BranchOut Food (BOF) Registration Filing summary

Company overview and business model

• Develops, markets, and sells plant-based, dehydrated fruit and vegetable snacks and powders using proprietary dehydration technology licensed from EnWave, with exclusive rights for avocado products in the Americas.

• Products are manufactured by contract manufacturers in Chile and Peru; a new Peru facility lease was signed in May 2024 to resume operations after a disruption.

• Major customers are large U.S. retailers, with one retailer expected to carry products in 1,400 stores by September 2024, potentially generating $8 million in annualized revenue.

• Product lines include branded snacks, powders, and industrial ingredients, with ongoing development of new products and private label offerings.

Financial performance and metrics

• Net revenue for 2023 was $2.83 million, up 276% from $0.75 million in 2022; net loss for 2023 was $3.93 million, down from $4.64 million in 2022.

• For Q1 2024, net revenue was $1.47 million (up from $97,340 in Q1 2023), with a net loss of $1.05 million.

• Gross margin improved to 19% in Q1 2024 from negative 30% in Q1 2023, primarily due to cost savings from bulk shipping.

• As of March 31, 2024, cash was $251,700, working capital was $399,444, and accumulated deficit was $13.86 million.

• The company has incurred recurring losses and its auditors have expressed substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

• Net proceeds from the offering will be used for working capital and general corporate purposes, including operating expenses and capital expenditures.

• Proceeds are not intended to repay $1.68 million in Senior Notes issued in 2024; waivers are expected to defer repayment.

• Management has broad discretion over the use of proceeds.