Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 46

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 46
---
 tax asset difficult to support in accordance with ASC 740.
Based on the available objective evidence, including the Company’s history of its loss, management believes it is more likely than
not that the net deferred tax assets will not be fully realizable. Accordingly, a valuation allowance has been recorded against the Federal
and state deferred tax assets as of June 30, 2025, and December 31, 2024.

Additionally,
in accordance with ASC 740, the Company has evaluated its tax positions and determined there are no uncertain tax positions.

    24

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note
19 – Segment Reporting

The
Company is engaged in the development, marketing, sale, and distribution of plant-based, dehydrated fruit and vegetable snacks and powders.
The Company’s products are currently manufactured at its new production facility that commenced production in Pisco Peru in December
2024, and is supported by contract manufacturers in Peru, as necessary. The Company’s customers are located throughout the United
States. The Company’s sales operations, which represent 100% of the Company’s consolidated sales, are one of its two reportable
segments. The sales operations’ segment revenues are predominately earned as consumer products are sold to big box retail customers
throughout the United States and via the Company’s online platform. The Company aggregates its operating divisions into two reportable
segments due to the operating divisions having similar economic characteristics with similar long-term financial performance, but different
geographic locations. The Company’s sales occur entirely from, and within, the United States, while all of the Company’s
production processes are conducted in Latin America, which represent its other operating segment. In addition, the Company’s operating
divisions offer customers the same products, operate in similar regulatory environments, purchase the majority of the merchandise for
retail sale from similar (and in many cases identical) vendors on a coordinated basis from a centralized location, serve of the same
customers, and are allocated capital from a centralized location. Operating divisions are organized primarily on a geographical basis
so the operating division management team can be responsive to local needs of the operating division and can execute company strategic
plans and initiatives throughout the locations in their operating division. This geographical separation is the primary differentiation
between these operating divisions. The geographical basis of organization reflects how the business is managed and how the Company’s
Chief Executive Officer, who acts as the Company