Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 110

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 110
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cost of goods sold for the three months ended September 30, 2025, was $2,650,477, compared to $1,845,155 for the three months ended September
30, 2024, an increase of $805,322, or 44%. Cost of goods sold increased primarily due to increased sales during the three months ended
September 30, 2025. We had gross profit of $569,550, representing gross margins of 17.7%, for the three months ended September 30, 2025,
as compared to a gross profit of $336,340, or 15.4%, for the three months ended September 30, 2024.

Gross
margin increased primarily due to the transition of manufacturing operations from third-party suppliers to our facility located in Pisco,
Peru. This insourcing initiative created greater control over production processes, improved product quality, reduced contract manufacturing
costs, and improved overall efficiency shortening the production cycle and allowing for faster order fulfillment. As production continues
to scale, we expect further margin expansion from manufacturing existing products more efficiently and from our enhanced ability to bring
new products to market more quickly.

31

General
and Administrative

Our
general and administrative expense for the three months ended September 30, 2025, was $897,512, compared to $316,688 for the three months
ended September 30, 2024, an increase of $580,824, or 183%. The largest components of our general and administrative expenses are plant
idle capacity, research and development, rent, travel, and commissions, as shown below.

    Three Months Ended September 30,  

    2025  
    2024  
    Difference  
    % Change 

    Idle Capacity 
    $368,586  
    $-  
    $368,586  
     100%
  
    Research and development 
    $190,875  
    $- 
    $190,875  
     100%
  
    Rent 
    $50,870  
    $160,751  
    $(109,881) 
     (68)%
  
    Travel 
    $39,894  
    $30,502  
    $9,392  
     31%
  
    Commissions 
    $63,928  
    $24,910  
    $39,018