[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) This Form 8-K filing details BranchOut Food Inc.'s financial results, accompanying exhibits, and corporate authorization [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) BranchOut Food Inc. announced selected financial results for the quarter and six-month periods ended June 30, 2025, via a press release - The company issued a press release on **August 11, 2025**, detailing financial results for the quarter and six months ended **June 30, 2025**[4](index=4&type=chunk) - Information in the press release (Exhibit 99.1) is **furnished**, not filed, limiting liability under Section 18 of the Exchange Act[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section details the exhibits accompanying the Form 8-K filing, primarily the August 11, 2025, press release - Exhibits include **Exhibit 99.1**, the Press Release dated August 11, 2025, and **Exhibit 104**, the Cover Page Interactive Data File[7](index=7&type=chunk) [Signatures](index=3&type=section&id=Signatures) The report was officially signed and authorized by BranchOut Food Inc.'s Chief Executive Officer on August 13, 2025 - The report was signed by **Eric Healy**, CEO of BranchOut Food Inc., on **August 13, 2025**[9](index=9&type=chunk)[10](index=10&type=chunk)

Core Insights - BranchOut Food Inc. reported a record performance in June 2025, achieving the highest monthly revenue of approximately $1.7 million and a gross margin of 27% [4][8] - The company experienced a year-to-date revenue growth of 129% compared to the same period in 2024, driven by strong demand across retail and ingredient channels [8][12] - Operational improvements were noted, with factory throughput increasing by 50% in June, and inventory turnover reduced to under 60 days [5][8] Financial Performance - The first half of 2025 saw revenue more than double year-over-year, with an EBITDA loss of $1.6 million primarily due to one-time scale-up costs [12] - Current liability debt was significantly reduced by 67%, from $6.39 million to $2.16 million in Q2 [8][11] - Management anticipates improved financial performance in the second half of the year due to enhanced operational efficiency and lower freight costs [12] Operational Efficiency - The company has been actively working to address a backlog of orders since opening its Peru facility, which has led to temporary reliance on air freight, impacting margins [5][8] - As operations catch up, gross margins are expected to improve by approximately 3-4% by transitioning from air freight to ocean freight [5] - The company is focused on scaling production efficiently for new products, with significant orders already placed by major retailers [6][7] Growth Strategy - BranchOut is committed to rapid growth through agile product development, which includes training new teams and optimizing production processes [6][10] - The company is well-positioned for continued growth, supported by strong sell-through in warehouse clubs and national retailers, as well as growing ingredient sales through partnerships [13] - Tariffs on Chinese imports are expected to provide additional competitive advantages for the company [13]

Core Insights - BranchOut Food Inc. has secured over $2.8 million in new orders from a major warehouse club, driven by strong consumer demand for its products, particularly Pineapple Chips, Chewy Banana Bites, and the upcoming launch of Crunchy Strawberry Halves [3][4][11] Product Performance - Pineapple Chips and Chewy Banana Bites have shown strong sales performance, leading to significant reorder volumes, including a $714,000 order for Pineapple Chips in the Southeast and an $860,000 order for Chewy Banana Bites in the Midwest [6][4] - The Midwest region alone has generated over $1.8 million in orders across three different SKUs, indicating robust market acceptance [5][6] - The new Crunchy Strawberry Halves are expected to replace an imported product, with early performance suggesting it could become a top-selling item [7][11] Innovation and Expansion Plans - BranchOut is preparing to launch a new line of snack packs targeted at children, aimed at grocery retailers, which is projected to be a $20–30 million opportunity [12][13] - The company has a pipeline of innovative products ready for retail presentations, including Mango Slices, Dragon Fruit, and Snack Mixes, designed to meet growing consumer demand for nutritious snacks [9][11] - The multipack format is anticipated to double the addressable market opportunity within warehouse clubs, with interest already expressed by retailers [13] Operational Strategy - The company is raising $3 million through an ATM program to support growth initiatives, including strategic hires, expanded partnerships, and new product development [16] - BranchOut's GentleDry™ technology is fully operational, with plans to address bottlenecks in preprocessing to maximize production capacity [15][17]

