Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 117

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 117
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 rate changes on cash 
     26,634  
     (1,794)

    Net change in cash 
    $(1,517,445) 
    $411,404 

Net
Cash Used in Operating Activities

Net
cash used in operating activities was $5,064,017 for the nine months ended
September 30, 2025, compared to $3,259,049 for the nine months ended September 30, 2024, an increase of $1,804,968, or 55%. The increase
was primarily due to a $1,065,942 increase in accounts receivable due to increased sales volumes and a $573,303 increase in prepaid inventory
to secure raw materials.

35

Net
Cash Used in Investing Activities

Net
cash used in investing activities was $573,991 for the nine months ended September 30, 2025, compared to $2,095,691 for the nine
months ended September 30, 2024, a decrease of $1,521,700, or 73%. This decrease was primarily attributable to less equipment
purchases and capital expenditures for the build out of the Peru facility.

Net
Cash Provided by Financing Activities

Net
cash provided by financing activities was $4,093,929 for the nine months
ended September 30, 2025, compared to $5,767,938 for the nine months ended September 30, 2024, an decrease of $1,674,009, or 29%. Our decreased
cash provided by financing activities was primarily due to principal repayments on notes payable to related parties offset by proceeds
from the sale of common stock and exercise of warrants.

Effect
of Exchange Rate Changes on Cash

For
the nine months ended September 30, 2025, the effect of exchange rate changes on cash and cash equivalents primarily reflects the translation
impact from fluctuations in the value of the Peruvian sol relative to the U.S. dollar. During the period, the sol experienced modest
depreciation against the U.S. dollar, resulting in a gain on foreign currency translation of $26,634 compared to a loss of $1,794 in
the comparative period.

CRITICAL
ACCOUNTING POLICIES AND ESTIMATES

Our
financial results are affected by the selection and application of accounting policies and methods. As of April 1, 2025, we changed our
manufacturing cost allocation methodology from kilograms produced, to