Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 81

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 81
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 $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 may purchase the Peru Facility for $1,865,456.

In
connection with the lease of the Peru Facility, the Company 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.

The
components of lease expense were as follows:

 Schedule of Components of Lease Expenses 

    2025  
    2024 

    For the Nine Months Ended 

    September 30, 

    2025  
    2024 
  
    Operating lease cost: 

    Amortization of right-of-use asset 
    $116,039  
    $80,973 
  
    Interest on lease liability 
     30,695  
     35,284 
  
    Total operating lease cost 
     146,734  
     116,257 
  
    Finance lease cost: 

    Amortization of right-of-use asset 
    $25,833  
    $25,985 
  
    Interest on lease liability 
     9,209  
     10,059 
  
    Total finance lease cost 
     35,042  
     36,044 
  
    Total lease costs 
    $181,776  
    $152,301 

    16

Supplemental
balance sheet information related to leases was as follows:

 Schedule
of Supplemental Balance Sheet Information Related to Leases  

    September 30, 2025  
    December 31, 2024 
  
    Operating lease: 

    Operating lease assets 
    $1,327,997  
    $1,44,036 

    Current portion of operating lease liability 
    $-  
     - 
  
    Noncurrent operating lease liability