BRFH — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-14

• The acquisition of Arps Dairy gives us the expanded capacity we have sought over the past three years, necessary to service our customer base and expand our sales reach.

• Cost of revenue increased $2,569,000, or 127%, to $4,599,000 in 2026 as compared to $2,030,000 in 2025. Cost of revenue increased at a higher rate compared to revenue due to the inclusion of the raw and processed milk operations after the Acquisition. Products in this segment are generally commoditi…

• Sales and marketing expense decreased approximately $179,000 (41%) from approximately $433,000 in 2025 to $254,000 in 2026. The decrease is a result of lower personnel costs as we rely more heavily on our broker network, as well as a decrease in sample expense, which was elevated in 2025 due to the …

• Storage and outbound freight expense increased approximately $52,000 (13%) from approximately $391,000 in 2025 to $443,000 in 2026, primarily due to costs associated with the delivery of processed milk at Arps Dairy.

• General and administrative expenses increased approximately $8,000 (1%) from approximately $747,000 in 2025 to $755,000 in 2026.

Text removed vs the prior filing · source: 10-Q · 2025-11-06

• Revenue increased as a result of growth in our Twist & Go products and the introduction of Pop & Go in the fourth quarter of 2024. We have been able to expand our capacity on a limited basis at our existing smoothie bottle manufacturer and have been developing an additional manufacturer relationship…

• Cost of revenue increased $302,000, or 13%, to $2,679,000 in 2025 as compared to $2,377,000 in 2024. Cost of revenue increased at a lower rate compared to revenue due to the non-recurrence in 2025 of manufacturing relocation expenses incurred in 2024, partially offset by inventory costs.

• Our gross profit was $1,552,000 (37%) and $1,260,000 (35%) for 2025 and 2024, respectively. Excluding production relocation costs, our gross profit was $1,386,000 in 2024 (38%). The reduction in gross margin is a result of product mix and inventory costs, partially offset by the non-recurrence of ma…

• Three months ended September 30, Three months ended September 30,

• Selling, marketing and distribution expense decreased approximately $49,000 (5%) from approximately $990,000 in 2024 to $941,000 in 2025.

Text added vs the prior filing · source: 10-Q · 2026-05-14

• Management has identified the following material weakness in our internal control over financial reporting:

• Management has concluded that there is a material weakness due to the control environment. The control environment is impacted due to the Company’s inadequate segregation of duties, primarily information technology control activities.

• Management recognizes that there are inherent limitations in the effectiveness of any system of internal control, and accordingly, even effective internal control can provide only reasonable assurance with respect to financial statement preparation and may not prevent or detect material misstatement…

• In an effort to remediate the identified material weakness and enhance our internal control over financial reporting, we will fully engage our information technology personnel to help ensure that we are able to properly implement internal control procedures.

• This report shall not be deemed to be filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporat…