Kaufman Kapital exercises warrant and extends key debt maturities, providing $1 million in support of BranchOut’s financial strategyBEND, Ore., June 02, 2025 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in its patented GentleDry™ dehydrated snacks and ingredients, announces the execution of a strategic agreement with Kaufman Kapital LLC, resulting in a $1 million cash infusion through the early exercise of existing warrants. The agreement also include ...

Core Insights - BranchOut Food Inc. reported record Q1 2025 revenue of $3.2 million, a 118% year-over-year increase, marking a significant operational milestone with the full operation of its Peru facility [2][12][16] - The company is strategically positioned to benefit from U.S. tariffs on Chinese imports, providing a cost advantage over competitors reliant on Chinese sourcing [9][10] Financial Performance - Q1 2025 revenue reached $3.2 million, reflecting a 118% increase compared to the previous year [2] - The company anticipates being debt-free by the end of 2025, with substantial improvements in gross margin and cost structure expected to begin in Q2 [6][15] Operational Developments - The Peru facility, which is fully operational, supports over $40 million in annual production capacity and allows for better control over product quality and supply chain efficiency [2][6] - The facility's utilization is expected to improve significantly, with Q2 utilization already up more than 50% compared to Q1 [14] Strategic Partnerships and Market Expansion - BranchOut has expanded its partnership with the largest warehouse club in the U.S., generating nearly $3 million in sales in H1 2025 [3][6] - The company has entered a strategic partnership with MicroDried to lead sales in the industrial ingredient channel, projecting annual revenue of $5–6 million [6][8] Product Innovation and Direct-to-Consumer Strategy - BranchOut is expanding into the direct-to-consumer (DTC) channel, focusing on e-commerce and subscriptions, leveraging its proprietary GentleDry™ technology for competitive advantage [5][10] - The company has launched several innovative products, including Brussels Sprout Crisps and Carrot Sticks, which are now available nationwide [4][7] Market Positioning - With tariffs on Chinese imports at 30%, BranchOut is well-positioned to disrupt the freeze-dried snack market, competing against brands that heavily rely on Chinese sourcing [9][10] - The company is actively discussing replacing China-sourced private label SKUs with its own offerings to provide pricing stability and supply chain resilience [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to ________. Commission File Number 001-41723 BRANCHOUT FOOD INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Financial Position - As of December 31, 2024, the company had a cash balance of $2,329,452 and an accumulated deficit of $17,562,057[183]. - The company has a working capital deficit of $3,897,382 as of December 31, 2024[183]. - As of December 31, 2024, the company reported negative working capital of $3,897,382, total liabilities of $10,514,292, and an accumulated deficit of $17,562,057, compared to an accumulated deficit of $12,810,541 in 2023[232]. Revenue and Profitability - The company's net revenue for the year ended December 31, 2024, was $6,516,337, an increase of $3,690,482, or 131%, compared to $2,825,855 for the year ended December 31, 2023[223]. - Cost of goods sold for the year ended December 31, 2024, was $5,652,717, an increase of $2,730,632, or 93%, compared to $2,922,085 for the year ended December 31, 2023[224]. - The company achieved a gross profit of $863,620, or 13% of revenues, for the year ended December 31, 2024, compared to a gross operating loss of $96,230, or (3%) of revenues, for the year ended December 31, 2023[224]. Expenses - General and administrative expenses increased by $289,246, or 18%, to $1,870,720 for the year ended December 31, 2024, compared to $1,581,474 for the year ended December 31, 2023[225]. - Salaries and wages increased by $474,342, or 42%, to $1,604,200 for the year ended December 31, 2024, compared to $1,129,858 for the year ended December 31, 2023[227]. - Professional fees rose by $596,545, or 86%, to $1,291,141 for the year ended December 31, 2024, compared to $694,596 for the year ended December 31, 2023[228]. - Other expenses increased by $425,523, or 100%, to $849,075 for the year ended December 31, 2024, primarily due to increased interest expense[229]. - Advertising and marketing expenses increased by $149,538, or 92%, to $311,586 for the year ended December 31, 2024, compared to $162,048 for the year ended December 31, 2023[226]. - The company recognized $704,699 in stock-based compensation for the year ended December 31, 2024, compared to $258,574 for the year ended December 31, 2023[215]. Net Loss - The company's net loss for the year ended December 31, 2024, was $4,751,516, an increase of $825,806, or 21%, compared to a net loss of $3,925,710 for the year ended December 31, 2023[230]. Cash Flow - Net cash used in operating activities increased by $1,330,444, or 38%, to $4,859,816 for the year ended December 31, 2024, primarily due to increased net loss and inventory purchases[234]. - Net cash used in investing activities surged by $2,705,996, or 2,321%, to $2,822,561 for the year ended December 31, 2024, mainly due to increased property and equipment purchases[235]. - Net cash provided by financing activities rose by $5,607,342, or 149%, to $9,362,621 for the year ended December 31, 2024, driven by increased net proceeds from debt and convertible debt financing[236]. Financing Activities - The company raised $2,400,000 from sales of common stock in an "At-the-Market" offering after December 31, 2024, but anticipates needing additional financing to sustain operations[243]. - The company completed the sale of 1,750,000 shares of common stock in a public offering at a price of $0.80 per share, resulting in net proceeds of $1,164,685[242]. - The company entered into an ATM Agreement with Alexander Capital for the sale of shares of common stock with an aggregate offering price of up to $5 million, having sold 1,317,307 shares for gross proceeds of approximately $2.5 million as of December 31, 2024[240]. - The company has secured financing through various promissory notes, including a $3,400,000 convertible note and a $1,200,000 senior secured promissory note, both secured by a lien on substantially all assets[237][238]. Operational Developments - The new production facility in Peru commenced operations in December 2024, utilizing three large-scale REV machines[179]. - The company plans to improve operating margins in 2025 by transitioning production from third-party manufacturers to internal production[179]. Impairment and Allowance - The company recognized $761,085 of impairment expense during 2023 due to issues with NXTDried Superfoods, including $485,265 on a note receivable[185]. - The company had an allowance for doubtful accounts of $25,586 as of December 31, 2024, with no allowance necessary in 2023[200]. Depreciation - The company incurred depreciation expenses of $171,873 and $223,856 for the years ended December 31, 2024, and 2023, respectively[202]. Emerging Growth Company Status - The company remains an emerging growth company and is eligible for certain exemptions from various reporting requirements, which may affect the comparability of its financial statements[246].

