Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 59

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 59
---
 10-K. The Company follows the same accounting policies in the preparation of interim reports.

When
preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period. Actual results could differ from those estimates.

Principles
of Consolidation

The
accompanying consolidated financial statements include the accounts of the following entities, all of which were under common control
and ownership at March 31, 2025:

    Name
    of Entity
     
    Jurisdiction
     
    Relationship
  
    BranchOut
    Food Inc.(1)
     
    Nevada,
    U.S.
     
    Parent
  
    BranchOut
    Food Sucursal Peru(2)
     
    Peru
     
    Subsidiary

    (1)
    Holding
    company in the form of a corporation.
  
    (2)
    Peruvian
    wholly-owned subsidiary of BranchOut Food Inc. established on April 26, 2024 in the form of a branch.

The
consolidated financial statements herein contain the operations of the wholly-owned subsidiaries listed above. The Company’s headquarters
are located in Bend, Oregon.

Going
Concern

As
shown in the accompanying condensed consolidated financial statements, as of March 31, 2025, the Company has incurred recurring losses
from operations resulting in an accumulated deficit of $18,480,439, with negative working capital of $2,736,656, which may not be sufficient
to sustain operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management
is actively pursuing new customers to increase revenues. In addition, the Company is currently seeking additional sources of capital
to fund short term operations. Management believes these factors will contribute to achieving profitability. The accompanying condensed
consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going
concern. These 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.

    7

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)