassification of materials shipping from selling, marketing and distribution to cost of revenue, and the presentation of the components of cash used in operations. 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.

Restatement of Prior Financial

Restatement of Prior Financial Information	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Restatement of Prior Financial Information	Note 2. Restatement of Prior Financial Information This Company’s previously filed unaudited statement of operations and cash flow statement and audited balance sheets have been restated to correct errors in calculating depreciation. From a quantitative and qualitative perspective, the Company determined that correcting the previously filed financial statements would not require amendment to its previously filed reports on Form 10-Q and 10-K. The effect of the correction of previously issued financial statements is summarized below: Schedule of Prior Financial Information As Previously Reported Adjustment Restated December 31, 2022 As Previously Reported Adjustment Restated Consolidated Balance Sheet Property, plant and equipment, net of depreciation $ 389,000 $ 412,000 $ 801,000 Total assets $ 5,093,000 $ 412,000 $ 5,505,000 Accumulated deficit $ (58,384,000 ) $ 412,000 $ (57,972,000 ) Total stockholders’ equity $ 2,521,000 $ 412,000 $ 2,933,000 Total liabilities and stockholders’ equity $ 5,093,000 $ 412,000 $ 5,505,000 As Previously Reported Adjustment Restated Three-months ended September 30, 2022 As Previously Reported Adjustment Restated Consolidated Statement of Operations Depreciation and amortization $ 112,000 $ (21,000 ) $ 91,000 Total operating expenses $ 1,985,000 $ (21,000 ) $ 1,964,000 Net loss $ (2,708,000 ) $ 21,000 $ (2,687,000 ) As Previously Reported Adjustment Restated Nine-months ended September 30, 2022 As Previously Reported Adjustment Restated Consolidated Statement of Operations Depreciation and amortization $ 390,000 $ (63,000 ) $ 327,000 Total operating expenses $ 5,263,000 $ (63,000 ) $ 5,200,000 Net loss $ (4,339,000 ) $ 63,000 $ (4,276,000 ) Consolidated Statement of Cash Flows Net loss $ (4,339,000 ) $ 63,000 $ (4,276,000 ) Depreciation and amortization $ 407,000 $ (63,000 ) $ 344,000 Net cash used in operating activities $ (2,619,000 ) $ - $ (2,619,000 )

Inventory

Inventory	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Note 3. Inventory Inventory consists of the following: Schedule of Inventory September 30, December 31, Raw materials $ 28,000 $ 65,000 Finished goods 720,000 983,000 Inventory, net $ 748,000 $ 1,048,000

Property Plant and Equipment

Property Plant and Equipment	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	Note 4. Property Plant and Equipment Property and equipment, net consist of the following: Schedule of Property and Equipment, Net September 30, December 31, Manufacturing equipment $ 1,546,000 $ 1,618,000 Customer equipment 1,410,000 1,417,000 Property and equipment, gross 2,956,000 3,035,000 Less: accumulated depreciation (2,469,000 ) (2,234,000 ) Property and equipment, net of depreciation $ 487,000 $ 801,000 Depreciation expense related to these assets was approximately $ 102,000 85,000 277,000 297,000 4,000 10,000 13,000 19,000

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
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 expired on March 31, 2023 extended in a series of amendments through March 31, 2024 20,000 60,000 Legal Proceedings Schreiber Dispute The Company’s products are produced to its specifications through several contract manufacturers. One of the Company’s contract manufacturers (the “Manufacturer”) provided approximately 52 42 Over the course of 2022, the Company experienced numerous quality issues with the case packaging utilized by the Manufacturer. In addition, in July of 2022, the Company began receiving customer complaints about the texture of the Company’s smoothie products produced by the Manufacturer. In response, the Company withdrew product from the market and destroyed on-hand inventory, withholding $ 499,000 The Company attempted to resolve the issues based on the contractual procedures described in the Supply Agreement. However, on November 4, 2022, in response to a formal proposal of alternate resolutions, the Company received notification from the 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 (the “Complaint”), claiming that the Manufacturer had not met its obligations under the Supply Agreement, and seeking economic damages. In response, the Manufacturer terminated the Supply Agreement. On January 20, 2023, the Company filed a voluntary dismissal of the Complaint which allowed the parties to reach a potential resolution outside of the court system. However, as the parties were once again unable to come to an agreement, the Company re-filed the Complaint in California State Court in August 2023. Due to the uncertainties surrounding the claim, the Company is not able to predict either the outcome or a range of reasonably possible recoveries that could result from its actions against the Manufacturer, and no gain contingencies have been recorded. The disruption in its supply resulting from the dispute has and will continue to adversely impact the Company’s 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. The Company has mitigated the impact of the supply disruption with the introduction of its single-serve smoothie cartons; however the product format has not been accepted by some customers or as a substitute for the bottle product in all use cases. Other legal matters 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. We are currently the defendant in one legal proceeding for an amount less than $ 100,000