BranchOut and MicroDried Partner to Expand Dried Ingredient Market The collaboration will involve large-scale production at BranchOut’s new Peru facility and is projected to generate $5-6 million in annual ingredient sales, with significant growth potentialBranchOut Food Inc. (NASDAQ: BOF), a company specializing in next-generation dehydration technology (GentleDry), has entered into a definitive agreement with MicroDried, a leading provider of premium dried fruit and vegetable ingredients. This strategic ...

Core Insights - BranchOut Food Inc. has entered a Definitive Agreement with MicroDried to integrate GentleDry technology into MicroDried's premium dried fruit and vegetable ingredient offerings, addressing the growing demand in the food and beverage industry [1][2] - The collaboration aims to enhance large-scale production capabilities at BranchOut's new 50,000 square foot facility in Peru, with projected annual ingredient sales of $5-6 million [2][8] - The global freeze-dried ingredient market is valued at $36 billion and is expected to grow at a CAGR of 7.6%, indicating a rising demand for high-quality, minimally processed ingredients [6] Company Collaboration - The partnership combines MicroDried's established market presence and reputation with BranchOut's innovative GentleDry technology, providing food manufacturers with enhanced ingredient solutions [4][6] - This collaboration is seen as a strategic fit, leveraging both companies' strengths to meet evolving industry demands for high-performance dried ingredients [4][6] Market Expansion - BranchOut's ingredient business is one of three key sales channels, alongside branded retail and private label divisions, which are experiencing strong growth [5] - The company is also preparing to launch a direct-to-consumer e-commerce platform, further expanding its market reach [5] Commitment to Quality - MicroDried is recognized for its dedication to high-quality, ready-to-eat dried ingredients without added sugars or processing aids, and the addition of GentleDry technology enhances this commitment [6][7] - The collaboration aims to provide a wide range of high-performance solutions that meet the needs of food manufacturers while maintaining quality and safety standards [7] Future Outlook - Initial ingredient orders are already in production, positioning both companies to expand their impact in the global ingredient market [8] - The partnership reflects a shared vision of delivering innovative and sustainable dried ingredient solutions to meet the needs of today's food manufacturers [8]

