Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 76

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 76
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ivable and
current contract assets that arise from transactions accounted for under Topic 606. ASU 2025-05 will be adopted prospectively and will
be effective for the Company beginning January 1, 2026, including interim periods in 2026, with early adoption permitted. The Company
is currently assessing the effect that adoption of this guidance will have on its Consolidated Financial Statements.

Note
2 – Related Party Transactions

Kaufman
Convertible Note

On
July 15, 2024, the Company entered into a Securities Purchase Agreement (as amended, the “SPA”) with Daniel L. Kaufman, pursuant
to which Mr. Kaufman agreed to purchase from the Company, in a private placement (i) a 12% Senior Secured Convertible Promissory Note
in the principal amount of up to $3,400,000 (the “Convertible Note”), convertible into shares of the Company’s common
stock at a fixed price of $0.7582 per share of common stock, a (ii) a warrant to purchase 1,000,000 shares of common stock at an exercise
price of $1.00 per share (the “$1.00 Warrant”), and (iii) a warrant to purchase 500,000 shares of common stock at an exercise
price of $1.50 per share (the “$1.50 Warrant” and, together with the $1.00 Warrant, the “Warrants” and together
with the Convertible Note, the “Purchased Securities”), in consideration of an initial loan in the principal amount of $2,000,000
(the “Initial Loan”) made to the Company under the Convertible Note, subject to the terms and conditions thereof. On July
19, 2024, the Company, Mr. Kaufman and Kaufman Kapital LLC (“Kaufman Kapital”) entered into an amendment to the SPA, which
among other things, replaced Mr. Kaufman with Kaufman Kapital as the “Investor” under the SPA.

On
July 24, 2024, the Company issued the Purchased Securities to Kaufman Kapital in consideration of making the Initial Loan to the Company.
On December 9, 2024, Kaufman Kapital made an additional loan to the Company under the Convertible Note in the amount of $1,400,000.

The
Convertible Note matures on the earlier of (i) December 31, 2025