Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 104

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 104
---
.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

NOTE
20 — Company Realignment

Beginning
April 2024, the Company initiated an organizational realignment to expand manufacturing operations by opening and operating a factory
in Pisco, Peru. This large-scale initiative aligned the Company’s resources, strategies, and goals with our desired outcomes. We
incurred total aggregate costs of approximately $5.5 million related to this initiative, consisting of (i) approximately $4.6 million
in factory start-up costs including purchasing equipment, build-out, and supplies for the new facility and (ii) approximately $0.9 million
in factory idle capacity, professional fees, legal fees, travel costs, etc. The organizational realignment is substantially complete
as of June 30, 2025.

For
the six months ended June 30, 2025, we incurred approximately $1.07 million of realignment costs comprised of: $491,890 for capitalized
machinery and equipment, $480,320 for factory idle capacity, $23,917 for travel costs and $74,394 for professional and legal fees. For
the period six months ended June 30, 2024, we incurred $20,017 for travel costs and $92,303 for professional and legal fees.

Note
21 – Subsequent Events

The
Company evaluates events that have occurred after the balance sheet date through the date these financial statements were issued, noting
no reportable event, except as follows:

ATM
Offering

On
July 29, 2025, we entered into an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Alexander Capital, L.P.,
as selling agent (the “Sales Agent”). In accordance with the terms of the ATM Agreement, we may offer and sell shares of
our common stock from time to time through the Sales Agent having an aggregate offering price of up to $3,000,000. The Sales Agent will
receive a commission of 3.0% of the gross proceeds of the sales price per share for any shares sold under the ATM Agreement.

As
of August 13, 2025, 1,000,000 shares
of common stock were issued and 777,896
shares of common stock were sold through the Sales Agent under the ATM Agreement, for aggregate gross proceeds of
$1,760,489.

Exercise
of Warrants

Following June