# EDGAR Filing Document

**Accession Number:** 0001487197
**File Stem:** 0001493152-25-026360
**Filing Date:** 2025-12
**Character Count:** 83376
**Document Hash:** d4921275534d36393000daf61ed4f99d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-026360.hdr.sgml**: 20251205

**ACCESSION NUMBER**: 0001493152-25-026360

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20251003

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251205

**DATE AS OF CHANGE**: 20251205

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BARFRESH FOOD GROUP INC.
- **CENTRAL INDEX KEY:** 0001487197
- **STANDARD INDUSTRIAL CLASSIFICATION:** CANNED, FROZEN & PRESERVED FRUIT, VEG & FOOD SPECIALTIES [2030]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 271994359
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41228
- **FILM NUMBER:** 251552966

**BUSINESS ADDRESS:**
- **STREET 1:** 3600 WILSHIRE SUITE 1720
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90010
- **BUSINESS PHONE:** 310-598-7110

**MAIL ADDRESS:**
- **STREET 1:** 3600 WILSHIRE SUITE 1720
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90010

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Moving Box Inc
- **DATE OF NAME CHANGE:** 20100315

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K/A**

**Amendment No. 1**

**CURRENT REPORT**

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): **October 3, 2025**

**BARFRESH FOOD GROUP INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41228** | **27-1994406** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

**3600 Wilshire Boulevard Suite 1720, Los Angeles, California 90010**

(Address of principal executive offices)

Registrant's telephone number, including area code: **(310) 598-7113**

**<u>N/A</u>**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| **Common Stock, $0.000001 par value** | **BRFH** | **The Nasdaq Stock Market LLC** |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Explanatory Note**

On October 7, 2025, Barfresh Food Group Inc., a Delaware corporation ("the Company") filed a Current Report on Form 8-K with the Securities and Exchange Commission (the "Original 8-K"), which reported that on October 3, 2025, the Company completed the acquisition of Arps Dairy, Inc. ("Arps"), pursuant to the Stock Purchase Agreement (the "Purchase Agreement"), dated as of September 15, 2025, among the Company, Arps and the shareholders of Arps. This first amendment to the Original 8-K ("Amendment No. 1") is being filed for the purpose of satisfying the Company's undertaking to file the financial statements and pro forma financial statements required by Item 9.01 of Form 8-K. This Amendment No. 1 should be read in conjunction with the Original 8-K. Except as set forth herein, no modifications have been made to information contained in the Original 8-K.

**Item 9.01. Financial Statements and Exhibits.**

(a) *Financial statements of business acquired*.

The audited financial statements as of and for the years ended December 31, 2024 and 2023 of Arps Dairy, Inc. and the unaudited condensed financial statements for the nine-month period ended September 30, 2025 are attached as Exhibits 99.1 and 99.2, respectively, to this Form 8-K/A. Such financial statements were prepared in accordance with accounting principles generally accepted in the United States of America.

(b) *Pro forma financial information*.

The unaudited pro forma combined condensed financial information as of and for the year ended December 31, 2024 and the unaudited pro forma combined condensed financial information as of and for the nine months ended September 30, 2025, related to the Company's acquisition of Arp's Dairy, Inc. are attached as Exhibit 99.3 to this Form 8-K/A.

(d) *Exhibits*

---

| | |
|:---|:---|
| 23.1 | [Consent of Eide Bailly LLP.](ex23-1.htm) |
| 99.1 | [Audited Financial Statements of Arps Dairy, Inc. as of and for the years ended December 31, 2024 and 2023.](ex99-1.htm) |
| 99.2 | [Unaudited Condensed Financial Statements of Arps Dairy, Inc. as of and for the nine months ended September 30, 2025.](ex99-2.htm) |
| 99.3 | [Unaudited Pro Forma Combined Condensed Financial Information as of and for the year ended December 31, 2024 and the nine months ended September 30, 2025.](ex99-3.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.

---

| | | |
|:---|:---|:---|
|  | Barfresh Food Group Inc.,<br> a Delaware corporation<br> (Registrant) | Barfresh Food Group Inc.,<br> a Delaware corporation<br> (Registrant) |
| Date: December 5, 2025 |  | */s/ Lisa Roger* |
|  | By: | Lisa Roger |
|  | Its: | CFO |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the Registration Statement on Forms S-8 (File No. 333-264539, 333-273971 and 333-281547) and on Form S-3 (File No. 333-275185) of Barfresh Food Group Inc. of our report dated September 30, 2025, relating to the financial statements of Arps Dairy, Inc. which appears in this Amendment No. 1 to Current Report on Form 8-K.

/s/ Eide Bailly LLP

Denver, Colorado

December 5, 2025

## Exhibit 99.1

**Exhibit 99.1**

**ARPS DAIRY, INC.**

**FINANCIAL STATEMENTS**

**Years Ended December 31, 2024 and 2023**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page No. |
| **[INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS](#sk_001)** | **1** |
| **FINANCIAL STATEMENTS** |  |
| &nbsp;&nbsp;&nbsp;[Balance Sheets](#sk_002) | 3 |
| &nbsp;&nbsp;&nbsp;[Statements of Operations](#sk_003) | 4 |
| &nbsp;&nbsp;&nbsp;[Statements of Stockholders' Equity](#sk_004) | 5 |
| &nbsp;&nbsp;&nbsp;[Statements of Cash Flows](#sk_005) | 6 |
| &nbsp;&nbsp;&nbsp;[Notes to Financial Statements](#sk_006) | 7 |

---

![](ex99-1_001.jpg)

**Independent Auditor's Report**

To the Board of Directors

Arps Dairy, Inc.

136 Fox Run Drive

Defiance, OH 43512

**Report on the Audit of the Financial Statements**

**Opinion**

We have audited the financial statements of Arps Dairy, Inc., which comprise the balance sheets as of December 31, 2024, and 2023, and the related statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of ARPS Dairy, Inc. as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

 ****

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Arps Dairy, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements**

 ****

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Arps Dairy, Inc.'s ability to continue as a going concern for one year after the date that the financial statements are available to be issued.

**Auditor's Responsibilities for the Audit of the Financial Statements**

 ****

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Arps Dairy, Inc.'s internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Arps Dairy, Inc.'s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

---

| |
|:---|
| /s/ Eide Bailly LLP |
| Denver, Colorado |
| September 30, 2025 |

---

**ARPS DAIRY, INC.**

**BALANCE SHEETS**

December 31, 2024 and 2023

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| **ASSETS** |  |  |
| **CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $17206 | $429165 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable | 1704536 | 934997 |
| &nbsp;&nbsp;&nbsp;Inventory | 453098 | 509950 |
| &nbsp;&nbsp;&nbsp;Prepaid taxes | 9920 |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 61172 | 47940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL CURRENT ASSETS** | 2245932 | 1922052 |
| **PROPERTY AND EQUIPMENT, net** | 5183836 | 3550795 |
| **OPERATING LEASE - RIGHT OF USE ASSET** |  | 135000 |
| **OTHER ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Loan fees | 10241 | 11482 |
|  | $7440009 | $5619329 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Line of credit | $905995 | $- |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 2989471 | 78649 |
| &nbsp;&nbsp;&nbsp;Accounts payable - trade | 1011961 | 754940 |
| &nbsp;&nbsp;&nbsp;Accrued and withheld payroll taxes | 8466 | 10755 |
| &nbsp;&nbsp;&nbsp;Accrued state tax | 12149 | 10658 |
| &nbsp;&nbsp;&nbsp;Accrued payroll | 46595 | 69362 |
| &nbsp;&nbsp;&nbsp;Accrued distributions |  | 219126 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 26117 | 3600 |
| &nbsp;&nbsp;&nbsp;Accrued real estate taxes | 21972 | 21414 |
| &nbsp;&nbsp;&nbsp;Lease liability | - | 90396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL CURRENT LIABILITIES** | 5022726 | 1258900 |
| **LONG-TERM DEBT**, less current portion | 173847 | 1591343 |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, 1,000 shares authorized and 580 shares issued and outstanding | 63850 | 63850 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 662260 | 662260 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 1517326 | 2042976 |
|  | 2243436 | 2769086 |
|  | $7440009 | $5619329 |

---

See accompanying notes and independent auditor's report.

