Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 132

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 132
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 September 30, 2024, other expense was $509,656 on a net basis, consisting
of $518,233 of interest expense, as partially offset by $8,577 of interest income. Other expense increased by $128,369, or 25%, primarily
due to interest on the Kaufman Convertible Note and notes payable with related parties.

34

Net
loss

Net
loss for the nine months ended September 30, 2025, was $4,094,090, compared to $3,264,326 for the nine months ended September 30, 2024,
an increase of $829,764, or 25%. The increased net loss was due to scaling up production at our in-house manufacturing facility. Our
objective is to achieve 100% utilization, which we believe will allow us to leverage fixed costs, improve operating efficiency, and capture
additional gross margin benefits as production volumes grow.

Liquidity
and Capital Resources

The
following table summarizes our total current assets, liabilities and working capital as of September 30, 2025 and December 31, 2024.

    September 30,  
    December 31, 

    2025  
    2024 
  
    Current Assets 
    $5,460,580  
    $4,916,614 

    Current Liabilities 
    $3,341,658  
    $8,813,996 

    Working Capital 
    $2,118,922  
    $(3,897,382)

As
of September 30, 2025, we had positive working capital of $2,118,922. We have incurred net losses since our inception and we anticipate
net losses and negative operating cash flows for the near future, and we may not be profitable or realize growth in the value of our
assets. To date, our primary sources of capital have been cash generated from the sales of our products, common stock sales, and debt
and equity financing. As of September 30, 2025, we had cash of $812,007, total liabilities of $9,544,563, and an accumulated deficit
of $21,656,147. As of December 31, 2024, we had cash of $2,329,452, total liabilities of $10,514,292, and an accumulated deficit of $17,562,057.

Cash
Flow

Comparison
of