Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 451

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 451
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 suspension of production.

Any
of these sanctions could result in higher than anticipated costs or lower than anticipated sales and harm our reputation, business, financial
condition, and results of operations. We may also be required to take corrective actions, such as installing additional equipment or
taking other actions, each of which could require us to make substantial capital expenditures. In addition, we could be required to indemnify
our employees in connection with any expenses or liabilities that they may incur individually in connection with regulatory action against
them. As a result, our future business prospects could deteriorate due to regulatory constraints, and our profitability could be impaired
by our obligation to provide such indemnification to our employees.

 17 

Our
reputation could suffer from real or perceived issues involving the labeling or marketing of our products.

Products
that we sell carry claims as to their origin, ingredients, or health benefits, including, by way of example, the use of the term “natural”,
“functional”, or “healthy”, or similar synonyms or implied statements relating to such benefits. Although the
FDA and the USDA each has issued statements regarding the appropriate use of the word “natural,” there is no single, U.S.
government regulated definition of the term “natural” for use in the food industry, which is true for many other adjectives
common in our industry. The resulting uncertainty has led to consumer confusion, distrust, and legal challenges. Plaintiffs have commenced
legal actions against several food companies that market “natural” products, asserting false, misleading, and deceptive advertising
and labeling claims, including claims related to genetically modified ingredients. In limited circumstances, the FDA has taken regulatory
action against products labeled “natural” but that nonetheless contain synthetic ingredients or components. Should we become
subject to similar claims, consumers may avoid purchasing products from us or seek alternatives, even if the basis for the claim is unfounded.
Adverse publicity about these matters may discourage consumers from buying our products. The cost of defending against any such claims
could be significant. Any loss of confidence on the part of consumers in the truthfulness of our labeling or ingredient claims would
be difficult and costly to overcome and may significantly reduce our brand value. Any of these events could adversely affect our reputation
and brand and decrease our sales, which would have a material adverse effect on our business, financial condition, and results of operations.

Similarly,
certain USDA regulations set forth the minimum standards producers must meet in order to have their products labeled as “certified
organic.” While