Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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, $0.000001 par value | |
Trading Symbol | BRFH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,719,875 | |
Entity Information, Former Legal or Registered Name | Not Applicable |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 1,167,000 | $ 1,891,000 |
Trade accounts receivable, net | 1,366,000 | 821,000 |
Other receivables | 20,000 | 160,000 |
Inventory, net | 1,284,000 | 1,214,000 |
Prepaid expenses and other current assets | 230,000 | 67,000 |
Total current assets | 4,067,000 | 4,153,000 |
Property, plant and equipment, net of depreciation | 350,000 | 409,000 |
Intangible assets, net of amortization | 226,000 | 241,000 |
Other non-current assets | 105,000 | 7,000 |
Total assets | 4,748,000 | 4,810,000 |
Current liabilities: | ||
Accounts payable | 1,328,000 | 1,670,000 |
Disputed co-manufacturer accounts payable (Note 5) | 499,000 | 499,000 |
Accrued expenses | 225,000 | 85,000 |
Accrued payroll and employee related | 34,000 | 53,000 |
Total current liabilities | 2,086,000 | 2,307,000 |
Other non-current liabilities | 126,000 | |
Total liabilities | 2,212,000 | 2,307,000 |
Commitments and contingencies | ||
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; 14,719,875 and 14,420,105 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | ||
Additional paid in capital | 63,781,000 | 63,299,000 |
Accumulated deficit | (61,245,000) | (60,796,000) |
Total stockholders’ equity | 2,536,000 | 2,503,000 |
Total liabilities and stockholders’ equity | $ 4,748,000 | $ 4,810,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 14,719,875 | 14,420,105 |
Common stock, shares outstanding | 14,719,875 | 14,420,105 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 2,829,000 | $ 2,091,000 |
Cost of revenue | 1,659,000 | 1,236,000 |
Gross profit | 1,170,000 | 855,000 |
Operating expenses: | ||
Selling, marketing and distribution | 694,000 | 667,000 |
General and administrative | 858,000 | 994,000 |
Depreciation and amortization | 67,000 | 83,000 |
Total operating expenses | 1,619,000 | 1,744,000 |
Net loss | $ (449,000) | $ (889,000) |
Per share information - basic and fully diluted: | ||
Weighted average shares outstanding - basic | 14,500,863 | 12,977,000 |
Weighted average shares outstanding - diluted | 14,500,863 | 12,977,000 |
Net loss per share - basic | $ (0.03) | $ (0.07) |
Net loss per share - diluted | $ (0.03) | $ (0.07) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (449,000) | $ (889,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation | 366,000 | 268,000 |
Depreciation and amortization | 74,000 | 86,000 |
Stock and options issued for services | 8,000 | |
Changes in assets and liabilities | ||
Accounts receivable | (545,000) | (445,000) |
Other receivables | 140,000 | 90,000 |
Inventories | (70,000) | (7,000) |
Prepaid expenses and other assets | (107,000) | (92,000) |
Accounts payable | (271,000) | (228,000) |
Accrued expenses | 93,000 | (15,000) |
Net cash used in operating activities | (769,000) | (1,224,000) |
Financing activities | ||
Issuance of debt (Note 6) | 65,000 | |
Repurchases from stock compensation program | (20,000) | (18,000) |
Net cash provided by (used in) financing activities | 45,000 | (18,000) |
Net decrease in cash and restricted cash | (724,000) | (1,242,000) |
Cash, beginning of period | 1,891,000 | 3,019,000 |
Cash, end of period | 1,167,000 | 1,777,000 |
Cash paid during the period for: | ||
Amounts included in the measurement of lease liabilities | 20,000 | |
Non-cash financing and investing activities: | ||
Convertible notes issued in exchange for trade payables | 71,000 | |
Conversion of debt and interest to equity | 136,000 | |
Acquisition of long-term software license in exchange for contract payable | 154,000 | |
Value of shares relinquished in modification of stock-based compensations awards | $ 24,000 |
Description of the Business, Ba
Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 22, 2024. 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 concentration 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 Contract Manufacturers Percentage of Finished Goods 2024 2023 Manufacturer A 63 % 48 % Manufacturer B 36 % 46 % Manufacturer C 1 % 6 % Concentration risk percentage 1 % 6 % 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, 2023, as filed with the SEC on March 22, 2024 that have had a material impact on our condensed consolidated financial statements and related notes. Financial Instruments The Company’s financial instruments consist of cash, accounts receivable and accounts payable. The carrying value of the Company’s financial instruments approximates their fair value. 