Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 29

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 29
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AT was received on July 10, 2025, in the amount of $233,475.

    15

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note
8 – Notes Receivable

Nanuva
Note Receivable

On
February 4, 2021, the Company entered into a Manufacturing and Distributorship Agreement (“MDA”) with Natural Nutrition SpA,
a Chilean company (“Nanuva”), in which the Company loaned $500,000 to Nanuva (“Advance Payment”) to help finance
the capital investment needed for Nanuva to purchase two Enwave Rev 10 machines to be used in servicing the Company’s manufacturing
needs. The MDA expires on May 31, 2027, with automatic annual renewals thereafter, unless it is terminated in accordance with the terms
of the MDA. The note bears interest at 3% per annum on the outstanding principal.

On
February 4, 2024, the Company and Nanuva entered into an amendment to the MDA which extended the date on which Nanuva is required to
make the first minimum contractual annual payment to June 30, 2024. Repayments are based on kilograms produced by Nanuva for the Company,
or a minimum of $12,000 per contractual year.

In
April 2024 the Company advanced Nanuva $75,600 for inventory orders which were not fulfilled. The Company currently manufactures all
of its products at its facility in Pisco, Peru and does not anticipate utilizing Nanuva in the future for third-party manufacturing.
As of June 30, 2025, a $75,600 allowance for doubtful accounts for the prepaid inventory was established.

As
of June 30, 2025, a total of $156,241 of the Advance Payment had been repaid as a reduction of inventory costs, consisting of $140,018
of principal and $16,223 of interest. The Note Receivable is current with the next $12,000 minimum contractual annual payment due by
January 31, 2026.

As
of June 30, 2025, a total of $396,078 was outstanding from Nanuva, consisting of $359,982 of principal and $36,096 of unpaid interest.
The Advance Payment is collateralized by a second lien in the equipment. The Company has