Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 308

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 308
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 or security breaches could disrupt our operations and negatively impact our business.

In
the normal course of business, we rely on information technology systems to process, transmit, and store electronic information. For
example, our production and distribution facilities and inventory management utilize information technology to increase efficiencies
and limit costs. Information technology systems are also integral to the reporting of our results of operations. Furthermore, a significant
portion of the communications between, and storage of personal data of, our personnel, customers, and suppliers depend on information
technology, including social media platforms.

Our
information technology systems may be vulnerable to a variety of interruptions, as a result of updating our enterprise platform or due
to events beyond our control, including, but not limited to, natural disasters, terrorist attacks, telecommunications failures, computer
viruses, hackers, and other security issues. These events could compromise our confidential information, impede, or interrupt our business
operations, and may result in other negative consequences, including remediation costs, loss of revenue, litigation and reputational
damage. Furthermore, if a breach or other breakdown results in disclosure of confidential or personal information, we may suffer reputational,
competitive and/or business harm.

While
we have implemented administrative and technical controls and taken other preventive actions to reduce the risk of cyber incidents and
protect our information technology, they may be insufficient to prevent physical and electronic break-ins, cyber-attacks, or other security
breaches to our computer systems, which could have a material adverse effect on our business, financial condition or results of operations.

Economic
downturns could limit consumer demand for our products and negatively affect our sales and profitability.

The
premium organic and natural food industry is sensitive to national and regional economic conditions and the demand for the products that
we distribute may be adversely affected from time to time by economic downturns that impact consumer spending, including discretionary
spending. Future economic conditions such as employment levels, business conditions, housing starts, interest rates, inflation rates,
energy and fuel costs and tax rates could reduce consumer spending or change consumer purchasing habits. Among these changes could be
a reduction in the number of natural and organic products that consumers purchase where there are non-organic alternatives, given that
many premium natural and organic products, and particularly premium natural and organic foods, often have higher retail prices than do
their non-organic counterparts.

 16 

Regulatory
Risks

Tariffs
imposed on the importation of our products into the United States would increase the cost of