Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 516

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 516
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 convertible into shares of common stock at a fixed price of $0.7582 per share. The Convertible Note matures on the earlier
of (i) December 31, 2025, (ii) the sale by the Company of $5,000,000 of equity or debt securities in a single transaction or series of
related transactions (excluding certain specified transactions), or (iii) the closing of a change of control transaction as provided
in the Convertible Note. Loans outstanding under the Convertible Note bear interest at an initial rate of 12% per annum, and together
with accrued principal are convertible into common stock.

The
Company’s obligations under the Convertible Note are secured by a lien granted to Kaufman Kapital on substantially all of the Company’s
assets pursuant to the Security Agreement. In addition, 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 “En