BranchOut Food Inc. Common Stock Planet MicroCap Showcase: Toronto 2026

Good morning. I'm John Dalfonsi. I'm the CFO of BranchOut. Just a quick question, how many of you are familiar with BranchOut? Can you raise your hands? Okay. Most of you are new to the story. Once again, I'm the CFO. There's our forward-looking statement. About BranchOut, we are a food technology company. We make snacks, and our snacks are made with EnWave's REV technology. We make not only fruits and vegetables, but cheeses. The way to think about this story is that there's a current freeze-dried market. We feel we have a superior technology and process to replace freeze-dried. When you look at this company, you have to think out 3 or 4 or 5 years as we penetrate all the accounts.

We've only had a plant open in Peru for about 2 years, and we already have the major retailers of Costco, Sam's Club, Walmart, a major ingredient company, and that's just growing. You're going to see announcements of new customer sign-ups as we get out there with our product. Like I said, when we started this company, and Eric Healy's the CEO, I'm the CFO, I was one of the first investors in 2020. The thought was to make avocados. Over time, we've discovered that the place to make the product is South America because you have the most access to produce there, with fruits and vegetables. Of those countries, Peru, we felt, was the best country because they have four valleys, very stable political environment, great workforce. Their whole economy surrounds agriculture. We built a plant there that opened in 2024, and we had zero sales.

We'll have about $14.5 million sales this year. Could've been about $20 million, because a lot of the sales were moved into next year. You could see the production in this plant growing quickly. The other part of our business is we got a sales effort here in the U.S. We have a very good sales team that gets out and talks to all the major customers. We just were at a trade show in Europe. The combination of a plant in Peru, which we have about 300 people, and our U.S. sales force creates a company with substantial growth opportunity. When you think about our break even, because we've got a lot of questions about break even, we have capacity in our existing plant of about $40 million-$50 million.

We bought the piece of property next door, which, if that's built out, it's a $100 million footprint. The capacity, we have 300 employees, although the labor's only $1.50 an hour, but we do have fixed costs to cover. The way to measure our revenues is the kilograms produced of product. The average price of our kilograms is about $33. If you take the kilograms produced in a month times 33, that's your monthly revenue. That covers our fixed cost. It gives us kind of a break even of around 18 million, I mean, of 26 million at all the existing costs. We opened this plant two years ago, and there's a lot of room for improvement. The biggest component of your purchases are raw materials. When we open this plant, everything is still sold in this plant.

We're still racing to keep up. When you're at that junction, you have to buy materials in the spot market, and that's where they're most expensive. We've been able to do a couple capital raises, and we've done a couple in a row, but that is to get working capital for orders that we have for next year because you have to buy at the right time. Raw materials can be 50% of your revenue, or they can be 30% of your revenue. We've gotten to about 35% of revenue because we're buying during the high season for a lot of these raw materials, such as strawberries, blueberries. With that, we feel we can optimize break even about 18 million, and with packaging changes such as bringing it in-house, we feel that could be as low as 14.5.

If you look at all our past expenses and you take an average, it's about 26 million, and we're going to do $6 million-$7 million in the fourth quarter. We're about break even from a cash flow basis. One thing we've never had, our revenue's been very lumpy, the rotational orders from the club, and even from ingredients. Now we have a base of revenue of about $4 million per quarter going into 2027. Just a little about BranchOut. Once again, we use EnWave's technology. We're the first ones really to commercialize it on a large level, so uncharted territory. I think over the time we've been in the plant, there's the EnWave technology, which is a great technology, but it's also a lot of know-how and trade skill, trade secrets of how you serve the product to the EnWave machines.

