Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 14

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 14
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 accounts which have maturities of three months or 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 September 30, 2025
or December 31, 2024.

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 $424,706
and $1,555,223
in excess of FDIC insured limits on September 30, 2025 and
December 31, 2024, respectively, and has not experienced any losses in such accounts.

Research
and Development

We
operate in a fast-moving category shaped by shifting consumer preferences, requiring continuous innovation and new product development.
To support this, we rely on our proprietary GentleDry™ Technology, an advanced dehydration platform licensed exclusively from EnWave
Corporation. We expect to continue investing in R&D as we scale our GentleDry™ product portfolio and bring new, innovative
offerings to market that align with evolving consumer needs.

Research
and development costs include salaries, building costs, utilities, administrative expenses and other corporate costs. For the nine months
ending September 30, 2025, our research and development expenses totaled $208,265, compared to $14,348 for the same period in 2024.

Property
and Equipment

Property
and equipment are stated at the lower of cost or estimated net recoverable amount. The cost of property, plant and equipment is depreciated
using the straight-line method based on the lesser of the estimated useful lives of the assets or the lease term based on the following
life expectancy:

 Schedule of Estimated Useful Lives  

    Office equipment
     
    3 years
  
    Furniture and fixtures
     
    5 years
  
    Equipment and machinery
     
    5-10 years
  
    Leasehold Improvements
     
    15 years

    10

Repairs
and maintenance expenditures are charged to operations as incurred. Major improvements and replacements, which extend the useful life
of an asset, are capitalized, and depreciated over the remaining estimated useful life of the