Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1089

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 1089
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 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 December 31, 2024, a total of $66,587 of unamortized debt discounts are expected to be expensed over the remaining
life of the loan.

The
Company recognized $145,360 of interest expense on convertible notes payable, related parties for the year ended December 31, 2024, consisting
of $115,989 of stated interest expense, $22,956 of amortized debt discounts and $6,415 of amortized debt discounts due to warrants. The
Company recognized $3,696 of interest expense on convertible notes payable, related parties for the year ended December 31, 2023.

Note
14 – Notes Payable

Notes
payable consists of the following as of December 31, 2024 and 2023:

 Schedule of Notes Payable

    December 31,  
    December 31, 

    2024  
    2023 

    On May 22, 2023, the Company
    entered into an equipment purchase agreement with the EnWave Corporation (“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. 
    $251,647  
    $- 
  
    On May 22, 2023, the Company
    entered into an equipment purchase agreement with the EnWave Corporation (“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,