What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-03-31 compared with 2025-04-15 · 197 added, 255 removed, 5 unchanged (99% of the section changed)

(together with its subsidiaries, the “Company,” “BranchOut,” “we,” “our,” or

“us”) was originally incorporated as AvoChips Inc., an Oregon corporation, on February 21, 2017.

On November 2, 2017, AvoChips

converted into Avochips, LLC, an Oregon limited liability company and on November 19, 2021, Avochips, LLC converted into a Nevada

corporation named BranchOut Food Inc.

are engaged in the development, marketing, sale, and distribution of plant-based, dehydrated fruit and vegetable snacks and powders.

Our products have historically been manufactured for us by two contract manufacturers, one based in the Republic of Chile, and the other

in the Republic of Peru, which housed our large-scale continuous through-put dehydration machine that completed its first production

run in the first quarter of 2023.

Our dehydrated fruit and vegetable products are produced using a new proprietary dehydration technology

licensed by us from a third party.

Our customers are primarily located throughout the United States.

In 2024, we decided to initiate

our own production facility in Peru to become vertically integrated.

We recently completed the build out of the new facility (the “Peru

Facility”), which commenced operations in December 2024, and utilizes three large-scale REV machines (a REV 60, REV 100 and REV

120) that we recently purchased from EnWave Corporation (“EnWave”), as well as, a small REV 10 R&D machine that is being

used for product development and customer sample purposes.

our licensed technology platform, we believe our lines of branded, private-label and industrial ingredient products positively address

current consumer trends.

In our experience, conventional dehydration methods, such as freeze-drying and air drying, tend to degrade most

fruit and vegetables through oxidation, browning/color degradation, nutritional content reduction and/or flavor loss.

As a result, certain

highly sensitive fruits, such as avocados and bananas, have not previously been successfully offered as a dehydrated base for consumer

We believe that our licensed technology platform and process is the only way to produce quality avocado and banana-based snack

and powdered products.

Additionally, we believe our licensed technology platform produces superior products when using other fruits and

vegetables when compared to conventional drying and dehydration technologies.

We license technology, consisting of a portfolio of patents,

and purchased production machines, from EnWave, and we have been granted the exclusive rights to use the licensed technology platform

as applied to several core products in Peru, and avocado based products in the United States.

In addition, BranchOut has the nonexclusive

rights to use the licensed technology platform for other products.

entered into a private labeling contract with one of the world’s largest retailers in late 2022 to supply the retailer with two

products for placement in half of their domestic stores.

In late 2023, the same retailer agreed to carry two additional products of ours

in certain of their stores.

In April 2024, we received a commitment from this retailer to carry another product of ours in their stores.

Based on this most recent commitment, our products have been carried in a total of 1,400 of this retailer’s stores as of December

October 23, 2024, we entered into an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Alexander Capital,

(“Alexander Capital”) for the sale of shares of common stock from time to time through Alexander Capital having an aggregate

offering price of up to $3 million.

As of December 31, 2024, we had sold 1,317,307 shares of common stock under the ATM Agreement

resulting in gross proceeds of approximately $2.5 million and aggregate net proceeds of approximately $2.3 million, after deducting expenses,

including a 3% commission paid to Alexander Capital.

Subsequent to December 31, 2024, the ATM Agreement was amended to increase the

aggregate offering price of shares of common stock that may be sold under the ATM Agreement to $5 million.

Following December 31,

2024, we sold 1,303,115 additional shares of common stock under the ATM for gross proceeds of approximately $2.5 million and aggregate

net proceeds of approximately $2.4 million.

As of the date of the filing of this Annual Report on Form 10-K, as a result of such

sales of common stock under the ATM Agreement, the Company believes it has stockholders’ equity in excess of $2.5 million,

in compliance with Nasdaq Listing Rule 5550(b)(1).

June 2023, we completed our initial public offering (“IPO”) in which we issued 1,190,000 shares of common stock at a price

of $6.00 per share.

We received net proceeds of $6,226,000 in the IPO after deducting underwriters’ discounts and commissions and

before consideration of other issuance costs.

In connection with the IPO, a total of $6,029,204 of convertible debt, consisting of $5,526,691

of principal and $502,513 of interest, was converted into 1,572,171 shares of common stock.

plan to continue to grow revenues strategically by penetrating the multi-billion dollar grocery, industrial ingredient and online market.