Core Insights - BranchOut Food Inc. has received over $2.8 million in new orders from a major warehouse club, indicating strong consumer demand and brand validation in the better-for-you snack category [2][10] - The company is expanding its product offerings with the launch of new items, including Crunchy Strawberry Halves, which are expected to become a staple in the warehouse club channel [5][11] - BranchOut is preparing a robust pipeline of innovative products aimed at enhancing its market presence and meeting consumer demand for nutritious snacks [8][10] Product Performance - Pineapple Chips and Organic Chewy Banana Bites have shown strong sales performance, leading to significant reorder volumes, including a $714,000 order for Pineapple Chips in the Southeast and an $860,000 order for Chewy Banana Bites in the Midwest [6][3] - The Midwest region alone has accounted for over $1.8 million in orders across three different SKUs, demonstrating the scalability of these products [4][6] - The upcoming launch of Crunchy Strawberry Halves is expected to replace an imported freeze-dried product, offering superior quality and value [5][6] Growth Strategy - BranchOut plans to launch a new branded line of snack packs targeted at kids and school lunches in 2026, aiming for placement in grocery produce departments to improve margins [11][12] - The multipack format presents a significant opportunity, potentially doubling the addressable market within the warehouse club channel [12] - The company is also developing a breakthrough product line outside the fruit and vegetable category, leveraging its GentleDry™ technology [13][14] Operational Enhancements - The company is raising $3 million through an ATM program to support growth initiatives, including strategic hires and operational enhancements [15] - BranchOut's Peru facility is currently underutilized, with plans to address bottlenecks in preprocessing to unlock the full potential of its GentleDry™ technology [14][15] - Investments in vertical integration and additional capital expenditures are expected to resolve existing constraints and enhance scalability [14][15]

Core Insights - BranchOut Food Inc. has announced the inclusion of its Cinnamon Churro Banana Chips in the upcoming Initial Operational Test and Evaluation (IOT&E) for the Close Combat Assault Ration (CCAR) by the U.S. Army [1][2][3] - The CCAR is designed to provide troops with lightweight, nutrient-dense, and shelf-stable food solutions for up to five days [2][3] - The initiative highlights the effectiveness of BranchOut's GentleDry technology, which preserves up to 95% of the original nutrition of fresh produce [7] Company Overview - BranchOut Food Inc. specializes in clean-label snacks and innovative dehydration technology, positioning itself as a leader in the food technology sector [1][7] - The company is working with the U.S. Army's Combat Capabilities Development Command (DEVCOM) to explore future military rations, indicating a strong alignment with government needs [4][5] - BranchOut's strategy includes commercializing its patented GentleDry platform across various markets, including national retail and international food security programs [5] Product Development - The Cinnamon Churro Banana Chips will undergo testing where DEVCOM will gather feedback from Warfighters, emphasizing the product's potential for military applications [3][4] - BranchOut is actively reviewing multiple products for future inclusion in military menus, showcasing its commitment to innovation in high-performance food solutions [4][5] Technology and Innovation - The GentleDry technology is protected by over 17 patents, allowing BranchOut to differentiate itself in the market as a trusted supplier of high-quality dehydrated products [7] - The company aims to push the boundaries of food innovation in demanding environments, reflecting its focus on taste, nutrition, and durability [4]

Core Insights - BranchOut Food Inc. is expanding its innovative Brussels Sprout Crisps to 3,945 stores, nearly doubling its previous distribution, following strong sales performance [2][3] - The company is also launching a new product, Cinnamon Sweet Potato Sticks, in 1,952 locations, which represents about 50% of the retailer's footprint [4] - The expansion highlights the effectiveness of BranchOut's proprietary GentleDry™ technology, which preserves the nutritional quality of the snacks [5][6] Financial Performance - For the three months ended May 31, 2024, BranchOut reported net sales of $6.5 million, a significant increase from $3.6 million in the same period of 2023 [1] - Gross profit for the same period was $2.45 million, compared to $1.78 million in 2023, indicating improved profitability [1] - The company achieved a net income of $330,837, a substantial increase from $53,406 in the previous year [1] Product Innovation - The Brussels Sprout Crisps are noted for their unique market position as the first of their kind, receiving an overwhelming consumer response since their launch [3] - The new Cinnamon Sweet Potato Sticks are designed to offer a crunchy, lightly sweet experience, utilizing the GentleDry™ technology to maintain the produce's quality [4] - BranchOut's focus on innovation is further validated by its growing partnership with the nation's largest retailer, enhancing its market presence [5] Market Position - BranchOut Food is recognized as a leader in food technology, specializing in high-quality dehydrated snacks [6] - The company holds over 17 patents for its GentleDry™ technology, which preserves up to 95% of the original nutrition of fresh produce, setting it apart in the industry [6] - The expansion of its product line and distribution channels positions BranchOut as a preferred supplier for innovative dried fruit and vegetable snacks [5]

