Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 60

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 60
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763  
     58 

    Net change in cash 
    $(1,688,323) 
    $278,272 

Net
Cash Used in Operating Activities

Net
cash used in operating activities was $3,942,856 for the six months ended June 30, 2025, compared to $1,357,463 for the six months ended
June 30, 2024, an increase of $2,610,442, or 190%. The increase was primarily due to a $1,440,275 increase in accounts receivable due
to increased sales volumes and a $548,367 increase in prepaid inventory to secure raw materials.

Net
Cash Used in Investing Activities

Net
cash used in investing activities was $491,332 for the six months ended June 30, 2025, compared to $566,431 for the six months ended
June 30, 2024, a decrease of $75,099, or 13%. This decrease was primarily attributable to $491,332 of equipment purchases, compared to
$576,331 of equipment purchases, as partially offset by $9,900 of advances received on notes receivable, in the comparative period.

Net
Cash Provided by Financing Activities

Net
cash provided by financing activities was $2,717,102 for the six months ended June 30, 2025, compared to $2,202,108 for the six months
ended June 30, 2024, an increase of $514,994, or 23%. Our increased cash provided by financing activities was primarily from $2,423,058
proceeds from the sale of common stock and $1,173,157 from the exercise of warrants, offset by $847,917 of principal repayments on notes
payable.

Effect
of Exchange Rate Changes on Cash

For
the six months ended June 30, 2025, the effect of exchange rate changes on cash and cash equivalents primarily reflects the translation
impact from fluctuations in the value of the Peruvian sol relative to the U.S. dollar. During the period, the sol experienced modest
depreciation against the U.S. dollar, resulting in a gain on foreign currency translation of $28,763 compared to $58 in the comparative
period.

CRITICAL
ACCOUNTING POLICIES AND ESTIMATES

Our
financial results are affected by the selection and application of accounting policies and methods. As of April 1,