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 March 31, 2024 and December 31, 2023, there was no no Other Receivables Other receivables consist of the Company’s 2021 Employer Retention Credit “ERC” claim, which the Company collected in March 2024, amounts due from vendors for materials acquired on their behalf for use in manufacturing the Company’s products, vendor rebates and freight claims. ERC claims can be made in a variety of circumstances with varying degrees of subjectivity and clear authoritative guidance. Paid claims are subject to IRS inspection which may occur prior to expiration of the statute of limitations. The Company’s ERC claim was based on objectively calculated declines in revenue using methods that are clearly defined in the Coronavirus Aid, Relief, and Economic Security Act and various regulations and interpretations thereof. 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 March 31, 2024 and 2023, storage and outbound freight totaled approximately $ 364,000 311,000 Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. The Company incurred approximately $ 30,000 21,000 Loss Per Share For the three months ended March 31, 2024 and 2023 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 2023 financial statements to conform to the 2024 presentation, namely stock-based compensation paid to the Company’s directors has been reclassified from stock and options issued for services and shares repurchased for employee tax withholding under the Company’s stock compensation program have been reclassified to financing activities in the consolidated statement of cash flows, with corresponding changes reflected in the statement of stockholders’ equity for the three months ended March 31, 2023. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 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 Three-months ended March 31, 2023 As Previously Reported Adjustment Restated Consolidated Statement of Operations Depreciation and amortization $ 104,000 $ (21,000 ) $ 83,000 Total operating expenses $ 1,765,000 $ (21,000 ) $ 1,744,000 Net loss $ (910,000 ) $ 21,000 $ (889,000 ) Consolidated Statement of Cash Flows Net loss $ (910,000 ) $ 21,000 $ (889,000 ) Depreciation and amortization $ 107,000 $ (21,000 ) $ 86,000 Net cash used in operating activities $ (1,224,000 ) $ - $ (1,224,000 ) |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory Inventory consists of the following: Schedule of Inventory March 31, December 31, 2024 2023 Raw materials $ 28,000 $ 28,000 Finished goods 1,256,000 1,186,000 Inventory, net $ 1,284,000 $ 1,214,000 |
Property Plant and Equipment
Property Plant and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, December 31, 2024 2023 Manufacturing equipment $ 1,546,000 $ 1,546,000 Customer equipment 1,404,000 1,410,000 Property and equipment, gross 2,950,000 2,956,000 Less: accumulated depreciation (2,600,000 ) (2,547,000 ) Property and equipment, net of depreciation $ 350,000 $ 409,000 Depreciation expense related to these assets was approximately $ 59,000 71,000 7,000 4,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 September 30, 2024. 20,000 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 and continues to progress through the court system. 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 Notes
Convertible Notes | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Note 6. Convertible Notes From July 2023 to March 2024, the Company executed subscription agreements for substantially all of a $ 2,000,000 The debt was available to be drawn in 25% increments, maturing on the anniversary of the draw, bearing interest at 10% per annum for the term, regardless of earlier payment or conversion, and was 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”). On October 23, 2023, the Company drew down $ 1,390,000 1,207,000 820,160 470,000 653,000 4,000 495,331 136,000 124,208 30,000 71,000 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 7. Stockholders’ Equity The following are changes in stockholders’ equity for the three months ended March 31, 2023 and 2024: Schedule of Changes in Stockholders' Equity 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 Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding 65,779 - (18,000 ) - (18,000 ) Equity-based compensation expense - - 268,000 - 268,000 Cash settlement of equity-based compensation - - (24,000 ) - (24,000 ) Conversion of debt and interest (Note 6) 124,208 Issuance of stock for services 2,083 - 8,000 - 8,000 Net loss - - - (889,000 ) (889,000 ) Balance March 31, 2023 13,002,603 $ - $ 61,139,000 $ (58,861,000 ) $ 2,278,000 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2023 14,420,105 $ - $ 63,299,000 $ (60,796,000 ) $ 2,503,000 Balance 14,420,105 $ - $ 63,299,000 $ (60,796,000 ) $ 2,503,000 Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding 175,562 - (20,000 ) - (20,000 ) Equity-based compensation expense - - 366,000 - 366,000 Conversion of debt and interest (Note 6) 124,208 - 136,000 - 136,000 Net loss - - - (449,000 ) (449,000 ) Balance March 31, 2024 14,719,875 $ - $ 63,781,000 $ (61,245,000 ) $ 2,536,000 Balance 14,719,875 $ - $ 63,781,000 $ (61,245,000 ) $ 2,536,000 Warrants During the three months ended March 31, 2024, 122,739 9.10 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 650,000 650,000 1,300,000 As of March 31, 2024, the Company has $ 77,000 1.1 Stock Options The following is a summary of stock option activity for the three months ended March 31, 2024: Schedule of Stock Options Activity Number of Options Weighted average exercise price per share Remaining term in years Outstanding on December 31, 2023 587,091 $ 6.50 3.6 Issued 43,695 $ 1.50 8.0 Outstanding on March 31, 2024 630,786 $ 6.15 3.8 Exercisable, March 31, 2024 582,316 $ 6.31 3.6 The fair value of the options issued was calculated using the Black-Scholes option pricing model, based on the following: Schedule of Fair Value of Options Using Black-Sholes Option Pricing Model 2024 Expected term (in years) 8.0 Expected volatility 84.4 % Risk-free interest rate 3.9 % Expected dividends $ - Weighted average grant date fair value per share $ 1.15 Restricted Stock The following is a summary of restricted stock award and restricted stock unit activity for the three months ended March 31, 2024: Schedule of Restricted Stock Award and Restricted Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2024 32,606 $ 4.82 Granted 5,000 $ 1.20 Vested (10,233 ) $ 5.26 Unvested at March 31, 2024 27,373 $ 3.99 Performance Share Units During 2023 and 2024, 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 three months ended March 31, 2024: Schedule of Performance Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2024 63,888 $ 1.70 Granted 445,000 $ 1.20 Vested (48,932 ) $ 1.15 Forfeited (2,548 ) $ 1.15 Unvested and expected to vest at March 31, 2024 457,408 $ 1.20 In February 2023, the unvested awards issued and outstanding for individual performance under the 2022 PSU program 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 2024 PSU program in March 2024, granting approximately 445,000 125,000 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, the estimated effective tax rate for 2024 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 months ended March 31, 2024 and 2023, the Company did not incur any interest and penalties associated with tax positions. As of March 31, 2024, the Company did not have any significant unrecognized uncertain tax positions. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2024 | |
Liquidity | |
Liquidity | Note 9. Liquidity During the three months ended March 31, 2024, the Company used cash for operations of $ 769,000 However, as of March 31, 2024, the Company has $ 1,167,000 |
Description of the Business, _2
Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 22, 2024. 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 concentration 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 Contract Manufacturers Percentage of Finished Goods 2024 2023 Manufacturer A 63 % 48 % Manufacturer B 36 % 46 % Manufacturer C 1 % 6 % Concentration risk percentage 1 % 6 % |
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, 2023, as filed with the SEC on March 22, 2024 that have had a material impact on our condensed consolidated financial statements and related notes. |
Financial Instruments | Financial Instruments The Company’s financial instruments consist of cash, accounts receivable and accounts payable. The carrying value of the Company’s financial instruments approximates their fair value. |
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 March 31, 2024 and December 31, 2023, there was no no |
Other Receivables | Other Receivables Other receivables consist of the Company’s 2021 Employer Retention Credit “ERC” claim, which the Company collected in March 2024, amounts due from vendors for materials acquired on their behalf for use in manufacturing the Company’s products, vendor rebates and freight claims. ERC claims can be made in a variety of circumstances with varying degrees of subjectivity and clear authoritative guidance. Paid claims are subject to IRS inspection which may occur prior to expiration of the statute of limitations. The Company’s ERC claim was based on objectively calculated declines in revenue using methods that are clearly defined in the Coronavirus Aid, Relief, and Economic Security Act and various regulations and interpretations thereof. |
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 March 31, 2024 and 2023, storage and outbound freight totaled approximately $ 364,000 311,000 |
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 $ 30,000 21,000 |