**ARPS DAIRY, INC.**

**STATEMENTS OF OPERATIONS**

Years Ended December 31, 2024 and 2023

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| **SALES** | $21581489 | $19808720 |
| **COST OF SALES** | 20608528 | 17943973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**GROSS PROFIT** | 972961 | 1864747 |
| **SELLING, DELIVERY AND ADMINISTRATIVE EXPENSE** | 1495110 | 1377742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**OPERATING INCOME (LOSS)** | (522149) | 487005 |
| **OTHER INCOME (EXPENSE)** |  |  |
| &nbsp;&nbsp;&nbsp;Gain on asset disposal | 5000 | 228375 |
| &nbsp;&nbsp;&nbsp;Rental income | 90396 | 90396 |
| &nbsp;&nbsp;&nbsp;Interest expense | (100956) | (91934) |
| &nbsp;&nbsp;&nbsp;Miscellaneous income | 2059 | 3301 |
|  | (3501) | 230138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET INCOME (LOSS)** | $(525650) | $717143 |

---

See accompanying notes and independent auditor's report.

**ARPS DAIRY, INC.**

**STATEMENTS OF STOCKHOLDERS' EQUITY**

Years Ended December 31, 2024 and 2023

---

| | | | |
|:---|:---|:---|:---|
|  | Common<br> Stock | Additional<br> Paid-in Capital | Retained<br> Earnings |
| Balance, January 1, 2023 | $63850 | $662260 | $1544959 |
| &nbsp;&nbsp;&nbsp;Net Income |  |  | 717143 |
| &nbsp;&nbsp;&nbsp;Distributions | - | - | (219126) |
| Balance, December 31, 2023 | 63850 | 662260 | 2042976 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Loss |  |  | (525650) |
| Balance, December 31, 2024 | $**63850** | $**662260** | $**1517326** |

---

See accompanying notes and independent auditor's report.

**ARPS DAIRY, INC.**

**STATEMENTS OF CASH FLOWS**

Years Ended December 31, 2024 and 2023

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $(525650) | $717143 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 279672 | 228979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on asset disposal | (5000) | (228375) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental income | (90396) | (90396) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental expense | 135000 | 135000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | (769539) | 119385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 56852 | 9600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid taxes | (9920) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (13232) | 29064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | 257021 | (118111) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and withheld payroll taxes | (2289) | 3991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued state tax | 1491 | (1794) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll | (22767) | (5611) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued real estate taxes | 558 | 16969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 22517 | 3600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES** | (685682) | 819444 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (1863691) | (2427084) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized interest | (47782) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 5000 | 540000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH USED BY INVESTING ACTIVITIES** | (1906473) | (1887084) |
| &nbsp;&nbsp;&nbsp;&nbsp;<br>**CASH FLOWS FROM FINANCING ACTIVITIES**<br> Proceeds from borrowing | 10204039 | 5713436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of debt | (7804717) | (4838543) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions paid | (219126) | (65930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH PROVIDED BY FINANCING ACTIVITIES** | 2180196 | 808963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET DECREASE IN CASH** | (411959) | (258677) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CASH AT BEGINNING OF YEAR** | 429165 | 687842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CASH AT END OF YEAR** | $**17206** | **$429165** |

---

See accompanying notes and independent auditor's report.

**ARPS DAIRY, INC.**

**NOTES TO FINANCIAL STATEMENTS**

December 31, 2024 and 2023

**NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

<u>Nature of Business</u>

The Company is a processor of dairy and beverage products including fluid milk, ice cream mix, cottage cheese, sour cream, and chip dip primarily in Northwest Ohio, Southeast Michigan, and Northeast Indiana.

<u>Revenue Recognition</u>

Revenues are derived primarily from the sale of bulk fluid milk and other dairy products. The Company recognizes revenue from these contracts at a point in time when control of these products is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company does not have any significant financing components as payment is received shortly after the point of sale. Costs incurred to obtain a contract, if any, will be expensed as incurred as the amortization period is less than a year.

<u>Trade Accounts Receivable</u>

Trade accounts receivable are recorded at the invoiced amount and generally due within 14 days of the issuance of the invoice to the customer. Past due accounts over 30, 60, and 90 days are monitored regularly and evaluated by management as to collectability. Trade accounts receivable are stated at the amount management expects to collect from outstanding balances. Differences between the amount due and the amount management expects to collect are reported in the results of operations of the year in which those differences are determined with an offsetting entry to a valuation allowance for trade accounts receivable. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. The Company performs on-going credit evaluations of its customers and generally requires no collateral for its trade accounts receivable. Receivables past due 90 days or longer totaled approximately $6,340 and $1,800 at December 31, 2024 and 2023.

<u>Inventory Valuation</u>

The Company's inventory is valued at the lower of cost (first-in, first-out) or net realizable value.

<u>Property and Equipment</u>

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided primarily using the straight-line method at rates over the estimated useful lives of the depreciable assets. The following table represents the range of estimated useful lives by major class of depreciable assets:

---

| | |
|:---|:---|
|  | Estimated Useful<br>Lives in Years |
| Buildings and improvements | 7 to 40 |
| Machinery and equipment | 5 to 12 |
| Office equipment and software | 3 to 10 |
| Vehicles | 3 to 7 |

---

<u>Leases - Lessee</u>

The Company accounts for leases in accordance with FASB ASC 842. Leases are evaluated using the criteria outlined in FASB ASC 842 to determine whether they will be classified as operating leases or finance leases. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when terms of an existing contract are changed. The Company determines if an arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The Company recognizes a lease liability and right of use (ROU) asset at the commencement date of the lease. Operating leases are included in operating lease ROU assets, current liabilities, and long-term operating lease liabilities on the balance sheet. Finance leases are included in property and equipment, current liabilities, and long-term financing lease liabilities on the balance sheet.

A ROU asset is measured at the commencement date at the amount of the initially measured liability plus any lease payments made to the lessor before or after commencement date, minus any lease incentives received, plus any initial direct costs. Unless impaired, the ROU asset is subsequently measured throughout the lease term at the amount of the lease liability (that is the present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued lease payments), less the unamortized balance of lease incentives received. Lease cost for lease payments is recognized on a straight-line basis over the lease term. Finance lease ROU assets are amortized on a straight-line basis over the shorter of the lease term or the remaining useful life of the asset.

The Company has elected for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less, but greater than 1 month at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease cost associated with its short-term leases on a straight-line basis over the lease term.

<u>Leases - Lessor</u>

The Company classifies its leases at inception as operating, direct financing, or sales-type leases. Direct financing and sales-type leases meet certain criteria that have the economic characteristics of transferring ownership of the underlying asset and are accounted for similar to financing arrangements. For sales-type leases, selling profit is recognized immediately at lease commencement. Selling profit on a direct financing lease is deferred and amortized over the lease term, and a selling loss is recognized at lease commencement. Interest income on the net investment in leases is recognized as direct financing and sales-type lease revenue over the lease term in a manner that produces a constant rate of return on the net investment in the lease. A lease is classified as an operating lease if it does not qualify as a sales-type or direct financing lease.

