BranchOut Food Inc.

BranchOut Food Inc. announced a major expansion of its branded retail business with the launch of five branded products in a leading U.S. mass retailer, starting in September. This strategic move, described as one of the company's largest retail wins, includes two existing top-performing fruit snacks and three innovative new products leveraging its recently launched cheese platform. The initial rollout is planned for a subset of the retailer's approximately 2,000 locations, aiming to significantly enhance brand awareness and credibility.

BranchOut Food Inc. has secured an additional $750,000 loan from Kaufman Kapital LLC, increasing its Senior Secured Promissory Note to a total of $3,000,000. The company intends to use these proceeds for working capital to fulfill customer orders. This note matures on January 28, 2027, bears an 8% annual interest rate, and is secured by a lien on substantially all of the company's assets. Additionally, an amendment was made to the 12% Senior Secured Convertible Promissory Note, adding a 9.99% beneficial ownership limitation for Kaufman Kapital LLC upon conversion.

BranchOut Food Inc. reported a substantial increase in net loss for the first quarter of 2026, reaching $1.79 million, nearly double the loss from the prior year. Net revenue decreased by 17.8% to $2.61 million. The company also disclosed a going concern warning due to recurring losses and negative working capital, indicating substantial doubt about its ability to continue operations. Management is actively seeking new customers, expanding its product mix, and pursuing additional capital.

BranchOut Food Inc. entered into an agreement with Kaufman Kapital LLC, resulting in Kaufman exercising a warrant for 500,000 shares of common stock, providing $750,000 in cash to the company. Concurrently, the maturity date of a $3.4 million Senior Secured Convertible Promissory Note held by Kaufman was extended from December 31, 2026, to December 31, 2027. The interest rate on this note was also reduced from 12% to 8%, effective May 7, 2026, and new prepayment restrictions were established. The company also committed to filing registration statements for the resale of the warrant shares and future interest conversion shares.

BranchOut Food Inc. amended and restated its Senior Secured Promissory Note with Kaufman Kapital LLC, increasing the total principal amount to $2,250,000. This includes an initial advance of $1,500,000 on January 28, 2026, and an additional $750,000 advance on April 17, 2026. The note bears an 8% annual interest rate and matures on January 28, 2027, secured by company collateral.