Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 881

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 881
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4, the Company issued to Kaufman Kapital, in a private placement (i) a 12% Senior
Secured Convertible Promissory Note in the principal amount of up to $3,400,000, (ii) a warrant to purchase 1,000,000 shares of common
stock at an exercise price of $1.00 per share, and (iii) a warrant to purchase 500,000 shares of common stock at an exercise price of
$1.50 per share, in consideration of an initial loan in the principal amount of $2,000,000 made to the Company under the Convertible
Note. The proceeds received were allocated between the debt and warrants on a relative fair value basis. The relative aggregate estimated
value of the $1.00 Warrants using the Black-Scholes Pricing Model, based on a weighted average volatility rate of 39% and a weighted
average call option value of $0.2138, was $20,303, of which $6,214 was recognized as finance expense during the year ended December 31,
2024. As of December 31, 2024, there was $14,089 of unamortized expenses expected to be expensed over the remaining life of the outstanding
debt. The relative aggregate estimated value of the $1.50 Warrants using the Black-Scholes Pricing Model, based on a weighted average
volatility rate of 39% and a weighted average call option value of $0.0768, was $655, of which $201 was recognized as finance expense
during the year ended December 31, 2024. As of December 31, 2024, there was $454 of unamortized expenses expected to be expensed over
the remaining life of the outstanding debt.

    F-26

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

Warrants
Issued Pursuant to Unit Offering to Related Parties

On
July 15, 2024, the Company entered into Subscription Agreements with three related parties, consisting of Eric Healy, the Company’s
Chief Executive Officer; Eagle Vision; and the Company’s President, pursuant to which such investors agreed to purchase $525,000
of “Units” from the Company, each Unit consisting of (i) 100 shares of common stock, and (ii) a warrant to purchase 125 shares
of common stock over the