Our current product line includes:

BranchOut Snacks:

dehydrated fruit and vegetable-based

snacks, including Avocado Chips, Chewy Banana Bites, Pineapple Chips, Brussels Sprout Crisps, Strawberry Crisps and Bell Pepper Crisps.

Private Label:

Prunes, Carrots, Brussel

Sprouts and Raisins sold to major retailers.

BranchOut Industrial Ingredients:

Mango, Blueberry, Pineapple, Cherry Tomato, Avocado and many others.

are currently developing many additional products for all sales channels.

currently produce all of our BranchOut snack products at our plant in Peru using our licensed technology.

Our snacks are mostly single

ingredient products.

Our Avocado Chips are real avocado slices, dehydrated using our licensed technology and process to create crispy,

crunchy avocado slices while maintaining their vibrant green color, rich creamy avocado flavor, and superfood nutritional content.

offer these in three flavors, “Sea Salt with a Hint of Lime”, “Chili Lime” and “Sriracha” seasoned

topically on the avocado slices.

also offer a “Chewy Banana Bite”.

Each “Banana Bite” is an actual banana slice, providing a unique marshmallow-like,

chewy texture.

Previous market offerings in the banana snack space include fried plantain chips and dark brown air-dried banana snacks.

We believe that our “Chewy Banana Bite” product is superior due to its fresh-looking, natural yellow color, single ingredient

base and fresh banana flavor.

We offer the banana bites in two flavors, “Original”, and “Cinnamon Churro”.

to widely accepted market data, fresh bananas have historically shown to be the most consumed fruit in America and the highest selling

item in grocery stores;

however, we do not believe that any banana snack has been offered prior to our “Chewy Banana Bite”

product that is of similar quality.

“Pineapple Chip” product is made up of 100% dried pineapple slices.

The Pineapple Chips are made from real pineapple slices

and offer a fresh pineapple flavor.

we recently added two vegetable-based snacks, Brussels Sprout Crisps and Bell Pepper Crisps to our BranchOut branded product line.

Private Label

also manufacture and supply products to major retailers in North America on a private label basis.

The business line allows us to manufacture

and supply fruits and vegetables from South America to the distribution centers of major US retailers.

Industrial Ingredients

BranchOut remains focused on the growth of its branded snack business, demand for industrial ingredients has continued to increase as

we expand our market presence.

To accelerate the scaling of this growing business line, we have entered into an Agreement with MicroDried,

a market leader in premium dried ingredients.

This partnership leverages MicroDried’s strong industry relationships and sales infrastructure

alongside BranchOut’s proprietary GentleDry™ technology.

Under the agreement, the companies will collaborate on the production

and commercialization of fruit and vegetable pieces, powders and fragments, manufactured at our Peru Facility.

The collaboration is expected

to generate several million dollars in annual ingredient sales for BranchOut, with upside potential as the partnership expands.

Food Inc., (collectively with its subsidiary, “BranchOut,” the “Company,” “we,” “us”

or “our”), is a growth-stage consumer packaged foods company focused on developing, manufacturing, marketing, and distributing

clean-label, plant-based dried fruit and vegetable snacks for retail and foodservice markets through BranchOut-branded products, private-label

offerings, and industrial ingredient sales.

We were originally incorporated as AvoChips Inc., an Oregon corporation, on February 21,

On November 2, 2017, AvoChips Inc.

converted into Avochips, LLC, an Oregon limited liability company and on November 19, 2021,

Avochips, LLC converted into a Nevada corporation named BranchOut Food Inc.

is headquartered in the U.S.

with a 50,000 square foot manufacturing facility located in Pisco, Peru (the “Peru Facility”).

The Peru Facility is strategically located near key agricultural regions, enabling harvest-driven seasonal sourcing of high-quality fruits

and vegetables—including pineapple, banana, strawberry, avocado and apple—while reducing transportation time and costs and

supporting product freshness.

utilize proprietary GentleDry™ technology to convert fresh fruits and vegetables into clean-label snacks and industrial ingredients

within approximately 10 days.

