Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 69

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 69
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ceivable

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 June 30, 2025 and December 31, 2024.

Inventory

The
Company’s products consist of pre-packaged and bulk-dried fruit and vegetable-based snacks, powders and ingredients developed at
its production facility in Peru and purchased products from contract-manufacturers in Chile and/or Peru. Raw materials consist of purchased
fruits and vegetables and 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, work in progress and finished goods are stated at the lower of cost or net realizable value using the average cost valuation
method, and consisted of the following as of June 30, 2025 and December 31, 2024:

 Schedule of Inventory 

    June 30,  
    December 31, 

    2025  
    2024 
  
    Raw materials 
    $372,070  
    $464,681 
  
    Work in progress 
     578,378  
     - 
  
    Finished goods 
     588,958  
     1,465,854 
  
    Total inventory 
     1,539,406  
     1,930,535 

    9

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

The
Company secures raw materials with advances of up to 50%. The Company had prepaid inventory advances on product in the amounts of $596,559
and $123,792 as of June 30, 2025 and December 31, 2024, respectively.

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.