The net investment in leases is recorded in the financial statements net of an allowance for credit losses. The allowance for credit losses is recorded upon the initial recognition of the net investment in the lease based on the Company's estimate of expected credit losses over the lease term. The allowance reflects the Company's estimate of lessee default probabilities and loss given default percentages. When determining the credit loss allowance, the Company considers relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the net investment in the lease. The allowance also considers potential losses due to non-credit risk related to unguaranteed residual values. A provision for credit losses, is recorded as a component of operating expenses in our statements of operations to adjust the allowance for changes to management's estimate of expected credit losses.

<u>Loan fees</u>

The Company has loan fees on certain notes payable and is currently amortizing those closing costs over the term of the related notes payable.

<u>Income Taxes</u>

No provision for income taxes is shown in the financial statements because the entity is taxed as an S- corporation. A such, taxable income or loss passes directly to the shareholders.

The Company files income tax returns in various U.S. federal, state, and local jurisdictions, and is generally no longer subject to income tax examinations for years before 2020.

<u>Concentration of Credit Risk</u>

The Company maintains its cash in bank deposit accounts which exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank, for each account ownership category. At December 31, 2024 and 2023, the Company had approximately $0 and $259,000, respectively, in excess of FDIC-insured limits.

<u>Shipping and Handling Costs</u>

Shipping and handling costs associated with outbound freight after control over the product has transferred to the customer are accounted for as fulfillment costs and are included in cost of sales.

<u>Estimates</u>

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to use estimates and assumptions. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates.

<u>Subsequent Events</u>

The Company performed subsequent events procedures through September 30, 2025, the date financial statements were available to be issued. The Company has not evaluated any subsequent events after this date related to these financial statements.

**NOTE 2 - REVENUE**

<u>Performance Obligations</u>

For bulk fluid milk and all other dairy products provided to the customer, the company considers these to have a single performance obligation with the transfer of control deemed to occur at a point in time. The principal term of sale is FOB Shipping Point or Delivery as specified in the particular contract. Upon fulfillment of the customer order, the Company invoices the customer and payment terms are generally due within 14 days.

<u>Variable Consideration</u>

The nature of the business gives rise to variable consideration, including rebates, allowances, and discounts that generally decrease the transaction price which reduces revenue. These variable amounts are generally credited to the customer, based on achieving certain levels of sales activity, product returns, or price concessions.

Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are estimated based upon historical experience and known trends.

<u>Accounts Receivable</u>

The following table provides additional information, as applicable, related to the balance of trade accounts receivable:

---

| | | | |
|:---|:---|:---|:---|
|  | December 31,<br>2024 | December 31,<br>2023 | January 1,<br>2023 |
| Trade accounts receivable | $1704536 | $934997 | $1054382 |

---

**NOTE 3 - INVENTORY**

Inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Raw milk | $81124 | $103115 |
| Ingredients | 129137 | 176734 |
| Packing material | 267442 | 230101 |
| Store merchandise | 37229 |  |
| Reserve for obsolescence | (61834) | - |
|  | $453098 | $509950 |

---

**NOTE 4 - PROPERTY AND EQUIPMENT**

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Land | $357367 | $246792 |
| Buildings and improvements | 1865258 | 1855476 |
| Machinery and equipment | 2379320 | 2282200 |
| Office equipment and software | 74793 | 74793 |
| Vehicles | 437642 | 383213 |
| Construction in process | 1975676 | 351110 |
|  | 7090056 | 5193584 |
| Accumulated depreciation | (1906220) | (1642789) |
|  | $5183836 | $3550795 |

---

**NOTE 5 - DEBT**

The Company has a $1,200,000 revolving line of credit, of which $905,995 and $-0- was used at December 31, 2024 and 2023. The credit line carries an effective interest rate of 7.50% and 8.50% at December 31, 2024 and 2023, respectively. Bank advances are payable on demand with interest at a variable rate, with a floor of 4.5%, and are secured by all business assets and personal guarantees by the stockholders. The loan is due on demand and has no expiration date.

The Company's long-term debt consists of the following:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Note payable to former stockholder in monthly payments of $2,831, including interest at 4% until December 2027. | $95888 | $125381 |
| Note payable to former stockholder in monthly payments of $4,718, including interest at 4% until December 2027. | 159813 | 208969 |
| Note payable to bank in monthly installments of interest only until March 2025 and then monthly installments of $20,716 including interest at 6.85% until March 2034 and secured by all business assets and personal guarantees of the stockholders. | 664581 | 224555 |
| Note payable to bank in monthly installments of interest only until March 2025 and then monthly installments of $21,951 including interest at 6.85% with a balloon payment due March 2033 and secured by all business assets and personal guarantees of the stockholders. | 2243036 | 1111087 |
|  | 3163318 | 1669992 |
| Current portion | (2989471) | (78649) |
| Long-term portion | $173847 | $1591343 |

---

Maturities of long-term debt are as follows:

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2025 | $2989471 |
| 2026 | 85188 |
| 2027 | 88659 |
| 2028 |  |
| 2029 | - |
|  | $3163318 |

---

<u>Restrictive Covenant</u>

The note agreements with the bank specify the Company maintain a certain financial covenant as described below:

Maintain debt service coverage ratio in excess of 1.2 to 1.0.

At December 31, 2024, the Company was in violation of the loan covenant and did not receive a waiver from the bank. Consequently, the associated bank debt is classified as current.

The Company capitalized $47,782 of interest during 2024 related to construction in progress.

**NOTE 6 - ADVERTISING**

The Company expenses advertising costs as they are incurred. Advertising costs for the years ended December 31, 2024 and 2023 were $12,245 and $12,340, respectively.

**NOTE 7 - RETIREMENT PLAN**

The Company established a retirement plan for all who meet eligibility requirements. The Company may make contributions to the plan based upon employee contributions or a profit sharing contribution. The Company contributed and expensed $25,126 and $26,858 for the years ended December 31, 2024 and 2023, respectively.

**NOTE 8 - CONCENTRATIONS**

The Company grants credit primarily to customers who are wholesaling or retailing dairy products. Sales to two customers in 2024 account for approximately 72% of total sales, and sales to three customers in 2023 account for approximately 69% of total sales. At December 31, 2024, $1,212,670 of accounts receivable - trade was due from one customer. At December 31, 2023, $516,640 of the accounts receivable - trade was due from three customers.

**NOTE 9 - STOCK REPURCHASE AGREEMENT**

The Company and its stockholders entered into an agreement related to a stock purchase arrangement on outstanding shares of stock. The agreement contains provisions as to stock valuation, process of the stock purchase, and the associated terms of the purchase.

In 2025, as part of the stock purchase agreement (see also Note 17 "Subsequent Events"), the shareholders have agreed to forego the terms specified in the stock repurchase agreement.

