Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 45

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 45
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 and a call option value of $1.2095, and an expected term of 6.5 years, was $737,783.

Options
are being expensed over the respective vesting period, resulting in $81,097 of stock-based compensation expense during the six months
ended June 30, 2025. As of June 30, 2025, a total of $809,458 of unamortized expenses are expected to be expensed over the remaining
vesting period.

Note
17 – Common Stock Warrants

Warrants
to purchase a total of 2,287,415 shares of common stock at a weighted average exercise price of $2.34 per share, with a weighted average
remaining life of approximately 6.19 years, were outstanding as of June 30, 2025.

Exercise
of Warrants

On
February 14, 2025, the Company received aggregate proceeds of $38,157 on the exercise of Representative’s Warrants to purchase
an aggregate of 39,747 shares of common stock.

On
June 4, 2025, Kaufman Kapital exercised warrants to purchase an aggregate of 1,000,000 shares of the Company’s common stock at
an exercise price of $1.00 per share. These warrants were originally issued in connection with the Kaufman Kapital Senior Secured Convertible
note. The exercises resulted in aggregate cash proceeds of $1,000,000.

During
the period ended June 30, 2025, additional warrants were exercised to purchase an aggregate of 135,000 shares of the Company’s
common stock at an exercise price of $1.00 per share. The exercises resulted in aggregate cash proceeds of $135,000.

Note
18 - Income Taxes

The
Company incurred a net operating loss for the six months ended June 30, 2025, accordingly, no provision for income taxes has been recorded.
In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. On June 30, 2025,
the Company had approximately $12.1 million of federal net operating losses. The net operating loss carryforwards, if not utilized, will
begin to expire in 2041.

The
effective income tax rate for the six months ended June 30, 2025, and 2024, was 21%.

The
Company has incurred cumulative losses which make realization of a deferred