Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 95

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 95
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 as of June 30, 2025, is as follows:

 Schedule
of Future Minimum Lease Payments 

    Year Ending 
    Minimum Lease 
  
    December 31, 
    Commitments 
  
    2025 (for the six months remaining) 
    $21,943 
  
    2026 
     43,886 
  
    2027 
     43,886 
  
    2028 
     14,629 
  
    Total minimum lease payments 
     124,344 
  
    Less effects of discounting 
     17,927 
  
    Lease liability recognized 
     106,417 
  
    Less current portion 
     30,888 
  
    Long-term finance lease liability 
    $75,529 

Note
14 – Commitments and Contingencies

Legal
Matters

From
time to time, the Company may be a party to various legal matters, threatened claims, or proceedings in the normal course of business.
Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses the likelihood of outcomes in
litigation and makes appropriate accruals and disclosures based on current information and legal counsel’s opinions. There’s
no guarantee that these matters won’t significantly impact the Company’s business, financial position, or results of operations.
Legal accruals are recorded when and if it is determined that a loss related to a certain matter is both probable and reasonably estimable.

The
Company is the subject of a lawsuit recently commenced by its former chief financial officer alleging wrongful termination. Based on
information currently available to the Company and the advice of legal counsel, management believes that the outcome of this lawsuit
is not probable to result in a material adverse effect on the Company’s financial position, results of operations, or cash flows.
While the Company intends to vigorously defend itself against these allegations, the ultimate outcome of the lawsuit is not possible
to predict. At this time given the uncertainties inherent in litigation, it is not reasonable to estimate the amount or range of any
potential loss, and therefore no liability has been accrued in the accompanying financial statements.

Other
than as set forth above, there are no legal matters pending against the Company.

Operating
Lease

On
May 10, 2024, the Company entered into a ten-year lease for the 50,000 square-foot Peru Facility, which commenced operations in December
of 2024. The lease requires monthly lease payments of