**NOTE 10 - INTANGIBLE ASSETS**

Intangible assets consist of loan fees. These loan fees are amortized over the life of their respective note agreements. The following table represents the loan costs:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Loan fees | $12413 | $12413 |
| Accumulated amortization | (2172) | (931) |
|  | $10241 | $11482 |

---

Amortization expense was $1,241 and $1,010 for the years ended December 31, 2024 and 2023, Amortization expense over the next five years is as follows:

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2025 | $1241 |
| 2026 | 1241 |
| 2027 | 1241 |
| 2028 | 1241 |
| 2029 | 1241 |

---

**NOTE 11 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION** 

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Interest paid | $100956 | $91934 |
| Non-cash investing activity: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of land through lease liability |  | 180792 |
| &nbsp;&nbsp;&nbsp;Acquisition of right of use asset through gain on asset disposal |  | 270000 |

---

**NOTE 12 - RELATED PARTY TRANSACTIONS**

The Company is related to various businesses through common ownership and/or management. The financial transactions between the Company and its related parties are summarized as follows:

---

| | | |
|:---|:---|:---|
| Financial Statement Classification | 2024 | 2023 |
| Cost of sales | $5582166 | $5002792 |
| Selling, general and administrative (professional fees) | 24895 | 22240 |
| Accounts payable | 282092 | 258415 |

---

**NOTE 13 - COMMITMENTS**

The Company has committed to building improvements, a building expansion and equipment purchases. At December 31, 2024, the Company incurred $1,975,676 of a total estimated cost of $5,500,000. The anticipated in service dates are in 2026.

**NOTE 14 - CONTINGENCIES**

The Company has a contingent liability related to the demolition of its current building after it moves into a new building. The Company has been awarded a grant to pay for the demolition, but the grant expires at the end of 2025 unless it is extended. No liability is currently recorded.

**NOTE 15 - LEASES**

<u>Lessee disclosure</u>

During 2023, the Company sold its manufacturing facility and purchased a different facility. Immediately after that transaction, the Company entered into a lease at under market value until its new facility is completed. The lease term was for 18 months and the lease is classified as an operating lease. A right to use asset was recorded at the time of sale and no cash was paid for the lease.

The components of lease cost and statement of operations caption allocation for the years ended December 31, 2024 and 2023, are as follows:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Operating lease cost: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales | $135000 | $135000 |

---

<u>Lessor disclosure</u>

The Company leases a portion of its manufacturing and office building. The initial lease term is 18 months.

Leased property subject to operating leases at December 31, 2024 and 2023, includes:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Buildings | $1865258 | $1855476 |
| Less accumulated depreciation | (31142) | - |
|  | $1834116 | $1855476 |

---

Depreciation expense for leased property subject to operating leases is provided on the straight-line method over the estimated useful life of the property in amounts necessary to reduce the assets to their estimated residual values. Estimated and actual residual values are reviewed on a regular basis to determine that depreciation amounts are appropriate. Depreciation expense relating to leased property subject to operating leases was $31,142 for 2024 and $0 for 2023.

The following table sets forth the lease income recognized on operating leases:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Lease income relating to lease payments | $90396 | $90396 |

---

Revenue from operating leases is included in rental income on the statements of operations.

**NOTE 16 - GOING CONCERN**

Substantial doubt over the Company's ability to continue as a going concern was raised due to the violation of the Company's bank covenant, resulting in a working capital deficit of $2,776,794 as of December 31, 2024. The Company's stockholders have entered into a stock purchase agreement to sell all the outstanding shares of the Company which has resulted in the alleviation of the substantial doubt over the Company's ability to continue as a going concern.

**NOTE 17 - SUBSEQUENT EVENTS**

The Company has a note payable to a former stockholder in the amount of $95,888. In August 2025, the former shareholder forgave the note payable and the Company is no longer liable for this loan.

In September 2025, all of the Company's stockholders entered into a stock purchase agreement to sell all outstanding shares to an unrelated party. The transaction is expected to close October 1, 2025.

## Exhibit 99.2

**Exhibit 99.2**

**ARPS DAIRY, INC.**

**Q3 2025 FINANCIAL STATEMENTS**

**(Unaudited)**

**INDEX TO FINANCIAL STATEMENTS**

**ARPS DAIRY, INC.**

**(Unaudited)**

---

| | |
|:---|:---|
|  | **Page** |
| [Condensed Balance Sheets](#sj_001) | 3 |
| [Condensed Statements of Operations](#sj_002) | 4 |
| [Condensed Statements of Stockholders' Equity](#sj_003) | 5 |
| [Condensed Statements of Cash Flows](#sj_004) | 6 |
| [Notes to Condensed Financial Statements](#sj_005) | 7 |

---

**ARPS DAIRY, INC.**

**CONDENSED BALANCE SHEETS** 

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
|  | **(Unaudited)** | |
| **ASSETS** |  |  |
| **CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $76558 | $17206 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable, net of allowance for bad debts of $49,500 and $0 at September 30, 2025 and December 31, 2024 | 1114841 | 1704536 |
| &nbsp;&nbsp;&nbsp;Inventory | 182528 | 453098 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 35044 | 71092 |
| &nbsp;&nbsp;&nbsp;**TOTAL CURRENT ASSETS** | 1408971 | 2245932 |
| **PROPERTY AND EQUIPMENT, net** | 6870361 | 5183836 |
| **OTHER ASSETS** | 9310 | 10241 |
|  | $8288642 | $7440009 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Line of credit | $800000 | $905995 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 3548301 | 2989471 |
| &nbsp;&nbsp;&nbsp;Accounts payable - trade | 715322 | 1011961 |
| &nbsp;&nbsp;&nbsp;Accounts payable – construction in progress | 1782084 | - |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 130324 | 115299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL CURRENT LIABILITIES** | 6976031 | 5022726 |
| **LONG-TERM DEBT, less current portion** | 68922 | 173847 |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, 1,000 shares authorized and 580 shares issued and outstanding | 63850 | 63850 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 662260 | 662260 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 517579 | 1517326 |
|  | 1243689 | 2243436 |
|  | $8288642 | $7440009 |

---

See accompanying notes.

**ARPS DAIRY, INC.**

**CONDENSED STATEMENTS OF OPERATIONS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the nine <br> months ended <br> September 30, 2025** | **For the nine <br> months ended <br> September 30, 2024** |
| **SALES** | $13194907 | $16427122 |
| **COST OF SALES** | 13513154 | 15284403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**GROSS PROFIT (LOSS)** | (318247) | 1142719 |
| **SELLING, DELIVERY AND ADMINISTRATIVE EXPENSE** | 643396 | 1146102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**OPERATING LOSS** | (961643) | (3383) |
| **OTHER INCOME (EXPENSE)** |  |  |
| &nbsp;&nbsp;&nbsp;Gain on asset disposal | 7528 |  |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of debt | 78131 | - |
| &nbsp;&nbsp;&nbsp;Rental income |  | 90396 |
| &nbsp;&nbsp;&nbsp;Interest expense | (127920) | (55749) |
| &nbsp;&nbsp;&nbsp;Miscellaneous income | 4157 | 689 |
|  | (38104) | 35336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET INCOME (LOSS)** | $(999747) | $31953 |

---

See accompanying notes.

**ARPS DAIRY, INC.**

**CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Unaudited)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Common**<br>**Stock** | **Additional**<br>**Paid-in Capital** | **Retained**<br>**Earnings** |
| Balance, January 1, 2024 | $63850 | $662260 | $2042976 |
| &nbsp;&nbsp;&nbsp;Net Income | - | - | 31953 |
| Balance, September 30, 2024 | $63850 | $662260 | $2074929 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Common**<br>**Stock** | **Additional**<br>**Paid-in Capital** | **Retained**<br>**Earnings** |
| Balance, January 1, 2025 | $63850 | $662260 | $1517326 |
| &nbsp;&nbsp;&nbsp;Net Loss | - | - | (999747) |
| Balance, September 30, 2025 | $63850 | $662260 | $517579 |

---

See accompanying notes.

