Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 13

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 13
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 not be sufficient
to sustain operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management
is actively pursuing new customers and continues to expand the Company’s product mix to increase revenues. In addition, the Company
is currently seeking additional sources of capital to fund short-term operations. Management believes these factors will contribute to
achieving profitability. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern. These condensed consolidated financial statements also do not include any adjustments
relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities, that might
be necessary should the Company be unable to continue as a going concern.

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Segment
Reporting

Under
ASC 280, Segment Reporting, operating segments are defined as components of an enterprise where discrete financial information
is available that is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources
and in assessing performance. The Company has two components, consisting of its sales operations in the United States, and its production
operations in Peru. Therefore, the Company’s Chief Executive Officer, who is also the CODM, makes decisions and manages the Company’s
operations based on these two operating segments for the manufacture and distribution of its products.

    9

Fair
Value of Financial Instruments

The
Company discloses the fair value of certain assets and liabilities in accordance with ASC 820 – Fair Value Measurement and Disclosures
(ASC 820). Under ASC 820-10-05, the FASB establishes a framework for measuring fair value in generally accepted accounting principles
and expands disclosures about fair value measurements. This statement reaffirms that fair value is the relevant measurement attribute.
The adoption of this standard did not have a material effect on the Company’s financial statements as reflected herein. The carrying
amounts of cash, accounts receivable, accounts payable and accrued expenses reported on the balance sheets are estimated by management
to approximate fair value primarily due to the short-term nature of the instruments.

Cash
and Cash Equivalents

Cash
equivalents include money market