Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 79

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 79
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able through future offsets of IGV payable or, in certain circumstances, through a refund claim. IGV does not represent
an expense of the Company when recoverable and is recorded as an asset until applied or refunded.

As
of September 30, 2025, the Company’s Peruvian operations had paid more IGV on purchases than it had collected on sales, resulting
in a net IGV receivable of $791,797, of which $326,780 is classified in Other Current Assets (see Note 6). The Company has received
payments from SUNAT, in the amount of $392,173. 

Note
9 – Notes Receivable

Nanuva
Note Receivable

On
February 4, 2021, the Company entered into a Manufacturing and Distributorship Agreement (“MDA”) with Natural Nutrition
SpA, a Chilean company (“Nanuva”), in which the Company loaned $500,000
to Nanuva (“Advance Payment”) to help finance the capital investment needed for Nanuva to purchase two Enwave Rev 10
machines to be used in servicing the Company’s manufacturing needs. The MDA expires on May
31, 2027, with automatic annual renewals thereafter, unless it is terminated in accordance with the terms of the MDA. The
note bears interest at 3%
per annum on the outstanding principal. The Advance Payment is collateralized by a second lien in the equipment.
The Company has commenced negotiations with Nanuva to recover the two Enwave Rev 10 Machines and terminate the MDA.

On
February 4, 2024, the Company and Nanuva entered into an amendment to the MDA which extended the date on which Nanuva is required to
make the first minimum contractual annual payment to September 30, 2024. Repayments are based on kilograms produced by Nanuva for the
Company, or a minimum of $12,000 per contractual year.

In
April 2024 the Company advanced Nanuva $75,600 for inventory orders which were not fulfilled. The Company currently manufactures all
of its products at its facility in Pisco, Peru and does not anticipate utilizing Nanuva in the future for third-party manufacturing.
The Company maintains an allowance for doubtful accounts for the prepaid inventory in the amount of $75,600.

As
of September 30, 2025,  a total of $398,800 was outstanding from Nan