Az - Can I Recover A Non-refundable $500 Puppy Deposit In Small Claims When The Specific Litter Produced Zero Puppies?

Location: Arizona (Maricopa County)

I paid a $500 deposit under a written contract for a specific Standard Poodle litter from named parents. The contract listed the exact pairing and included a due date. It states that once the litter has been bred, deposits are non-refundable, and if the selected color/sex is not born the deposit moves to the next litter.
At the time I signed the contract and paid the deposit, the breeder’s communications led me to believe the female was pregnant and that puppies from that pairing were expected on or around the stated due date. The breeder never disclosed any uncertainty about the pregnancy. Later, after the due date passed with no puppies, the breeder stated she had not even been sure the female was pregnant.
That specific litter produced zero puppies. The breeder then said the deposit would roll to a later litter. I declined due to changed circumstances and requested a refund. The breeder refused, citing the non-refundable clause.
The contract does not explicitly address what happens if no litter is produced at all.

Questions:
1. Under Arizona law, does the complete failure of the contracted litter (with a stated due date and no disclosure of pregnancy uncertainty) entitle me to a refund despite the “non-refundable” language?
2. Is this the type of claim that small claims court (Justice Court) can handle, and is the non-refundable clause likely enforceable when the original litter never existed?

I have the signed contract, proof of payment, and the message history.