Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 97

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 97
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 as the Company elects to maintain exclusivity.

In
addition to the initial EnWave Equipment we purchased, the Company agreed to purchase additional equipment from EnWave over time.
The additional equipment purchase schedule, as amended, required the Company to purchase a “Second EnWave Machine”,
which was purchased in full on December 12, 2024. The Company is also required to execute an Equipment Purchase Agreement for a
120kW, or greater rated power, EnWave Equipment (the “Third EnWave Machine”) on or before December 31, 2025, and satisfy
the payment obligations required with respect to the Third EnWave Machine by the License Agreement. The Company is also required to
enter an Equipment Purchase Agreement for a 120kW, or greater, rated power EnWave Equipment (the “Fourth EnWave
Machine”) on, or before, December 31, 2026, and to satisfy the payment obligations required with respect to the Fourth EnWave
Machine by the License Agreement. The License Agreement is effective as long as EnWave possesses its EnWave technology. The Company
recognized $85,081 of
royalty expenses for the six months ended June 30, 2025. Any future minimum royalty payments or equipment purchases under this
license agreement are an unrecognized commitment, as they relate to retaining exclusivity of the avocado products going forward and
the Company can elect not to pay.

    22

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note
15 – Changes in Stockholders’ Equity

Preferred
Stock

The
Company has authorized 8,000,000 shares of $0.001 par value preferred stock. As of June 30, 2025, none of the preferred stock had been
designated or issued.

Common
Stock

The
Company has authorized 80,000,000 shares of $0.001 par value common stock. As of June 30, 2025, a total of 10,719,769 shares of common
stock had been issued. Each holder of common stock is entitled to one vote for each share of common stock held.

ATM
Offering

On
February 18, 2025, the Company entered into a First Amendment to an At-The-Market Issuance Sales Agreement (the “ATM Agreement”)
to increase the aggregate offering price of the shares of common stock that the Company may sell