Convertible Debt Subscriptions

Convertible Debt Subscriptions	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Convertible Debt Subscriptions	Note 6. Convertible Debt Subscriptions From July to October of 2023, the Company executed subscription agreements for $ 1,880,000 2,000,000 The debt may be drawn in 25% increments, matures on the anniversary of the draw, bears interest at 10% per annum for the term, regardless of earlier payment or conversion, and is mandatorily convertible as to principal and interest into shares of the Company’s common stock at any time prior to maturity at the greater of $1.20 or 85% of the volume-weighted average price of the common stock for the ten trading days immediately preceding the written notice of the conversion (the “Conversion Price”).

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Stockholders’ Equity	Note 7. Stockholders’ Equity The following are changes in stockholders’ equity for the nine months ended September 30, 2022 and 2023: Schedule of Changes in Stockholders' Equity Shares Amount Capital (Deficit) Total Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2021 12,905,112 $ - $ 60,341,000 $ (51,838,000 ) $ 8,503,000 Shares issued for warrant exercise 986 - 5,000 - 5,000 Equity-based compensation 5,000 - 211,000 - 211,000 Cash settlement of equity-based compensation Issuance of stock and options for services 23,643 - 173,000 - 173,000 Net loss - - - (4,276,000 ) (4,276,000 ) Balance September 30, 2022 12,934,741 $ - $ 60,730,000 $ (56,114,000 ) $ 4,616,000 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2022 12,934,741 $ - $ 60,905,000 $ (57,972,000 ) $ 2,933,000 Balance 12,934,741 $ - $ 60,905,000 $ (57,972,000 ) $ 2,933,000 Equity-based compensation 165,779 - 496,000 - 496,000 Cash settlement of equity-based compensation - - (24,000 ) - (24,000 ) Issuance of stock and options for services 4,094 - 11,000 - 11,000 Net loss - - - (2,123,000 ) (2,123,000 ) Balance September 30, 2023 13,104,614 $ - $ 61,388,000 $ (60,095,000 ) $ 1,293,000 Balance 13,104,614 $ - $ 61,388,000 $ (60,095,000 ) $ 1,293,000 Warrants During the nine months ended September 30, 2023, 936,375 6.00 Equity Incentive Plan Through 2022, the Company issued equity awards under the 2015 Equity Incentive Plan (the “2015 Plan”) and outside the Plan. In June 2023, the Company’s stockholders adopted the 2023 Equity Incentive Plan (the “2023 Plan”), reserving 650,000 As of September 30, 2023, the Company has $ 153,000 1.5 Stock Options The following is a summary of stock option activity for the nine months ended September 30, 2023: Summary of Stock Options Activity Number of Weighted Remaining Outstanding on December 31, 2022 682,939 $ 7.30 3.2 Issued 63,545 $ 1.50 8.0 Cancelled/expired (109,388 ) $ 8.48 Outstanding on September 30, 2023 637,096 $ 6.54 3.6 Exercisable, September 30, 2023 576,393 $ 6.75 3.2 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 2023 Expected term (in years) 8.0 Expected volatility 84.4 % Risk-free interest rate 3.6 % Expected dividends $ - Weighted average grant date fair value per share $ 1.19 Restricted Stock The following is a summary of restricted stock award and restricted stock unit activity for the nine months ended September 30, 2023: Summary of Restricted Stock Award and Restricted Stock Unit Activity Number of Weighted Unvested at January 1, 2023 41,923 $ 4.92 Granted 5,000 $ 1.25 Vested (4,386 ) $ 5.06 Forfeited (9,931 ) $ 3.33 Unvested at September 30, 2023 32,606 $ 4.82 Performance Share Units During 2022 and 2023, the Company issued performance share units (“PSUs”) that represented shares potentially issuable based upon Company and individual performance in the years of issuance. The following table summarizes the activity for the Company’s unvested PSUs for the nine months ended September 30, 2023: Summary of Performance Stock Unit Activity Number of shares Weighted Unvested at January 1, 2023 17,678 $ 4.50 Cash settled (17,678 ) $ 4.50 Granted 357,689 $ 1.64 Vested (45,251 ) $ 1.36 Unvested at September 30, 2023 312,438 $ 1.68 In February 2023, the unvested awards issued for individual performance and outstanding at January 1, 2023 were modified to cash-settle the original grant-date fair value of approximately $ 80,000 56,000 24,000 71,000 26,000 64,000 The Company adopted a 2023 PSU program in April 2023, granting approximately 211,000 76,000 84,000

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. 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, 2023, the estimated effective tax rate for 2023 was zero There are open statutes of limitations for taxing authorities in federal and state jurisdictions to audit our tax returns from 2018 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, 2023 and 2022, the Company did not incur any interest and penalties associated with tax positions. As of September 30, 2023, the Company did not have any significant unrecognized uncertain tax positions.

Liquidity

Liquidity	9 Months Ended
	Sep. 30, 2023
Liquidity
Liquidity	Note 9. Liquidity During the nine months ended September 30, 2023, the Company used cash for operations of $ 2,008,000 However, as of September 30, 2023, the Company has $ 1,011,000 1,880,000

Subsequent Event _ Nasdaq Compl

Subsequent Event – Nasdaq Compliance	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Event – Nasdaq Compliance	Note 10. Subsequent Event – Nasdaq Compliance On May 5, 2023, the Company received a notice letter from the Listing Qualifications Staff of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that it was not in compliance with the Listing Rule 5550(b) (the “Rule”), which requires listed companies to maintain a minimum $ 2,500,000 35,000,000 500,000 1,845,000 On October 23, 2023, the Company issued convertible notes in the amount of $ 1,390,000 1,207,000 820,000 Schedule of Pro-forma Balance Sheet September 30, 2023 (unaudited) Convertible Debt Drawdown Conversion of Debt to Equity September 30, 2023 (proforma, unaudited) Assets Current assets: Cash $ 1,011,000 $ 1,390,000 $ - $ 2,401,000 Trade accounts receivable, net 1,159,000 1,159,000 Other receivables 116,000 116,000 Inventory, net 748,000 748,000 Prepaid expenses and other current assets 167,000 167,000 Total current assets 3,201,000 1,390,000 - 4,591,000 Property, plant and equipment, net of depreciation 487,000 487,000 Intangible assets, net of amortization 258,000 258,000 Deposits 7,000 7,000 Total assets $ 3,953,000 $ 1,390,000 $ - $ 5,343,000 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,692,000 $ - $ - $ 1,692,000 Disputed co-manufacturer accounts payable 499,000 499,000 Accrued expenses 229,000 229,000 Accrued payroll and employee related 240,000 240,000 Convertible notes payable - 1,390,000 (1,207,000 ) 183,000 Total current liabilities 2,660,000 1,390,000 (1,207,000 ) 2,843,000 Total liabilities 2,660,000 1,390,000 (1,207,000 ) 2,843,000 Stockholders’ equity: Common stock - - Additional paid in capital 61,388,000 61,388,000 Accumulated deficit (60,095,000 ) 1,207,000 (58,888,000 ) Total stockholders’ equity 1,293,000 - 1,207,000 2,500,000 Total liabilities and stockholders’ equity $ 3,953,000 $ 1,390,000 $ - $ 5,343,000 Management believes that taking into consideration the October 23, 2023 note issuance and conversion, the Company satisfies the stockholders’ equity requirement on a pro-forma basis as of September 30, 2023 and as of October 26, 2023. Nasdaq will continue to monitor the Company’s ongoing compliance with the Rule and, if at the time of its next periodic report the Company does not evidence compliance, it may be subject to delisting.

Description of the Business, _2

Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
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, 2022 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 2, 2023. 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.
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 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.
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 significant contract manufacturers as a percentage of all finished goods purchased were as follows: Schedule of Company’s Contract Manufacturers of Finished Goods For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Manufacturer A 55 % 0 % 47 % 0 % Manufacturer B 37 % 31 % 44 % 28 % Manufacturer C 8 % 6 % 9 % 6 % Manufacturer D 0 % 54 % 0 % 58 % Manufacturer E 0 % 9 % 0 % 8 %
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, 2022, as filed with the SEC on March 2, 2023 that have had a material impact on our condensed consolidated financial statements and related notes.
Fair Value Measurement and Financial Instruments	Fair Value Measurement and Financial Instruments Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value and unobservable (i.e., supported by little or no market activity). The Company’s financial instruments consist of cash, restricted cash, accounts receivable and accounts payable. The carrying value of the Company’s financial instruments approximates their fair value.
Restricted Cash	Restricted Cash At December 31, 2022, the Company had approximately $ 211,000
Accounts Receivable and Allowances	Accounts Receivable and Allowances Accounts receivable are recorded and carried at the original invoiced amount less allowances for credits and for any potential uncollectible amounts due to credit losses. We make estimates of the expected credit and collectability trends for the allowance for credit losses based on our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from our customers. Expected credit losses are recorded as general and administrative expenses on our condensed consolidated statements of operations. As of September 30, 2023 and December 31, 2022, there was no
Other Receivables	Other Receivables Other receivables consist of the Company’s 2021 Employer Retention Tax Credit claim, amounts due from vendors for materials acquired on their behalf for use in manufacturing the Company’s products, vendor rebates and freight claims.
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 rebates or discounts, are estimated utilizing the most likely amount method. Provisions for refunds are generally provided for in the period the related sales are recorded, based on management’s assessment of historical and projected trends. 4) Allocate the transaction price to performance obligations in the contract Since the Company’s 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 a single product, frozen beverages.
Storage and Shipping Costs	Storage and Shipping Costs Storage and outbound freight costs are included in selling, marketing and distribution expense. For the three months ending September 30, 2023 and 2022, storage and outbound freight totaled approximately $ 370,000 273,000 932,000 1,040,000
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 $ 32,000 220,000 88,000 347,000
Loss Per Share	Loss Per Share For the three and nine months ended September 30, 2023 and 2022 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 2022 financial statements to conform to the 2023 presentation, namely the presentation of selling, marketing and distribution expense apart from general and administrative expense in the consolidated statement of operations, the reclassification of materials shipping from selling, marketing and distribution to cost of revenue, and the presentation of the components of cash used in operations.
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, 2023
Accounting Policies [Abstract]
Schedule of Company’s Contract Manufacturers of Finished Goods	Schedule of Company’s Contract Manufacturers of Finished Goods For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Manufacturer A 55 % 0 % 47 % 0 % Manufacturer B 37 % 31 % 44 % 28 % Manufacturer C 8 % 6 % 9 % 6 % Manufacturer D 0 % 54 % 0 % 58 % Manufacturer E 0 % 9 % 0 % 8 %

