subslover
1週前
As previously reported, on January 28, 2026, BranchOut Food Inc. (the “Company”), borrowed $1,500,000 from Kaufman Kapital LLC (“Kaufman”), pursuant to a Senior Secured Promissory Note in the principal amount of $1,500,000, on April 17, 2026, the Company borrowed an additional $750,000 from Kaufman pursuant to an Amended and Restated Secured Promissory Note in the principal amount of $2,250,000, and on May 15, 2026, the Company borrowed an additional $750,000 from Kaufman pursuant to a Second Amended and Restated Secured Promissory Note in the principal amount of $3,000,000 (the “Note”).
On June 30, 2026, the Company borrowed an additional $1,000,000 from Kaufman on the same terms provided for under the Note (the “Additional Loan”), pursuant to a Third Amended and Restated Secured Promissory Note in the principal amount of $4,000,000 (the “Amended Note”), which amends and restates the Note. The Company intends to use the proceeds of the Additional Loan for working capital purposes for the production of customer orders.
The Amended Note matures on January 28, 2027 and bears interest at a rate of 8% per annum. The Company’s obligations under the Amended Note are secured by a lien granted to Kaufman on substantially all of the Company’s assets pursuant to a Security Agreement previously entered between the Company and Kaufman (the “Security Agreement”). In addition, the Amended Note includes affirmative and negative covenants, events of defaults and other terms and conditions, customary in transactions of this nature.
https://www.otcmarkets.com/filing/html?id=19579448&guid=6vF-kHdY-ALuOth
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3週前
BranchOut Food Hits the target with Major Five-SKU Launch in Leading U.S. Mass Retailer
Launch Includes Two of BranchOut’s Top-Selling Fruit Chips and Three Innovative New Products Featuring Dried Cheese and Vegetables
BEND, Ore., June 17, 2026 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a food technology company pioneering next-generation fruit, vegetable, and dairy-based snacks through its proprietary GentleDry™ technology, today announced a major expansion of its branded retail business with the launch of five branded products in a leading U.S. mass retailer beginning in September, a major new customer for the company.
The launch represents one of the largest branded retail wins in the company’s history and includes two of BranchOut’s top-performing fruit snack products, Crunchy Pineapple Chips and Crunchy Mango Chips, alongside three innovative new products that combine BranchOut’s fruit and vegetable expertise with its recently launched cheese platform.
The five products launching include:
Crunchy Pineapple Chips
Crunchy Mango Chips
BBQ Sweet Potato Sticks
Apple Cheddar Crunch
Veggie Cheddar Crunch
https://ml.globenewswire.com/Resource/Download/6b8ebb9a-f94b-4b86-92f3-ef8683dc6ecb/bof-products.png
“This is a major bullseye for the BranchOut brand,” said Eric Healy, Chief Executive Officer of BranchOut Food. “Not only are we expanding distribution of two of our most successful crunchy fruit products, but we are also introducing consumers to an entirely new line of innovative snacks that leverage our expanded capabilities in dairy-based products. These products showcase the versatility of our GentleDry technology and represent the next evolution of our innovation platform. We believe this launch puts us squarely on target with our strategy of building BranchOut into a nationally recognized snack brand. Just as importantly, this retailer is a tremendous achievement for the brand because it aligns closely with our target demographic and provides an ideal platform to continue expanding consumer awareness.”
The initial launch is expected to occur in a subset of the retailer's approximately 2,000 locations beginning in September, with final store counts and revenue expectations still being determined. While management is not yet providing specific revenue guidance for the program, the launch represents a significant milestone for the BranchOut brand.
Beyond the immediate sales win, management believes this placement provides meaningful strategic value. As one of the nation's leading retailers and a strong fit with BranchOut's target demographic, the launch further enhances brand awareness and credibility. The Company intends to leverage the momentum, visibility, and prestige associated with this retailer as it continues to expand distribution of its branded products throughout mainstream grocery and other retail channels.
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
For more information:
ir@branchoutfood.com
Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as “forecast,” “intend,”
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2月前
BranchOut Food Shareholder Update: Record Production and Major Customer Deliveries Position Company for Record Q2
Record Production in March and April Positions Company for Expected Record Revenue Q2 Driven by Major Customer Deliveries.
