Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1255

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1255
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25 

ITEM
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This
discussion summarizes the significant factors affecting the operating results, financial condition, liquidity and cash flows of the Company
for the fiscal years ended December 31, 2024 and 2023. The discussion and analysis that follows should be read together with the section
entitled “Forward Looking Statements” and our financial statements and the notes to the financial statements included elsewhere
in this annual report on Form 10-K.

Except
for historical information, the matters discussed in this section are forward looking statements that involve risks and uncertainties
and are based upon judgments concerning various factors that are beyond the Company’s control. Consequently, and because forward-looking
statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results
and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made
by us in this report.

Overview

We
were incorporated as AvoChips Inc., an Oregon corporation, on February 21, 2017, and on November 2, 2017, we converted into Avochips,
LLC, an Oregon limited liability company. On November 19, 2021, we converted from an Oregon limited liability company into BranchOut
Food Inc., a Nevada corporation.

We
are engaged in the development, marketing, sale, and distribution of plant-based, dehydrated fruit and vegetable snacks and powders.
Our products have historically been manufactured for us by two contract manufacturers, one based in the Republic of Chile, and the other
in the Republic of Peru, which housed our large-scale continuous through-put dehydration machine that completed its first production
run in the first quarter of 2023. Our dehydrated fruit and vegetable products are produced using a new proprietary dehydration technology
licensed by us from a third party. Our customers are primarily located throughout the United States. In 2024, we decided to initiate
our own production facility in Peru to become vertically integrated. We recently completed the build out of the new facility, which commenced
operations in December 2024, and utilizes three large-scale REV machines (a REV 60, REV 100 and REV 120) that
we recently purchased from EnWave, as well as, a small REV 10 R&D machine that is being used for product development and customer
sample purposes. We expect operating margins to be further improved in 2025,