Barfresh Food Group Inc.

Good afternoon everyone and thank you for participating on today's third quarter 2023 corporate update call for Barfresh Food Group. Joining us today is Barfresh Food Group's founder and CEO Ricardo de la Costa and Barfresh Food Group's CFO Lisa Roger. Following prepared remarks, we will open the call for your questions. The discussion today will include forward-looking statements, Except for historical information herein, matters set forth on this call 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, success of its strategic relationships, and projections of 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, continue, could, may, predict and will. And variations of such words and similar expressions are intended to identify such forward-looking statements. All statements other than the statements of historical fact 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 that 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. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this call should be considered in conjunction with the company's recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K and the quarterly reports on Form 10-Q and current reports on Form 8-K, including any warning, risk factors or cautionary statements contained therein. The company expressly disclaims any current intention to update publicly any forward-looking statements after this call, whether as a result of new information, future events, changing assumptions, or otherwise. In order to aid in the understanding of the company's business performance, the company is also presenting certain non-cap measures, including adjusted EBITDA, which are reconciled in the table in the business update released to the most comparable gap measures. The reconciling items are non-operational or non-cash costs, including stock compensation, stock issued for services, and other non-recurring costs, such as those associated with the product withdrawal and the company's NASDAQ uplist. Management believes that adjusted EBITDA provides useful information to the investor because it's directly reflective of the period-to-period performance of the company's core business. Now, I'll turn the call over to the CEO of Barfresh Food Group, Mr. Ricardo Dellacoste.

Please, sir, go ahead.

Good afternoon, everyone, and thank you for joining us for our third quarter 2023 earnings call. It's been a year now since our sales were materially impacted by the loss of our largest Twist & Go bottle manufacturer. the withdrawal of defective products, and as a result, the loss of some of our customers. Over the past year, we have worked tirelessly to roll out our smoothie cartons and use it to win back some of those lost customers, continued to expand our reach within the education channel with the signing of new school accounts, and continued to advance our operational margin improvement efforts. We have also worked to expand our carton production capacity and locate a new bottle manufacturer, both of which are crucial to supporting our long-term growth. I'm very proud to say that based on these actions, our third quarter revenue was within our guidance, up both sequentially and year over year to 2.6 million, and we achieved the best adjusted EBITDA in company history, close to break even at a loss of $87,000. We are set to realize positive adjusted EBITDA for the fourth quarter and year-over-year margin improvement for fiscal year 2023. As it pertains to expanding our reach within the education channel, we recently issued a press release highlighting some of our new wins in this channel. We announced that just seven of the new school districts we are working with represent over 1,000 new school locations and a collective population of over 750,000 students. Also of note, one of the seven districts is in the top five largest school districts in the United States. We have found over the past year that our smoothie carton fits nicely with the growing trend in schools to move toward more ecologically friendly products and has provided us an entry point into more of the high volume school accounts. We believe there is still a lot of white space for us in this channel and believe our increased carton capacity and soon to come increased bottle capacity will position us to capitalise on that opportunity. We worked throughout the year to increase our capacity and are on track with our carton co-manufacturer to end the year with them having the capacity to produce between 25 to 30 million units annually. And as for our bottle capacity, we are working to finalise an agreement with a new bottle co-manufacturer that could have us supplying more bottle product in the early part of next fiscal year. We believe that both capacity initiatives will result in a dramatic increase in our top-line growth across many different accounts and channels. In summary, while it has been a challenging year due to the events that occurred last year that were outside of our control, we believe we have taken actions so that exiting this year, we have an expanded customer base and manufacturing capabilities needed to put us back on a path towards sustainable long-term growth. I'll now turn the call over to our CFO, Lisa Roger. Lisa?