Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 139

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 139
---
,
was $80,908, which was recognized as finance expense during the year ended December 31, 2024.

Amendment
of Senior Notes and Warrants

In
connection with the sale of the Purchased Securities to Kaufman Kapital under the SPA, the Company entered into an Omnibus Amendment
to Note Documents with substantially all of the Holders of the Company’s Senior Notes and Warrants issued under that certain Subscription
Agreement dated as of January 10, 2024, as amended, pursuant to which, among other things, (i) the exercise price of the Warrants issued
to the Holders was reduced from $2.00 to $1.00, (ii) the outside maturity date of the Senior Notes held by the Holders was extended from December 31, 2024 to December 31, 2025 (subject to further extension in the event the maturity date of the Convertible Note is extended),
(iii) the Company’s obligation to make payments of principal under the Senior Notes held by the Holders beginning July 1, 2024
has been eliminated, and instead all obligations of the Company under such Senior Notes will be due in one lump sum on the maturity date
of the Senior Notes, and (iv) the Company’s obligations under the Convertible Note and liens granted to the holder thereof, will
be pari passu with the Company’s obligations under the Senior Notes held by the Holders and liens granted to the holders thereof.
The amendment warrants resulted in $89,949 of additional interest expense.

Warrants
Issued Pursuant to Debt Offering

On
July 1, 2023, the Company issued warrants to purchase an aggregate total of 30,000 shares
of common stock at an exercise price of $6.00 per share to note holders in connection with the sale of senior secured promissory notes
in the aggregate principal amount of $170,000 to four accredited investors. The proceeds received were allocated between the debt and
warrants on a relative fair value basis. The aggregate estimated value of the warrants using the Black-Scholes Pricing Model, based on
a weighted average volatility rate of 54% and a weighted average call option value of $3.8171, was $114,513, of which $46,090 was recognized
as finance expense during the year ended December 31, 2023. As of December 31, 2023, there were no unamortized