Restatement of Prior Financia_2

Restatement of Prior Financial Information (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Schedule of Prior Financial Information	Schedule of Prior Financial Information As Previously Reported Adjustment Restated December 31, 2022 As Previously Reported Adjustment Restated Consolidated Balance Sheet Property, plant and equipment, net of depreciation $ 389,000 $ 412,000 $ 801,000 Total assets $ 5,093,000 $ 412,000 $ 5,505,000 Accumulated deficit $ (58,384,000 ) $ 412,000 $ (57,972,000 ) Total stockholders’ equity $ 2,521,000 $ 412,000 $ 2,933,000 Total liabilities and stockholders’ equity $ 5,093,000 $ 412,000 $ 5,505,000 As Previously Reported Adjustment Restated Three-months ended September 30, 2022 As Previously Reported Adjustment Restated Consolidated Statement of Operations Depreciation and amortization $ 112,000 $ (21,000 ) $ 91,000 Total operating expenses $ 1,985,000 $ (21,000 ) $ 1,964,000 Net loss $ (2,708,000 ) $ 21,000 $ (2,687,000 ) As Previously Reported Adjustment Restated Nine-months ended September 30, 2022 As Previously Reported Adjustment Restated Consolidated Statement of Operations Depreciation and amortization $ 390,000 $ (63,000 ) $ 327,000 Total operating expenses $ 5,263,000 $ (63,000 ) $ 5,200,000 Net loss $ (4,339,000 ) $ 63,000 $ (4,276,000 ) Consolidated Statement of Cash Flows Net loss $ (4,339,000 ) $ 63,000 $ (4,276,000 ) Depreciation and amortization $ 407,000 $ (63,000 ) $ 344,000 Net cash used in operating activities $ (2,619,000 ) $ - $ (2,619,000 )

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following: Schedule of Inventory September 30, December 31, Raw materials $ 28,000 $ 65,000 Finished goods 720,000 983,000 Inventory, net $ 748,000 $ 1,048,000

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consist of the following: Schedule of Property and Equipment, Net September 30, December 31, Manufacturing equipment $ 1,546,000 $ 1,618,000 Customer equipment 1,410,000 1,417,000 Property and equipment, gross 2,956,000 3,035,000 Less: accumulated depreciation (2,469,000 ) (2,234,000 ) Property and equipment, net of depreciation $ 487,000 $ 801,000

