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 house production equipment and resume operations after a prior disruption.

• Major customers include large U.S. retailers, with a private label contract expected to generate up to $8 million in annualized revenue from one retailer by September 2024.

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

Financial performance and metrics

• Net revenue for the year ended December 31, 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 the three months ended March 31, 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 raised 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.

• The company has broad discretion in the use of proceeds and may adjust allocations based on business conditions.