Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 57

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 57
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670) 
     (701,395)

    Other income (expense): 

    Interest income 
     15,652  
     8,577  
     7,075 
  
    Interest expense 
     (653,677) 
     (518,233) 
     (135,444)
  
    Total other income (expense) 
     (638,025) 
     (509,656) 
     (128,369)

    Net loss 
    $(4,094,090) 
    $(3,264,326) 
    $(829,764)

Net
Revenue

Our
net revenue for the nine months ended September 30, 2025, was $9,713,287, compared to $5,011,497 for the nine months ended September
30, 2024, an increase of $4,701,790, or 94%. The increase in revenue was primarily due to increased sales to our two largest customers
during the nine months ended September 30, 2025.

Cost
of Goods Sold and Gross Profit

Our
cost of goods sold for the nine months ended September 30, 2025, was $7,984,763, compared to $4,242,810 for the nine months ended September
30, 2024, an increase of $3,741,953, or 125%. Cost of goods sold increased primarily due to increased sales during the nine months ended
September 30, 2025. As a result of the foregoing, we had gross profit of $1,728,524, representing gross margins of 17.8%, for the nine
months ended September 30, 2025, as compared to a gross margin of $768,687, of 15.3%, for the nine months ended September 30, 2024.

Gross
margin increased primarily due to the transition of manufacturing operations from third-party suppliers to our facility located in Pisco,
Peru. This insourcing initiative created greater control over production processes, improved product quality, reduced contract manufacturing
costs, and improved overall efficiency shortening the production cycle and allowing for faster order fulfillment. As production continues
to scale, we expect further margin expansion from manufacturing existing products more efficiently and from our enhanced ability to bring
new products to market more quickly.

33

General
and Administrative

Our
general and administrative expense for the nine months ended September 30,