Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1317

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1317
---
 Year Ending 
    Minimum Lease 
  
    December
    31, 
    Commitments 
  
    2025 
    $96,000 
  
    2026 
     192,000 
  
    2027 
     256,000 
  
    2028 
     280,000 
  
    Thereafter 
     1,596,000 
  
    Total minimum lease payments 
     2,420,000 
  
    Less effects of discounting 
     846,965 
  
    Lease liability recognized 
     1,573,035 
  
    Less current portion 
     - 
  
    Long-term operating
    lease liability 
    $1,573,035 

The
future minimum lease payments due under finance leases as of December 31, 2024 is as follows:

 Schedule
of Future Minimum Finance Lease Payments

    Year Ending 
    Minimum Lease 
  
    December
    31, 
    Commitments 
  
    2025 
    $40,229 
  
    2026 
     43,886 
  
    2027 
     43,886 
  
    2028 
     18,286 
  
    Total minimum lease payments 
     146,287 
  
    Less effects of discounting 
     24,283 
  
    Lease liability recognized 
     122,004 
  
    Less current portion 
     29,243 
  
    Long-term finance lease
    liability 
    $92,761 

    F-21

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

Note
17 – Commitments and Contingencies

Legal
Matters

From
time to time, the Company may be a party to various legal matters, threatened claims, or proceedings in the normal course of business.
Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with its legal
counsel, the need to record a liability for litigation and contingencies. Legal accruals are recorded when and if it is determined that
a loss related to a certain matter is both probable and reasonably estimable. There are currently no pending legal matters.

Operating
Lease

On
May 10, 2024, the Company entered into a ten-year lease for the 50,000 square-foot Peru Facility, which commenced operations in December