Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 69

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 69
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 Notes”) and Warrants (“Warrants”) to purchase an aggregate of 518,750 shares of the
Company’s common stock, to a group of Investors (“Investors”) led by Eagle Vision Fund LP (“Eagle Vision”),
an affiliate of John Dalfonsi, CFO of the Company, pursuant to a subscription agreement between the Company and the Investors.

Pursuant
to the subscription agreements, Eagle Vision was paid aggregate cash fees in the amount of $177,500 upon the closing of the transactions
for due diligence fees in consideration of services rendered and to be rendered by Eagle Vision to the Company and the investors, including
conducting due diligence with respect to the Company, monitoring the performance by the Company of its obligations under the senior secured
notes, servicing the interest and principal payments for purchasers, engaging in ongoing discussions with the Company’s management
regarding the Company’s operations and financial condition, acting as collateral agent, and evaluating financial and non-financial
information related to the Company, which services are to be provided by Eagle Vision until the senior secured notes have been paid in
full, and an aggregate $35,000 of legal fees was paid to Investors’ counsel.

The
Notes mature on the earlier of December 31, 2025, or the occurrence of a Qualified Subsequent Financing or Change of Control (as such
terms are defined in the Subscription Agreement) and bear interest at a rate of 15% per annum. In addition, the Notes are subject to
covenants, events of defaults and other terms and conditions set forth in the Subscription Agreement. The Company’s obligations
under the Notes are secured by liens on substantially all of the Company’s assets pursuant to the terms of a Security Agreement
between the Company and the Investors.

Each
Warrant is exercisable for a 10-year period at an exercise price of $1.00 per share.

Note
3 – Fair Value of Financial Instruments

Under
FASB ASC 820-10-5, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates
a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures.
Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required
for