The way the EnWave machines work is the better the product you serve up to it the more output you get. We make, I'd say, about a dozen different fruits and vegetables out of the plant, all need to be pre-processed differently. Over the two years, we've really, really have perfected that, and there's even more improvement. That's why I'm very bullish about 2027, because we were averaging maybe 30,000-40,000 kilograms a month. This month we'll hit 70, and that is all around the process we've built over the last couple of years. When you think about BranchOut, you see this ramp-up of taking over the freeze-dried market, and there's a lot of blocking and tackling that goes into it.

One of the key pieces of blocking and tackling is getting the plant to a point where you can create an assembly line and product that you could serve up to the EnWave machine and continue to increase your output. One thing about this company that a lot of people don't know about, and an advantage of being in Peru is, when Peru exports fruits and vegetables, you go into the supermarket, they're nice and shiny. We don't need to buy that fruit. The fruit tastes the same. It could be bruised or not look as attractive, and we can buy that fruit. We get it at a much better price, and it's very sustainable. For those who care about sustainable companies, we buy fruit that'd be thrown out otherwise. A little about the EnWave technology, if you don't know. It's a vacuum chamber industrial microwave.

It essentially brings the boiling point down to room temperature, and there's tremendous advantages to that. For example, you keep the flavor of the product. We've done studies. There's three times more of the flavor, the texture. You'll see in these pictures, the fruit looks like an actual fruit. The color, I'll show you an example of how the color differs. It's much more vibrant, and it's much less expensive and faster than freeze-drying. Product tastes three times better. If you look at the pineapple on your right, that's the final product. It look and tastes just like pineapple. That's the product on the left going into the machine. How this product looks. We've done a lot of studies with our product in Sam's Club and Costco, and we get very high ratings here when people try the product or sample the product.

You look at the freeze-dried product on the left, it's very chalky. You look at on the right, it looks like the real fruit. Once again, feedback from customers. We have a lot of feedback that we've continued to get over time. We get taste, texture, appearance, cut, and shape. We get very high marks. The other thing that's very important that people don't think about is the consistency of product. There's a real art to making this product, and there's a real art to making it consistently. If you don't make it, if you don't serve it up to the machine properly, it'll come out brittle or hard. We have developed outstanding consistency in the plant, and that's why we feel our sales are increasing, and we're getting repeat orders. Little about our financials. If you look at this company, starting in 2022, we went public in 2023, our revenue has doubled every year.

In 2025, we had $13.72 million, but about $4.5 million of that was a sourcing contract we had for prunes. If you think about plant production, it was about $9.5 million in 2025. This year it'll be $14.5 million. Like I said, we about $5.5 million in orders that just got pushed to next year. Here we talk about $26 million revenue. We think we'll be higher than $30 million, but it's something that we feel happened, but that's a number we have out there now. Breakeven is around $24 million. That says $21 million, and optimize $18 million, but once again, we feel that we can get that down to about $14.5 million as breakeven.

If you think about our cost structure, and this is very important if you build a model, raw materials are 35% of revenue. All the other costs, if you think about the tariffs, the EnWave royalty, the broker commissions, the packaging, the shipping, everything to get to the customer is about 20%. You look at a marginal cost, once you reach capacity, of about 55%. We feel it can bring those raw materials down some, and we definitely feel that the other costs, we can bring down significantly. Once again, packaging is maybe eight points of that 20. Our gross margin for our third quarter will be about in the teens. We feel it is going to improve in the 20s, and once again, a targeted gross margin of 40%. If you think about this story, we are the first ones to do this. We are looking to replace a massive market.

Just by opening our plant for two years, we have had tremendous success with all the household names. I feel it is just only a matter of time before you will see a company with $100 million in revenue. The other thing people do not really think about in this company is we are launching our dried cheese product, and we feel cheese can be as big or bigger than the fruits and vegetables. The product is already starting to go out there in Target superstores, but we will also be making some announcement on some cheese business in 2027 that I think people will be pretty pleased to see. This is the plant. I am just going to show you some pictures of the product. This is new innovation that went out for 2026. This is our Costco product. I want to get to a particular page. This is our first everyday product in Sam's Club.