Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 90

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 90
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 while the $500,000 balance due is to be paid in twelve (12) monthly installments of $44,424, bearing interest 12%
per annum, commencing August 1, 2024.

On
September 16, 2025, the Company and EnWave entered into (i) a Fifth Amendment to License Agreement (the “Amendment”), which
amended certain terms of the License Agreement between the Company and EnWave originally dated May 7, 2021 (as amended, the “License
Agreement”), and (ii) an Equipment Purchase Agreement (the “Purchase Agreement”).

Pursuant
to the Amendment, among other things, EnWave granted the Company a global exclusive license (but subject to existing licenses previously
issued by EnWave to two other manufacturers) to manufacture Dragon Fruit products using EnWave’s technology under the License Agreement.

Pursuant
to the Purchase Agreement, the Company purchased from EnWave a refurbished 120kW REV vacuum microwave for a purchase price of $1,500,000.
The purchase price is payable in 24 equal monthly installments, commencing April 1, 2026, pursuant to a secured promissory note (the
“Promissory Note”) bearing interest at the rate of 8.00% per annum.

SBA
EIDL Loan Agreement

On
May 17, 2020, the Company entered into a loan agreement with the United States Small Business Administration (the “SBA”),
as lender, pursuant to the SBA’s Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of
the COVID-19 pandemic on the Company’s business (the “EIDL Loan Agreement”) encompassing a $34,500 Promissory Note
issued to the SBA (the “EIDL Note”) (together with the EIDL Loan Agreement, the “EIDL Loan”), bearing interest
at 3.75% per annum. In connection with entering into the EIDL Loan, the Company also executed a security agreement, dated May 17, 2020,
between the SBA and the Company pursuant to which the EIDL Loan is secured by a security interest on all of the Company’s assets.
Under the EIDL Note, the Company is required to pay principal and interest payments of $169 every month beginning May 17, 2021; however,
the SBA extended the repayment date to November 17, 2022. All remaining principal and