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of Changes in Stockholders' Equity	The following are changes in stockholders’ equity for the nine months ended September 30, 2022 and 2023: Schedule of Changes in Stockholders' Equity Shares Amount Capital (Deficit) Total Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2021 12,905,112 $ - $ 60,341,000 $ (51,838,000 ) $ 8,503,000 Shares issued for warrant exercise 986 - 5,000 - 5,000 Equity-based compensation 5,000 - 211,000 - 211,000 Cash settlement of equity-based compensation Issuance of stock and options for services 23,643 - 173,000 - 173,000 Net loss - - - (4,276,000 ) (4,276,000 ) Balance September 30, 2022 12,934,741 $ - $ 60,730,000 $ (56,114,000 ) $ 4,616,000 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2022 12,934,741 $ - $ 60,905,000 $ (57,972,000 ) $ 2,933,000 Balance 12,934,741 $ - $ 60,905,000 $ (57,972,000 ) $ 2,933,000 Equity-based compensation 165,779 - 496,000 - 496,000 Cash settlement of equity-based compensation - - (24,000 ) - (24,000 ) Issuance of stock and options for services 4,094 - 11,000 - 11,000 Net loss - - - (2,123,000 ) (2,123,000 ) Balance September 30, 2023 13,104,614 $ - $ 61,388,000 $ (60,095,000 ) $ 1,293,000 Balance 13,104,614 $ - $ 61,388,000 $ (60,095,000 ) $ 1,293,000
Summary of Stock Options Activity	The following is a summary of stock option activity for the nine months ended September 30, 2023: Summary of Stock Options Activity Number of Weighted Remaining Outstanding on December 31, 2022 682,939 $ 7.30 3.2 Issued 63,545 $ 1.50 8.0 Cancelled/expired (109,388 ) $ 8.48 Outstanding on September 30, 2023 637,096 $ 6.54 3.6 Exercisable, September 30, 2023 576,393 $ 6.75 3.2
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 2023 Expected term (in years) 8.0 Expected volatility 84.4 % Risk-free interest rate 3.6 % Expected dividends $ - Weighted average grant date fair value per share $ 1.19
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 nine months ended September 30, 2023: Summary of Restricted Stock Award and Restricted Stock Unit Activity Number of Weighted Unvested at January 1, 2023 41,923 $ 4.92 Granted 5,000 $ 1.25 Vested (4,386 ) $ 5.06 Forfeited (9,931 ) $ 3.33 Unvested at September 30, 2023 32,606 $ 4.82
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, 2023: Summary of Performance Stock Unit Activity Number of shares Weighted Unvested at January 1, 2023 17,678 $ 4.50 Cash settled (17,678 ) $ 4.50 Granted 357,689 $ 1.64 Vested (45,251 ) $ 1.36 Unvested at September 30, 2023 312,438 $ 1.68

Subsequent Event _ Nasdaq Com_2

Subsequent Event – Nasdaq Compliance (Tables)	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Schedule of Pro-forma Balance Sheet	Schedule of Pro-forma Balance Sheet September 30, 2023 (unaudited) Convertible Debt Drawdown Conversion of Debt to Equity September 30, 2023 (proforma, unaudited) Assets Current assets: Cash $ 1,011,000 $ 1,390,000 $ - $ 2,401,000 Trade accounts receivable, net 1,159,000 1,159,000 Other receivables 116,000 116,000 Inventory, net 748,000 748,000 Prepaid expenses and other current assets 167,000 167,000 Total current assets 3,201,000 1,390,000 - 4,591,000 Property, plant and equipment, net of depreciation 487,000 487,000 Intangible assets, net of amortization 258,000 258,000 Deposits 7,000 7,000 Total assets $ 3,953,000 $ 1,390,000 $ - $ 5,343,000 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,692,000 $ - $ - $ 1,692,000 Disputed co-manufacturer accounts payable 499,000 499,000 Accrued expenses 229,000 229,000 Accrued payroll and employee related 240,000 240,000 Convertible notes payable - 1,390,000 (1,207,000 ) 183,000 Total current liabilities 2,660,000 1,390,000 (1,207,000 ) 2,843,000 Total liabilities 2,660,000 1,390,000 (1,207,000 ) 2,843,000 Stockholders’ equity: Common stock - - Additional paid in capital 61,388,000 61,388,000 Accumulated deficit (60,095,000 ) 1,207,000 (58,888,000 ) Total stockholders’ equity 1,293,000 - 1,207,000 2,500,000 Total liabilities and stockholders’ equity $ 3,953,000 $ 1,390,000 $ - $ 5,343,000

Schedule of Company_s Contract

Schedule of Company’s Contract Manufacturers of Finished Goods (Details) - Customer Concentration Risk [Member] - Vendor [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Manufacturer A [Member]
Product Information [Line Items]
Manufacturer percentage	55%	0%	47%	0%
Manufacturer B [Member]
Product Information [Line Items]
Manufacturer percentage	37%	31%	44%	28%
Manufacturer C [Member]
Product Information [Line Items]
Manufacturer percentage	8%	6%	9%	6%
Manufacturer D [Member]
Product Information [Line Items]
Manufacturer percentage	0%	54%	0%	58%
Manufacturer E [Member]
Product Information [Line Items]
Manufacturer percentage	0%	9%	0%	8%

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
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accounting Policies [Abstract]
Restricted cash					$ 211,000
Allowance for doubtful accounts	0		0		$ 0
Shipping and handling costs	370,000	$ 273,000	932,000	$ 1,040,000
Research and development expenses	$ 32,000	$ 220,000	$ 88,000	$ 347,000

