Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 52

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 52
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the Company’s ability to continue as a going concern. The condensed consolidated financial statements also do not include any adjustments
relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might
be necessary should the Company be unable to continue as a going concern. Our ability to scale production and distribution capabilities
and further increase the value of our brands is largely dependent on our success in raising additional capital.

Peru
Facility Lease

On
May 10, 2024, we entered into a ten-year lease for the 50,000 square-foot Peru Facility, which commenced operations in December of 2024.
The lease of the Peru Facility requires monthly lease payments of $8,000 in the first two years of the lease, $20,000 in the third year
of the lease, $22,000 in the fourth year of the lease, $24,000 in the fourth year of the lease, and $25,000 thereafter. The lease also
has a 10-year renewal option, and a buy-out option under which the Company plans to exercise the buy-out option and purchase the Peru
Facility for $1,865,456.

In
connection with the lease of the Peru Facility, we purchased a first position mortgage receivable in the amount of $1,267,000, which
is secured by the Peru Facility and was owed by the landlord of the Peru Facility to its former tenant, for a purchase price of $1,267,000,
of which payments were made in various installments totaling $355,000 as of December 31, 2024 and $912,000 during the nine months ended
September 30, 2025.

30

Results
of Operations for the Three Months Ended September 30, 2025, and 2024

The
following table summarizes selected items from the statement of operations for the three months ended September 30, 2025, and 2024, respectively.

    Three Months Ended  

    September 30,  
    Increase / 

    2025  
    2024  
    (Decrease) 

    Net revenue 
    $3,220,027  
    $2,181,495  
    $1,038,532 
  
    Cost of goods sold 
     2,650,477  
     1,845,155  
     805,322 
  
    Gross profit