Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 446

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 446
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 proportion of our products are produced at our contract manufacturers’ facilities in South America. A significant disruption
at those facilities or to any of our key production equipment, even on a short-term basis, could impair our ability to timely produce
and ship products, which could have a material adverse effect on our business, financial position and results of operations. In the past,
we have had manufacturing delays due to damaged and malfunctioning equipment, shipping delays, U.S. port congestion and delays, and cannot
fully insure against the effects of such delays on our business. The manufacturing operations of our suppliers are vulnerable to interruption
and damage from natural and other types of disasters, including earthquake, fire, floods, volcanic events, draughts, environmental accidents,
winter storms, power loss, disease outbreaks, epidemics or pandemics such as the COVID-19 pandemic, communications failures and similar
events. If any disaster were to occur at one of these facilities, our ability to operate our business would be seriously impaired.

Damage
to our brand’s reputation could have a material impact on our results of operations.

Our
financial success is directly dependent on the consumer perception of our brand. The success of our brand may suffer if our marketing
plans or product initiatives do not have the desired impact on our brand’s image or its ability to attract consumers. Further,
our results could be negatively affected if our brand suffers substantial damage to its reputation due to real or perceived quality issues
or other actions by the Company or any of its executives.

We
rely on big box retailers for a substantial portion of our sales, and our failure to maintain and further develop our sales channels
could harm our business. 

We
sell a substantial portion of our products through big box retailers such as Costco, Walmart and Sam’s Club Stores. The top two
retailers of our products for the years ended December 31, 2024 and 2023, accounted for 99% and 90% of our net sales,
respectively. The loss of, or business disruption at, one or more of these retailers or distributors or a negative change in our relationship
with these retailers could have a material adverse effect on our business. If we do not maintain our relationship with these retailers
or develop relationships with new retailers and distributors, the growth of our business may be adversely affected, and our business
may be harmed.

We
do not have long-term purchase agreements with our customers.

Many
of our customers buy from us under purchase orders, and we generally do not