Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1114

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1114
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 In addition, no
benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. At December 31, 2024, the Company
had approximately $9,512,000 of federal net operating losses. The net operating loss carry forwards, if not utilized, will begin to expire
in 2041.

The
provision (benefit) for income taxes for the period from November 19, 2021 (the effective date of the conversion from a limited liability
company to a corporation) through December 31, 2024 were assuming a 21% effective tax rate.

    F-28

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

The
components of the Company’s deferred tax asset are as follows:

 Schedule
of Deferred Tax Asset

    December 31,  
    December 31, 

    2024  
    2023 
  
    Deferred tax assets: 

    Net
    operating loss carry forwards 
    $1,997,520  
    $1,680,000 

    Net deferred tax assets before valuation allowance 
    $1,997,520  
    $1,680,000 
  
    Less:
    Valuation allowance 
     (1,997,520) 
     (1,680,000)
  
    Net
    deferred tax assets 
    $-  
    $- 

The
Company has incurred cumulative losses which make realization of a deferred tax asset difficult to support in accordance with ASC 740.
Based on the available objective evidence, including the Company’s history of its loss, management believes it is more likely than
not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against
its net deferred tax assets at December 31, 2024.

In
accordance with ASC 740, the Company has evaluated its tax positions and determined there are no uncertain tax positions.

Note
22 – Segment Reporting

The
Company is engaged in the development, marketing, sale, and distribution of plant-based, dehydrated fruit and vegetable snacks and powders.
The Company’s products are currently manufactured at its new production facility that commenced production in Pisco Peru in December
2024, and is supported by contract manufacturers in Peru, as necessary. The Company’s customers are located throughout the United
States. The