BranchOut Food Inc. reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company generated net revenue of approximately $6.52 million, marking a 131% increase from $2.83 million in the previous year. This growth was primarily driven by increased sales to its largest customer, which accounted for 99% of total revenue. Despite this revenue growth, BranchOut incurred a net loss of $4.75 million, an increase from a loss of $3.93 million in 2023, attributed to rising operational costs and interest expenses.
The company has made substantial operational changes, including the completion of its new production facility in Peru, which began operations in December 2024. This facility is expected to enhance production efficiency and reduce costs, as BranchOut transitions from third-party manufacturing to in-house production. The company also entered into a significant lease agreement for this facility, committing to monthly payments that will increase over the lease term. Additionally, BranchOut has expanded its product offerings, including new vegetable-based snacks and private-label products for major retailers.
BranchOut's operational metrics indicate a growing customer base, with its products now available in 1,400 stores of a major retailer as of December 31, 2024. The company has also seen an increase in its employee headcount, with approximately 185 full-time employees, primarily based in Peru. However, the company reported a working capital deficit of $3.9 million and total liabilities of $10.5 million, raising concerns about its financial stability and ability to continue as a going concern.
The filing highlights the company's ongoing efforts to secure additional financing, including an At-The-Market (ATM) sales agreement that has already generated approximately $2.5 million in net proceeds. BranchOut's management is optimistic about future revenue growth, particularly with the new production facility operational and plans to expand its market presence. However, the company acknowledges the risks associated with its financial position and the need for continued capital to support its operations and growth strategy.
About BranchOut Food Inc.
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