BranchOut Food Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved net revenue of $2.2 million for the three months ended September 30, 2024, a substantial increase of 141% compared to $907,000 for the same period in 2023. For the nine months ended September 30, 2024, net revenue reached $5.0 million, up 272% from $1.3 million in the prior year. This growth was attributed to increased sales of its plant-based, dehydrated fruit and vegetable snacks and powders.

Despite the revenue growth, BranchOut reported a net loss of $1.3 million for the third quarter of 2024, compared to a loss of $706,000 in the same quarter of 2023, marking an increase in losses of 80%. For the nine-month period, the net loss was $3.3 million, up from $2.5 million in the previous year. The increase in losses was primarily due to higher operating expenses, including a 143% rise in general and administrative expenses and a 192% increase in advertising and marketing expenses.

The company’s total assets surged to $9.6 million as of September 30, 2024, compared to $3.1 million at the end of 2023, largely due to increased cash reserves and investments in property and equipment. Total liabilities also rose significantly to $8.0 million from $914,000, reflecting the company's increased debt levels associated with its expansion efforts, including the establishment of a new manufacturing facility in Peru, which began operations in October 2024.

BranchOut's cash position improved, with cash on hand increasing to $1.1 million as of September 30, 2024, up from $658,000 at the end of 2023. The company raised capital through various financing activities, including a $2 million loan under a Senior Secured Convertible Promissory Note and additional equity financing, which contributed to a net cash inflow of $5.8 million from financing activities during the nine months ended September 30, 2024.

The company has faced challenges, including an accumulated deficit of $16.1 million and ongoing operational losses, raising concerns about its ability to continue as a going concern. Management is actively pursuing new customers and additional capital sources to support operations. The company also submitted a plan to Nasdaq to regain compliance with its minimum stockholders' equity requirement, which was accepted, granting an extension until October 2024.