Loss Per Share | Loss Per Share For the three months ended March 31, 2024 and 2023 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 2023 financial statements to conform to the 2024 presentation, namely stock-based compensation paid to the Company’s directors has been reclassified from stock and options issued for services and shares repurchased for employee tax withholding under the Company’s stock compensation program have been reclassified to financing activities in the consolidated statement of cash flows, with corresponding changes reflected in the statement of stockholders’ equity for the three months ended March 31, 2023. |
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) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Contract Manufacturers Percentage of Finished Goods | Schedule of Contract Manufacturers Percentage of Finished Goods 2024 2023 Manufacturer A 63 % 48 % Manufacturer B 36 % 46 % Manufacturer C 1 % 6 % Concentration risk percentage 1 % 6 % |
Restatement of Prior Financia_2
Restatement of Prior Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Prior Financial Information | Schedule of Prior Financial Information Three-months ended March 31, 2023 As Previously Reported Adjustment Restated Consolidated Statement of Operations Depreciation and amortization $ 104,000 $ (21,000 ) $ 83,000 Total operating expenses $ 1,765,000 $ (21,000 ) $ 1,744,000 Net loss $ (910,000 ) $ 21,000 $ (889,000 ) Consolidated Statement of Cash Flows Net loss $ (910,000 ) $ 21,000 $ (889,000 ) Depreciation and amortization $ 107,000 $ (21,000 ) $ 86,000 Net cash used in operating activities $ (1,224,000 ) $ - $ (1,224,000 ) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: Schedule of Inventory March 31, December 31, 2024 2023 Raw materials $ 28,000 $ 28,000 Finished goods 1,256,000 1,186,000 Inventory, net $ 1,284,000 $ 1,214,000 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, December 31, 2024 2023 Manufacturing equipment $ 1,546,000 $ 1,546,000 Customer equipment 1,404,000 1,410,000 Property and equipment, gross 2,950,000 2,956,000 Less: accumulated depreciation (2,600,000 ) (2,547,000 ) Property and equipment, net of depreciation $ 350,000 $ 409,000 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Equity | The following are changes in stockholders’ equity for the three months ended March 31, 2023 and 2024: Schedule of Changes in Stockholders' Equity 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 Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding 65,779 - (18,000 ) - (18,000 ) Equity-based compensation expense - - 268,000 - 268,000 Cash settlement of equity-based compensation - - (24,000 ) - (24,000 ) Conversion of debt and interest (Note 6) 124,208 Issuance of stock for services 2,083 - 8,000 - 8,000 Net loss - - - (889,000 ) (889,000 ) Balance March 31, 2023 13,002,603 $ - $ 61,139,000 $ (58,861,000 ) $ 2,278,000 Additional Common Stock paid in Accumulated Shares Amount Capital (Deficit) Total Balance December 31, 2023 14,420,105 $ - $ 63,299,000 $ (60,796,000 ) $ 2,503,000 Balance 14,420,105 $ - $ 63,299,000 $ (60,796,000 ) $ 2,503,000 Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding 175,562 - (20,000 ) - (20,000 ) Equity-based compensation expense - - 366,000 - 366,000 Conversion of debt and interest (Note 6) 124,208 - 136,000 - 136,000 Net loss - - - (449,000 ) (449,000 ) Balance March 31, 2024 14,719,875 $ - $ 63,781,000 $ (61,245,000 ) $ 2,536,000 Balance 14,719,875 $ - $ 63,781,000 $ (61,245,000 ) $ 2,536,000 |
Schedule of Stock Options Activity | The following is a summary of stock option activity for the three months ended March 31, 2024: Schedule of Stock Options Activity Number of Options Weighted average exercise price per share Remaining term in years Outstanding on December 31, 2023 587,091 $ 6.50 3.6 Issued 43,695 $ 1.50 8.0 Outstanding on March 31, 2024 630,786 $ 6.15 3.8 Exercisable, March 31, 2024 582,316 $ 6.31 3.6 |
Schedule 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: Schedule of Fair Value of Options Using Black-Sholes Option Pricing Model 2024 Expected term (in years) 8.0 Expected volatility 84.4 % Risk-free interest rate 3.9 % Expected dividends $ - Weighted average grant date fair value per share $ 1.15 |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity | The following is a summary of restricted stock award and restricted stock unit activity for the three months ended March 31, 2024: Schedule of Restricted Stock Award and Restricted Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2024 32,606 $ 4.82 Granted 5,000 $ 1.20 Vested (10,233 ) $ 5.26 Unvested at March 31, 2024 27,373 $ 3.99 |
Schedule of Performance Stock Unit Activity | The following table summarizes the activity for the Company’s unvested PSUs for the three months ended March 31, 2024: Schedule of Performance Stock Unit Activity Number of shares Weighted average grant date fair value Unvested at January 1, 2024 63,888 $ 1.70 Granted 445,000 $ 1.20 Vested (48,932 ) $ 1.15 Forfeited (2,548 ) $ 1.15 Unvested and expected to vest at March 31, 2024 457,408 $ 1.20 |
Schedule of Contract Manufactur
