Item
2.02. Results of Operations and Financial Condition.
On
April 13, 2020, Barfresh Food Group, Inc., a Delaware corporation (the “Company”) issued an update on recent business
developments in conjunction with the filing of its form 10-K for the fourth quarter and full year ended December 31, 2019.
The
conference call discussing these results took place on Monday, April 13, 2020, at 1:30 pm Pacific Time (4:30 pm
Eastern Time). A telephonic playback will be available through Monday, April 27, 2020.
Use
of Non-GAAP Measures
Barfresh
Food Group, Inc. prepares its condensed consolidated financial statements in accordance with accounting principles generally accepted
in the United States (“GAAP”). In order to aid in the understanding of the Company’s business performance, the
Company has also presented certain non-GAAP measures, including EBITDA and Adjusted EBITDA, which are reconciled to net (loss)
in the schedules to the press release furnished with this Current Report on Form 8-K as Exhibit 99.1. The primary factors in reconciling
these items are non-cash costs, including stock compensation, stock issued for services, and gain or loss on the sale of derivatives.
Management
believes that Adjusted EBITDA provides useful information to the investor because it is directly reflective of the cash flow of
the Company. In addition, we use Adjusted EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing
the effectiveness of our business strategies; and in making compensation decisions and in communications with our board of directors
concerning our financial performance. The primary factors in reconciling these items are non-cash costs, including stock compensation,
stock issued for services, and gain or loss on the sale of derivatives.
Adjusted
EBITDA should not be considered as an alternative to net loss or to net cash flows from operating activities as a measure of operating
results or of liquidity. It may not be comparable to similarly titled measures used by other companies and exclude financial information
that some may consider important in evaluating the Company’s performance.
Forward
Looking Statements
Except
for historical information herein, matters set forth in this press release are forward-looking within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company’s
commercial progress and future financial performance. These forward-looking statements are identified by the use of words such
as “grow”, “expand”, “anticipate”, “intend”, “estimate”, “believe”,
“expect”, “plan”, “should”, “hypothetical”, “potential”, “forecast”
and “project”, among others. All statements, other than statements of historical fact, included in the press release
that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking
statements. These statements are based on certain assumptions made based on experience, expected future developments and other
factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of the Company and may not materialize. Investors are cautioned
that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction
with the warnings, risk factors and cautionary statements contained in the Company’s recent filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Furthermore, the Company
does not intend, and is not obligated, to update publicly any forward-looking statements, except as required by law.