Schedule of Prior Financial Inf

Schedule of Prior Financial Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property, plant and equipment, net of depreciation	$ 487,000		$ 487,000		$ 801,000
Total assets	3,953,000		3,953,000		5,505,000
Accumulated deficit	(60,095,000)		(60,095,000)		(57,972,000)
Total stockholders’ equity	1,293,000	$ 4,616,000	1,293,000	$ 4,616,000	2,933,000	$ 8,503,000
Total liabilities and stockholders’ equity	3,953,000		3,953,000		5,505,000
Depreciation and amortization	114,000	91,000	310,000	327,000
Total operating expenses	1,389,000	1,964,000	4,365,000	5,200,000
Net loss	$ (476,000)	(2,687,000)	(2,123,000)	(4,276,000)
Depreciation and amortization			325,000	344,000
Net cash used in operating activities			$ (2,008,000)	(2,619,000)
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property, plant and equipment, net of depreciation					389,000
Total assets					5,093,000
Accumulated deficit					(58,384,000)
Total stockholders’ equity					2,521,000
Total liabilities and stockholders’ equity					5,093,000
Depreciation and amortization		112,000		390,000
Total operating expenses		1,985,000		5,263,000
Net loss		(2,708,000)		(4,339,000)
Depreciation and amortization				407,000
Net cash used in operating activities				(2,619,000)
Revision of Prior Period, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property, plant and equipment, net of depreciation					412,000
Total assets					412,000
Accumulated deficit					412,000
Total stockholders’ equity					412,000
Total liabilities and stockholders’ equity					$ 412,000
Depreciation and amortization		(21,000)		(63,000)
Total operating expenses		(21,000)		(63,000)
Net loss		$ 21,000		63,000
Depreciation and amortization				(63,000)
Net cash used in operating activities

Schedule of Inventory (Details)

Schedule of Inventory (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 28,000	$ 65,000
Finished goods	720,000	983,000
Inventory, net	$ 748,000	$ 1,048,000

Schedule of Property and Equipm

Schedule of Property and Equipment, Net (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,956,000	$ 3,035,000
Less: accumulated depreciation	(2,469,000)	(2,234,000)
Property and equipment, net of depreciation	487,000	801,000
Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,546,000	1,618,000
Customer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,410,000	$ 1,417,000

Property Plant and Equipment (D

Property Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 102,000	$ 85,000	$ 277,000	$ 297,000
Depreciation expense in cost of revenue	$ 4,000	$ 10,000	$ 13,000	$ 19,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Jul. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Lease expiration date			Mar. 31, 2023
Operating lease extension description			extended in a series of amendments through March 31, 2024
Operating lease expense	$ 20,000	$ 20,000	$ 60,000	$ 60,000
Companies product holdings					52%	42%
Payment due	$ 1,692,000		1,692,000		$ 1,534,000
Legal proceeding			$ 100,000
Related Party [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment due							$ 499,000

Convertible Debt Subscriptions

Convertible Debt Subscriptions (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023	Jul. 31, 2023
Subsequent Event [Line Items]
Convertible Debt			$ 1,880,000
Debt Instrument, Description	The debt may be drawn in 25% increments, matures on the anniversary of the draw, bears interest at 10% per annum for the term, regardless of earlier payment or conversion, and is mandatorily convertible as to principal and interest into shares of the Company’s common stock at any time prior to maturity at the greater of $1.20 or 85% of the volume-weighted average price of the common stock for the ten trading days immediately preceding the written notice of the conversion (the “Conversion Price”).
Subsequent Event [Member]
Subsequent Event [Line Items]
Convertible Debt		$ 2,000,000

Schedule of Changes in Stockhol

Schedule of Changes in Stockholders' Equity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			$ 2,933,000	$ 8,503,000
Shares issued for warrant exercise				5,000
Equity-based compensation			496,000	211,000
Cash settlement of equity-based compensation			(24,000)
Issuance of stock and options for services			11,000	173,000
Net loss	$ (476,000)	$ (2,687,000)	(2,123,000)	(4,276,000)
Balance	1,293,000	4,616,000	1,293,000	4,616,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance
Balance, shares			12,934,741	12,905,112
Shares issued for warrant exercise
Shares issued for warrant exercise, shares				986
Equity-based compensation
Equity-based compensation, shares			165,779	5,000
Cash settlement of equity-based compensation
Issuance of stock and options for services
Issuance of stock and options for services, shares			4,094	23,643
Net loss
Balance
Balance, shares	13,104,614	12,934,741	13,104,614	12,934,741
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			$ 60,905,000	$ 60,341,000
Shares issued for warrant exercise				5,000
Equity-based compensation			496,000	211,000
Cash settlement of equity-based compensation			(24,000)
Issuance of stock and options for services			11,000	173,000
Net loss
Balance	$ 61,388,000	$ 60,730,000	61,388,000	60,730,000
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			(57,972,000)	(51,838,000)
Shares issued for warrant exercise
Equity-based compensation
Cash settlement of equity-based compensation
Issuance of stock and options for services
Net loss			(2,123,000)	(4,276,000)
Balance	$ (60,095,000)	$ (56,114,000)	$ (60,095,000)	$ (56,114,000)

