Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 70

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 70
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 items measured at fair value.

    12

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

The
Company has cash, notes receivable, derivative liabilities and debts that must be measured under the fair value standard. The Company’s
financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as
follows:

Level
1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access
at the measurement date.

Level
2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets
or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g.,
interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation
or other means (market corroborated inputs).

Level
3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or
liability.

The
following schedule summarizes the valuation of financial instruments at fair value on a recurring basis in the balance sheets as of March
31, 2025 and December 31, 2024:

 Schedule of Valuation of Financial Instruments at Fair Value on a Recurring Basis 

    Level
    1  
    Level
    2  
    Level
    3 

    Fair Value Measurements at March 31, 2025 

    Level 1  
    Level 2  
    Level 3 
  
    Assets 

    Cash 
    $2,386,381  
    $-  
    $- 
  
    Right-of-use-asset 
     -  
     -  
     1,528,422 
  
    Notes receivable 
     -  
     359,982  
     - 
  
    Total assets 
     2,386,381  
     359,982  
     1,528,422 
  
    Liabilities 

    Convertible notes payable, related parties net of $50,168 of discounts 
     -  
     -  
     3,349,832 
  
    Notes payable 
     -  
     201,912