**ARPS DAIRY, INC.**

**CONDENSED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the nine months ended <br> September 30, 2025** | **For the nine months ended <br> September 30, 2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $(999747) | $31953 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 125160 | 183272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on asset disposal | (7528) | (5000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on extinguishment of debt | (78131) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental income |  | (90396) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental expense |  | 135000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | 589695 | (1303345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 270570 | (7754) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 36979 | (5577) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | (296639) | 312281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 15025 | 35541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH USED BY OPERATING ACTIVITIES** | (344616) | (714025) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (73479) | (703302) |
| &nbsp;&nbsp;&nbsp;Capitalized interest | (90277) | (12595) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 141683 | 5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH USED BY INVESTING ACTIVITIES** | (22073) | (710897) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net borrowing (repayment) of line of credit | (105995) | 804820 |
| &nbsp;&nbsp;&nbsp;Proceeds from stockholder advances | 800000 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from borrowing |  | 476716 |
| &nbsp;&nbsp;&nbsp;Repayment of debt | (267964) | (58692) |
| &nbsp;&nbsp;&nbsp;Distributions paid | - | (219126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH PROVIDED BY FINANCING ACTIVITIES** | 426041 | 1003718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET INCREASE (DECREASE) IN CASH** | 59352 | (421204) |
| **CASH AT BEGINNING OF PERIOD** | 17206 | 429165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CASH AT END OF PERIOD** | $76558 | $7961 |

---

See accompanying notes.

**ARPS DAIRY, INC.**

**NOTES TO CONDENSED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1 - DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

<u>Nature of Business</u>

The Company is a processor of dairy and beverage products including fluid milk, ice cream mix, cottage cheese, sour cream, and chip dip primarily in Northwest Ohio, Southeast Michigan, and Northeast Indiana.

<u>Revenue Recognition</u>

Revenues are derived primarily from the sale of bulk fluid milk and other dairy products. The Company recognizes revenue from these contracts at a point in time when control of these products is transferred to its customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company does not have any significant financing components as payment is received shortly after the point of sale. Costs incurred to obtain a contract, if any, will be expensed as incurred as the amortization period is less than a year.

<u>Trade Accounts Receivable</u>

Trade accounts receivable are recorded at the invoiced amount and generally due within 14 days of the issuance of the invoice to the customer. Past due accounts over 30, 60, and 90 days are monitored regularly and evaluated by management as to collectability. Trade accounts receivable are stated at the amount management expects to collect from outstanding balances. Differences between the amount due and the amount management expects to collect are reported in the results of operations of the year in which those differences are determined with an offsetting entry to a valuation allowance for trade accounts receivable. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. The Company performs on-going credit evaluations of its customers and generally requires no collateral for its trade accounts receivable. The allowance for expected credit losses was $49,500 as of September 30, 2025. There was no allowance for expected credit losses as of December 31, 2024.

<u>Inventory Valuation</u>

The Company's inventory is valued at the lower of cost (first-in, first-out) or net realizable value.

<u>Property and Equipment</u>

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided primarily using the straight-line method at rates over the estimated useful lives of the depreciable assets. The following table represents the range of estimated useful lives by major class of depreciable assets:

---

| | |
|:---|:---|
|  | Estimated Useful<br>Lives in Years |
| Buildings and improvements | 7 to 40 |
| Machinery and equipment | 5 to 12 |
| Office equipment and software | 3 to 10 |
| Vehicles | 3 to 7 |

---

<u>Leases - Lessee</u>

The Company accounts for leases in accordance with FASB ASC 842. Leases are evaluated using the criteria outlined in FASB ASC 842 to determine whether they will be classified as operating leases or finance leases. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when terms of an existing contract are changed. The Company determines if an arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The Company recognizes a lease liability and right of use (ROU) asset at the commencement date of the lease. Operating leases are included in operating lease ROU assets, current liabilities, and long-term operating lease liabilities on the balance sheet. Finance leases are included in property and equipment, current liabilities, and long-term financing lease liabilities on the balance sheet.

A ROU asset is measured at the commencement date at the amount of the initially measured liability plus any lease payments made to the lessor before or after commencement date, minus any lease incentives received, plus any initial direct costs. Unless impaired, the ROU asset is subsequently measured throughout the lease term at the amount of the lease liability (that is the present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued lease payments), less the unamortized balance of lease incentives received. Lease cost for lease payments is recognized on a straight-line basis over the lease term. Finance lease ROU assets are amortized on a straight-line basis over the shorter of the lease term or the remaining useful life of the asset.

The Company has elected for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less, but greater than 1 month at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease cost associated with its short-term leases on a straight-line basis over the lease term.

<u>Leases - Lessor</u>

The Company classifies its leases at inception as operating, direct financing, or sales-type leases. Direct financing and sales-type leases meet certain criteria that have the economic characteristics of transferring ownership of the underlying asset and are accounted for similar to financing arrangements. For sales-type leases, selling profit is recognized immediately at lease commencement. Selling profit on a direct financing lease is deferred and amortized over the lease term, and a selling loss is recognized at lease commencement. Interest income on the net investment in leases is recognized as direct financing and sales-type lease revenue over the lease term in a manner that produces a constant rate of return on the net investment in the lease. A lease is classified as an operating lease if it does not qualify as a sales-type or direct financing lease.

The net investment in leases is recorded in the financial statements net of an allowance for credit losses. The allowance for credit losses is recorded upon the initial recognition of the net investment in the lease based on the Company's estimate of expected credit losses over the lease term. The allowance reflects the Company's estimate of lessee default probabilities and loss given default percentages. When determining the credit loss allowance, the Company considers relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the net investment in the lease. The allowance also considers potential losses due to non-credit risk related to unguaranteed residual values. A provision for credit losses, is recorded as a component of operating expenses in our statements of income to adjust the allowance for changes to management's estimate of expected credit losses.

<u>Loan fees</u>

The Company has loan fees on certain notes payable and is currently amortizing those closing costs over the term of the related notes payable.

<u>Income Taxes</u>

No provision for income taxes is shown in the financial statements because the entity is taxed as an S-corporation. A such, taxable income or loss passes directly to the shareholders.

The Company files income tax returns in various U.S. federal, state, and local jurisdictions, and is generally no longer subject to income tax examinations for years before 2020.

<u>Concentration of Credit Risk</u>

The Company maintains its cash in bank deposit accounts which exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank, for each account ownership category. At September 30, 2025 and December 31, 2024, there were no balances in excess of FDIC-insured limits.

<u>Shipping and Handling Costs</u>

Shipping and handling costs associated with outbound freight after control over the product has transferred to the customer are accounted for as fulfillment costs and are included in cost of sales.

<u>Estimates</u>

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to use estimates and assumptions. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates.

<u>Subsequent Events</u>

In September 2025, all of the Company's stockholders entered into a stock purchase agreement ("SPA") to sell all outstanding shares to Barfresh Food Group Inc. ("Barfresh"). The transaction contemplated by the SPA (the "Transaction") closed on October 3, 2025. The Transaction and related agreements impacted the Company's debt obligations and commitments as described in Notes 5 and 9.

The Company performed subsequent events procedures through December 3, 2025, the date financial statements were available to be issued. The Company has not evaluated any subsequent events after this date related to these financial statements.

**NOTE 2 - REVENUE**

<u>Performance Obligations</u>

For bulk fluid milk and all other dairy products provided to the customer, the company considers these to have a single performance obligation with the transfer of control deemed to occur at a point in time. The principal term of sale is FOB Shipping Point or Delivery as specified in the particular contract. Upon fulfillment of the customer order, the Company invoices the customer and payment terms are generally due within 14 days.

