Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 111

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 111
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 157%

Idle
capacity increased due to the opening of the production facility located in Pisco, Peru. In December 2024 operations commenced at the
facility. As our factory scales, idle capacity will decrease. Commissions increased due to increased sales.

Salaries
and Wages

Salaries
and wages for the three months ended September 30, 2025, was $422,069, compared to $309,433 for the three months ended September 30,
2024, an increase of $112,636, or 36%. This increase was primarily attributable to $55,206 of amortization of stock options issued to
employees for services performed and $42,238 in salaries and wages relates to the hiring of employees to support production ramp-up at
the Peru facility.

Professional
Fees

Professional
fees for the three months ended September 30, 2025, was $248,640, compared to $369,525 for the three months ended September 30, 2024,
a decrease of $120,885, or 33%. The decrease is mostly attributable to a decrease in legal fees related to establishing the Company’s
Peru facility in 2024.

Shipping
and handling

Shipping
and handling for the three months ended September 30, 2025, was $156,961, compared to $118,252 for the three months ended September 30,
2024, an increase of $38,709 or 33%. This increase was primarily attributable to an increase in sales volumes.

Advertising
and promotions

Advertising
and promotions for the three months ended September 30, 2025, was $271,872, compared to $125,597 for the three months ended September
30, 2024, an increase of $146,275, or 116%. Advertising and promotions expenses increased for the three months ended September 30, 2025,
mostly due to increased in-store product demos with one of our largest customers.

Other
Income (Expense)

In
the three months ended September 30, 2025, other expense was $145,048 on a net basis, consisting of $148,964 of interest expense, as
partially offset by $3,916 of interest income. For the three months ended September 30, 2024, other expense was $367,650 on a net basis,
consisting of $370,532 of interest expense, as partially offset by $2,882 of interest income.