Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 31

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 31
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 loan using the effective
interest method. As of June 30, 2025, a total of $33,568 of unamortized debt discounts are expected to be expensed over the remaining
life of the loan.

The
Company recognized $340,467 of interest expense on convertible notes payable, related parties for the six months ended June 30, 2025,
consisting of $323,867 of stated interest expense, $25,808 of amortized debt discounts and $7,211 of amortized debt discounts due to
warrants.

    16

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note
11 – Notes Payable

Notes
payable consists of the following as of June 30, 2025, and December 31, 2024:

 Schedule of Notes Payable 

    June 30,  
    December 31, 

    2025  
    2024 
  
    On May 22, 2023, the Company entered into an equipment purchase agreement with EnWave for the purchase of a used 100kW Rev vacuum microwave dehydration machine (the “EnWave Machine”). Cash payments of $500,000 were paid towards the $1,000,000 purchase price on the EnWave Machine, while the $500,000 balance due is to be paid in twelve (12) monthly installments of $44,424, bearing interest 12% per annum, commencing August 1, 2024. 
    $38,730  
    $251,647 

    On May 17, 2020, the Company entered into a loan agreement with the United States Small Business Administration (the “SBA”), as lender, pursuant to the SBA’s Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business (the “EIDL Loan Agreement”) encompassing a $34,500 Promissory Note issued to the SBA (the “EIDL Note”) (together with the EIDL Loan Agreement, the “EIDL Loan”), bearing interest at 3.75% per annum. In connection with entering into the EIDL Loan, the Company also executed a security agreement, dated May 17, 2020, between the SBA and the Company pursuant to which the EIDL Loan is secured by a security interest