Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1166

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1166
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 an increase of $1,330,444, or 38%. The increase was primarily due to our increased net loss and increased purchases of inventory
and other assets, as adjusted for increased stock-based compensation, increased accounts payable, and $761,085
of impairment expense on the collectability of a note receivable, VAT taxes receivable and prepaid inventory during the prior year.

Net
Cash Used in Investing Activities

Net
cash used in investing activities was $2,822,561 for the year ended December 31, 2024, compared to $116,565 for the year ended December 31,
2023, an increase of $2,705,996, or 2,321%. This increase was primarily attributable to increased property and equipment purchases of
$2,847,207 during the current year, as partially offset by $24,646 of advances received on notes receivable in the current year that
were not replicated in the prior year, and $116,565 of property and equipment purchases in the prior year.

Net
Cash Provided by Financing Activities

Net
cash provided by financing activities was $9,362,621 for the year ended December 31, 2024, compared to $3,755,279 for the year ended
December 31, 2023, an increase of $5,607,342, or 149%. Our increased cash provided by financing activities was primarily from $7,071,898
of increased net proceeds received on debt and convertible debt financing, $206,183 of decreased deferred offering cost payments, and
$5,489 of decreased principal payments on finance leases, as partially offset by $1,697,203 of decreased proceeds received on the sale
of common stock. Our financing activities during the year ended December 31, 2024 are further described below.

 34 

Debt
Financing

Kaufman
Convertible Note

Pursuant
to a Securities Purchase Agreement dated July 15, 2025 (as amended, the “SPA”) on July 24, 2024 Kaufman Capital LLC (“Kaufman
Capital”) purchased from us (i) a 12% Senior Secured Convertible Promissory Note in the principal amount of up to $3,400,000 (the
“Convertible Note”), convertible into shares of common stock at a fixed price of $0.7582 per share, (ii) a warrant to purchase
1,000,000 shares of common stock