Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1049

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1049
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margin increased primarily due to cost savings realized as a result of our transition to bulk shipping arrangements and transitioning
to our own production facility during the current period.

 32 

General
and Administrative Expense

Our
general and administrative expense for the year ended December 31, 2024 was $1,870,720, compared to $1,581,474 for the year ended
December 31, 2023, an increase of $289,246, or 18%. The largest components of our general and administrative expenses are advertising
and marketing, rent, travel, commissions, and storage, shipping and handling expense, as shown below.

    Year
    Ended December 31, 

    2024  
    2023  
    Difference  
    %
    Change 

    Advertising and marketing 
    $311,586  
    $162,048  
    $149,538  
     92%
  
    Rent 
    $240,213  
    $37,439  
    $202,774  
     542%
  
    Travel 
    $167,064  
    $58,385  
    $108,679  
     186%
  
    Commissions 
    $212,447  
    $186,365  
    $26,082  
     14%
  
    Storage, shipping and handling 
    $459,089  
    $241,017  
    $218,072  
     90%
  
    Asset impairment expense 
    $-  
    $761,085  
    $(761,085) 
     N/A 

Advertising
and marketing expenses increased for the year ended December 31, 2024, as compared to the corresponding period in 2023, as we focused
our resources on growing our sales. Our rent increased primarily due to leases entered into in the current year, as we began to develop
our operating facility in Peru, which also resulted in increased travel expenses. Commissions increased due to our increased sales, and
storage, shipping and handling expenses increased primarily due to increased international shipping rates and increased production that
was driven by our increased sales. In addition, during 2023, we recognized $761,085 of impairment
expense, consisting of $485,265, $243,305 and $32,515 on the collectability of a note receivable, VAT taxes receivable and prepaid inventory,