Company: BOF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010566
Chunk: 24

Company: BranchOut Food Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 24
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 1,000

    Avocado
    Snacks
     
    North
    America (Canada and USA)

    1,000

    Avocado
    Chips
     
    Worldwide

    1,000

    Other
    Powders
     
    No
    Exclusivity

    -0-

Note
9 – Accrued Expenses

Accrued
expenses consisted of the following as of March 31, 2025 and December 31, 2024, respectively:

 Schedule of Accrued Expenses 

    March 31,  
    December 31, 

    2025  
    2024 
  
    Accrued payroll and taxes 
    $195,958  
    $82,338 
  
    Accrued interest 
     371,721  
     210,783 
  
    Accrued chargebacks 
     18,419  
     26,663 
  
    Accrued royalties 
     40,585  
     13,830 
  
    Total accrued expenses 
    $626,683  
    $333,614 

Note
10 – Convertible Notes Payable, Related Parties

As
discussed in further detail in Note 2, on July 24, 2024, the Company issued the $3.4 million Convertible Note to Kaufman Kapital, together
with Warrants, convertible into shares of common stock at a fixed price of $0.7582 per share. The Convertible Note matures on the earlier
of (i) December 31, 2025, (ii) the sale by the Company of $5,000,000 of equity or debt securities in a single transaction or series of
related transactions (excluding certain specified transactions), or (iii) the closing of a change of control transaction as provided
in the Convertible Note. Loans outstanding under the Convertible Note bear interest at an initial rate of 12% per annum, and together
with accrued principal are convertible into common stock.

The
Company’s obligations under the Convertible Note are secured by a lien granted to Kaufman Kapital on substantially all of the Company’s
assets pursuant to the Security Agreement. In addition, the Convertible Note includes affirmative and negative covenants, events of defaults
and other terms and conditions, customary in transactions of this nature.

In
accordance with ASC 470, the Company