Track near-term cash burn and ability to service the $4M note due January 2027. The restrictive covenants limit financial flexibility, increasing the likelihood of a distressed equity raise or restructuring if revenue does not improve materially.
Price Chart
Executive Summary
BranchOut Food Inc. borrowed an additional $1,000,000 from Kaufman Kapital LLC, bringing its total secured debt to $4,000,000 under a Third Amended and Restated Senior Secured Promissory Note. The loan matures January 28, 2027, bears 8% interest, and is secured by substantially all company assets. Proceeds are for working capital, but the repeated debt amendments signal ongoing cash burn and financial strain.
Key Financial Metrics
Key Facts
- Borrowed additional $1,000,000 from Kaufman Kapital LLC on June 30, 2026
- Total principal under Third Amended and Restated Note: $4,000,000
- Maturity date: January 28, 2027; interest rate: 8% per annum
- Loan is secured by substantially all assets via a prior Security Agreement
- Proceeds used for working capital for production of customer orders
- Negative covenants restrict additional debt, dividends, asset sales, and affiliate transactions
Financial Impact
Total debt to Kaufman increased to $4,000,000, representing ~5.7% of the $70M market cap; interest expense of $320,000 annually at 8%
Risk Factors
- High leverage relative to market cap with restrictive covenants
- Potential default if working capital needs outpace revenue generation
- Dilution risk from potential future equity-linked financing
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-031446 |
| Document: form8-k.htm | 0001493152-26-031446 |
| Document: 0001493152-26-031446-index-headers.html | 0001493152-26-031446 |
| Document: 0001493152-26-031446-index.html | 0001493152-26-031446 |
| Document: 0001493152-26-031446.txt | 0001493152-26-031446 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $1.74 | awaiting T+5 | — | $1.71 (+1.72%) |
Oct 23, 2026 4d ago | 424B5 | $2.02 | awaiting T+5 | — | $1.71 (+15.35%) |
Oct 22, 2026 4d ago | 8-K | $2.02 | awaiting T+5 | — | $1.71 (−15.35%) |
Oct 22, 2026 4d ago | Press Release | $2.02 | awaiting T+5 | — | $1.71 (+15.35%) |
Oct 22, 2026 4d ago | Press Release | $2.02 | awaiting T+5 | — | $1.71 (−15.35%) |
Oct 19, 2026 8d ago | EFFECT | $2.22 $1.74 | ▲ +21.62% | ▲ +21.48% | $1.71 (+22.97%) |
Oct 9, 2026 17d ago | S-3 | $3.10 $2.22 | ▲ +28.39% | ▲ +26.89% | $1.71 (+44.84%) |
Sep 2, 2026 7w ago | 8-K | $3.86 $3.89 | ▲ +0.78% | ▲ +1.93% | $1.71 (−55.70%) |
Aug 31, 2026 8w ago | 8-K | $3.91 $3.89 | ▼ −0.51% | ▼ −0.59% | $1.71 (−56.27%) |
Aug 28, 2026 8w ago | 8-K | $3.98 $3.82 | ▲ +4.02% | ▲ +3.88% | $1.71 (+57.04%) |
US Market Status
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