Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 1267

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1267
---
 ended December 31, 2023, an
increase of $3,690,482, or 131%. The increase in revenue was primarily due to increased sales to our largest customer during the year
ended December 31, 2024.

Cost
of Goods Sold and Gross Profit (Loss)

Our
cost of goods sold for the year ended December 31, 2024 was $5,652,717, compared to $2,922,085 for the year ended December 31, 2023,
an increase of $2,730,632, or 93%. Cost of goods sold included $171,843 and $223,856 of depreciation on production equipment during the
years ended December 31, 2024 and 2023, respectively. Cost of goods sold increased primarily in line with the increase in our
sales for the period. As a result of the foregoing, we had a gross profit of $863,620, or 13% of revenues, for the year ended December 31,
2024, compared to a gross operating loss of $96,230, or (3%) of revenues, for the year ended December 31, 2023. Our gross profit
margin increased primarily due to cost savings realized as a result of our transition to bulk shipping arrangements and transitioning
to our own production facility during the current period.

 32 

General
and Administrative Expense

Our
general and administrative expense for the year ended December 31, 2024 was $1,870,720, compared to $1,581,474 for the year ended
December 31, 2023, an increase of $289,246, or 18%. The largest components of our general and administrative expenses are advertising
and marketing, rent, travel, commissions, and storage, shipping and handling expense, as shown below.

    Year
    Ended December 31, 

    2024  
    2023  
    Difference  
    %
    Change 

    Advertising and marketing 
    $311,586  
    $162,048  
    $149,538  
     92%
  
    Rent 
    $240,213  
    $37,439  
    $202,774  
     542%
  
    Travel 
    $167,064  
    $58,385  
    $108,679  
     186%
  
    Commissions 
    $212,447