Summary of Stock Options Activi

Summary of Stock Options Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Number of Options, Outstanding, Beginning	682,939
Weighted average exercise price per share, Outstanding, Beginning	$ 7.30
Remaining term in years, Outstanding	3 years 7 months 6 days	3 years 2 months 12 days
Number of Options, Issued	63,545
Weighted average exercise price per share, Issued	$ 1.50
Remaining term in years, Issued	8 years
Number of Options, Cancelled/Expired	(109,388)
Weighted average exercise price per share, Cancelled/Expired	$ 8.48
Number of Options, Outstanding, Ending	637,096	682,939
Weighted average exercise price per share, Outstanding, ending balance	$ 6.54	$ 7.30
Number of Options, Exercisable	576,393
Weighted average exercise price per share, Exercisable	$ 6.75
Remaining term in years, Exercisable	3 years 2 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, 2023 $ / shares
Equity [Abstract]
Expected term (in years)	8 years
Expected volatility	84.40%
Risk-free interest rate	3.60%
Expected dividends
Weighted average grant date fair value per share	$ 1.19

Summary of Restricted Stock Awa

Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Equity [Abstract]
Number of shares, Unvested | shares	41,923
Weighted average grant date fair value, Unvested | $ / shares	$ 4.92
Number of shares, Granted | shares	5,000
Weighted average grant date fair value, Granted | $ / shares	$ 1.25
Number of shares, Vested | shares	(4,386)
Weighted average grant date fair value, Vested | $ / shares	$ 5.06
Number of shares, Forfeited | shares	(9,931)
Weighted average grant date fair value, Forfeited | $ / shares	$ 3.33
Number of shares, Unvested | shares	32,606
Weighted average grant date fair value, Unvested | $ / shares	$ 4.82

Summary of Performance Stock Un

Summary of Performance Stock Unit Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Unvested | shares	41,923
Weighted average grant date fair value, Unvested | $ / shares	$ 4.92
Number of shares, Granted | shares	5,000
Weighted average grant date fair value, Granted | $ / shares	$ 1.25
Number of shares, Vested | shares	(4,386)
Weighted average grant date fair value, Vested | $ / shares	$ 5.06
Number of shares, Unvested | shares	32,606
Weighted average grant date fair value, Unvested | $ / shares	$ 4.82
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares, Unvested | shares	17,678
Weighted average grant date fair value, Unvested | $ / shares	$ 4.50
Number of shares, Cash settled | shares	(17,678)
Weighted average grant date fair value, Cash Settled | $ / shares	$ 4.50
Number of shares, Granted | shares	357,689
Weighted average grant date fair value, Granted | $ / shares	$ 1.64
Number of shares, Vested | shares	(45,251)
Weighted average grant date fair value, Vested | $ / shares	$ 1.36
Number of shares, Unvested | shares	312,438
Weighted average grant date fair value, Unvested | $ / shares	$ 1.68

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended	9 Months Ended
	Sep. 30, 2023	Apr. 30, 2023	Feb. 28, 2023	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrants issued	936,375			936,375	936,375
Exercise price	$ 6			$ 6	$ 6
Unrecognized stock based compensation	$ 153,000			$ 153,000	$ 153,000
Unrecognized share-based compensation weighted average period					1 year 6 months
Grant date fair value			$ 24,000
Stock-based compensation					$ 496,000	$ 211,000
Shares granted					5,000
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date fair value			80,000
Incremental compensation			$ 56,000
Modified to vest					71,000
Stock-based compensation					$ 64,000
Shares granted					357,689
Stock-based compensation				$ 84,000	$ 84,000
Performance Shares [Member] | Time-Based Vesting [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Modified to vest					26,000
2023 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Reserve shares for future issuance	650,000			650,000	650,000
2023 Plan [Member] | Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares granted	76,000	211,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Estimated effective tax rate	0%

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Liquidity
Cash for operations	$ 2,008,000	$ 2,619,000
Cash	1,011,000
Subscription receivable	$ 1,880,000

