Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 95

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 95
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 the first two
years of the lease, $20,000 in the third year of the lease, $22,000 in the fourth year of the lease, $24,000 in the fourth year of
the lease, and $25,000 thereafter. The lease also has a 10-year renewal option, and a buy-out option under which we may purchase the
facility for $1,865,456. We began manufacturing products at the Peru Facility in December of 2024, and produced approximately
$1,450,000 of products during the first quarter of 2025.

In
connection with our lease of the Peru Facility, we paid $275,000 on May 10, 2024, $80,000 during the fourth quarter of 2024, and another
$456,000 during the first quarter of 2025 as part of the purchase of a first position mortgage receivable in the amount of $1,267,000,
which is secured by the Peru Facility and was owed by the landlord of the Peru Facility to its former tenant. The remaining $456,000
is due and payable in monthly installments of $152,000 through June 23, 2025, at which time an additional $55,604 of interest is due,
based on a 9% financing rate.

25

Results
of Operations for the Three Months Ended March 31, 2025 and 2024

The
following table summarizes selected items from the statement of operations for the three months ended March 31, 2025 and 2024, respectively.

    Three Months Ended  

    March 31,  
    Increase / 

    2025  
    2024  
    (Decrease) 

    Net revenue 
    $3,193,522  
    $1,467,016  
    $1,726,506 
  
    Cost of goods sold 
     2,641,007  
     1,183,428  
     1,457,579 
  
    Gross profit 
     552,515  
     283,588  
     268,927 

    Operating expenses: 

    General and administrative 
     685,779  
     319,736  
     366,043 
  
    Salaries and benefits 
     314,242  
     598,286  
     (284,044)