Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 65

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 65
---

    $1,467,016 

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 $156,226 and $57,059 for
the three months ended March 31, 2025 and 2024, 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 issued, whichever is more reliably measurable.

    10

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

The
Company incurred stock-based compensation of $4,024 and $525,978 for the three months ended March 31, 2025 and 2024, respectively.

Recent
Accounting Pronouncements

From
time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted
by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards,
which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.

Recently
Adopted Accounting Standards

In
November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosure.” The ASU updated reportable segment disclosure requirements, primarily through
requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The Company adopted
ASU No. 2023-07 during the year ended December 31, 2024. See Note 19 “Segment Reporting” in the accompanying Notes
to the Consolidated Financial Statements for additional information.

Accounting
Standards Not Yet Adopted

In
December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740