GentleDry™ is an advanced dehydration platform licensed exclusively to us from EnWave Corporation

for certain fruits and vegetables, enabling the production of differentiated products that preserve taste, texture, color, and nutrients

while improving process speed, energy efficiency, and oxidation control.

The GentleDry™ technology is protected by more than 17

are focused on expanding distribution, increasing production capacity, and developing new products intended to drive repeat consumer

demand and scalable retail placement.

We emphasize continuous improvement across product formulation, texture, flavor, and quality, while

leveraging process innovation to deliver clean-label products at competitive price points that support broad distribution across national

retail platforms.

develop, manufacture, and market dehydrated fruit and vegetable products using our proprietary GentleDry™ technology.

are primarily sold through three channels:

branded retail snack products, private label products for major retailers, and fruit and vegetable

ingredients sold to food manufacturers.

These products are manufactured at the Peru Facility in Pisco, Peru.

Branded Snacks

market a line of plant-based snack products under the BranchOut brand.

These products consist primarily of dehydrated fruit and vegetable

snacks designed to retain the natural color, flavor, and texture of the underlying produce.

Many of the products are made from single-ingredient

fruits or vegetables with minimal additional seasoning.

branded snack products include:

Pineapple Chips, Simply Pineapple

Crunchy Strawberry Halves, 100% Strawberries

Organic Chewy Banana Slices, Simply Bananas

Chewy Banana Slices, Cinnamon Churro

Bell Pepper Crisps, with Sea Salt

Carrot Sticks, with Sea Salt

products are produced using our licensed GentleDry™ dehydration technology, which removes moisture while preserving the natural

characteristics of the fruit or vegetable.

The resulting products are shelf-stable and designed to provide a crunchy or chewy texture

depending on the product format.

branded snacks are sold through multiple distribution channels including retail grocery stores, club stores, online retailers, and our

direct-to-consumer e-commerce platforms.

Label Products

addition to its branded products, we manufacture fruit and vegetable products for major North American retailers on a private label basis.

These products are sold under the retailer’s brand and distributed through the retailer’s existing grocery and club store

Private label offerings currently include products such as dehydrated prunes, carrots, brussels sprouts, and raisins, as well

as other fruit and vegetable snack formats requested by retail customers.

label manufacturing allows us to leverage our Peru Facility capacity and technology while expanding relationships with large retail partners.

also produce dehydrated fruit and vegetable ingredients for use by food manufacturers in a variety of consumer packaged goods applications.

These ingredients may be used in products such as cereals, snack bars, baked goods, salads, ready-to-eat meals, and other packaged foods.

ingredient products include dehydrated fruit and vegetable pieces, fragments, powders, and inclusions derived from products such as:

Cherry Tomato

Other fruits and vegetables

have entered into a commercial collaboration with MicroDried, a supplier of premium dried fruit ingredients, to support the marketing

and distribution of certain ingredient products produced at the Peru Facility.

in Development

are currently working on several new items at the request of major national retailers, consumer product brands and ingredient manufacturers

for their private label brand, as well as our own brand.

In addition, we have been in discussions with the U.S.

Army about the possibility

of including certain of our products in their Meals Ready-to-Eat for their personnel.

Army has asked us to develop snack concepts

for sensory and shelf-life testing, which is currently in progress.

Separately, we have been developing a line of salad toppers with

one of the largest salad dressing producers in the U.S.

operate within the U.S.

grocery market, which reached approximately $1.5 trillion in 2024, making it the largest retail sector in the

country by sales volume.

Within this market, BranchOut is focused on the growing demand for clean-label, minimally processed snack products

that meet modern consumer expectations for quality, convenience, and transparency.

shift in consumer behavior over the past several years has moved firmly away from highly processed, artificial, and sugar-laden packaged

Shoppers are increasingly seeking snacks with short ingredient lists, simple processing, and real food appeal, especially in categories

like chips, fruit snacks, and shelf-stable produce alternatives.

This trend is reflected in the rapid expansion of premium snack sets

in national retailers, club stores, and e-commerce platforms.

shelf-stable snack technologies, freeze-drying has gained popularity for its ability to extend shelf life while maintaining nutritional

However, freeze-dried products often suffer from poor texture, muted flavor, and high production costs—limitations that

have hindered broader consumer adoption.

believe that many traditional snack brands, and freeze-dried products in particular, are failing to meet evolving consumer demands.

is uniquely positioned to fill this gap with our proprietary GentleDry™ technology, which delivers superior taste, texture, and

color, while preserving up to 95% of the nutrition found in fresh produce.

