Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 77

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 77
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, (ii) the sale by the Company of $5,000,000 of equity or debt securities
in a single transaction or series of related transactions (excluding certain specified transactions), or (iii) the closing of a change
of control transaction as provided in the Convertible Note. Loans outstanding under the Convertible Note bear interest at an initial
rate of 12% per annum, and together with accrued principal are convertible into common stock.

    12

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

On
June 1, 2025 the Company and Kaufman Kapital entered into a Warrant Exercise and Amendment to Notes and Warrant Agreement (the “Warrant
Exercise Agreement”), pursuant to which Kaufman Kapital exercised in full the $1.00 Warrant on June 4, 2025 for a cash payment
to the Company of $1,000,000. In addition, pursuant to the Warrant Exercise Agreement, Kaufman Kapital and the Company agreed (i) to
extend the expiration date of the $1.50 Warrant to December 31, 2026, (ii) to extend the maturity date of the Convertible Note to December
31, 2026, (iii) to extend the maturity date of the Senior Secured Promissory Note of the Company in the original principal amount of
$1,200,000, issued to Kaufman on August 29, 2024 (the “Secured Note”) to December 31, 2025, (iv) that the Company will not
make any prepayment under the Convertible Note at any time amounts are outstanding under the Secured Note or any other non-convertible
notes of the Company (excluding notes issued pursuant to equipment financing), and (v) that the Company will not prepay more than $2,400,000
of principal outstanding under the Convertible Note prior to September 30, 2026. The amendment to the $1.50 Warrant resulted in $32,099 of additional interest expense.

The
Company’s obligations under the Convertible Note are secured by a lien granted to Kaufman Kapital on substantially all of the Company’s
assets pursuant to a Security Agreement entered between the Company and Kaufman Kapital (the “Security Agreement”). In addition,
the Convertible Note includes affirmative and negative covenants, events of defaults and other terms and conditions