Core Insights - BranchOut Food Inc. has achieved a significant national expansion, with its Brussels Sprout Crisps now available in 3,945 stores, nearly doubling its previous distribution [1][2] - The company is launching a new product, Cinnamon Sweet Potato Sticks, in 1,952 locations, which represents about 50% of the retailer's footprint [3] Company Performance - The Brussels Sprout Crisps have received an overwhelming consumer response since their launch, establishing themselves as a standout new item in the market [2] - The expansion of the product line and distribution reflects BranchOut's ability to innovate and meet rising consumer demand for healthier snack options [4] Technology and Innovation - BranchOut utilizes its proprietary GentleDry™ technology, which preserves up to 95% of the original nutrition of fresh produce, enhancing the quality and taste of its products [5] - The company has over 17 patents protecting its technology, positioning it as a trusted brand and supplier in the dehydrated snack market [5] Market Position - BranchOut is establishing itself as a preferred supplier for innovative dried fruit and vegetable-based snacks, particularly in light of recent tariffs on Chinese-sourced freeze-dried fruits [4]

Core Insights - Kaufman Kapital LLC has executed a strategic agreement with BranchOut Food Inc., resulting in a $1 million cash infusion through the early exercise of existing warrants, which strengthens BranchOut's financial strategy and balance sheet [1][2] - The agreement includes amendments to existing financing terms, allowing for debt repayment and extending key debt maturities, reflecting Kaufman Kapital's confidence in BranchOut's long-term growth strategy [2][4] Financial Strategy - The $1 million proceeds from the warrant exercise will be utilized to pay down outstanding debt obligations, part of BranchOut's initiative to eliminate all current liability notes payable by the end of 2025 [2][5] - BranchOut plans to repay $1.56 million in senior secured debt through a combination of cash flow and the recent warrant exercise proceeds, with the remaining $875,000 principal on the Kaufman note expected to be paid gradually through operating cash flow [5] Operational Improvements - BranchOut is entering a transformative phase with multiple cost burdens and liabilities set to be reduced, which is expected to lead to significant improvements in operating cash flow as production scales and efficiencies are driven at its Peru facility [3][6] - The company has made strategic investments, including a $500,000 addition of dedicated air-drying capacity to its Peru facility, which is expected to enhance vertical integration and improve gross margins [6] Future Growth Potential - A recently filed $10 million shelf registration is intended to provide strategic flexibility for growth capital, allowing the company to act opportunistically for future expansion without raising equity to repay debt or fund operating losses [7][8] - BranchOut anticipates generating positive operating income in 2025 and plans to repay all remaining current liability notes payable through a combination of warrant proceeds and operating cash flow [7][8] Company Overview - BranchOut Food Inc. specializes in high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology, which preserves up to 95% of the original nutrition of fresh produce [9]

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]

