Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1324

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1324
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 debt, consisting of $5,526,691 of principal and $502,513 of
interest, was converted into 1,572,171 shares of common stock, inclusive of $179,687, consisting of $165,000 of principal and $14,687
of interest, that converted into 43,562 shares of common stock issued upon the conversion of debts held by related parties. The notes
were converted in accordance with the conversion terms; therefore, no gain or loss had been recognized.

Note
19 – Common Stock Options

Stock
Incentive Plan

Our
board of directors and shareholders adopted our 2022 Omnibus Equity Incentive Plan on January 1, 2022 (the “2022 Plan”).
Our 2022 Plan allows for the grant of a variety of equity vehicles to provide flexibility in implementing equity awards, including nonqualified
stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance
units, incentive bonus awards, other cash-based awards and other stock-based awards. The number of shares reserved for issuance under
the 2022 Equity Plan was initially an aggregate of 600,000 shares, as adjusted on June 15, 2023 in connection with the Company’s
reverse stock split, subject to annual increases under the plan, resulting in 1,009,000 reserved shares as of December 31, 2024. There
were 593,470 options with a weighted average exercise price of $2.39 per share outstanding as of December 31, 2024.

Common
Stock Options Issued for Services

On
May 1, 2024, the Company granted options to purchase 30,000
shares of the Company’s common stock, having an exercise price of $2.40
per share, exercisable over a 10-year
term, to a new employee. The options will vest monthly over three years from the date of grant. The aggregate estimated value using
the plain vanilla Black-Scholes Pricing Model, based on a volatility rate of 41%
and a call option value of $1.1806,
and an expected term of 6.5 years, was $35,419.
The options are being expensed over the vesting period, resulting in $7,872
of stock-based compensation expense during the year ended December 31, 2024. As of December 31, 2024, a total of $27,