<u>Variable Consideration</u>

The nature of the business gives rise to variable consideration, including rebates, allowances, and discounts that generally decrease the transaction price which reduces revenue. These variable amounts are generally credited to the customer, based on achieving certain levels of sales activity, product returns, or price concessions.

Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are estimated based upon historical experience and known trends.

**NOTE 3 - INVENTORY**

Inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | September 30,<br>2025 | December 31,<br>2024 |
| Raw milk | $23527 | $81124 |
| Ingredients | 102279 | 129137 |
| Packing material | 112875 | 267442 |
| Store merchandise |  | 37229 |
| Reserve for obsolescence | (56153) | (61834) |
|  | $182528 | $453098 |

---

**NOTE 4 - PROPERTY AND EQUIPMENT**

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | September 30,<br>2025 | December 31,<br>2024 |
| Land | $357368 | $357367 |
| Buildings and improvements | 1865258 | 1865258 |
| Machinery and equipment | 2409828 | 2379320 |
| Office equipment and software | 74793 | 74793 |
| Vehicles | 112743 | 437642 |
| Construction in process | 3891007 | 1975676 |
|  | 6928913 | 7090056 |
| Accumulated depreciation | (1840636) | (1906220) |
|  | $6870361 | $5183836 |

---

**NOTE 5 - DEBT**

***Revolving Line of Credit***

The Company has a $1,200,000 revolving line of credit (the "Revolver"), of which $800,000 and $905,995 was used at September 30, 2025 and December 31, 2024. The Revolver carries an effective interest rate of 7.35% and 7.50% at September 30, 2025 and December 31, 2024, respectively. Bank advances are payable on demand with interest at a variable rate, with a floor of 4.5%, and are secured by all business assets and personal guarantees by the stockholders. The loan is due on demand and has no expiration date. Balances outstanding under the Revolver were repaid by Barfresh and the credit facility was closed in association with the close of the Transaction, as further described below under the caption "Restrictive Covenants and Forbearance Agreement".

In October 2025, the Company secured receivables financing of $1,200,000 (the "Facility"). Under the Facility, the Company may borrow up to 90% of eligible customer account balances. Amounts outstanding bear interest at a rate prime plus 1.2% and collateral fees of 0.15% and are secured by accounts receivable and inventory. The Facility has a one-year term, and renews automatically, unless notice is given or received.

***Long-term Debt***

The Company's long-term debt consists of the following:

---

| | | |
|:---|:---|:---|
|  | September 30,<br>2025 | December 31,<br>2024 |
| Note payable to former stockholder in monthly payments of $2,831, including interest at 4% until December 2027. | $- | $95888 |
| Note payable to former stockholder in monthly payments of $4,718, including interest at 4% until December 2027. | 121636 | 159813 |
| Stockholder advances. | 800000 |  |
| Equipment Note payable to bank in monthly installments of interest only until March 2025 and then monthly installments of $20,716 including interest at 6.85% until March 2034 and secured by all business assets and personal guarantees of the stockholders. | 506515 | 664581 |
| Mortgage Note payable to bank in monthly installments of interest only until March 2025 and then monthly installments of $21,951 including interest at 6.85% with a balloon payment due March 2033 and secured by real property and personal guarantees of the stockholders. | 2189072 | 2243036 |
|  | 3617223 | 3163318 |
| &nbsp;&nbsp;&nbsp;Current portion | (3548301) | (2989471) |
| &nbsp;&nbsp;&nbsp;Long-term portion | $68922 | $173847 |

---

<u>Note Payable to Former Stockholder</u>

Upon closing of the Transaction, one-half of the note payable to a former stockholder was forgiven. The terms of the remaining balance were modified to require quarterly payments in either cash or Barfresh shares, at Barfresh's election, commencing no later than six months from the date the Transaction closed, with full repayment due no later than one year after the close of the Transaction.

<u>Stockholder Advances</u>

The Company's shareholders made advances from time to time to support working capital requirements. Concurrent with the close of the Transaction, the advances were formalized and Barfresh assumed joint and several liability for the obligations. The Company and Barfresh issued notes in the aggregate principal amount of $800,000 to the selling shareholders, which consist of $400,000 of debt previously owed by Arps (the "Existing Loans" and $400,000 representing advances used to reduce the outstanding balance of the revolving line of credit to $800,000 (the "New Advances"). The Existing Loans are non-interest bearing, mature on April 3, 2026 and may be convertible into shares of Barfresh's common stock at the option of Barfresh. If the New Advances are not paid by January 3, 2026, interest shall accrue at the rate of 7% per annum from October 3, 2025 through the April 3, 2026 maturity date.

<u>Restrictive Covenants and Forbearance Agreement</u>

The note agreements with the bank specify the Company maintain a certain financial covenant as described below:

Maintain debt service coverage ratio in excess of 1.2 to 1.0.

At December 31, 2024, the Company was in violation of the loan covenant and did not receive a waiver from the bank. Consequently, the associated bank debt is classified as current.

In association with and contingent upon the closing of the Transaction, Barfresh and the Company entered into a Forbearance and Loan Modification Agreement (the "Forbearance") with the bank with respect to the Mortgage Note. As a result of the Forbearance, the bank agreed that it will not exercise its legal or contractual rights and remedies against the Company, collateral or the guarantors through January 1, 2026. Additionally, the bank consented to the sale and transfer of ownership of the Company to Barfresh and required Barfresh to become a guarantor of the Mortgage Note on a joint and several basis with the former stockholders. The Forbearance obligated the Company to repay the Revolver and the Equipment Note. The repayment obligations were satisfied by Barfresh as a condition of the Transaction. The Company paid loan modifications and legal fees of approximately $25,000 for the Forbearance.

<u>Maturities of Long-Term Debt</u>

Maturities of long-term debt, considering the Transaction and Forbearance are as follows:

---

| | | |
|:---|:---|:---|
| Year Ending | Payable in | Payable in |
| December 31, | Cash | Cash or Barfresh Stock |
| 2025 (3 months) | $2602054 | $- |
| 2026 | 400000 | 460818 |
|  | $3002054 | $460818 |

---

<u>Capitalized Interest</u>

The Company capitalized $90,277 and $12,595, respectively, of interest during the nine-months ended September 30, 2025 and 2024 related to construction in progress.

**NOTE 6 - CONCENTRATIONS**

Sales to two customers for the nine months ended September 30, 2025 and 2024 account for approximately 86% and 74% of total sales, respectively. The Company grants credit primarily to customers who are wholesaling or retailing dairy products. At September 30, 2025, $989,078 of accounts receivable - trade was due from two customers. At December 31, 2024, $1,212,670 of accounts receivable - trade was due from one customer.

**NOTE 7 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | Nine months ended<br>September 30,<br>2025 | Nine months ended<br>September 30,<br>2024 |
| Interest paid | $218197 | $68344 |

---

The Company incurred $1,782,000 in unpaid construction liabilities during the nine-months ended September 30, 2025 for building improvements included in construction in progress as of September 30, 2025 (Note 9).

**NOTE 8 - RELATED PARTY TRANSACTIONS**

The Company is related to various businesses through common ownership and/or management. The financial transactions between the Company and its related parties are summarized as follows:

---

| | | |
|:---|:---|:---|
| Financial | Nine months ended | Nine months ended |
| Statement | September 30, | September 30, |
| Classification | 2025 | 2024 |
| Cost of sales | $4016918 | $4088310 |
| Selling, general and administrative (professional fees) | 20450 | 18139 |

---

---

| | | |
|:---|:---|:---|
|  | September 30, <br> 2025 | December 31, <br> 2024 |
| Accounts payable | $218686 | $258415 |

---

Stockholder advances of $800,000 were made in 2025 to reduce the outstanding balance of the line of credit in association with the Transaction. See Note 5.

