Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 24

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 24
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 interest.

The Note Receivable is current with the next $12,000
minimum contractual annual payment due by January 31, 2026.

    15

Note
10 – Accrued Expenses

Accrued
expenses consisted of the following as of September 30, 2025 and December 31, 2024, respectively:

 Schedule of Accrued Expenses 

    September 30,
2025  
    December 31,
2024 
  
    Accrued payroll and taxes 
    $304,635  
    $82,338 
  
    Accrued interest 
     606,339  
     210,783 
  
    Accrued chargebacks 
     12,515  
     26,663 
  
    Accrued demos 
     102,017  
     - 
  
    Accrued royalties 
     83,490  
     13,830 
  
    Total accrued expenses 
    $1,108,996  
    $333,614 

Note
11 – Leases

Equipment
Lease

The
Company has financed production equipment with an acquisition cost of approximately $168,141 under a finance lease with a five-year term
and a bargain purchase price of $1.00 at the end of the lease term. The finance lease commenced on May 9, 2023, and expires on May 31,
2028, with monthly lease payments of $3,657 commencing June 1, 2023, and a pre-funding and acceptance fee of $18,079, subject to the
ASU 2016-02. As the Company’s lease does not provide implicit discount rates, the Company uses an incremental borrowing rate based
on the information available at the commencement date in determining the present value of lease payments.

Peru
Facility Lease

On
May 10, 2024, the Company entered into a ten-year lease for the 50,000 square-foot Peru Facility, which commenced operations in December
of 2024. The lease of the Peru Facility requires monthly lease payments of $8,000 in the first two years of the lease, $20,000 in the
third year of the lease, $22,000 in the fourth year of the lease, $24,000 in the fourth year of the lease, and $25,000 thereafter. The
lease also has a 10-year renewal option, and