Key Highlights:
Record production achieved in March and into Q2 at approximately 46,000kg per month, the highest levels in company history.
Company expects Q2 2026 to be a record revenue quarter driven by major customer deliveries.
Largest order in company history launched nationwide in 600+ locations at the nation’s second largest warehouse club retailer, with early sales supporting potential $15 million everyday program opportunity.
Potential large scale tolling partnership with a major household brand nearing finalization, representing a potential $6–7 million annual revenue opportunity with significantly higher margin profile.
Continued expansion with the nation’s largest warehouse club retailer through additional regional programs, new Mango Chips launch, and potential back to school multipack expansion.
Major innovation meeting with the world’s largest retailer showcased 35+ product concepts across multiple categories, generating strong buyer interest and future SKU opportunities.
Ingredient channel expected to grow to approximately $6–7 million in 2026, compared to nearly $2 million in 2025.
Kaufman Capital continues supporting growth through non dilutive working capital financing to fund inventory build for major customer deliveries.
BEND, Ore., May 14, 2026 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a food technology company pioneering the next generation of natural fruit and vegetable snacks through its proprietary GentleDry™ process, today provided a business update on first quarter 2026 operations and ongoing production ramp activities in preparation for record Q2 deliveries and revenue.
While Q1 revenue was below the company’s record Q4 2025 results, this was primarily due to shipment timing, as Q1 served as a production and inventory build quarter ahead of what the company currently expects to be a record revenue Q2. During Q1, the company built substantial inventory to support large committed customer deliveries scheduled for Q2 2026.
To support upcoming deliveries, the company ramped production to record levels of approximately 46,000kg in March and into Q2, marking the highest production months in company history. The increase was driven by preparation for the company’s largest order to date to the nation’s second largest warehouse club retailer, continued industrial ingredient growth, and ongoing shipments to the nation’s largest warehouse club retailer.
“We remain extremely bullish on the strength of our sales pipeline and the customer response we are seeing across both our retail and ingredient products,” said Eric Healy, CEO of BranchOut Food. “Q1 was primarily a quarter of inventory build and operational ramp up to support major Q2 deliveries. As production volumes continue increasing, we are seeing strong improvements in throughput and efficiency, highlighted by record production in March and April. Just as importantly, customer feedback on both our products and innovation pipeline continues to be extremely positive, which we believe positions us well for continued growth.”
Nation’s Second Largest Warehouse Club Retailer Launches Crunchy Fruit Chips Nationwide in Over 600 Locations with Exceptional Early Sales Velocity
BranchOut delivered the largest order in company history during Q2 to the nation’s second largest warehouse club retailer. The product, Crunchy Fruit Chips, a mix of pineapple, strawberry, banana, and apple, is now on shelves nationwide in more than 600 club locations.
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The company is extremely encouraged by the initial sales data, which indicates the product is performing exceptionally well and currently exceeding the retailer’s internal thresholds for potential everyday placement. BranchOut estimates that an everyday program for this item could represent approximately $15 million in annual recurring revenue.
Management also noted that the retailer has been very pleased with the early partnership and is expected to evaluate additional innovative products from BranchOut in future periods.
Potential Large Scale Tolling Partnership with Large Prominent Brand Nearing Finalization
BranchOut is currently in final negotiations with a large scale household name brand regarding a potential long-term tolling partnership tied to a recently launched product utilizing the company’s technology platform. Following successful market validation and strong early consumer response, the customer is now preparing for a full-scale national rollout. Management expects to finalize commercial terms and potentially sign the customer during Q2 2026.
Under the proposed structure, the arrangement would operate primarily as a tolling agreement, whereby the customer supplies the raw materials while BranchOut provides the drying and manufacturing services. The scale of the opportunity is significant and could potentially utilize the company’s newly installed fourth large scale REV line on a nearly continuous 24/7 basis. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped in H2. Importantly, because the customer would provide all the raw materials, the program would carry minimal associated cost of raw material relative to traditional retail programs, potentially resulting in substantially higher gross margins, improved facility utilization, and stronger operating cash flow generation.
