Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 49

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 49
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 this initiative, consisting of (i) approximately $4.6 million
in factory start-up costs including purchasing equipment, build-out, and supplies for the new facility and (ii) approximately $0.9 million
in factory idle capacity, professional fees, legal fees, travel costs, etc. The organizational realignment is substantially complete
as of June 30, 2025.

For
the six months ended June 30, 2025, we incurred approximately $1.07 million of realignment costs comprised of: $491,890 for capitalized
machinery and equipment, $480,320 for factory idle capacity, $23,917 for travel costs and $74,394 for professional and legal fees. For
the period six months ended June 30, 2024, we incurred $20,017 for travel costs and $92,303 for professional and legal fees.

Note
21 – Subsequent Events

The
Company evaluates events that have occurred after the balance sheet date through the date these financial statements were issued, noting
no reportable event, except as follows:

ATM
Offering

On
July 29, 2025, we entered into an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Alexander Capital, L.P.,
as selling agent (the “Sales Agent”). In accordance with the terms of the ATM Agreement, we may offer and sell shares of
our common stock from time to time through the Sales Agent having an aggregate offering price of up to $3,000,000. The Sales Agent will
receive a commission of 3.0% of the gross proceeds of the sales price per share for any shares sold under the ATM Agreement.

As
of August 13, 2025, 1,000,000 shares
of common stock were issued and 777,896
shares of common stock were sold through the Sales Agent under the ATM Agreement, for aggregate gross proceeds of
$1,760,489.

Exercise
of Warrants

Following June 30, 2025, warrants to purchase an aggregate of 138,716 shares of common stock at an exercise price of $1.00 per share were
exercised, and 63,716 shares were issued, resulting in gross proceeds to the Company of $138,716.

26

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You
should read the following discussion of our financial