Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 77

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 77
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0, 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 accrued interest is due and payable on May 17, 2050. The EIDL Note may be repaid at any time without penalty. 
     34,500  
     34,500 

    Total notes payable 
    $201,912  
    $286,147 
  
    Less: current maturities 
     167,412  
     251,647 
  
    Notes payable, less current maturities 
    $34,500  
    $34,500 

The
Company recognized $5,008 and $598 of interest expense on notes payable for the three months ended March 31, 2025 and 2024, respectively.

Note
12 – Notes Payable, Related Parties

Kaufman
Note

As
discussed in Note 2, on August 30, 2024, the Company borrowed $1,200,000 from Kaufman Kapital pursuant to a Senior Secured Promissory
Note that, as amended, matures on June 30, 2025. The loan under the Note bears interest at a rate of 15% per annum. The Company’s
obligations under the Note are secured by a lien on substantially all of the Company’s assets pursuant to the Security Agreement.
In addition, the Note includes affirmative and negative covenants, events of defaults and other terms and conditions, customary in