Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 22

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 22
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31, 2024:

 Schedule of Other Assets 

    March 31,  
    December 31, 

    2025  
    2024 
  
    First position mortgage(1) 
    $1,267,000  
    $1,267,000 
  
    VAT tax receivable(2) 
     882,947  
     680,483 
  
    Total other assets 
    $2,149,947  
    $1,947,483 

(1)On May 10, 2024,
in connection with the lease of the Company’s facility in Peru, the Company paid $275,000 toward the purchase of a First Position
Mortgage (“FPM”) receivable in the amount of $1,267,000, which is secured by the Peru facility and was owed by the landlord
of the Peru facility to its former tenant, for a purchase price of $1,267,000. The Company paid an additional $80,000 during the fourth
quarter of 2024, and another $456,000 during the first quarter of 2025. The remaining $456,000 due on the FPM is to be paid in monthly
installments of $152,000 through June 23, 2025, as presented in other current liabilities on the balance sheet. The unpaid balance accrues
interest at 9%. At March 31, 2025, a total of $50,081 of interest was accrued. The FPM enables the Company to have uninterrupted access
to the leased facility, and secures the option to purchase the facility by becoming the primary lien-holder on the facility. The Company
intends to exercise its option to purchase the facility at some point in the future, in which case the FPM would either be repaid out
of the proceeds from a mortgage, or the FPM would be used to reduce the purchase price of the facility.

(2)VAT tax receivable
is comprised of taxes that were paid as the Company imported equipment and raw materials into Peru. These taxes will be refunded as inventory
is exported, or if equipment is exported for any unforeseeable reason.

    14

BRANCHOUT
FOOD INC.

NOTES
TO THE CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note
8 – Notes Receivable

Nanuva
Note Receivable

On
February 4,