Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 330

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 330
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and $407,789 in excess of FDIC insured limits on December 31, 2024 and 2023, respectively, and has not experienced any losses in such
accounts.

Accounts
Receivable

Accounts
receivable is carried at their estimated collectible amounts. Trade accounts receivable is periodically evaluated for collectability
based on past credit history with customers and their current financial condition. The Company had an allowance for doubtful accounts
of $25,586 at December 31, 2024. No allowance for doubtful accounts was necessary at December 31, 2023.

Inventory

The
Company’s products consist of pre-packaged and bulk-dried fruit and vegetable-based snacks, powders and ingredients purchased from
contract-manufacturers in Chile and/or Peru. The Company’s contract manufacturer in Peru uses equipment purchased by the Company
in its manufacturing process. Raw materials consist of packaging materials. Appropriate consideration is given to obsolescence, excessive
levels, deterioration, and other factors in evaluating net realizable value. No reserve for obsolete inventories has been recognized.
Inventory, consisting of raw materials and finished goods are stated at the lower of cost or net realizable value using the average cost
valuation method, at December 31, 2024 and 2023, consisted of the following:

    December
    31, 

    2024  
    2023 
  
    Raw materials 
    $464,681  
    $13,734 
  
    Finished goods 
     1,465,854  
     323,071 
  
    Total
    inventory 
    $1,930,535  
    $336,805 

The
Company had prepaid inventory advances on products in the amount of $123,792 and $-0- as of December 31, 2024 and 2023, respectively.
Advances of 70% of estimated finish product costs are made to enable manufacturer’s purchase of raw materials to produce finished
products. The remaining 30% is paid upon receipt of finished goods.

Property
and Equipment

Property
and equipment are stated at the lower of cost or estimated net recoverable amount. The cost of property, plant and equipment is depreciated
using the straight-line method based on the lesser of the estimated useful lives of the assets or the lease term based on the following
life expectancy:

    Office equipment
    3 years
  
    Furniture and fixtures
    5 years