Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 76

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 76
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,000 of legal fees was paid to Investors’ counsel.

46

The
Notes mature on the earlier of December 31, 2025, or the occurrence of a Qualified Subsequent Financing or Change of Control (as such
terms are defined in the Subscription Agreement) and bear interest at a rate of 15% per annum. In addition, the Notes are subject to
covenants, events of defaults and other terms and conditions set forth in the Subscription Agreement. The Company’s obligations
under the Notes are secured by liens on substantially all of the Company’s assets pursuant to the terms of a Security Agreement
between the Company and the Investors.

Each
Warrant is exercisable for a ten-year period at an exercise price of $1.00 per share.

Unit
Offering Sale of Common Stock and Warrants

On
July 15, 2024, the Company entered into Subscription Agreements (the “Subscription Agreements”) with three related parties,
consisting of Eric Healy, the Company’s Chief Executive Officer; Eagle Vision, an affiliate of John Dalfonsi, the Company’s
Chief Financial Officer; and the Company’s President, pursuant to which such investors agreed to purchase $525,000 of “Units”
from the Company, each Unit consisting of (i) 100 shares of common stock, and (ii) a warrant to purchase 125 shares of common stock over
the following ten years at an exercise price of $1.00 per share, at a purchase price per Unit equal to $75.82. The Company completed
the sale of the Units to Eric Healy and the Company’s President on July 23, 2024, and the sale of the Units to Eagle Vision on
August 30, 2024, resulting in the issuance of an aggregate of 692,429 shares of common stock and warrants to purchase 865,536 shares
of common stock.

Policies
and Procedures for Related Person Transactions

We
have adopted a formal policy in regard to related persons that requires all future related person transactions to be approved in advance
by our Audit Committee. Any request for such a transaction will be presented to our Audit Committee for review, consideration, and approval.
In approving or rejecting any such proposal, our Audit Committee will consider the relevant facts and circumstances available and deemed
relevant to the Audit Committee, including, but not limited to, the extent of the related party’s interest in the transaction,
and whether the transaction is on terms no less favorable to