Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 307

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 307
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 growth may not be sustainable
over time.

 15 

If
we face labor shortages or increased labor costs, our results of operations and our growth could be adversely affected.

Labor
is a significant component of the cost of operating our business. Our ability to meet labor needs while controlling labor costs are subject
to external factors, such as employment levels, prevailing wage rates, minimum wage legislation, changing demographics, health and other
insurance costs and governmental labor and employment requirements. In the event of increasing wage rates, if we or any of our contract
manufacturers fail to increase our wages competitively, the quality of our workforce and products could decline, while increasing our
wages could cause our earnings to decrease. If we face labor shortages or increased labor costs, our operating expenses could increase
and our business, financial condition and results of operations could be materially and adversely affected.

Consumer
preferences for natural and organic food products are difficult to predict and may change.

Our
business is primarily focused on sales of non-GMO, organic and natural products, and our success depends, in part, on our ability to
offer products that anticipate the tastes and dietary habits of consumers and appeal to their preferences on a timely and affordable
basis. Consumer eating habits may impact our business because of changes in attitudes regarding diet and health or new information regarding
the health effects of consuming products we distribute. If consumer eating habits change significantly, we may be required to modify
or discontinue sales of certain items in our product portfolio, and we may experience higher costs associated with implementing those
changes. We cannot ensure that we will be able to effectively respond to changes in consumer health perceptions or to adapt our product
offerings to trends in eating habits.

A
significant shift in consumer demand away from our products, could reduce our sales and harm our business. Consumer trends change based
on a number of possible factors, including nutritional values, a change in consumer preferences or general economic conditions. Additionally,
there is a growing focus among some consumers to buy local food products in an attempt to reduce the carbon footprint associated with
transporting food products from longer distances, which could result in a decrease in the demand for food products and ingredients that
we import from other countries or transport from remote processing locations or growing regions. Further, failures by us or our competitors
to deliver quality products could erode consumer trust in the organic certification of foods. A significant shift in consumer demand
away from our products would reduce our market share, harming our business.

Technology
failures