Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 14

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 14
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 less. For the purpose of the statements of cash flows,
all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. Cash equivalents
are stated at cost plus accrued interest, which approximates market value. There were no cash equivalents on hand on December 31, 2024
and 2023.

Cash
in Excess of FDIC Insured Limits

The
Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by
the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000, under current regulations. The Company had $1,555,223
and $407,789 in excess of FDIC insured limits on December 31, 2024 and 2023, respectively, and has not experienced any losses in such
accounts.

Accounts
Receivable

Accounts
receivable is carried at their estimated collectible amounts. Trade accounts receivable is periodically evaluated for collectability
based on past credit history with customers and their current financial condition. The Company had an allowance for doubtful accounts
of $25,586 at December 31, 2024. No allowance for doubtful accounts was necessary at December 31, 2023.

Inventory

The
Company’s products consist of pre-packaged and bulk-dried fruit and vegetable-based snacks, powders and ingredients purchased from
contract-manufacturers in Chile and/or Peru. The Company’s contract manufacturer in Peru uses equipment purchased by the Company
in its manufacturing process. Raw materials consist of packaging materials. Appropriate consideration is given to obsolescence, excessive
levels, deterioration, and other factors in evaluating net realizable value. No reserve for obsolete inventories has been recognized.
Inventory, consisting of raw materials and finished goods are stated at the lower of cost or net realizable value using the average cost
valuation method, at December 31, 2024 and 2023, consisted of the following:

 Schedule of Inventory

    2024  
    2023 

    December
    31, 

    2024  
    2023 
  
    Raw materials 
    $464,681  
    $13,734 
  
    Finished goods 
     1,465,854  
     323,071 
  
    Total
    inventory 
    $1,930,535  
    $336,805 

The
Company had prepaid inventory advances on