BARFRESH FOOD GROUP INC. Segments Disclosure
Note 9. Business Segments and Major Customers
As a result of the Acquisition, the Company operates in two business segments. The Chief Executive Officer is the chief operating decision maker (“CODM”) who assesses performance and allocates resources based on actual and projected operating results. The CODM reviews revenue and gross profit in evaluating the efficiency of strategies within each segment, ensuring that financial and operational resources are optimized and aligned with the Company’s overall strategic objectives. The tables below present selected segment data for the years ended December 31, 2025 and 2024:
| 2025 | 2024 | |||||||
| Revenue | ||||||||
| Frozen Beverages and Food | $ | 11,460,000 | $ | 10,717,000 | ||||
| Raw and Processed Milk | 2,748,000 | |||||||
| Revenue | $ | 14,208,000 | $ | 10,717,000 | ||||
| Gross profit | ||||||||
| Frozen Beverages and Food | $ | 2,977,000 | $ | 3,668,000 | ||||
| Raw and Processed Milk | 137,000 | |||||||
| Gross profit | 3,114,000 | 3,668,000 | ||||||
| Unallocated: | ||||||||
| Total operating expenses | (6,546,000) | (6,441,000 | ) | |||||
| Bargain purchase | 767,000 | |||||||
| Debt guarantee expense | (97,000 | ) | ||||||
| Interest expense | (217,000 | ) | (52,000 | ) | ||||
| Net loss before benefit of income tax | $ | (2,979,000 | ) | $ | (2,825,000 | ) | ||
Assets are not regularly allocated to segments or considered by the CODM in assessing the performance of segments as there is a high degree of commonality in the assets utilized by the Company’s segments. Therefore, assets by segment are not presented.
Sales to the following customers represented more than 10% of total sales for the years ended December 31, 2025 and 2024:
| 2025 | 2024 | |||||||
| Customer A– Frozen Beverages and Food | 16 | % | 15 | % | ||||
| Customer B– Raw and Processed Milk | 15 | % | % | |||||
| Customer C– Frozen Beverages and Food | 11 | % | 14 | % | ||||
| Customer D– Frozen Beverages and Food | 10 | % | 15 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 22, 2024 | |
| 2022 | Mar 2, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Apr 14, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.