Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 47

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 47
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 31, 2024, a decrease
of $155,632, or 40%. This decrease was primarily attributable to $149,594 of non-cash, stock-based compensation for the three months
ended March 31, 2024 that were not incurred during the current period.

Other
Income (Expense)

In
the three months ended March 31, 2025, other expense was $235,842 on a net basis, consisting of $240,978 of interest expense, as partially
offset by $5,136 of interest income. For the three months ended March 31, 2024, other expense was $25,867 on a net basis, consisting
of $28,744 of interest expense, as partially offset by $2,877 of interest income. Other expense increased by $209,975, or 812%, primarily
due to interest on increased outstanding debt as we funded our expansion into Peru during 2024.

Net
loss

Net
loss for the three months ended March 31, 2025 was $918,382, compared to $1,050,967 for the three months ended March 31, 2024, a decrease
of $132,585, or 13%. The decreased net loss was primarily due to increased gross profits and a $521,954 decrease in stock-based compensation,
as partially offset by $366,043 of increased general and administrative expenses.

27

Liquidity
and Capital Resources

The
following table summarizes our total current assets, liabilities and working capital as of March 31, 2025 and December 31, 2024.

    March 31,  
    December 31, 

    2025  
    2024 
  
    Current Assets 
    $5,791,605  
    $4,916,614 

    Current Liabilities 
    $8,528,261  
    $8,813,996 

    Working Capital 
    $(2,736,656) 
    $(3,897,382)

As
of March 31, 2025, we had negative working capital of $2,736,656. We have incurred net losses since our inception and we anticipate net
losses and negative operating cash flows for the near future, and we may not be profitable or realize growth in the value of our assets.
To date, our primary sources of capital have been cash generated from the sales of our products,