Continued Expansion with Nation’s Largest Warehouse Club Retailer
BranchOut continues expanding its partnership with the nation’s largest warehouse club retailer through additional regional programs, new product launches, and expansion into new departments within the retailer. During Q2, the retailer placed another large Pineapple Chips order for the Southeast region and has already committed to an even larger follow on order scheduled for Q4. The product continues to deliver exceptional sales velocity while providing members with a unique and healthy snack experience, resulting in continued order growth.
https://ml.globenewswire.com/Resource/Download/a3db0077-9760-461a-b977-4d54bc121974/mango-chips.png
The company also secured its first regional launch of Mango Chips into the Bay Area market during Q2, further expanding its dried fruit snack platform with the retailer. Management believes Mango Chips have the potential to outperform the company’s current top selling Pineapple Chips product, driven by exceptional flavor and crunch.
In addition, BranchOut is seeing significant interest in its new multipack product lines targeted toward moms and the back-to-school season during Q3 and Q4. Management noted that four regions are currently showing high intent to move forward with the program as they finalize second half planning. Importantly, these multipack products would open placement opportunities in an entirely new department within the retailer.
Major Development Program with the World’s Largest Retailer
BranchOut recently conducted a large-scale innovation and tasting meeting in Bentonville, AR with the nation’s largest retailer, showcasing more than 35 product concepts spanning multiple categories and departments. The presentation included the company’s full fruit and vegetable snack platform, crunchy dried cheese products in multiple formats, shelf stable cheesecake bites, chocolate covered fruit products, and cheese and fruit snack mixes developed, at their request, specifically around the growing GLP-1 and high protein/high fiber consumer trends.
The meeting included buyers and merchants from more than six different categories, with management noting strong interest across multiple product lines and several potential SKU opportunities. The company believes this level of engagement from the world’s largest retailer further validates the strength and versatility of BranchOut’s GentleDry™ technology platform and its ability to rapidly innovate across multiple snack categories.
While initial expectations targeted launches beginning in late 2026, management now believes many of these opportunities are more likely to progress into early 2027 as the retailer completes category planning and product commercialization processes.
Among the innovations receiving strong interest were BranchOut’s shelf stable cheesecake bites, which transform fresh cheesecake into a shelf stable snack while maintaining flavor and a distinctive creamy texture. The company believes this product represents a first of its kind innovation within the snack category and further expands BranchOut’s position in dairy based, protein forward, and functional snacks.
Ingredient and Bulk Supply Channel Continues Rapid Expansion
BranchOut’s ingredient and bulk supply channel continues to strengthen and is emerging as a major growth driver for the company. During March 2026, the head of MicroDried, BranchOut’s largest ingredient customer and strategic partner, visited the company’s Peru facility and expressed strong enthusiasm regarding the scale of the operation, operational progress, and long term partnership potential. Following the visit, MicroDried committed to additional orders for the second half of 2026 and communicated its expectation for the partnership to continue growing significantly.
In addition to MicroDried, the company is currently advancing multiple new industrial ingredient customer opportunities that management expects to begin ordering during the second half of 2026. As a result of this momentum, BranchOut now expects its ingredient and bulk supply channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025.
Expansion into European Private Label Channel
BranchOut is also expanding into the European private label market through a partnership with a prominent German based private label snack company that packages and distributes products to many of the largest retail chains across Europe, including Aldi, Lidl, Tesco, Carrefour, and Edeka.
Management noted that the partner has been actively presenting BranchOut’s dried fruit products across multiple European retail customers and that initial feedback has been extremely positive. The European market appears to strongly value premium positioned, healthy snack products such as BranchOut’s fruit offerings, and customer reception has exceeded expectations thus far.
As a result, the company recently received confirmation that it expects to receive its first commercial order this month consisting of approximately 3–4 containers, representing roughly $500,000 in revenue, with management expecting the opportunity to expand significantly over time.
Kaufman Capital Continues Supporting Growth with Non-Dilutive Working Capital Financing
In support of the company's accelerating growth and expanding order volumes, Kaufman Capital has provided approximately $2.25 million in new capital to the company during April and May 2026 through a combination of non-dilutive working capital loans and early warrant exercise. In April 2026, Kaufman Capital provided an additional $750,000 working capital loan to support production and inventory build associated with major Q2 customer deliveries. In May 2026, Kaufman Capital exercised warrants for 500,000 shares at $1.50 per share, injecting $750,000 of cash directly into the company, and is currently finalizing an additional $750,000 working capital loan to further support the company's expanding order volume and Q2 production requirements.
