Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 113

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 113
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,428 for the three months ended March
31, 2024, an increase of $1,457,579, or 123%. Cost of goods sold increased primarily due to increased sales during the three months
ended March 31, 2025. As a result of the foregoing, we had gross profit of $552,515, representing gross margins of 17%, for the
three months ended March 31, 2025 as compared to a gross profit of $283,588, or gross margins of 19%, for the three months ended
March 31, 2024. Our gross profit margin decreased slightly due primarily to costs incurred transitioning the production of our products to the Peru
Facility. We anticipate that our margins will increase as we ramp up production and utilize more of the
facility’s capacity. Cost of goods sold included depreciation expense for the three months ended March 31, 2025 of $152,262,
compared to $55,823 for the three months ended March 31, 2024, an increase of $96,439, or 173%.

26

General
and Administrative

Our
general and administrative expense for the three months ended March 31, 2025 was $685,779, compared to $319,736 for the three months
ended March 31, 2024, an increase of $366,043, or 114%. The largest components of our general and administrative expenses are advertising
and marketing, rent, travel, commissions, and storage, shipping and handling expense, as shown below.

    Three Months Ended March 31,  

    2025  
    2024  
    Difference  
    % change 

    Advertising and marketing 
    $156,226  
    $57,059  
    $99,167  
     174%
  
    Rent 
    $50,515  
    $-  
    $50,515  
     -%
  
    Travel 
    $107,445  
    $41,410  
    $66,035  
     159%
  
    Commissions 
    $61,059  
    $66,514  
    $(5,455) 
     (8)%
  
    Storage, shipping and handling 
    $106,545  
    $104,437  
    $2,108  
     2%

Advertising
and marketing expenses increased for the