Growth Strategy

long-term goal is to build a scalable and widely recognized brand that delivers exceptional products across multiple grocery aisles,

supported by complementary private label and bulk ingredient businesses.

In a category crowded with short-lived brands and lookalike

products, we believe that a reputation for quality and trust remains one of the most effective barriers to entry and a critical driver

of long-term value in the competitive consumer-packaged goods space.

addition, we aim to leverage our capabilities by offering major retailers private label products.

These two approaches make up the heart

of our platform strategy.

Our primary growth strategies are as follows:

and Long Duration Growth Opportunity in the Enormous Grocery Market

grocery market is one of the largest retail end-markets in the world.

BranchOut’s strategy is to maximize penetration of this

opportunity through a variety of avenues, including growing brand trust and recognition, significantly expanding our grocery distribution

footprint to multiples of our current level of customer retail locations, driving shelf velocity through an acceleration of online and

offline advertising and introducing new products to expand our store footprint.

to Plant-Based, Functional and Natural Foods Portions of the Grocery Market

the grocery category, there is an ongoing secular shift from highly processed legacy brands that demonstrate little nutritional benefit

to natural, nutrient-dense, functional and plant-based alternatives.

We expect that the shift in consumer tastes driving the growth of

natural and plant-based alternatives will continue for the foreseeable future as consumers become better educated on nutrition and focus

on health and wellness.

There is also clear evidence that an increasing number of natural and plant-based products in stores are moving

beyond the natural and specialty segments and into conventional grocery stores.

The continuation of these trends should benefit BranchOut

as we seek to penetrate the very large overall grocery market.

Expansion of Distribution Footprint

our products are marketed and sold through a diverse set of physical retail channels, including grocery chains, club stores, specialty

and natural food outlets, and on our website at www.branchoutfood.com.

Maximizing potential distribution would be a key growth

driver for BranchOut and our goal is to expand distribution so that our products are available wherever our customers choose to shop,

whether it be a retail store, food service environment or directly online.

While expanding distribution, we plan to simultaneously increase

our brand awareness through an extensive program of online and offline marketing initiatives to accelerate the sell-through velocity

of our products once they reach the shelves of our wholesale partners.

Market Penetration of Existing Product Lines

believe that our existing snacks and nutritional powders represent a multi-billion-dollar opportunity.

We believe simply penetrating

these core markets with our differentiated product lines will provide BranchOut with a large and long-duration growth opportunity.

the near-term, BranchOut plans to focus on growing its share within these categories.

We plan to drive growth and brand recognition of

both our snacks and nutritional powders through distribution expansion and increased marketing and advertising.

We plan to also attempt

to leverage our new and existing wholesale relationships to gain additional shelf space for our full suite of existing products.

Increases in Gross Margins, Fixed-Cost Leverage and a Capital Efficient Sales and Marketing Strategy Should Allow Earnings to Grow Faster

than Sales, Providing a Path to Profitability

generating topline growth is of primary importance to BranchOut, we are also highly focused on growing earnings faster than net sales

and achieving profitability.

Our new large-scale continuous throughput dehydration machine was commissioned in September 2022 and

we completed the first production run in the first quarter of 2023.

2024, we completed the build out of our 50,000 square-foot facility in Peru, which commenced operations in December 2024, and utilizes

three large-scale REV machines that we recently purchased from EnWave, as well as, a small REV 10 R&D machine that is being used

for product development and customer sample purposes.

We expect operating margins to be further improved in 2025, as we become more vertically

integrated with the transition of more of our production from third party contract manufacturers to internal production.

Product Development

intend to grow by launching new products over time.

In the first and second quarters of 2020, we launched three flavors of Avocado Chips,

three flavors of our Chewy Banana Bites and our Pineapple Chips.

In the first quarter of 2022, we launched Banana Powder and Blueberry

Powder to complement our Avocado Powder which was already on the market.

In 2023, we launched a line of vegetable-based snacks including

Brussels Sprout Crisps, and Bell Pepper Crisps, and in March 2024 we introduced our Salad Toppers and Kids Snack Pack line aimed at kids’

school lunches.

