Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 93

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 93
---
 an Oregon limited liability company into BranchOut
Food Inc., a Nevada corporation.

We
are engaged in the development, marketing, sale, and distribution of plant-based, dehydrated fruit and vegetable snacks and powders.
Our products have historically been manufactured for us by two contract manufacturers, one based in the Republic of Chile, and the other
in the Republic of Peru, which housed our large-scale continuous through-put dehydration machine that completed its first production
run in the first quarter of 2023. Our dehydrated fruit and vegetable products are produced using a new proprietary dehydration technology
licensed by us from a third party. Our customers are primarily located throughout the United States. In 2024, we decided to initiate
our own production facility in Peru to become vertically integrated. We recently completed the build out of the new facility, which commenced
operations in December 2024, and utilizes three large-scale REV machines (a REV 60, REV 100 and REV 120) that
we recently purchased from EnWave, as well as, a small REV 10 R&D machine that is being used for product development and customer
sample purposes. We expect operating margins to be further improved in 2025, as we become more vertically integrated with the transition
of more of our production from third party contract manufacturers to internal production.

Using
our licensed technology platform, we believe our lines of branded, private-label and industrial ingredient products positively address
current consumer trends. In our experience, conventional dehydration methods, such as freeze-drying and air drying, tend to degrade most
fruit and vegetables through oxidation, browning/color degradation, nutritional content reduction and/or flavor loss. As a result, certain
highly sensitive fruits, such as avocados and bananas, have not previously been successfully offered as a dehydrated base for consumer
products. We believe that our licensed technology platform and process is the only way to produce quality avocado and banana-based snack
and powdered products. Additionally, we believe our licensed technology platform produces superior products when using other fruits and
vegetables when compared to conventional drying and dehydration technologies. We license technology, consisting of a portfolio of patents,
and purchased production machines, from EnWave, and we have been granted the exclusive rights to use the licensed technology platform
as applied to several products in Peru, and avocado based products in the United States. In addition, BranchOut has the nonexclusive
rights to use the licensed technology platform for other products.

Our
Products

We
plan to continue