Part I [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) BranchOut Food Inc. reported Q1 2025 revenue of $3.2 million, a net loss of $0.92 million, and a going concern warning due to negative working capital [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $14.11 million, liabilities decreased to $10.23 million, and stockholders' equity improved to $3.88 million by March 31, 2025 Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $5,791,605 | $4,916,614 | | **Total Assets** | **$14,111,183** | **$12,855,875** | | **Total Current Liabilities** | $8,528,261 | $8,813,996 | | **Total Liabilities** | **$10,230,144** | **$10,514,292** | | **Total Stockholders' Equity** | **$3,881,039** | **$2,341,583** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 net revenue doubled to $3.19 million, gross profit increased, and net loss improved to $0.92 million from $1.05 million year-over-year Q1 2025 vs. Q1 2024 Statement of Operations (Unaudited) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | **Net Revenue** | $3,193,522 | $1,467,016 | | **Gross Profit** | $552,515 | $283,588 | | **Operating Loss** | ($682,540) | ($1,025,100) | | **Net Loss** | **($918,382)** | **($1,050,967)** | | **Net Loss Per Share** | ($0.11) | ($0.26) | [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operations increased to $1.93 million, offset by $2.35 million from financing activities, resulting in a net cash increase of $56,929 Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,927,122) | ($503,578) | | Net cash used in investing activities | ($377,841) | ($40,100) | | Net cash provided by financing activities | $2,353,683 | $137,589 | | **Net increase (decrease) in cash** | **$56,929** | **($406,089)** | [Notes to Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Notes%20to%20Financial%20Statements%20(Unaudited)) Notes detail the company's plant-based snack business, new Peru facility, going concern warning, customer concentration, and significant debt and lease obligations - The company develops and distributes plant-based snacks, with production now at its new facility in Pisco, Peru, operational since December 2024[19](index=19&type=chunk) - Substantial doubt exists about the company's going concern ability due to recurring losses, an accumulated deficit of **$18.5 million**, and negative working capital of **$2.7 million** as of March 31, 2025[24](index=24&type=chunk) - Significant customer concentration risk exists, with two customers accounting for **92% of net revenue** and **88% of accounts receivable** in Q1 2025[66](index=66&type=chunk) - Significant financing agreements include a **$3.4 million** convertible note with Kaufman Kapital and senior secured notes with Eagle Vision, an affiliate of the CFO[51](index=51&type=chunk)[58](index=58&type=chunk)[73](index=73&type=chunk) - To maintain exclusivity for avocado products, the company must make annual royalty minimum payments of **$250,000** starting in 2025 and purchase additional EnWave machines in 2025 and 2026[102](index=102&type=chunk)[103](index=103&type=chunk) [Management's Discussion and Analysis (MD&A)](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 revenue growth, the new Peru facility's role in vertical integration, ongoing net losses, and reliance on external financing amidst going concern doubts [Overview](index=34&type=section&id=Overview) The company is strategically shifting towards vertical integration with its new Peru production facility, aiming to improve margins for its plant-based snack products - The company is transitioning to vertical integration with its new production facility in Peru, operational since December 2024[126](index=126&type=chunk) - The company believes its licensed dehydration technology is superior and provides exclusive rights for products like avocado-based snacks[127](index=127&type=chunk) [Going Concern Uncertainty](index=35&type=section&id=Going%20Concern%20Uncertainty) Recurring losses, a significant accumulated deficit, and negative working capital raise substantial doubt about the company's ability to continue as a going concern Financial Position as of March 31, 2025 | Metric | Value ($) | | :--- | :--- | | Cash Balance | $2,386,381 | | Working Capital Deficit | ($2,736,656) | | Accumulated Deficit | ($18,480,439) | [Results of Operations](index=36&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Q1 2025 net revenue increased 118% to $3.2 million, gross margin slightly declined to 17%, and net loss decreased to $0.92 million Comparison of Operations for the Three Months Ended March 31 | | 2025 ($) | 2024 ($) | Increase / (Decrease) ($) | | :--- | :--- | :--- | :--- | | Net revenue | $3,193,522 | $1,467,016 | $1,726,506 | | Gross profit | $552,515 | $283,588 | $268,927 | | Operating loss | ($682,540) | ($1,025,100) | ($342,560) | | Net loss | ($918,382) | ($1,050,967) | ($132,585) | - The **118% increase in revenue** was primarily due to increased sales to the company's two largest customers[137](index=137&type=chunk) - Gross profit margin decreased slightly from **19% to 17%** due to transition costs for the new Peru Facility[138](index=138&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had a **$2.7 million** working capital deficit, with Q1 2025 operations funded primarily by **$2.35 million** from ATM stock sales Working Capital Summary | | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Current Assets | $5,791,605 | $4,916,614 | | Current Liabilities | $8,528,261 | $8,813,996 | | **Working Capital** | **($2,736,656)** | **($3,897,382)** | - Net cash from financing activities of **$2.35 million** was primarily driven by **$2.42 million** in proceeds from ATM common stock sales[150](index=150&type=chunk)[18](index=18&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025[156](index=156&type=chunk) Part II [Legal Proceedings and Other Items](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in material legal proceedings and, as a smaller reporting company, is not required to disclose risk factors - The company is not currently party to any pending legal proceedings with a material adverse effect[159](index=159&type=chunk) - As a "smaller reporting company," the company is not required to provide Item 1A. Risk Factors information[160](index=160&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including key financing, operational agreements, and certifications from the CEO and CFO - Exhibits list key financing and operational agreements, including the ATM sales agreement, Securities Purchase Agreement with Kaufman Kapital, and License Agreement with EnWave Corporation[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)