Company: BOF
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004712
Chunk: 312

Company: BranchOut Food Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 312
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 defend and adversely affect our reputation with existing and potential customers and
consumers and our corporate and brand image, which could have a material and adverse effect on our business, financial condition or results
of operations.

We
may face scrutiny from evolving state regulations concerning health, safety, our supply chain and marketing.

In
addition to the federal regulatory issues listed above, there are a growing number of state regulations that might impair our ability
to operate and avoid interruption. For example, California currently enforces legislation commonly referred to as “Proposition
65” that requires that “clear and reasonable” warnings be given to consumers who are exposed to chemicals known to
the State of California to cause cancer or reproductive toxicity. Although we seek to comply with the requirements of Proposition 65,
there can be no assurance that we will not be adversely affected by litigation or other actions relating to Proposition 65 or future
legislation that is similar or related thereto. Increased compliance costs associated with operating in California and other states could
adversely affect our business, financial condition and results of operations.

Risks
Related to Our Capital Structure

Our
indebtedness could adversely affect our ability to raise additional capital to fund operations, limit our ability to react to changes
in the economy or our industry and prevent us from meeting our financial obligations and our creditors have broad remedies in the event
of default.

As
of December 31, 2024 and 2023, we had total liabilities of $10,514,292 and $914,622, respectively. Certain portions of this indebtedness
are secured by a security interest in substantially all of our assets, and our security agreements include broad remedies in favor of
the lenders, including the right to foreclose on pledged assets in connection with an event of default.

 18 

If
we cannot generate sufficient cash flow from operations to service our debt, we may need to further refinance our debt, dispose of assets,
or issue equity to obtain necessary funds. We do not know whether we will be able to do any of this on a timely basis or on terms satisfactory
to us, or at all. Our substantial indebtedness could have important consequences, including:

    ●
    our ability to obtain additional debt or
    equity financing for working capital, capital expenditures, debt service requirements, acquisitions, and general corporate or other
    purposes may be limited;

    ●
    a portion of our cash flows from operations
    will be dedicated to the payment of principal and