In connection with the warrant exercise, Kaufman Capital and the company also amended certain terms of Kaufman Capital's convertible note, extending the maturity date from December 31, 2026 to December 31, 2027 and reducing the interest rate from 12% to 8% per annum, effective May 7, 2026. In addition, the parties are implementing a 9.99% beneficial ownership limitation on conversions under the convertible note, so that any future conversions will occur gradually over time.
All working capital loans were provided on favorable terms at 8% interest and are non-dilutive to existing shareholders. Management believes Kaufman Capital's continued willingness to provide capital on these terms reflects strong alignment between the company's largest investor and its growth strategy.
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
For more information:
ir@branchoutfood.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," “position”, "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and
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4月前
BranchOut Food Announces Partnership with Zesty Snackz and Top YouTube Creators to Launch Single-Ingredient Fruit Chips
Zesty Snackz collaboration taps millions of engaged followers to drive innovation in premium, single-ingredient snacks
BEND, Ore., March 11, 2026 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a food technology company pioneering the next generation of natural fruit and vegetable snacks through its proprietary GentleDry™ process, today announced a partnership with Zesty Snackz and its founders, digital creators Brenten Szekely and Paul Cuffaro, to launch a new line of single-ingredient Fruit Chips under the Zest Snackz label.
The collaboration brings together BranchOut’s proprietary GentleDry™ dehydration technology with Zesty Snackz’s fast-growing snack platform and the expansive digital reach of two of YouTube’s most recognizable lifestyle creators. Collectively, Brenten and Paul reach millions of viewers across YouTube, Instagram, TikTok and other social platforms, where they have built highly engaged communities through authentic, family-friendly content centered on lifestyle, adventure, aquatics, and entrepreneurship.
The new Zesty Snacks Fruit Chips line, powered by BranchOut’s GentleDry™ technology, is set to launch with products made from 100% real fruit. These single-ingredient fruit chips boast vibrant flavor, texture, and nutrients while offering shelf-stable convenience, free from added sugar, preservatives, or artificial ingredients. The initial release will feature popular fruits, including mango, pineapple, strawberry, and banana, with plans for additional varieties in the future. BranchOut plans to ship the first full container of the product to Zesty Snacks in April, with follow-on container-sized orders expected thereafter.
“Our partnership with Zesty Snackz and creators like Brenten and Paul represents a powerful intersection of food innovation and modern consumer engagement,” said Eric Healy, CEO of BranchOut Food Inc. “These creators have built trusted brands with highly engaged audiences. By combining that reach with our advanced drying technology and supply chain scale, we are uniquely positioned to deliver premium, single-ingredient snacks to a rapidly expanding market.”
Brenten Szekely and Paul Cuffaro have successfully built multi-million-subscriber platforms by consistently creating high-engagement video content and fostering strong community relationships. Their proven ability to drive purchasing behavior through authentic storytelling and direct audience connection extends their brands beyond digital content into successful merchandise and consumer product lines. This direct-to-consumer channel represents a significant and currently untapped opportunity for BranchOut, as it is completely distinct from the company's existing retail and industrial channels.
“This partnership allows us to bring something to our audience that we genuinely believe in,” said Brenten Szekely. “Our community wants real, simple, high-quality products, and this collaboration delivers exactly that. After visiting the BranchOut facility in Peru and seeing the GentleDry™ process firsthand, we were incredibly impressed with the technology, the scale of the operation, and the team behind it. We’re excited to share that experience with our audience and will be releasing content from the visit in the coming months.”
About Zesty Snackz
Zesty Snackz is a fast-growing snack brand focused on delivering bold, high-quality products to modern consumers through both retail and digital channels. By integrating strong brand identity with influencer-driven engagement, Zesty Snackz is building a new model for snack innovation and consumer connection.
