Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 972

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 972
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,034 of depreciation was included in the inventoried production costs, which gets expensed as Cost of
Goods Sold as the inventory is sold.

    F-15

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

Note
10 – Other Assets

Other
assets consisted of the following as of December 31, 2024 and 2023:

 Schedule of Other Assets

    December 31,  
    December 31, 

    2024  
    2023 
  
    First position
    mortgage(1) 
    $1,267,000  
    $- 
  
    VAT tax
    receivable(2) 
     680,483  
     - 
  
    Total
    other current assets 
    $1,947,483  
    $- 

    (1)
    On
    May 10, 2024, in connection with the lease of the Company’s facility in Peru, the Company paid $275,000
    toward the purchase of a First Position Mortgage (“FPM”) receivable in the amount of $1,267,000,
    which is secured by the Peru facility and was owed by the landlord of the Peru facility to its former tenant, for a purchase price
    of $1,267,000.
    The Company paid an additional $80,000
    during the fourth quarter of 2024, and the remaining $912,000
    due on the
    FPM is to be paid in monthly installments of $152,000
    from January 24, 2025 to June 23, 2025, as presented in other current liabilities on the balance sheet. The unpaid balance
    accrues interest at 9%.
    At December 31, 2024, a total of $33,215
    of interest was accrued. The FPM enables the Company to ensure that they have uninterrupted access to the leased facility, and secures the
option to purchase the facility by becoming the primary lien holder on the facility. The Company intends to exercise its option to purchase
the facility at some point in the future, in which case the FPM would either be repaid out of the proceeds from a mortgage, or the FPM
would be used to reduce the purchase price of the facility.

    (2)
    VAT
    tax receivable is comprised of taxes that were paid