We are also developing Broccoli Bites, Mango Chips, Mandarin Crisps and others.

In addition, we are developing several

new items at the request of a national retailer which are planned to be sold under their brand.

new products have been, and we expect that our future products will be, developed primarily through internal research and development.

Using our unique licensed technology and South American supply chain, we believe that BranchOut is in a position to create a wide variety

of innovative new products.

We intend to continue to create innovative products that conform to our brand ethos of uniqueness, great

taste, high-quality ingredients, nutritional density, and functionality.

operations involve food products and are subject to the oversight of, among others, the Food and

Drug Administration (the “FDA”) and state, local and foreign counterparts, and United States Department of Agriculture

(the “USDA”).

The FDA, pursuant to the FDCA, as amended by the Food Safety Modernization Act (“FSMA”), enforces

statutory standards regarding the growing, harvesting, manufacturing, processing, packaging, holding, distributing, importing, exporting,

labeling and safety of food products, establishes requirements for or limitations on ingredients or substances in foods and establishes

standards of identity for certain foods.

Similar functions are performed by state, local and foreign governmental entities with respect

to food products produced or distributed in their respective jurisdictions.

FSMA, which is a major reform of U.S.

food safety laws, aims

to ensure the U.S.

food supply is safe by focusing on preventing contamination.

We have been working to comply with the new requirements

of FSMA as the FDA has begun implementing and enforcing these provisions, and we will aim to ensure continued compliance as new regulations

are promulgated and additional requirements go into effect.

The USDA regulates imports and exports of agricultural and food products

into and from the United States.

The USDA also oversees the National Organic Program, which provides the national standards for labeling

products as USDA organic, and regulates the introduction of certain genetically engineered organisms.

food retail industry is very competitive.

We compete with a number of Natural, Organic and Functional Food and Beverage producers, including

Bare Snacks, which is a brand owned by PepsiCo, Rind Snacks, Inc., and Mariani Packing Co., Inc.

In addition, our online business competes

with food retail stores, supermarkets, warehouse clubs and other mass and general retail and online merchandisers.

We face significant

competition from these producers and retailers.

Any changes in their merchandising and operational strategies could negatively affect

our sales and profitability.

In particular, if Natural, Organic and Functional Food and Beverage competitors seek to gain or retain market

share by reducing prices, we would likely be forced to reduce our prices on similar product offerings in order to remain competitive,

which may result in a decrease in our market share, net sales and profitability and may require a change in our operating strategies.

have been able to compete successfully by differentiating ourselves from our competitors by providing an expanding selection of products,

competitive pricing, convenience and customer service.

If changes in consumer preferences decrease the competitive advantage attributable

to these factors, or if we fail to otherwise positively differentiate our product offering or customer experience from our competitors,

our business, financial condition, and results of operations could be materially and adversely affected.

of our competitors have longer operating histories, greater brand recognition, larger fulfillment infrastructures, greater technical

capabilities, significantly greater financial, marketing, and other resources and larger customer bases than we do.

These factors may

allow our competitors to derive greater net sales and profits from their existing customer bases, acquire customers at lower costs or

respond more quickly than we can to new or emerging technologies and changes in consumer preferences or habits.

These competitors may

engage in more extensive research and development efforts, undertake more far-reaching marketing campaigns, and adopt more aggressive

pricing policies (including but not limited to predatory pricing policies and the provision of substantial discounts), which may allow

them to build larger customer bases or generate net sales from those customer bases more effectively than we are able to execute upon.

There can be no assurance that we will be able to successfully compete against these competitors.

continue to develop additional fruit and vegetable snack products and ingredient formats for both branded and private label customers.

Product development efforts are focused on expanding our snack portfolio, supporting private label programs for large retailers, and

developing new ingredient applications for food manufacturers.

From time to time, we engage with potential commercial partners and institutional

customers to develop products tailored to specific applications.

Macroeconomic

operate within a global macroeconomic environment that includes agricultural sourcing, manufacturing, regulatory compliance, and cross-border

Our manufacturing operations are located in Peru, where we source fruits and vegetables and manufacture products for export

to the United States.

entry into the United States, our products are subject to U.S.

Customs and Border Protection requirements, U.S.

