Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 374

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 374
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000
    toward the purchase of a First Position Mortgage (“FPM”) receivable in the amount of $1,267,000,
    which is secured by the Peru facility and was owed by the landlord of the Peru facility to its former tenant, for a purchase price
    of $1,267,000.
    The Company paid an additional $80,000
    during the fourth quarter of 2024, and the remaining $912,000
    due on the
    FPM is to be paid in monthly installments of $152,000
    from January 24, 2025 to June 23, 2025, as presented in other current liabilities on the balance sheet. The unpaid balance
    accrues interest at 9%.
    At December 31, 2024, a total of $33,215
    of interest was accrued. The FPM enables the Company to ensure that they have uninterrupted access to the leased facility, and secures the
option to purchase the facility by becoming the primary lien holder on the facility. The Company intends to exercise its option to purchase
the facility at some point in the future, in which case the FPM would either be repaid out of the proceeds from a mortgage, or the FPM
would be used to reduce the purchase price of the facility.

    (2)
    VAT
    tax receivable is comprised of taxes that were paid as the Company imported equipment and raw materials into Peru. These taxes will
    be refunded as inventory is exported, or if equipment is exported for any unforeseeable reason.

Note
11 – 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 industrial fruit drying machines to be used in servicing the Company’s
manufacturing needs. Pursuant to the MDA, the Company is entitled to recover the Advance Payment in full no later than May 31, 2027,
which prior to repayment, will bear interest at 3% per annum. The Advance Payment is to be repaid pursuant to a two-dollar ($2/kg) deduction
in the price of any product exported by Nanuva to the