Schedule of Pro-forma Balance S

Schedule of Pro-forma Balance Sheet (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 1,011,000	$ 2,808,000
Trade accounts receivable, net	1,159,000	126,000
Other receivables	116,000	101,000
Inventory, net	748,000	1,048,000
Prepaid expenses and other current assets	167,000	79,000
Total current assets	3,201,000	4,373,000
Property, plant and equipment, net of depreciation	487,000	801,000
Intangible assets, net of amortization	258,000	306,000
Deposits	7,000	7,000
Total assets	3,953,000	5,505,000
Current liabilities:
Accounts payable	1,692,000	1,534,000
Disputed co-manufacturer accounts payable	499,000	499,000
Accrued expenses	229,000	286,000
Accrued payroll and employee related	240,000	233,000
Total current liabilities	2,660,000	2,572,000
Total liabilities	2,660,000	2,572,000
Stockholders’ equity:
Common stock
Additional paid in capital	61,388,000	60,905,000
Accumulated deficit	(60,095,000)	(57,972,000)
Total stockholders’ equity	1,293,000	2,933,000	$ 4,616,000	$ 8,503,000
Total liabilities and stockholders’ equity	3,953,000	$ 5,505,000
Pro Forma [Member]
Current assets:
Cash	2,401,000
Trade accounts receivable, net	1,159,000
Other receivables	116,000
Inventory, net	748,000
Prepaid expenses and other current assets	167,000
Total current assets	4,591,000
Property, plant and equipment, net of depreciation	487,000
Intangible assets, net of amortization	258,000
Deposits	7,000
Total assets	5,343,000
Current liabilities:
Accounts payable	1,692,000
Disputed co-manufacturer accounts payable	499,000
Accrued expenses	229,000
Accrued payroll and employee related	240,000
Convertible notes payable	183,000
Total current liabilities	2,843,000
Total liabilities	2,843,000
Stockholders’ equity:
Common stock
Additional paid in capital	61,388,000
Accumulated deficit	(58,888,000)
Total stockholders’ equity	2,500,000
Total liabilities and stockholders’ equity	5,343,000
Convertible Debt Drawdown [Member]
Current assets:
Cash	1,390,000
Total current assets	1,390,000
Total assets	1,390,000
Current liabilities:
Accounts payable
Convertible notes payable	1,390,000
Total current liabilities	1,390,000
Total liabilities	1,390,000
Stockholders’ equity:
Total stockholders’ equity
Total liabilities and stockholders’ equity	1,390,000
Conversion of Debt to Equity [Member]
Current assets:
Cash
Total current assets
Total assets
Current liabilities:
Accounts payable
Convertible notes payable	(1,207,000)
Total current liabilities	(1,207,000)
Total liabilities	(1,207,000)
Stockholders’ equity:
Accumulated deficit	1,207,000
Total stockholders’ equity	1,207,000
Total liabilities and stockholders’ equity
Subscription Agreements [Member]
Current assets:
Cash	1,011,000
Trade accounts receivable, net	1,159,000
Other receivables	116,000
Inventory, net	748,000
Prepaid expenses and other current assets	167,000
Total current assets	3,201,000
Property, plant and equipment, net of depreciation	487,000
Intangible assets, net of amortization	258,000
Deposits	7,000
Total assets	3,953,000
Current liabilities:
Accounts payable	1,692,000
Disputed co-manufacturer accounts payable	499,000
Accrued expenses	229,000
Accrued payroll and employee related	240,000
Convertible notes payable
Total current liabilities	2,660,000
Total liabilities	2,660,000
Stockholders’ equity:
Common stock
Additional paid in capital	61,388,000
Accumulated deficit	(60,095,000)
Total stockholders’ equity	1,293,000
Total liabilities and stockholders’ equity	$ 3,953,000

Subsequent Event _ Nasdaq Com_3

Subsequent Event – Nasdaq Compliance (Details Narrative) - USD ($)	Oct. 23, 2023	May 05, 2023	Oct. 31, 2023	Sep. 30, 2023	Jul. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Stockholders' equity				$ 1,293,000			$ 2,933,000	$ 4,616,000	$ 8,503,000
Convertible notes					$ 1,880,000
Common Stock [Member]
Subsequent Event [Line Items]
Stockholders' equity
Subscription Agreements [Member]
Subsequent Event [Line Items]
Stockholders' equity				$ 1,293,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Convertible notes			$ 2,000,000
Subsequent Event [Member] | Subscription Agreements [Member]
Subsequent Event [Line Items]
Convertible notes	$ 1,390,000
Convertible notes including interest and principal payments	$ 1,207,000
Subsequent Event [Member] | Subscription Agreements [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Convertible shares	820,000
The Nasdaq Stock Market, LLC [Member]
Subsequent Event [Line Items]
Stockholders' equity		$ 2,500,000				$ 1,845,000
Market value of listed securities		35,000,000
Net income from continuing operations		$ 500,000