For more information: https://www.zestysnackz.com/
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
For more information:
ir@branchoutfood.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," “position,” "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
https://www.globenewswire.com/newsroom/ti?nf=OTY2OTU0OCM3NDc4NTU4IzUwMDEyMTI4Mg==
https://ml.globenewswire.com/media/YTUwNjQyZDQtYTEzMC00M2E0LWJhODgtNjk5ZmRlZTA5ZDkxLTUwMDEyMTI4Mi0yMDI2LTAzLTExLWVu/tiny/BranchOut-Food-Inc-.png
Source: BranchOut Food Inc.
subslover
5月前
BranchOut Food Delivers Record ~$14M Net Revenue, 113% YoY growth, Secures Major Retail Wins, Expands Capacity & Product Offering
Record Q4 Net Revenue of $4.2M Marks Best Quarter in Company History, Up Over 178% YoY
Key Highlights:
Record 2025 revenue of ~$14 million, representing 113% YoY growth, capped by $4.2M in Q4, the highest quarterly revenue to date.
Advanced private label development with the world’s largest retailer for up to nine new SKUs targeted for second-half 2026 launch, representing an estimated $10 million in potential annualized revenue.
Introduced a first-of-its-kind shelf-stable dehydrated cheesecake enabled by GentleDry™ technology, creating a new dairy-based snack category, launching in nation’s largest retailer.
Secured a new warehouse club customer with an initial order near $2 million and potential to scale into a year-round program estimated at up to $15 million in annual recurring revenue.
Installing fourth large-scale REV drying line, scheduled to be operational by March 1, 2026, expanding capacity and enabling dairy-based and high-protein products
BEND, Ore., Jan. 28, 2026 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a food technology company pioneering the next generation of natural fruit and vegetable snacks through its proprietary GentleDry™ process, today announced record performance, achieving ~$14 million in revenue in 2025, representing 113% YoY growth.
This milestone was achieved while the company simultaneously built and commissioned its manufacturing facility in Peru, scaled production across its product portfolio, and advanced multiple new product developments throughout 2025. With those foundational efforts now complete and the facility fully operational, the company is positioned to focus entirely on executing the core business and scaling growth. The company anticipates continuing its rapid growth rate into 2026 and beyond.
New Club Retailer Places Nearly $2 Million Order and Signals Interest in Future Opportunities
BranchOut also announced a major new order from the nation’s second-largest warehouse club retailer, marking a new customer relationship for the company and its second large Club customer. The retailer has committed to an initial order valued near $2 million for a mixed fruit snack product launching in May 2026, with final volumes currently being finalized. Importantly, the retailer has expressed strong interest in evaluating additional BranchOut products in subsequent quarters. If performance thresholds are met, any one of these products could secure year-round, everyday placement, which the company estimates could represent up to $15 million in annual recurring revenue.
Major Development Program with the World’s Largest Retailer
BranchOut is working with the nation's largest retailer on a significant development program for up to nine new SKUs. These collaborative efforts, focused on fruit, vegetable, and dairy-based innovations, are being developed at the retailer's request. These products, which are targeted for a launch in the second half of 2026 and are estimated to generate $10 million in incremental annualized revenue.
Among these initiatives is BranchOut’s shelf-stable dehydrated cheesecake, a true product innovation and a first-of-its-kind offering in the snack category. Using BranchOut’s proprietary GentleDry™ technology, fresh cheesecake is transformed into a shelf-stable snack that preserves flavor while delivering a distinctive creamy, soft bite.
This innovation highlights the versatility of BranchOut’s technology platform and enables the creation of an entirely new category of dairy based, high protein snacks. The company is now advancing this product through commercial development, including private label programs with major retailers, as part of its broader expansion into dairy based, protein forward and functional snack offerings.
Ingredient and Bulk Supply Channel Positioned for Long-Term Growth
The ingredient and bulk supply channel continues to strengthen, and management believes this channel will remain a critical driver of utilization, scale, and profitability as the company moves into 2026 and beyond. MicroDried remains BranchOut’s core strategic partner in this channel, with revenue from this relationship expected to be approximately $5–6 million in 2026. In addition, BranchOut is onboarding a new large international CPG customer that will sell BranchOut products enrobed in chocolate to multiple customers across Europe and North America. The company expects an initial order of approximately $1.8 million in the first half of the year, with the potential for significantly larger-scale, ongoing business to follow.