Food and Drug Administration

regulations, and applicable trade and tariff policies.

International shipping conditions—including freight availability, transit

times, fuel costs, port congestion, and broader global trade dynamics—may impact logistics costs, delivery schedules, and inventory

in Peru requires compliance with local tax, labor, customs, and regulatory frameworks administered by the Peruvian government, including

oversight by the Peruvian tax authority (SUNAT).

These requirements govern manufacturing operations, tax compliance, and export documentation

and may affect operating timelines, administrative processes, and working capital needs.

monitor macroeconomic conditions, regulatory environments, and global trade dynamics to manage supply-chain execution, control costs,

and maintain continuity of operations.

While these factors introduce operational complexity, management believes its experience navigating

cross-border manufacturing and logistics supports scalable growth within the current global trade environment.

Packaged Foods Industry

United States consumer packaged foods (“CPG”) industry is large and highly competitive, with snacking representing a significant

and growing portion of consumer food spending.

CPG industry is approximately $1.5 trillion to nearly $2 trillion annually reflecting

continued demand for convenient food options.

Within CPG snacking, consumer preferences have been shifting toward “better-for-you”

offerings that emphasize simple, recognizable ingredients, reduced sugar, and clean-label claims.

Demand continues to grow for snacks

that prioritize natural ingredients and minimal processing, reflecting consumer focus on transparency and health-oriented choices.

Better-for-you

snack categories continue to attract innovation and shelf space as consumers seek convenient options aligned with plant-forward and clean-label

The global better-for-you snacks market is estimated at approximately $50.4 billion in 2024, with the U.S.

characterized

by significant product innovation and demand for snacks made with natural and organic ingredients.

the same time, the competitive environment continues to evolve as retailers expand their private-label assortments and compete on value

private-label sales reached a record $282.8 billion in 2025, indicating sustained retailer and consumer adoption of

store-brand products across categories, including food.

is focused on executing a growth-stage strategy that balances product innovation, distribution expansion, and disciplined manufacturing

As a manufacturing-led business, our strategy emphasizes aligning customer growth and product development with production capacity,

supply-chain execution, and cost control.

elements of our strategy include:

revenue growth through customer onboarding and product expansion , by developing new snack and ingredient products designed to

generate repeat consumer demand and support scalable retail and foodservice placement.

Expanding distribution

channels across national and regional retail, club, grocery, and private-label platforms to increase product availability while

maintaining disciplined customer and channel selection.

Scaling manufacturing

utilization and capacity , with a focus on achieving high utilization at our Peru Facility while investing in incremental capacity

expansion to support anticipated demand, operational efficiency, and margin improvement.

Maintaining operational

discipline during scale-up , including production planning, inventory management, quality control, and supply-chain coordination,

to support consistent product quality, reliable fulfillment, and cost management as volumes increase.

believes that this growth-stage, manufacturing-focused approach allows us to compete effectively by pairing differentiated products with

scalable operations, while managing the complexity and execution demands inherent in expanding within the consumer-packaged foods industry.

Channels and Customers

sell our products primarily through large national retail customers in the United States, including Costco and Walmart, with additional

limited sales through private-label and ingredient customers.

Sales to these customers are generally made pursuant to purchase orders

and program-based arrangements rather than long-term volume commitments

are manufactured at our Peru Facility and exported to the United States for distribution through national retail channels, and our direct-to-consumer

e-commerce platforms.

A substantial portion of our net sales is derived from a limited number of customers, and changes in purchasing

patterns, pricing terms, or distribution decisions by these customers could materially affect operating results.

operate in a competitive segment of the consumer-packaged foods industry focused on fruit- and vegetable-based snacks and ingredients.

We compete with established food manufacturers, emerging better-for-you snack brands, and private-label suppliers, many of which have

greater financial, marketing and distribution resources than we do.

in this industry is based on product quality, price, brand recognition, ingredient transparency, innovation, and the ability to secure

and maintain retail shelf space.

Some competitors may have longer operating histories, larger scale facilities, broader product lineups,

or established relationships with major retailers, which could result in competitive pressures on pricing and market share.

compete through product differentiation, including the development of clean-label, minimally processed products that preserve taste,

texture, and nutritional attributes.

Our manufacturing platform enables us to produce differentiated formats and textures that are not

widely available through conventional processing methods.

