Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1264

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1264
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 single performance obligation, and revenue is recognized at a
single point in time when ownership, risks and rewards transfer. Typically, this occurs when the goods are received by the retailer or
customer, or when the title of goods is exchanged. Revenues are recognized in an amount that reflects the net consideration the Company
expects to receive in exchange for the goods.

The
Company promotes its products with advertising, consumer incentives and trade promotions. These programs include discounts, slotting
fees, coupons, rebates, in-store display incentives and volume-based incentives. Customer trade promotion and consumer incentive activities
are recorded as a reduction to the transaction price based on amounts estimated as being due to customers and consumers at the end of
a period. The Company derives these estimates based principally on historical utilization and redemption rates. The Company does not
receive a distinct service in relation to the advertising, consumer incentives and trade promotions. Payment terms in the Company’s
invoices are based on the billing schedule established in contracts and purchase orders with customers.

 30 

Expenses
such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows:

    December
    31, 

    2024  
    2023 
  
    Gross revenue 
    $6,777,079  
    $3,184,018 
  
    Less: slotting, discounts,
    and allowances 
     260,742  
     358,163 
  
    Net
    revenue 
    $6,516,337  
    $2,825,855 

Cost
of Goods Sold

Cost
of goods sold represents costs directly related to the purchase, production and manufacturing of the Company’s products. Costs
include purchase costs, product development, freight-in, packaging, and print production costs.

Advertising
Costs

The
Company expenses the cost of advertising and promotions as incurred. Advertising and promotions expense was $311,586 and $162,048
for the years ended December 31, 2024 and 2023, respectively.

Stock-Based
Compensation

The
Company accounts for equity instruments issued to employees and non-employees in accordance with the provisions of ASC 718 Stock Compensation
(“ASC 718”). All transactions in which the consideration provided in exchange for the purchase of goods or services consists
of the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the
equity instrument