Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 29

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 29
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of principal outstanding under the Convertible Note prior to September 30, 2026. The amendment to the $1.50 Warrant resulted in $32,099
of additional interest expense.

    18

The
Company’s obligations under the Convertible Note are secured by a lien granted to Kaufman Kapital on substantially all of the
Company’s assets pursuant to a Security Agreement entered between the Company and Kaufman Kapital (the “Security
Agreement”). In addition, the Convertible Note includes affirmative and negative covenants, events of defaults and other terms
and conditions, customary in transactions of this nature.

In
accordance with ASC 470, the Company recorded total discounts of $95,958, consisting of $75,000 of legal fees and $20,958 related to
the relative fair value of the Warrants. The discounts are amortized to interest expense over the term of the loan using the effective
interest method. As of September 30, 2025, a total of $49,217 of unamortized debt discounts are expected to be expensed over the remaining
life of the loan.

Kaufman
Senior Secured Promissory Note, Related Party

On
August 29, 2024, the Company borrowed $1,200,000 from Kaufman Kapital pursuant to a Senior Secured Promissory Note that, as amended,
matures on December 31, 2025. The loan under the Secured Note bears interest at a rate of 15% per annum. The Company’s obligations
under the Secured Note are secured by a lien on substantially all of the Company’s assets pursuant to the Security Agreement. In
addition, the Secured Note includes affirmative and negative covenants, events of defaults and other terms and conditions, customary
in transactions of this nature.

On
May 7, 2025, and September 30, 2025 the Company repaid $325,000
and $375,000
of principal on the Secured Note. The principal outstanding under the Secured Note is $500,000
as of September 30, 2025.

Eagle
Vision Senior Notes and Warrants, Related Party

On
January 9, 2024 the Company entered into a Subscription Agreement (the “Subscription Agreement”) with Eagle Vision Fund
LP., for the sale of Senior Secured Notes (“Senior Secured Notes”) to Purchasers in the aggregate amount of up