**NOTE 9 - COMMITMENTS**

The Company has committed to building improvements, a building expansion and equipment purchases. At September 30, 2025, the Company incurred $3,706,000 of a total estimated cost of $5,746,000, $1,782,000 of which was due to the construction contractor. The anticipated in-service dates are in 2026. In conjunction with the Transaction, the contractor agreed to forebear from filing a mechanics lien against the building for sixty days after the Transaction closes. Additionally, Barfresh and the contractor agreed that if any portion of the balance remains outstanding it will accrue interest at 8% per annum from day sixty-one until repayment is received.

**NOTE 10 - CONTINGENCIES**

The Company has a contingent liability related to the demolition of its current building after it moves into a new building. The Company has been awarded a grant to pay for the demolition, which expires on December 31, 2026 in accordance with the third amendment to the grant agreement executed on October 20, 2025. No liability is currently recorded.

**NOTE 11 - LEASES**

<u>Lessee disclosure</u>

During 2023, the Company sold its manufacturing facility and purchased a different facility. Immediately after that transaction, the Company entered into a lease at under market value until its new facility is completed. The lease term was initially for 18 months and the lease was classified as an operating lease. A right to use asset was recorded at the time of sale and no cash was paid for the lease. The lease was extended until September 30, 2026 to permit the completion of the new facility.

The components of lease cost and income statement caption allocation are as follows:

---

| | | |
|:---|:---|:---|
|  | Nine months ended<br>September 30,<br>2025 | Nine months ended<br>September 30,<br>2024 |
| Operating lease cost: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales | $- | $135000 |

---

<u>Lessor disclosure</u>

The Company leases a portion of its manufacturing and office building. The initial lease term was 18 months, but was extended until September 30, 2026 to permit the completion of the new facility.

Leased property subject to operating leases includes:

---

| | | |
|:---|:---|:---|
|  | September 30,<br>2025 | December 31,<br>2024 |
| Buildings | $1865258 | $1865258 |
| Less accumulated depreciation | (66421) | $(31142) |
|  | $1798837 | $1834116 |

---

Depreciation expense for leased property subject to operating leases is provided on the straight-line method over the estimated useful life of the property in amounts necessary to reduce the assets to their estimated residual values. Estimated and actual residual values are reviewed on a regular basis to determine that depreciation amounts are appropriate. Depreciation expense relating to leased property subject to operating leases was $35,279 and $19,345 for the nine months ended September 30, 2025 and 2024.

The following table sets forth the lease income recognized on operating leases:

---

| | | |
|:---|:---|:---|
|  | Nine months ended<br>September 30,<br>2025 | Nine months ended<br>September 30,<br>2024 |
| Lease income relating to lease payments | $- | $90396 |

---

Revenue from operating leases is included in rental income on the statements of income.

**NOTE 12 - GOING CONCERN**

Substantial doubt over the Company's ability to continue as a going concern was raised due to the violation of the Company's bank covenant, resulting in a working capital deficit of $5,567,060 as of September 30, 2025.

## Exhibit 99.3

**Exhibit 99.3**

**UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS**

On October 3, 2025, Barfresh Food Group Inc., a Delaware corporation (the "Company") completed the acquisition of 100% of the issued and outstanding stock of Arp's Dairy, Inc. ("Arps") pursuant to the Stock Purchase Agreement (the "Purchase Agreement"), dated as of September 15, 2025, among the Company, Arps and the shareholders of Arps. Concurrently, the Company and Arps entered into several agreements and modifications that impacted the terms of Arps outstanding obligations under formal and informal borrowing arrangements, which together with the Purchase Agreement are the basis of the acquisition (the "Transaction"). This transaction was accounted for as a business combination.

The accompanying unaudited pro forma combined condensed financial statements are presented in accordance with Article 11 of Regulation S-X and are based on the Company's and Arps' audited historical consolidated financial statements, and unaudited interim condensed historical consolidated financial statements. The unaudited pro forma combined condensed balance sheet as of September 30, 2025 gives effect to the Transaction as of that date. The unaudited pro forma combined condensed statements of operations for the year ended December 31, 2024 and the nine months ended September 30, 2025 give effect to the Transactions as if they occurred at the beginning of such periods. and are based on the assumptions and adjustments described in the accompanying notes to the unaudited pro forma combined condensed financial statements.

The historical financial information has been adjusted to give effect to pro forma events that are (i) directly attributable to the Transaction, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results of the Company. The unaudited pro forma combined condensed income statement does not reflect (i) any operating efficiencies, cost savings or revenue enhancements that may be achieved by the combined companies, and (ii) certain other non-recurring expenses resulting from the Transactions, such as possible restructuring charges and certain legal, accounting, and other fees associated with the transaction incurred by the Company and Arps. In addition, the Company will incur certain non-recurring charges within the first twelve-month period following the acquisition that have not been included in the unaudited pro forma combined condensed income statement.

The unaudited pro forma combined condensed financial statements should be read together with the Company's audited historical financial statements, which are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on March 22, 2025, the Company's Quarterly Report on Form 10-Q for quarter ended September 30, 2025, which was filed with the SEC on November 6, 2025, Arps' audited historical financial statements for fiscal year ended December 31, 2024 included as Exhibit 99.1 to this Current Report on Form 8-K/A, and Arps' unaudited historical financial statements for nine months ended September 30, 2025 included in Exhibit 99.2 to this Current Report on Form 8-K/A.

The unaudited pro forma combined condensed financial information is provided for informational purposes only and is not intended to represent or be indicative of the consolidated results of operations or financial position that the Company would have reported had the transaction closed on the dates indicated and should not be taken as representative of our future consolidated results of operations or financial position.

The pro forma adjustments related to the Arps acquisition are described in the notes to the unaudited pro forma combined condensed financial information and principally include adjustments to record the effect of depreciation and interest associated with the Transactions.

The adjustments to fair value and the other estimates reflected in the accompanying unaudited pro-forma condensed combined condensed financial statements may be materially different from those reflected in the Company's consolidated financial statements subsequent to the closing of the transaction. In addition, the unaudited pro forma combined condensed financial statements do not purport to project the future financial position or results of operations.

**BARFRESH FOOD GROUP INC. AND ARPS DAIRY, INC.**

**UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET**

**AS OF SEPTEMBER 30, 2025**

**(in thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Barfresh Food Group Inc.** | **Arps Dairy, Inc.** | **Pro Forma Adjustments** | **Note<br> Reference**  | **Pro Forma Combined** |
|  | | | | **(Note 2)** | |
| Assets |  |  |  |  |  |
| Current assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $1891 | $76 | $(1306) | (a) | $661 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable, net | 2489 | 1115 |  |  | 3604 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 1074 | 183 |  |  | 1257 |
| &nbsp;&nbsp;&nbsp;Other current assets | 217 | 35 | - |  | 252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 5671 | 1409 | (1306) |  | 5774 |
| Property and equipment, net of depreciation | 697 | 6870 | (870) | (c) | 6697 |
| Intangible assets, net of amortization | 125 |  |  |  | 125 |
| Other non-current assets | 302 | 9 | - |  | 311 |
| Total assets | $6795 | $8288 | $(2176) |  | $12907 |
| Liabilities and Stockholders' Equity |  |  |  |  |  |
| Current liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Line of credit | $1736 | $800 | $(800) | (a) | $1736 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 1729 | 715 |  |  | 2444 |
| &nbsp;&nbsp;&nbsp;Accounts payable - construction in progress |  | 1782 |  |  | 1782 |
| &nbsp;&nbsp;&nbsp;Disputed co-manufacturer accounts payable | 499 |  |  |  | 499 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 314 | 130 |  |  | 444 |
| &nbsp;&nbsp;&nbsp;Financing agreements - current | 266 | 3548 | (566) | (a), (b) | 3248 |
| Total current liabilities | 4544 | 6975 | (1366) |  | 10153 |
| Financing agreements | 330 | 69 | - |  | 399 |
| Total liabilities | 4874 | 7044 | (1366) |  | 10552 |
| 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; and 15,940,261 shares issued and outstanding at September 30, 2025 |  | 64 |  |  | 64 |
| Additional paid in capital | 67473 | 662 |  |  | 68135 |
| Accumulated deficit | (65552) | 518 | (810) | (b), (c) | (65844) |
| Total stockholders' equity | 1921 | 1244 | (810) |  | 2355 |
| Total liabilities and stockholders' equity | $6795 | $8288 | $(2176) |  | $12907 |

