Tue, May 14, 1:17 PM (73 days ago)
BranchOut Food Inc. reported its financial results for the first quarter ended March 31, 2024. The company experienced a significant increase in net revenue, reaching $1,467,016 compared to $97,340 in the same period last year, primarily driven by increased sales to its largest customer. However, the company reported a net loss of $1,050,967, an increase from last year's net loss of $777,093, due primarily to increased non-cash, stock-based compensation costs and compliance costs related to its status as a public company. Operating expenses rose to $1,308,688 from $576,851, driven by increases in general and administrative expenses, salaries and benefits, and professional services. The cost of goods sold also increased significantly to $1,183,428 from $126,982, aligning with the higher sales volume. Despite these costs, gross profit improved to $283,588 from a gross loss of $29,642 in the previous year, reflecting a gross margin of 19%. The company ended the quarter with $251,700 in cash and total liabilities of $997,069. It reported an accumulated deficit of $13,861,508 and a working capital of $399,444. Cash flow activities highlighted a net cash use of $503,578 in operating activities and a net decrease in cash of $406,089. BranchOut Food Inc. is actively seeking additional financing and exploring new customer relationships to support its operations and mitigate the going concern risk highlighted by its current financial position. The company also noted changes in its manufacturing arrangements and the potential impact of not accessing certain equipment due to disputes involving its Peruvian contract manufacturer.