BranchOut Food (BOF) investor relations material

Technology and innovation

• Utilizes proprietary Radiant Energy Vacuum (REV) dehydration technology, offering superior flavor, texture, and color retention compared to traditional freeze-drying.

• Largest-scale REV-based factory globally, located in Peru for strategic access to fresh produce and cost advantages.

• Technology enables production of unique snack products, including first-to-market dried brussels sprouts and chewy banana.

• Holds global and regional exclusivity on several products through a robust IP licensing agreement.

• Factory is highly scalable, with capacity for up to 12–15 machines and room for further expansion.

Financial performance and growth

• Revenue projected at $14–15 million for the year, with consistent annual doubling and strong order pipeline.

• Factory break-even point is $14.5 million; incremental margins above this are 50–55%.

• Margins differ by channel: retail offers higher gross margins but more costs, while private label and industrial are cleaner but lower.

• Minimal debt remains, with $500,000 outstanding and strong working capital position.

• Potential for significant revenue growth if large orders materialize, with financing options available for scaling.

Market strategy and customer base

• Three-pronged go-to-market approach: branded retail (mainly Costco), private label (notably Walmart), and industrial ingredients.

• Costco is the largest retail partner, with products outperforming sales benchmarks and regional expansion ongoing.

• New snack pack line targeting families launches in 2026, aiming to disrupt higher-priced imported competitors.

• Innovation-driven approach allows for custom product development for retailers, enhancing customer relationships.

• Expanding discussions with major retailers like Kroger, Sprouts, and Target for broader distribution.