Company: BOF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023605
Chunk: 12

Company: BranchOut Food Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 12
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    Relationship
  
    BranchOut
    Food Inc.(1)
     
    Nevada,
    U.S.
     
    Parent
  
    BranchOut
    Food Sucursal Peru(2)
     
    Peru
     
    Subsidiary

(1)Holding
                                            company in the form of a corporation.

(2)Peruvian
                                            wholly-owned subsidiary of BranchOut Food Inc. established on April 26, 2024 in the form
                                            of a branch.

The
consolidated financial statements herein contain the operations of the wholly-owned subsidiaries listed above. The Company’s headquarters
are located in Bend, Oregon.

Going
Concern

As
shown in the accompanying condensed consolidated financial statements, as of June 30, 2025, the Company has incurred recurring
losses from operations resulting in an accumulated deficit of $20,083,595,
with positive working capital of $662,217,
which may not be sufficient to sustain operations. These factors raise substantial doubt about the Company’s ability to
continue as a going concern. Management is actively pursuing new customers and continues to expand the Company’s product mix
to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short-term operations.
Management believes these factors will contribute to achieving profitability. The accompanying condensed consolidated financial
statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. These
condensed consolidated financial statements also do not include any adjustments relating to the recoverability and classification of
recorded asset amounts, or amounts and classifications of liabilities, that might be necessary should the Company be unable to
continue as a going concern.

    8

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Segment
Reporting

Under
ASC 280, Segment Reporting, operating segments are defined as components of an enterprise where discrete financial information
is available that is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources
and in assessing performance. The Company has two components, consisting of