Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 287

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 287
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 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.

New
Product Development

We
intend to grow by launching new products over time. In the first and second quarters of 2020, we launched three flavors of Avocado Chips,
three flavors of our Chewy Banana Bites and our Pineapple Chips. In the first quarter of 2022, we launched Banana Powder and Blueberry
Powder to complement our Avocado Powder which was already on the market. In 2023, we launched a line of vegetable-based snacks including
Brussels Sprout Crisps, and Bell Pepper Crisps, and in March 2024 we introduced our Salad Toppers and Kids Snack Pack line aimed at kids’
school lunches. We are also developing Broccoli Bites, Mango Chips, Mandarin Crisps and others. In addition, we are developing several
new items at the request of a national retailer which are planned to be sold under their brand.

These
new products have been, and we expect that our future products will be, developed primarily through internal research and development.
Using our unique licensed technology and South American supply chain, we believe that BranchOut is in a position to create a wide variety
of innovative new products. We intend to continue to create innovative products that conform to our brand ethos of uniqueness, great
taste, high-quality ingredients, nutritional density, and functionality.

Regulation

Our
operations involve food products and are subject to the oversight of, among others, the Food and
Drug Administration (the “FDA”) and state, local and foreign counterparts, and United States Department of Agriculture
(the “USDA”). The FDA, pursuant to the FDCA, as amended by the Food Safety Modernization Act (“FSMA”), enforces
statutory standards regarding the growing, harvesting, manufacturing, processing, packaging, holding, distributing, importing, exporting,
labeling and safety of food products, establishes requirements for or limitations on ingredients or substances in foods and establishes
standards of identity for certain foods. Similar functions are performed by state, local and foreign governmental entities with respect
to food products produced or distributed in their respective jurisdictions. FSMA, which is a major reform of U.S. food safety laws