Nation’s Largest Warehouse Club Channel Continues to Scale
Within the nation’s largest warehouse club channel, momentum continues to build. December deliveries included Organic Chewy Banana in the Bay Area and Pineapple Chips in the Southeast. Looking ahead, Organic Cinnamon Churro Chewy Banana is scheduled to launch in the Los Angeles region in March, followed by a new Mango Chip product launching in the Bay Area, along with additional pineapple programs in the Southeast. Several new items, including multipacks and apple-based products, are currently under review as the company approaches the 2026 ordering cycle.
New Branded Retail Platforms Launching in 2026
BranchOut is preparing to launch two new branded retail product platforms in 2026. The first is a five-count snack pack, including Crunchy Banana, Pineapple, Mango, Apple, and Strawberry. This line is designed specifically for produce departments and will launch in Q2, with a direct-to-retailer go-to-market strategy supported by regional distribution partners and a national produce broker.
Fourth Large-Scale REV Line Installation Enables High-Protein, Dairy-Based Products and First Shelf-Stable Cheesecake
BranchOut is currently installing its fourth large-scale REV drying line, which is scheduled to be fully operational by March. The line is housed in a newly constructed, dedicated building adjacent to the company’s existing facility and was designed with capacity to support additional future REV lines.
The new building is fully segregated from BranchOut’s allergen-free production areas, enabling the safe processing of allergen-containing products while maintaining strict food safety and quality controls. This expansion extends BranchOut’s processing capabilities beyond fruits and vegetables into dairy-based and high-protein products, including cheese snacks, shelf-stable dried cheesecake, and other protein-forward innovative products. These new capabilities materially expand the company’s addressable market and directly respond to ongoing demand from large retail and ingredient customers.
Together, these initiatives reflect BranchOut’s transition from a foundational build year into a more disciplined scaling phase. With expanded capacity, broader technical capabilities, deepening retailer relationships, and a growing innovation pipeline, the company is well positioned for continued growth and improving financial performance in 2026 and beyond.
Significant Gross Margin Expansion Anticipated for 2026, Driven by Several Key Factors
A significant expansion in gross margin is anticipated for 2026. The 2025 gross margin of ~16% was severely depressed by two key factors: Air Freight and Tariffs. Air Freight accounted for 8% of the Cost of Goods Sold (COGS) and was necessary to fulfill customer orders despite production delays. A 5% tariff further impacted the margin. Excluding these two factors, the 2025 gross margin would have been around 25%. Air freight costs are expected to be substantially reduced in 2026, as production stabilizes and catches up with the order pipeline, thereby recapturing this lost margin. Furthermore, tariffs on most products, including all tropical fruit, have been reduced to zero, providing a durable cost structure improvement.
Further margin expansion will come from operational efficiencies. In 2025, production lines operated below optimal efficiency as products were simultaneously being developed and refined. In 2026, management is focused on continuous improvement to increase equipment effectiveness, throughput, and yield, alongside material efficiency projects. The installation of a fourth large-scale line will also boost throughput and improve unit economics.
As the company nears and passes breakeven, incremental revenue is expected to carry contribution margins over 50%. This will increasingly flow through, adding further upside to the overall gross margin as higher-margin volumes scale.
New $1.5 Million Loan For Working Capital Supports Growth and Order Fulfillment
In support of the company’s accelerating growth and expanding order volume, BranchOut has secured a new $1.5 million loan from Kaufman Capital. The loan is intended to fund production and inventory, as needed, associated with large customer orders, particularly given the company’s international manufacturing footprint and ocean freight logistics, which can result in extended cash conversion cycles of up to four months from production through shipment and customer payment.
The loan is offered on favorable terms, bearing interest at approximately 8%, and provides BranchOut with flexible, non-dilutive capital to support working capital needs as volumes scale. In addition, Kaufman Capital has voluntarily elected to convert $500,000 of its existing convertible note into equity, reflecting continued confidence in the company’s strategy, growth trajectory, and long-term value creation.
In parallel with this financing, the Company is utilizing its existing at-the-market (ATM) program to raise up to $1.5 million of additional working capital to support accelerating order volume, inventory build, and logistics requirements associated with recent customer wins. Prior financing was primarily used to retire debt and fund the buildout of new production capacity. As multiple large-scale sales programs accelerate faster than initially modeled, management believes incremental working capital will be required to support increased production, inventory, and logistics as the company scales.
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
For more information:
ir@branchoutfood.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," “position”, "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and