Schedule of Contract Manufacturers Percentage of Finished Goods (Details) - Purchases [Member] - Supplier Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Manufacturer A [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 63% | 48% |
Manufacturer B [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 36% | 46% |
Manufacturer C [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 1% | 6% |
Description of the Business, _4
Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Credit loss expense | 0 | $ 0 | |
Shipping and storage costs | 364,000 | 311,000 | |
Research and development expenses | $ 30,000 | $ 21,000 |
Schedule of Prior Financial Inf
Schedule of Prior Financial Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Depreciation and amortization | $ 67,000 | $ 83,000 |
Total operating expenses | 1,619,000 | 1,744,000 |
Net loss | (449,000) | (889,000) |
Depreciation and amortization | 74,000 | 86,000 |
Net cash used in operating activities | $ (769,000) | (1,224,000) |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Depreciation and amortization | 104,000 | |
Total operating expenses | 1,765,000 | |
Net loss | (910,000) | |
Depreciation and amortization | 107,000 | |
Net cash used in operating activities | (1,224,000) | |
Revision of Prior Period, Reclassification, Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Depreciation and amortization | (21,000) | |
Total operating expenses | (21,000) | |
Net loss | 21,000 | |
Depreciation and amortization | (21,000) | |
Net cash used in operating activities |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 28,000 | $ 28,000 |
Finished goods | 1,256,000 | 1,186,000 |
Inventory, net | $ 1,284,000 | $ 1,214,000 |
Schedule of Property and Equipm
Schedule of Property and Equipment, Net (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,950,000 | $ 2,956,000 |
Less: accumulated depreciation | (2,600,000) | (2,547,000) |
Property and equipment, net of depreciation | 350,000 | 409,000 |
Manufacturing Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,546,000 | 1,546,000 |
Customer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,404,000 | $ 1,410,000 |
Property Plant and Equipment (D
Property Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 59,000 | $ 71,000 |
Depreciation expense in cost of revenue | $ 7,000 | $ 4,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Jul. 31, 2022 | |
Loss Contingencies [Line Items] | ||||||
Lease expiration date | Mar. 31, 2023 | |||||
Operating lease extension description | extended in a series of amendments through September 30, 2024. | |||||
Operating lease cost | $ 20,000 | $ 20,000 | ||||
Companies product holdings | 52% | 42% | ||||
Payment due to manufacturer | 1,328,000 | $ 1,670,000 | ||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Legal proceeding amount | $ 100,000 | |||||
Related Party [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Payment due to manufacturer | $ 499,000 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | 9 Months Ended | ||||
Mar. 29, 2024 | Dec. 19, 2023 | Oct. 23, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |||||
Convertible Debt | $ 136,000 | $ 470,000 | $ 1,390,000 | $ 2,000,000 | |
Convertible debt description | The debt was available to be drawn in 25% increments, maturing on the anniversary of the draw, bearing interest at 10% per annum for the term, regardless of earlier payment or conversion, and was 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”). | ||||
Converted principal amount | $ 653,000 | $ 1,207,000 | |||
Shares issued upon debt conversion | 124,208 | 495,331 | 820,160 | ||
Accrued interest converted | $ 4,000 | ||||
Accounts payable | $ 71,000 | $ 30,000 |
Schedule of Changes in Stockhol
Schedule of Changes in Stockholders' Equity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 2,503,000 | $ 2,933,000 |
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding | (20,000) | (18,000) |
Equity-based compensation expense | 366,000 | 268,000 |
Cash settlement of equity-based compensation | (24,000) | |
Conversion of debt and interest (Note 6) | 136,000 | |
Issuance of stock for services | 8,000 | |
Net loss | (449,000) | (889,000) |
Balance | 2,536,000 | 2,278,000 |
Common Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | ||
Balance, shares | 14,420,105 | 12,934,741 |
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding | ||
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding, shares | 175,562 | 65,779 |
Equity-based compensation expense | ||
Cash settlement of equity-based compensation | ||
Conversion of debt and interest (Note 6) | ||
Conversion of debt and interest (Note 6), shares | 124,208 | |
Issuance of stock for services | ||
Issuance of stock for services, shares | 2,083 | |
Net loss | ||
Balance | ||
Balance, shares | 14,719,875 | 13,002,603 |
Additional Paid-in Capital [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 63,299,000 | $ 60,905,000 |
