Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 30

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 30
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 commenced negotiations with Nanuva to recover
the two Enwave Rev 10 Machines and terminate the MDA.

Note
9 – Accrued Expenses

Accrued
expenses consisted of the following as of June 30, 2025 and December 31, 2024, respectively:

 Schedule of Accrued Expenses

    June 30,  
    December 31, 

    2025  
    2024 
  
    Accrued payroll and taxes 
    $255,604  
    $82,338 
  
    Accrued interest 
     470,599  
     210,783 
  
    Accrued chargebacks 
     14,399  
     26,663 
  
    Accrued royalties 
     44,495  
     13,830 
  
    Total accrued expenses 
    $785,097  
    $333,614 

Note
10 – Convertible Notes Payable, Related Parties

As
discussed in further detail in Note 2, on July 24, 2024, the Company issued the $3.4 million Convertible Note to Kaufman Kapital, together
with Warrants, convertible into shares of common stock at a fixed price of $0.7582 per share. The Convertible Note matures on the earlier
of (i) December 31, 2025, (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.

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 the Security Agreement. In addition, the Convertible Note includes affirmative and negative covenants, events of defaults
and other terms and conditions, customary in transactions of this nature.

In
accordance with ASC 470, the Company recorded total discounts of $95,958, consisting of $75,000 of legal fees and $20,958 related to
the relative fair value of the Warrants. The discounts are amortized to interest expense over the term of the