Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 102

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 102
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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’s chief operating decision maker (“CODM”), assesses performance internally.

The
accounting policies of the retail operations segment are the same as those described in the summary of significant accounting policies
in Note 1 to the Condensed Consolidated Financial Statements. The Company’s CODM assesses performance and allocates resources for
the retail operations segment using segment earnings before net interest expense, income tax expense and depreciation and amortization
(“EBITDA”). The Company defines EBITDA as earnings before interest taxes and depreciation. The Company’s CODM also
uses segment EBITDA to measure the operational effectiveness of the Company’s financial model, compare the performance of core
operating results between periods, against budget and against competitors and evaluate whether to invest capital in the retail operations
segment or in other parts of the Company, such as for share repurchases, debt repayments or capital expenditures. The Company’s
CODM is not provided asset information by reportable segment as asset information is provided to the CODM on a consolidated basis. The
Company’s capital expenditures are predominately used in the Company’s production operations, rather than its retail operations.

The
following table presents the Company’s retail operations segment revenue, measure of segment profit or loss, significant segment
expenses and reconciliation of the U.S. and Latin America operations segments’ EBITDA to consolidated net earnings before income
tax expense for the six months ended June 30, 2025, and 2024:

 Schedule
of Segment Reporting 

    2025  
    2024 

    For the Six Months Ended 

    June 30, 

    2025  
    2024 

    U.S. operations segment sales 
    $6,493,260  
    $2,830,002 
  
    Latin American operations segment cost of goods sold 
    $5,028,726  
    $- 

    U.S. operations segment cost of goods sold 
     -  
     2,397