Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 61

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 61
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,223 in excess of FDIC insured limits on March 31, 2025 and December 31, 2024, respectively, and has not experienced any losses
in such accounts.

Accounts
Receivable

Accounts
receivable is carried at their estimated collectible amounts. Trade accounts receivable is periodically evaluated for collectability
based on past credit history with customers and their current financial condition. The Company had an allowance for doubtful accounts
of $25,586 at March 31, 2025 and December 31, 2024.

Inventory

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 recognized. Inventory, consisting of raw
materials, work in progress and finished goods are stated at the lower of cost or net realizable value using the average cost valuation
method, and consisted of the following as of March 31, 2025 and December 31, 2024:

 Schedule of Inventory 

    March 31,  
    December 31, 

    2025  
    2024 
  
    Raw materials 
    $223,385  
    $464,681 
  
    Work in progress 
     683,264  
     - 
  
    Finished goods 
     683,218  
     1,465,854 
  
    Total inventory 
     1,589,867  
     1,930,535 

    8

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

The
Company had prepaid inventory advances on product in the amounts of $233,093 and $123,792 as of March 31, 2025 and December 31, 2024,
respectively. Advances of 70% of estimated finished product costs are made to enable manufacturers to purchase raw materials necessary
to produce finished products. The remaining 30% of finished product costs are paid upon receipt of finished goods.

Property
and Equipment

Property
and equipment are stated at the lower of cost or