Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 114

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 114
---
 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.

33

General
and Administrative

Our
general and administrative expense for the nine months ended September 30, 2025, was $2,204,559, compared to $666,600 for the nine months
ended September 30, 2024, an increase of $1,537,959, or 231%. The largest components of our general and administrative expenses are plant
idle capacity, research and development, rent, travel, and commissions, as shown below.

    Nine Months Ended September 30,  

    2025  
    2024  
    Difference  
    % Change 

    Idle Capacity 
    $848,906  
    $-  
    $848,906  
     100%
  
    Research & Development 
    $208,265  
    $14,348  
    $193,917  
     1,352%
  
    Rent 
    $152,020  
    $160,751  
    $(8,731) 
     (5)%
  
    Travel 
    $172,118  
    $99,132  
    $72,986  
     74%
  
    Commissions 
    $197,130  
    $139,049  
    $58,081  
     42%

Idle
capacity increased due to the opening of the production facility located in Pisco, Peru. In December 2024 operations commenced at the
facility. As our factory scales, idle capacity will decrease. Rent increase is related to the Pisco, Peru production facility. Travel
increased due to the opening of the facility in Peru and sales initiatives to expand production distribution. Commissions increased due
to increased sales.

Salaries
and Wages

Salaries
and wages for the nine months ended September 30, 2025, was $1,172,474, compared to $1,257,316 for the nine months ended September 30,
2024, a decrease of $84,842, or 7%. This decrease was primarily attributable to $408,700 of non-cash, stock-based compensation for the
nine months ended September 30, 2024, compared to $102,289 of non-cash, stock-based compensation related to stock