Part I [Business](index=8&type=section&id=Item%201.%20Business.) The company specializes in social media marketing and content delivery for Gen Z on platforms like Discord and TikTok [Overview and Background](index=8&type=section&id=Overview) The company provides social media marketing and content services, focusing on investment education for Gen Z on Discord - The company offers three primary services: Discord investment education, social media/marketing services, and AE.360.DDM brand services for Discord server management[24](index=24&type=chunk) - Founded in 2020, the company's vision was to bring investment education to Gen Z through social media, leading to the creation of educational Discord servers for stocks, crypto, NFTs, and real estate[25](index=25&type=chunk)[26](index=26&type=chunk) - The company's social media presence grew from under 50,000 followers in August 2020 to **over 2 million by December 31, 2024**, with over 1 billion interactions across all platforms[28](index=28&type=chunk) [Our Current Business and Fiscal Year 2024 Highlights](index=8&type=section&id=Our%20Current%20Business%20and%20Fiscal%20Year%202024%20Highlights) Key 2024 initiatives included new media launches, significant financing, strategic acquisitions, and celebrity partnerships - Launched "The Lounge" YouTube channel featuring interviews with celebrities and business professionals[33](index=33&type=chunk) - Completed a **$3.0 million financing transaction** through the sale of Series A Preferred Stock in two closings (May and July 2024)[33](index=33&type=chunk)[35](index=35&type=chunk) - Commenced an "at the market offering" (ATM Financing) in September 2024, raising net proceeds of **$4,830,648 as of March 31, 2025**[35](index=35&type=chunk) - Acquired the assets of TommyBoyTV in June 2024 and the TikTok Money Machine in November 2024 to expand its Discord community market share and enter the TikTok Shop space[35](index=35&type=chunk) - Became an approved TikTok Shop Partner in December 2024[35](index=35&type=chunk) [Our Historical Performance](index=10&type=section&id=Our%20Historical%20Performance) The company has a history of net losses and relies on capital raises to fund its operations Financial Position as of Dec 31, 2024 | Metric | Value (USD) | | :--- | :--- | | Accumulated Deficit | $12,006,357 | | Cash Balance | $2,660,624 | Net Loss Comparison | Year Ended Dec 31 | Net Loss (USD) | | :--- | :--- | | 2024 | $6,393,932 | | 2023 | $4,931,197 | - The company has financed operations through capital raises, including a Shelf Registration Statement for up to **$100 million**, a **$3.0 million Series A Preferred Stock placement**, and an ATM Financing program[34](index=34&type=chunk) [Industry Overview](index=11&type=section&id=Industry%20Overview) The market for social media financial education is expanding, driven by Gen Z demand on platforms like TikTok and Discord - There is a growing demand for financial information among young, inexperienced investors (Gen Z) due to a lack of formal personal-finance education in the U.S[37](index=37&type=chunk)[38](index=38&type=chunk) - The social media influencer market **exceeded $13 billion globally**, with Gen Z influencers gaining significant sway over consumer spending and financial interests[39](index=39&type=chunk) - Discord has grown rapidly, reaching **over 259 million monthly active users**, up from 56 million in 2019[42](index=42&type=chunk)[43](index=43&type=chunk) [Our Services](index=12&type=section&id=Our%20Services) The company offers Discord community management, social media marketing, and a SaaS payment processing platform - **Discord Communities:** Operates ten servers with **~206,899 members** as of Dec 31, 2024, with subscription fees from $4.99 to $120.00 for premium content[46](index=46&type=chunk) - **Social Media and Marketing:** Provides marketing and content creation services for clients, with fees from $2,000 to $50,000 per campaign, utilizing its 'Social Influencer Network' (SiN)[49](index=49&type=chunk)[50](index=50&type=chunk) - **AE.360.DDM (Design Develop Manage):** A suite of services for creating and managing Discord servers for individuals and companies, with project fees from $497 to $5,000+, or based on a revenue-share model[53](index=53&type=chunk) - **Ternary v2:** A cloud-based subscription management and payment processing solution with CRM tools for Discord communities, partnered with Stripe[32](index=32&type=chunk)[56](index=56&type=chunk) [Competition](index=15&type=section&id=Competition) The company competes with other large Discord servers and social media influencers in the investment education space Competitor Analysis (as of March 2025) | Competitor | Service | Members/Users | Pricing | | :--- | :--- | :--- | :--- | | Xtrades Discord Server | Stock/Options Trading | ~110,000 | $38/month | | WallStreetBets | High-Risk Investing | ~484,305 (Discord) | Generally Free | | Eagle Investors | Investment Education | ~156,000 (Discord) | $67-$140/month (premium) | | @Fourtoeight (Wiseguyinvesting) | Investment Education | Similar to Asset Entities | $25/week to $800/year | | @moneylinemark (StockVIP) | Investment Education | ~254,000 (Discord) | Subscription-based | - The company states it is not aware of any direct competitors for its AE.360.DDM suite of services[75](index=75&type=chunk) [Corporate History and Structure](index=21&type=section&id=Corporate%20History%20and%20Structure) The company utilizes a dual-class stock structure that concentrates significant voting power with its