In addition, we focus on innovation across our BranchOut-branded, private-label,

and industrial ingredient channels, working with customers to develop products tailored to specific category needs.

We also seek to compete

through operational execution, including consistent product quality, reliable supply, and responsiveness to customer requirements.

operating model is influenced by the seasonality of agricultural harvest cycles for certain fruits and vegetables and by seasonal shifts

in consumer demand and retailer purchasing patterns.

These factors can affect the timing and cost of raw material sourcing, production

scheduling, and finished goods inventory levels.

manage these dynamics, we seek to optimize production planning and inventory management, including producing higher volumes during periods

of peak raw material availability and leveraging the shelf-stable nature of our products to support customer demand throughout the year.

As a result, quarterly operating results may fluctuate based on the timing of harvest cycles, production runs, customer orders, and promotional

product differentiation and manufacturing processes are supported by proprietary technology developed and licensed for use in producing

our snacks and ingredient products.

BranchOut uses proprietary GentleDry™ technology under an exclusive license agreement with

EnWave Corporation, that is critical to our manufacturing process.

GentleDry™ platform is protected by more than 17 patents in multiple jurisdictions, and we also maintain confidentiality and operational

controls to protect trade secrets and know-how related to our product formulations, process parameters and quality protocols.

believe these intellectual property rights and licensed technologies are important to our competitive position, there can be no assurance

that they will not be challenged, circumvented, invalidated or infringed upon by competitors.

and Operating Partners

operations are supported by an international workforce, with approximately 98% of our employees based in Peru supporting manufacturing

and supply-chain activities.

We believe our employees and operating partners are critical to execution, product quality, and long-term

growth, and we seek to foster a safe, respectful, and collaborative working environment across our operations.

our Peru Facility, we must comply with applicable labor, employment, and workplace safety regulations and provide access to health,

safety, and wellness resources consistent with local standards and practices.

We emphasize workforce stability, training, and operational

continuity and maintain relationships with local partners and service providers to support our manufacturing and logistics activities.

consider employee health and safety to be core operational priorities and maintain policies and procedures designed to promote safe working

conditions at our manufacturing facility.

Supporting employees and partners through responsible employment practices and operational

discipline contributes to product quality, supply-chain reliability, and long-term business performance.

Sustainability and Social Responsibility

are committed to responsible operational and sourcing practices as integral components of our operations.

The proprietary dehydration

technology promotes efficient use of agricultural produce, reduced food waste, and lower energy consumption while preserving key product

Our manufacturing facility in Pisco, Peru is strategically located within regions that support agricultural production, enabling

efficient sourcing and fostering relationships with local agricultural communities.

operations are subject to regulation by U.S.

federal, state, and local authorities, as well as foreign regulatory agencies in the jurisdictions

in which we operate.

In the United States, we are regulated by the Food and Drug Administration (“FDA”) under the Federal

Food, Drug, and Cosmetic Act, as amended by the Food Safety Modernization Act (“FSMA”), which governs the manufacturing,

processing, packaging, labeling, storage, and safety of food products, including imported foods.

emphasizes preventive food safety controls and enhanced oversight of foreign food facilities supplying the U.S.

We maintain food

safety and quality systems designed to comply with applicable FDA and FSMA requirements and monitors regulatory developments to support

continued compliance.

products are also subject to regulation by the United States Department of Agriculture (“USDA”) and U.S.

Customs and Border

Protection in connection with the importation of agricultural and food products into the United States.

In addition, our manufacturing

operations in Peru are subject to applicable local laws and regulations governing food production, labor, tax, and export requirements.

believe we are in material compliance with applicable food safety, labeling, and import regulations;

however, changes in regulatory requirements,

enforcement practices, or trade policies could affect operating costs, supply-chain execution, or administrative complexity.

Executive Offices

1 unchanged sentence

Our telephone number is (844) 263-6637.

We believe our facilities are adequate to meet our current and near-term needs.

of March 31, 2025, we had approximately 185 full-time employees, including 180 employees in Peru.

Our employees are not represented by

labor unions.

of December 31, 2025, we had approximately 314 full-time employees, including 308 employees in Peru.

Our employees are not represented

by labor unions.

We consider our relationship with our employees to be positive.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business