Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 109

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 109
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You
should read the following discussion of our financial condition and results of operations in conjunction with the condensed financial
statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited financial statements included
in our Annual Report on Form 10-K for the year ended December 31, 2024. In addition to historical condensed financial information, the
following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements.

Overview

We
were incorporated as AvoChips Inc., an Oregon corporation, on February 21, 2017, and on November 2, 2017, we converted into Avochips,
LLC, an Oregon limited liability company. On November 19, 2021, we converted from an Oregon limited liability company into BranchOut
Food Inc., a Nevada corporation.

We
are engaged in the development, marketing, sale, and distribution of plant-based, dehydrated fruit and vegetable snacks and powders.
Our products have historically been manufactured for us by two contract manufacturers, one based in the Republic of Chile, and the other
in the Republic of Peru, which housed our large-scale continuous through-put dehydration machine that completed its first production
run in the first quarter of 2023. Our dehydrated fruit and vegetable products are produced using a new proprietary dehydration technology
licensed by us from a third party. Our customers are primarily located throughout the United States. In 2024, we decided to initiate
our own production facility in Peru to become vertically integrated. We recently completed the build out of the new facility, which commenced
operations in December 2024, and utilizes three large-scale REV machines (a REV 60, REV 100 and REV 120) that
we recently purchased from EnWave, as well as, a small REV 10 R&D machine that is being used for product development and customer
sample purposes. We expect operating margins to be further improved in 2025, as we become more vertically integrated with the transition
of more of our production from third party contract manufacturers to internal production.

Using
our licensed technology platform, we believe our lines of branded, private-label and industrial ingredient products positively address
current consumer trends. In our experience, conventional dehydration methods, such as freeze-drying and air drying, tend to degrade most
fruit and vegetables through oxidation, browning/color degradation, nutritional content reduction