BranchOut Food (BOF) - 2024 Q3 - Quarterly Report

Revenue and Profitability - Net revenue for the three months ended September 30, 2024, was $2,181,495, an increase of$1,274,499, or 141%, compared to $906,996 for the same period in 2023[149] - Gross profit for the three months ended September 30, 2024, was$336,340, representing gross margins of 15%, compared to a gross loss of $27,607, or negative gross margins of 3$5,011,497, an increase of $3,664,096 or 272$1,347,401 in the same period of 2023[158] - Cost of goods sold increased to $4,242,810, up$2,819,764 or 198% from $1,423,046 in 2023, resulting in a gross profit of$768,687 with a gross margin of 15%[159] Expenses - Cost of goods sold for the three months ended September 30, 2024, was $1,845,155, an increase of$910,552, or 97%, compared to $934,603 for the same period in 2023[150] - General and administrative expenses for the three months ended September 30, 2024, were$560,537, an increase of $330,078, or 143$230,459 for the same period in 2023[151] - General and administrative expenses rose to $1,201,474, an increase of$649,084 or 118% from $552,390 in 2023, driven by higher advertising, rent, and travel costs[160] - Salaries and wages increased to$1,257,316, up $346,504 or 38$910,812 in 2023, largely due to $408,700 in non-cash stock-based compensation[161] - Professional fees increased to$1,064,567, an increase of $544,061 or 105$520,506 in 2023, attributed to higher legal and consulting fees[162] - Other expense for the three months ended September 30, 2024, was $367,650, primarily due to increased interest expense related to funding expansion into Peru[155] Losses - Net loss for the three months ended September 30, 2024, was$1,270,805, an increase of $564,812, or 80$705,993 for the same period in 2023[156] - Net loss for the nine months ended September 30, 2024, was $3,264,326, an increase of$807,730 or 33% compared to $2,456,596 in 2023, primarily due to increased compensation and compliance costs[164] - The company has incurred recurring losses resulting in an accumulated deficit of$16,074,867 as of September 30, 2024[141] Cash Flow - Net cash used in operating activities was $3,259,049 for the nine months ended September 30, 2024, compared to$3,258,248 in 2023, reflecting a slight increase due to higher net loss and inventory purchases[169] - Net cash used in investing activities surged to $2,095,691, an increase of$2,029,126 or 3,048% from $66,565 in 2023, mainly due to property and equipment purchases[170] - Net cash provided by financing activities was$5,767,938, an increase of $1,983,088 or 52$3,784,850 in 2023, driven by increased net proceeds from debt financing[171] Expansion Plans - The company has initiated its own production facility in Peru, which commenced operations in October 2024, utilizing three large-scale REV machines[138] - The lease for the Peru facility requires monthly payments starting at $8,000 for the first two years, increasing to$25,000 thereafter[144] - The company plans to grow revenues by penetrating the multi-billion dollar grocery market and expanding its product lines[140]