Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1294

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1294
---
 $3,184,018 
  
    Less: slotting, discounts,
    and allowances 
     260,742  
     358,163 
  
    Net
    revenue 
    $6,516,337  
    $2,825,855 

Cost
of Goods Sold

Cost
of goods sold represents costs directly related to the purchase, production and manufacturing of the Company’s products. Costs
include purchase costs, product development, freight-in, packaging, and print production costs.

Advertising
Costs

The
Company expenses the cost of advertising and promotions as incurred. Advertising and promotions expense was $311,586 and $162,048 for
the years ended December 31, 2024 and 2023, respectively.

Stock-Based
Compensation

The
Company accounts for equity instruments issued to employees and non-employees in accordance with the provisions of ASC 718 Stock Compensation
(“ASC 718”). All transactions in which the consideration provided in exchange for the purchase of goods or services consists
of the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the
equity instrument issued, whichever is more reliably measurable.

The
Company issued stock-based compensation in the amount of $704,699 and $258,574 for the years ended December 31, 2024 and 2023, respectively.

    F-10

BRANCHOUT
                                            FOOD INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

Basic
and Diluted Loss Per Share

The
basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted
net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average
number of common shares outstanding plus potential dilutive securities. For the years ended December 31, 2024 and 2023, potential dilutive
securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.

Income
Taxes

The
Company recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and
liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered.
The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more
likely than not.