Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1186

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 1186
---
2023 

    December
    31, 

    2024  
    2023 
  
    Raw materials 
    $464,681  
    $13,734 
  
    Finished goods 
     1,465,854  
     323,071 
  
    Total
    inventory 
    $1,930,535  
    $336,805 

The
Company had prepaid inventory advances on products in the amount of $123,792 and $-0- as of December 31, 2024 and 2023, respectively.
Advances of 70% of estimated finish product costs are made to enable manufacturer’s purchase of raw materials to produce finished
products. The remaining 30% is paid upon receipt of finished goods.

    F-8

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

Property
and Equipment

Property
and equipment are stated at the lower of cost or estimated net recoverable amount. The cost of property, plant and equipment is depreciated
using the straight-line method based on the lesser of the estimated useful lives of the assets or the lease term based on the following
life expectancy:

 Schedule of Estimated Useful Lives

    Office equipment 
     3
                                            years 
  
    Furniture and fixtures 
     5
                                            years 
  
    Equipment and machinery 
     5-10
                                            years 

Repairs
and maintenance expenditures are charged to operations as incurred. Major improvements and replacements, which extend the useful life
of an asset, are capitalized, and depreciated over the remaining estimated useful life of the asset. When assets are retired or sold,
the cost and related accumulated depreciation are eliminated, and any resulting gain or loss is reflected in operations. Depreciation
expense was $171,873 and $223,856 for the years ended December 31, 2024 and 2023, respectively. For the year ended, December 31, 2024,
a total of $34,034 of depreciation was included in the inventoried production costs, which gets expensed as Cost of Goods Sold as the
inventory is sold.

Impairment
of Long-Lived Assets

Long-lived
assets held and used by the Company are reviewed for possible impairment whenever events or circumstances indicate the carrying amount
of an asset may not be recoverable or is impaired. Recoverability is assessed using undiscounted cash flows based upon historical results