Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 611

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 611
---
 capitalized in other noncurrent assets on the balance sheets. Deferred offering costs of
$1,283,954, primarily consisting of accounting, legal, and other fees related to the Company’s IPO, were offset against the IPO
proceeds upon the closing of the IPO in June 2023.

Reverse
Stock Split

On
June 15, 2023, the Company effected a 2.5-for-1 reverse stock split of its outstanding shares of capital stock. There was no preferred
stock outstanding prior to or after the reverse stock split. All issued and outstanding shares of common stock have been adjusted in
these condensed financial statements, on a retrospective basis, to reflect the reverse stock split for all periods presented, as well
as all common stock warrants and stock option awards which, by the terms thereof, were subject to adjustment in connection with the reverse
stock split. The par value of the common stock was not adjusted by the reverse stock split.

Going
Concern

As
shown in the accompanying financial statements, the Company has incurred recurring losses from operations resulting in an accumulated
deficit of $17,562,057, and a working capital deficit of $3,897,382 as of December 31, 2024. The Company’s $2,329,452 of cash on
hand at December 31, 2024 may not be sufficient to sustain operations. These factors raise substantial doubt about the Company’s
ability to continue as a going concern. Subsequent to December 31, 2024, the Company received gross proceeds of approximately $2.5 million
from sales of common stock in an “At-the-Market” registered offering. Although the Company anticipates that its results of
operations will improve substantially as a result of the recent launch of its new facility in Peru, there can be no assurance in that
regard. 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 toward achieving profitability. The
accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going
concern.

The
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. These 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