Core Insights - BranchOut Food Inc. is experiencing significant growth through the expansion of its Bell Pepper Crisps product across multiple regions, including a new $600,000+ order from the Midwest, marking its fourth regional expansion [2][4] - The company's GentleDry™ dehydration technology is a key factor in its ability to deliver high-quality, nutrient-rich snacks, positioning BranchOut as a major player in the premium snack market [3][4] - The establishment of a new 50,000-square-foot production facility in Peru enhances the company's production capacity, allowing it to meet increasing demand from major retailers [7][8] Expansion and Product Rollout - The Midwest order for Bell Pepper Crisps is part of a broader strategy that includes recent launches in Southern California, with plans for further rollouts in the Bay Area and Texas [2][6] - BranchOut's Pineapple Chips have returned to Southeast Clubs, achieving nearly $900,000 in reorders, indicating strong consumer demand [6] - The company is set to introduce Organic Chewy Banana Bites in Southern California and Hawaii, with a $400,000+ order scheduled for the end of March [6] Production Capacity and Efficiency - The Peru facility, the largest GentleDry™ production hub globally, operates with three production lines and has an annual capacity exceeding $40 million, positioning the company to fulfill rising order volumes [7] - The efficient operation of the Peru facility allows BranchOut to expand into new regions while maintaining high product quality [8]

Core Insights - BranchOut Food Inc. is experiencing significant growth through the expansion of its Bell Pepper Crisps product across multiple regions, including a new $600,000+ order from the Midwest [2][4] - The company's GentleDry™ dehydration technology is a key factor in its ability to deliver high-quality, nutrient-rich snacks, contributing to its strong market presence [3][8] - The expansion strategy includes a multi-product approach, moving away from a traditional single-product model, which is expected to drive record-breaking revenue [4][6] Expansion and Product Launches - The Bell Pepper Crisps have expanded to four regions, including the Midwest, Bay Area, and Texas, following a successful launch in Southern California [2][6] - BranchOut's Pineapple Chips have returned to Southeast Clubs, achieving nearly $900K in reorders, indicating strong consumer demand [6] - Organic Chewy Banana Bites are set to launch in Southern California and Hawaii with a $400K+ order, further diversifying the product lineup [6] Production Capacity and Efficiency - The new 50,000-square-foot facility in Peru is the largest GentleDry™ production hub globally, with an annual production capacity exceeding $40 million [7] - The facility operates three production lines efficiently, allowing the company to meet increasing demand from major retailers while maintaining product quality [8]

Core Insights - BranchOut Food Inc. has appointed Jesse Thomas as Chief Brand Officer to enhance its direct-to-consumer (DTC) strategy and brand marketing efforts [2][6] - Thomas has a successful background in scaling DTC brands, notably as the Founder & CEO of Picky Bars, which achieved a $12 million acquisition [3][6] - The company aims to leverage Thomas's expertise to drive high-margin revenue streams through e-commerce and subscription models while expanding its retail presence [4][9] Company Strategy - The focus will be on building and launching a DTC website, expanding product lines onto platforms like Amazon, and developing an email subscription program [7] - BranchOut plans to launch a wholesale portal for independent retailers and oversee digital advertising and social media strategies [7] - The company is positioned for sustained revenue growth, with expectations to reach $9 million in revenue in the first half of 2025 and to become cash flow positive starting this quarter [9] Technology and Product Offering - BranchOut Food specializes in high-quality dehydrated fruit and vegetable products using its proprietary GentleDry™ technology, which preserves up to 95% of the original nutrition [10] - The company holds over 17 patents for its technology, establishing itself as a trusted brand and supplier in the market [10] - The focus on nutrient-dense, clean-label snacks aligns with the growing consumer demand for health-conscious products [5][8]

Core Insights - BranchOut Food (NASDAQ: BOF) is experiencing significant growth, with stock prices up 200% from 2024 lows and potential for an additional 1000% increase [1] - The company is ramping production and improving revenue, projecting first-half revenue of $9 million, which indicates strong growth potential in the dehydrated food industry valued between $50 billion and $350 billion annually [2][3] Company Performance - BranchOut Food is in a hypergrowth phase, with Q1 revenue forecasted to grow over 150% and first-half 2025 revenue expected to increase by more than 200% [5] - A new processing plant in Peru has increased production capacity by $40 million annually, enhancing margins by bringing production in-house [5] - The company has manageable debt, with total liabilities about 3 times equity, and is looking to expand capacity further [6] Market Position - BranchOut Food has established a strong position with major clients, including Costco, which is increasing orders, and Taylor Farms, which has placed an initial order worth $175,000 [2][4] - The company is well-positioned to penetrate other grocery chains like Walmart and Kroger, expanding its market share [3] Acquisition Potential - BranchOut Food is considered a desirable acquisition target for larger snack and packaged food companies like PepsiCo and Kraft Heinz, which could leverage its offerings to sustain revenue growth [7] Stock Performance - The stock has shown resilience, with a strong base at $1.20 and positive momentum driven by favorable news cycles [8]