---

**BARFRESH FOOD GROUP INC. AND ARPS DAIRY, INC.**

**UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025**

**(in thousands, except per share information)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Barfresh Food Group Inc.** | **Arps Dairy, Inc.** | **Pro Forma Adjustments** | **Pro Forma Combined** |
| Revenue | $8786 | $13195 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $21981 |
| Cost of revenue | 5828 | 13513 | (28) (d) | 19313 |
| Gross profit | 2958 | (318) | 28 | 2668 |
| &nbsp;&nbsp;&nbsp;Operating expenses | 4824 | 643 | (214) (e) | 5253 |
| Loss from operations | (1866) | (961) | 242 | (2585) |
| &nbsp;&nbsp;&nbsp;Interest expense | 65 | 128 | (6) (f) | 187 |
| &nbsp;&nbsp;&nbsp;Other (income) expense | - | (89) | 78 (f) | (11) |
| Net loss | $(1931) | $(1000) | $170 | $(2761) |
| Per share information - basic and diluted: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average shares outstanding | 15750 |  | 29 (g) | 15779 |
| &nbsp;&nbsp;&nbsp;Net loss per share | $(0.12) |  |  | $(0.17) |

---

**BARFRESH FOOD GROUP INC. AND ARPS DAIRY, INC.**

**UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

**(in thousands, except per share information)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Barfresh Food Group Inc.** | **Arps Dairy, Inc.** |  | **Pro Forma Combined** |
| Revenue | $10717 | $21581 | $— | $32298 |
| Cost of revenue | 7049 | 20609 |) (d) | 27627 |
| Gross profit | 3668 | 972 |  | 4671 |
| &nbsp;&nbsp;&nbsp;Operating expenses | 6441 | 1495 |  | 7936 |
| Loss from operations | (2773) | (523) |  | (3265) |
| &nbsp;&nbsp;&nbsp;Interest expense | 52 | 101 |) (f) | 142 |
| &nbsp;&nbsp;&nbsp;Other (income) expense | - | (98) |  | (98) |
| Net loss | $(2825) | $(526) |  | $(3309) |
| Per share information - basic and diluted: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average shares outstanding | 14678 |  | (g) | 14707 |
| &nbsp;&nbsp;&nbsp;Net loss per share | $(0.19) |  |  | $(0.22) |

---

**BARFRESH FOOD GROUP INC. AND ARPS DAIRY, INC.**

**NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS**

(Dollar amounts in thousands)

**1. Basis of pro forma presentation**

On October 3, 2025, Barfresh Food Group Inc., a Delaware corporation (the "Company") completed the previously announced acquisition of 100% of the issued and outstanding stock of Arp's Dairy, Inc. ("Arps") pursuant to the Stock Purchase Agreement, dated as of September 15, 2025, among the Company, Arps and the shareholders of Arps. Concurrently, the Company and Arps entered into several agreements and modifications that impacted the terms of Arps outstanding obligations under formal and informal borrowing arrangements, which together with the Purchase Agreement are the basis of the acquisition (the "Transaction"). This transaction was accounted for as a business combination.

The purchase price of Arps has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values as of October 3, 2025 with the excess net asset value allocated to bargain purchase. The Company's allocation of the purchase price to the net tangible assets is as follows:

---

| | |
|:---|:---|
| **Acquisition consideration** | |
| &nbsp;&nbsp;&nbsp;Cash paid to retire Arps debt | $1306 |
| **Fair market values** |  |
| &nbsp;&nbsp;&nbsp;Cash | $76 |
| &nbsp;&nbsp;&nbsp;Other current assets | 1342 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | 6000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | $7418 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $845 |
| &nbsp;&nbsp;&nbsp;Accounts payable - construction in progress | 1782 |
| &nbsp;&nbsp;&nbsp;Mortgage loan | 2189 |
| &nbsp;&nbsp;&nbsp;Stockholder advances | 800 |
| &nbsp;&nbsp;&nbsp;Former stockholder note payable | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | 5677 |
| &nbsp;&nbsp;&nbsp;Bargain purchase | (435) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase price allocation | $1306 |

---

The final allocation of the purchase price will be determined at a later date and is dependent on the final valuation of Arps tangible assets acquired and liabilities assumed, which may be materially different than the value of assets acquired and liabilities assumed in the preliminary allocation and the estimated pro forma adjustments.

**2. Pro forma adjustments**

Pro forma adjustments to the unaudited pro forma combined condensed financial statements are necessary to reflect the repayment of debt and the reduction in the book value of property and equipment to fair value. The pro forma combined condensed income statements exclude transaction costs incurred in the nine months ended September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cash and debt were reduced to reflect the repayment of Arps revolving line of credit and equipment note by Barfresh as consideration for the acquisition of 100% of the outstanding stock of Arps and as a condition to the forbearance and loan modification granted by the bank with respect to the mortgage note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon closing of the Transaction, one-half of the note payable to a former stockholder was forgiven. The terms of the remaining balance were modified to require quarterly payments in either cash or Barfresh shares, at Barfresh's election, commencing no later than six months from the date the Transaction closed, with full repayment due no later than one year after the close of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The net book value of property and equipment has been reduced to their preliminary appraised values.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Cost of revenue has been adjusted based on the assumed depreciation related to the write-down in value of property and equipment. In estimating the reduction of depreciation expense, we assumed that 75% of the write-down relates to construction costs for building improvements that have not been placed in service, and 25% relates to equipment in service with an average useful life of seven years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company incurred $214 of expense in the nine months ended September 30, 2025 in association with the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Interest expense has been adjusted to take into account the debt reduction described in (b) and a pre-close extinguishment of former stockholder debt that was executed in 2025, prior to and in anticipation of the Company's acquisition of Arps. The debt repayment described in (a) were not considered in the pro forma interest expense adjustment because the revolving line of credit was replaced with a new revolving line of credit with another lender in October 2025. Additionally, interest expense related to the equipment loan was capitalized as the related assets purchased were a component of the incomplete development project for the new 44,000 square foot facility that is expected to be in service in 2026, and were thus not a component of the historical interest expense incurred by Arps. Interest expense has not been adjusted for $25 in loan fees and legal expenses incurred to obtain the mortgage loan forbearance as the cost is non-recurring.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In connection with the forbearance agreement noted in (a), the selling shareholders of Arps agreed to continue their guarantees of the mortgage debt. In exchange, the shareholders were granted shares of Barfresh common stock valued at $100. This transaction was accounted for separate from the purchase accounting in October 2025, and is excluded from the pro forma adjustments as a non-recurring transaction. The shares outstanding as a result of the issuance are included in calculating pro forma loss per share as if they were issued at the beginning of the period.