Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1152

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1152
---
 includes:

    ●
    BranchOut Snacks: dehydrated fruit and vegetable-based
    snacks, including Avocado Chips, Chewy Banana Bites, Pineapple Chips, Brussels Sprout Crisps, Strawberry Crisps and Bell Pepper Crisps.

    ●
    Private Label: Prunes, Carrots, Brussel
    Sprouts and Raisins sold to major retailers.

    ●
    BranchOut Industrial Ingredients: Banana,
    Mango, Blueberry, Pineapple, Cherry Tomato, Avocado and many others.

We
are currently developing many additional products for all sales channels.

 26 

Going
Concern Uncertainty

As
of December 31, 2024, we had a cash balance of $2,329,452, a working capital deficit of $3,897,382 and had incurred recurring losses
from operations resulting in an accumulated deficit of $17,562,057. Subsequent to December 31, 2024, we received gross proceeds of approximately
$2.4 million from sales of our common stock in an “At-the-Market” registered offering. Although we anticipate that our results
of operations will improve substantially as a result of the recent launch of our new facility in Peru, there can be no assurance in that
regard. If we continue to generate substantial operating losses, we will not have sufficient funds to sustain our operations for the
next twelve months and we will need to raise additional cash to fund our operations. These factors raise substantial doubt about our
ability to continue as a going concern.

The
report of our independent registered public accounting firm that accompanies our audited financial statements in this Annual Report on
Form 10-K contains an explanatory paragraph regarding the substantial doubt about our ability to continue as a going concern. The
financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty.

NXTDried
Superfoods

During
the fourth quarter of 2023, NXTDried Superfoods, one of our former contract manufacturers located in Peru, became involved in a legal
dispute with its landlord and another third party, which resulted in that manufacturer suspending operations. As a result of such dispute,
we had to fulfill orders by shifting fulfillment to other manufacturing sources until we commenced operations at our own fully integrated
production facility in Peru in the fourth quarter of 2024. During 2023, we recognized $761,085
of impairment expense, consisting of $485,265