Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 311

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 311
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action against products labeled “natural” but that nonetheless contain synthetic ingredients or components. Should we become
subject to similar claims, consumers may avoid purchasing products from us or seek alternatives, even if the basis for the claim is unfounded.
Adverse publicity about these matters may discourage consumers from buying our products. The cost of defending against any such claims
could be significant. Any loss of confidence on the part of consumers in the truthfulness of our labeling or ingredient claims would
be difficult and costly to overcome and may significantly reduce our brand value. Any of these events could adversely affect our reputation
and brand and decrease our sales, which would have a material adverse effect on our business, financial condition, and results of operations.

Similarly,
certain USDA regulations set forth the minimum standards producers must meet in order to have their products labeled as “certified
organic.” While we believe our products and our supply chain are in compliance with these regulations, changes to food regulations
may increase our costs to remain in compliance. We could lose certifications if a facility becomes contaminated, if we do not use raw
materials that are certified, or if key ingredients used in our products are no longer allowed to be used in food certifications. The
loss of our certifications could materially and adversely affect our business, financial condition, or results of operations.

In
addition, the USDA has proposed a rule requiring disclosure of the use of genetic engineering in manufacturing a product or an ingredient
used in a product. The rule has not been finalized, and we are unable to predict with certainty what the final requirements will be.
If the USDA issues bioengineering disclosure regulations inconsistent with our practices, the resulting changes in labeling could adversely
affect customer acceptance of our product and materially and adversely affect our business.

Litigation
and regulatory enforcement concerning marketing and labeling of food products could adversely affect our business and reputation.

The
marketing and labeling of any food product in recent years has brought increased risk that consumers will bring class action lawsuits
and that the FTC and/or state attorneys general will bring legal action concerning the truth and accuracy of the marketing and labeling
of the product. Examples of causes of action that may be asserted in a consumer class action lawsuit include fraud, unfair trade practices
and breach of state consumer protection statutes. The FTC and/or state attorneys general may bring legal action that seeks removal of
a product from the marketplace and impose fines and penalties. Even when unmerited, class claims, action by the FTC or state attorneys’
general enforcement actions can be expensive to