Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 73

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 73
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 when ownership, risks and rewards transfer. Typically, this occurs when the goods are received by the retailer or
customer, or when the title of goods is exchanged. Revenues are recognized in an amount that reflects the net consideration the Company
expects to receive in exchange for the goods.

The
Company promotes its products with advertising, consumer incentives and trade promotions. These programs include discounts, slotting
fees, coupons, rebates, in-store display incentives and volume-based incentives. Customer trade promotion and consumer incentive activities
are recorded as a reduction to the transaction price based on amounts estimated as being due to customers and consumers at the end of
a period. The Company derives these estimates based principally on historical utilization and redemption rates. The Company does not
receive a distinct service in relation to the advertising, consumer incentives and trade promotions. Payment terms in the Company’s
invoices are based on the billing schedule established in contracts and purchase orders with customers.

Expenses
such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows for the three and
six months ended June 2025 and 2024:

 Schedule of Revenue 

    2025  
    2024  
    2025  
    2024 

    For the Three Months Ended  
    For the Six Months Ended 

    June 30,  
    June 30, 

    2025  
    2024  
    2025  
    2024 

    Revenue 
    $3,430,029  
    $1,451,828  
    $6,662,320  
    $2,922,664 
  
    Less: slotting, discounts, and allowances 
     130,291  
     88,842  
     169,060  
     92,662 
  
    Net revenue 
    $3,299,738  
    $1,362,986  
    $6,493,260  
    $2,830,002 

Cost
of Goods Sold

Cost
of goods sold includes the direct costs associated with the purchase, production and manufacturing of the Company’s products. Production
costs are primarily calculated from direct raw materials, labor, and variable manufacturing costs. We determine manufacturing overhead
by applying a predetermined rate based on actual machine hours used in production. Overhead costs include factory rent, utilities, depreciation