Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 83

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 83
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 2025 and December 31, 2024 consisted of the following:

Schedule
of Property and Equipment 

    June 30,  
    December 31, 

    2025  
    2024 
  
    Leasehold Improvements 
    $179,127  
    $127,408 
  
    Machinery and equipment 
     4,752,521  
     4,316,964 
  
    Office Furniture, fixtures and equipment 
     140,225  
     136,169 
  
    Less: Accumulated depreciation 
     (829,802) 
     (524,242)
  
    Total property and equipment, net 
    $4,242,071  
    $4,056,299 

Depreciation
of property and equipment was $305,560 and $112,671 for the six months ended June 30, 2025, and 2024, respectively.

Note
7 – Other Assets and Other Receivable

Other
Assets

The
Company has other assets of $1,267,000 as of June 30, 2025, and December 31, 2024, consisting of the first mortgage position on the production
facility it leases in Pisco, Peru (the “FPM”), which the Company acquired to protect its long-term strategic interests. See
Note 13 Leases. During 2024, the landlord of the leased facility entered bankruptcy proceedings.

On
May 10, 2024, the Company made the first payment of $275,000 toward the FPM. The FPM is secured by the facility in Peru. Payments were
made in various installments totaling $355,000 as of December 31, 2024, and $912,000 during the six months ended June 30, 2025.

Other
Receivable

The
Company’s Peruvian operations are subject to an 18% value-added tax (“VAT”) or (“Impuesto General a las Ventas”
or “IGV”) on substantially all purchases and exports of goods and services. IGV paid on purchases can be offset against IGV
collected on exports, with the net amount either remitted to, or recovered from, the Peruvian tax authority (SUNAT), as applicable. This
receivable is recoverable through future offsets of IGV payable or, in certain circumstances, through a refund claim. IGV does not represent