Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 12

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 12
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 were subject to adjustment in connection with the reverse
stock split. The par value of the common stock was not adjusted by the reverse stock split.

Going
Concern

As
shown in the accompanying financial statements, the Company has incurred recurring losses from operations resulting in an accumulated
deficit of $17,562,057, and a working capital deficit of $3,897,382 as of December 31, 2024. The Company’s $2,329,452 of cash on
hand at December 31, 2024 may not be sufficient to sustain operations. These factors raise substantial doubt about the Company’s
ability to continue as a going concern. Subsequent to December 31, 2024, the Company received gross proceeds of approximately $2.5 million
from sales of common stock in an “At-the-Market” registered offering. Although the Company anticipates that its results of
operations will improve substantially as a result of the recent launch of its new facility in Peru, there can be no assurance in that
regard. Management is actively pursuing new customers to increase revenues. In addition, the Company is currently seeking additional
sources of capital to fund short term operations. Management believes these factors will contribute toward achieving profitability. The
accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going
concern.

The
financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability
to continue as a going concern. These financial statements also do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue
as a going concern.

Note
3 – Summary of Significant Accounting Policies

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Segment
Reporting

Under
ASC 280, Segment Reporting, operating segments are defined as components of an enterprise where discrete financial information
is available that is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources
and in assessing performance. The Company has two components, consisting of its sales operations in the United States, and