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding | (20,000) | (18,000) |
Equity-based compensation expense | 366,000 | 268,000 |
Cash settlement of equity-based compensation | (24,000) | |
Conversion of debt and interest (Note 6) | 136,000 | |
Issuance of stock for services | 8,000 | |
Net loss | ||
Balance | 63,781,000 | 61,139,000 |
Retained Earnings [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (60,796,000) | (57,972,000) |
Issuance of common stock for equity compensation, net of shares repurchased for income tax withholding | ||
Equity-based compensation expense | ||
Cash settlement of equity-based compensation | ||
Conversion of debt and interest (Note 6) | ||
Issuance of stock for services | ||
Net loss | (449,000) | (889,000) |
Balance | $ (61,245,000) | $ (58,861,000) |
Schedule of Stock Options Activ
Schedule of Stock Options Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Equity [Abstract] | ||
Number of Options, Outstanding Beginning | 587,091 | |
Weighted average exercise price per share, Outstanding, Beginning | $ 6.50 | |
Remaining term in years, Outstanding | 3 years 9 months 18 days | 3 years 7 months 6 days |
Number of Options, Issued | 43,695 | |
Weighted average exercise price per share, Issued | $ 1.50 | |
Remaining term in years, Issued | 8 years | |
Number of Options, Outstanding Ending | 630,786 | 587,091 |
Weighted average exercise price per share, Outstanding Ending | $ 6.15 | $ 6.50 |
Number of Options, Exercisable | 582,316 | |
Weighted average exercise price per share, Exercisable | $ 6.31 | |
Remaining term in years, Exercisable | 3 years 7 months 6 days |
Schedule of Fair Value of Optio
Schedule of Fair Value of Options Using Black-Sholes Option Pricing Model (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Equity [Abstract] | |
Expected term (in years) | 8 years |
Expected volatility | 84.40% |
Risk-free interest rate | 3.90% |
Expected dividends | |
Weighted average grant date fair value per share | $ 1.15 |
Schedule of Restricted Stock Aw
Schedule of Restricted Stock Award and Restricted Stock Unit Activity (Details) - Restricted Stock Award and Restricted Stock Unit [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares, Unvested Beginning Balance | shares | 32,606 |
Weighted average grant date fair value, Unvested Beginning Balance | $ / shares | $ 4.82 |
Number of shares, Granted | shares | 5,000 |
Weighted average grant date fair value, Granted | $ / shares | $ 1.20 |
Number of shares, Vested | shares | (10,233) |
Weighted average grant date fair value, Vested | $ / shares | $ 5.26 |
Number of shares, Unvested Ending Balance | shares | 27,373 |
Weighted average grant date fair value, Unvested Ending Balance | $ / shares | $ 3.99 |
Schedule of Performance Stock U
Schedule of Performance Stock Unit Activity (Details) - Performance Shares [Member] | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares, Unvested Beginning Balance | shares | 63,888 |
Weighted average grant date fair value, Unvested Beginning Balance | $ / shares | $ 1.70 |
Number of shares, Granted | shares | 445,000 |
Weighted average grant date fair value, Granted | $ / shares | $ 1.20 |
Number of shares, Vested | shares | (48,932) |
Weighted average grant date fair value, Vested | $ / shares | $ 1.15 |
Number of shares, Forfeited | shares | (2,548) |
Weighted average grant date fair value, Forfeited | $ / shares | $ 1.15 |
Number of shares, Unvested Ending Balance | shares | 457,408 |
Weighted average grant date fair value, Unvested Ending Balance | $ / shares | $ 1.20 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2024 | Feb. 28, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Warrants expired | 122,739 | ||||
Warrants exercise price | $ 9.10 | $ 9.10 | |||
Unrecognized share-based compensation | $ 77,000 | $ 77,000 | |||
Unrecognized share-based compensation weighted average period | 1 year 1 month 6 days | ||||
Share-based compensation expense | $ 366,000 | $ 268,000 | |||
Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Cash settle of grant-date fair value | $ 80,000 | ||||
Share-based compensation expense | 56,000 | $ 64,000 | |||
Grant date fair value of vested shares | $ 24,000 | ||||
Modified to vest | 71,000 | ||||
Shares granted | 445,000 | ||||
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] | Maximum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Reserve shares for future issuance | 1,300,000 | 1,300,000 | |||
2024 PSUs Program [Member] | Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 125,000 | ||||
Shares granted | 445,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Estimated effective tax rate | 0% |
Liquidity (Details Narrative)
Liquidity (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liquidity | ||
Cash for operations | $ 769,000 | $ 1,224,000 |
Cash | $ 1,167,000 |