Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 43

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 43
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 BranchOut Industrial Ingredients:
    Banana, Mango, Blueberry, Pineapple, Cherry Tomato, Avocado and many others.

We
are currently developing many additional products for all sales channels.

24

Going
Concern Uncertainty

As
of March 31, 2025, we had a cash balance of $2,386,381, a working capital deficit of $2,736,656 and had incurred recurring losses from
operations resulting in an accumulated deficit of $18,480,439. Although we anticipate that our results of operations will improve substantially
as a result of the recent launch of our new facility in Peru, there can be no assurance in that regard. If we continue to generate substantial
operating losses, we will not have sufficient funds to sustain our operations for the next twelve months and we will need to raise additional
cash to fund our operations. These factors raise substantial doubt about our ability to continue as a going concern.

The
condensed consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to
the Company’s ability to continue as a going concern. The condensed consolidated financial statements also do not include any adjustments
relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might
be necessary should the Company be unable to continue as a going concern. Our ability to scale production and distribution capabilities
and further increase the value of our brands, is largely dependent on our success in raising additional capital.

Peru
Facility Lease

On
April 26, 2024, we formed BranchOut Food Sucursal Peru for the purpose of developing a production facility to produce our products
in Peru. On May 10, 2024 we entered into a ten-year lease for our 50,000 square-foot food processing plant located in Peru (the
“Peru Facility”). The lease of the Peru Facility requires us to make monthly lease payments of $8,000 in the first two
years of the lease, $20,000 in the third year of the lease, $22,000 in the fourth year of the lease, $24,000 in the fourth year of
the lease, and $25,000 thereafter. The lease also has a 10-year renewal option, and a buy-out option under which we may purchase the
facility for $1,865,456. We began manufacturing products at the Peru Facility in December of 2024, and produced approximately
$1,450,000 of