Company: BOF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021655
Chunk: 75

Company: BranchOut Food Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 75
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 when ownership, risks and rewards transfer. Typically, this occurs when the goods are received by the retailer or
customer, or when the title of goods is exchanged. Revenues are recognized in an amount that reflects the net consideration the Company
expects to receive in exchange for the goods.

The
Company promotes its products with advertising, consumer incentives and trade promotions. These programs include discounts, slotting
fees, coupons, rebates, in-store display incentives and volume-based incentives. Customer trade promotion and consumer incentive activities
are recorded as a reduction to the transaction price based on amounts estimated as being due to customers and consumers at the end of
a period. The Company derives these estimates based principally on historical utilization and redemption rates. The Company does not
receive a distinct service in relation to the advertising, consumer incentives and trade promotions. Payment terms in the Company’s
invoices are based on the billing schedule established in contracts and purchase orders with customers.

Expenses
such as slotting fees, sales discounts, and allowances are accounted for as a direct reduction of revenues as follows for the three and
nine months ended September 2025 and 2024:

 Schedule of Revenue  

    For the Three Months Ended  
    For the Nine Months Ended 

    September 30,  
    September 30, 

    2025  
    2024  
    2025  
    2024 

    Revenue 
    $3,269,989  
    $2,258,468  
    $9,932,309  
    $5,181,132 
  
    Less: slotting, discounts, and allowances 
     49,962  
     76,973  
     219,022  
     169,635 
  
    Net revenue 
    $3,220,027  
    $2,181,495  
    $9,713,287  
    $5,011,497 

Note
4 – Inventories

The
Company’s products consist of pre-packaged and bulk-dried fruit and vegetable-based snacks, powders and ingredients developed at
its production facility in Peru and purchased products from contract-manufacturers in Chile and/or Peru. Raw materials consist of purchased
fruits and vegetables and packaging materials. Appropriate consideration is given to obsolescence, excessive levels, deterioration, and
other factors in evaluating net realizable value. No reserve for obsolete inventories has been