Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1334

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1334
---
 the business is managed and how the Company’s
Chief Executive Officer, who acts as the Company’s chief operating decision maker (“CODM”), assesses performance internally.

The
accounting policies of the retail operations segment are the same as those described in the summary of significant accounting policies
in Note 3 to the Consolidated Financial Statements. The Company’s CODM assesses performance and allocates resources for the retail
operations segment using segment earnings before net interest expense, income tax expense and depreciation and amortization (“EBITDA”).
The Company defines EBITDA as earnings before interest taxes and depreciation. The Company’s CODM also uses segment EBITDA to measure
the operational effectiveness of the Company’s financial model, compare the performance of core operating results between periods,
against budget and against competitors and evaluate whether to invest capital in the retail operations segment or in other parts of the
Company, such as for share repurchases, debt repayments or capital expenditures. The Company’s CODM is not provided asset information
by reportable segment as asset information is provided to the CODM on a consolidated basis. The Company’s capital expenditures
are predominately used in the Company’s production operations, rather than its retail operations.

    F-29

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

The
following table presents the Company’s retail operations segment revenue, measure of segment profit or loss, significant segment
expenses and reconciliation of the U.S. and Latin America operations segments’ EBITDA to consolidated net earnings before income
tax expense for the years ended December 31, 2024 and 2023:

 Schedule
of Segment Reporting

    2024  
    2023 

    For the Years Ended 

    December 31, 

    2024  
    2023 

    U.S. operations
    segment sales 
    $6,516,337  
    $2,825,855 
  
    Latin American operations
    segment cost of goods sold 
    $5,480,874  
    $2,698,229 

    U.S. operations segment expenses: 

    General and administrative 
     1,367,039  
     1,581,474 
  
    Rent 
     52,727  
     - 
  
    Salaries and wages 
     1,390,260  
     1,129,858