officers and directors - The company has a dual-class stock structure: Class A (10 votes/share) and Class B (1 vote/share)[96](index=96&type=chunk) - As of March 25, 2025, all 1,000,000 outstanding shares of Class A Common Stock are held by Asset Entities Holdings, LLC (AEH)[98](index=98&type=chunk) - Company officers and directors collectively control approximately **43.6% of the total voting power** through their holdings and control of AEH[98](index=98&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors.) The company faces significant risks related to its operating history, industry reliance, regulatory compliance, and concentrated ownership - **Business Risks:** The company has a limited operating history, experiences negative cash flow, and may need to raise additional capital, with high dependency on social media platforms like TikTok which faces a potential U.S. ban[103](index=103&type=chunk)[104](index=104&type=chunk)[108](index=108&type=chunk)[110](index=110&type=chunk) - **Regulatory Risks:** The company may be subject to the Investment Advisers Act of 1940 and faces costly compliance with numerous data privacy laws like GDPR and CCPA[147](index=147&type=chunk)[148](index=148&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - **Operational Risks:** The business depends on the continued performance and social media following of its senior management and co-founders, and faces risks from cyberattacks and infrastructure challenges[124](index=124&type=chunk)[125](index=125&type=chunk)[138](index=138&type=chunk) - **Ownership & Market Risks:** Voting control is concentrated with officers and directors through a dual-class stock structure, and the company has received Nasdaq non-compliance notifications[174](index=174&type=chunk)[180](index=180&type=chunk)[184](index=184&type=chunk) [Unresolved Staff Comments](index=41&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) This item is not applicable as the company has no unresolved staff comments - Not applicable[205](index=205&type=chunk) [Cybersecurity](index=41&type=section&id=Item%201C.%20Cybersecurity.) The company manages cybersecurity risk through an integrated strategy overseen by the Board and key technology officers - The company has implemented security measures including two-factor authentication (2FA) for eData access and a unique four-factor authentication (4FA) process for banking and application systems[208](index=208&type=chunk) - Cybersecurity risk management is overseen by the Board of Directors, with day-to-day management handled by the Chief Technology Officer, Chief Operating Officer, and a Technology Consultant[213](index=213&type=chunk)[214](index=214&type=chunk) - The company has not encountered any cybersecurity challenges that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[212](index=212&type=chunk) [Properties](index=43&type=section&id=Item%202.%20Properties.) The company operates as a remote-first business but maintains a central office in Dallas, Texas under lease agreements - The company is remote-first but leases its headquarters at 100 Crescent Court, 7th Floor, Dallas, Texas[217](index=217&type=chunk) - Multiple lease agreements are in place with Regus Management, with monthly payments ranging from $1,228 to $5,329 for different office spaces, with terms extending into 2025[217](index=217&type=chunk) [Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings.) The company is not currently involved in any material legal proceedings or claims - The company is not currently involved in any material legal proceedings[219](index=219&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not applicable[220](index=220&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) The company's Class B Common Stock trades on Nasdaq, and proceeds from its IPO have been used for working capital - Class B Common Stock is listed on Nasdaq under the symbol "ASST" since February 3, 2023[222](index=222&type=chunk) Use of IPO Proceeds (as of Dec 31, 2024) | Use of Proceeds | Amount (USD) | | :--- | :--- | | Acquisition of assets of other businesses | ~$0.3 million | | Working capital | ~$6.3 million | | Other uses | None | - The company has never paid cash dividends and does not anticipate paying them in the near future, with prohibitions related to its Series A Preferred Stock[234](index=234&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Revenue grew significantly in FY2024, but rising operating expenses led to a larger net loss, with operations funded by recent financing [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Revenue grew 128.7% in FY2024, but a 35.1% increase in operating expenses widened the company's net loss Consolidated Operations Data (Fiscal Year Ended Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $633,489 | $277,038 | | Total operating expenses | $7,037,517 | $5,208,235 | | Loss from operations | ($6,404,028) | ($4,931,197) | | Net loss | ($6,393,932) | ($4,931,197) | - The **128.7% increase in revenue** was primarily due to a higher number of Discord server paying subscribers, including those from recent acquisitions[253](index=253&type=chunk) - The **35.1% increase in operating expenses** was mainly due to a ~$1.1 million rise in advertising, marketing, and payroll, and a ~$0.7 million increase in management compensation[254](index=254&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company has financed its negative operating cash flow through significant capital raises, ensuring liquidity for the next year Summary of Cash Flow (Fiscal Year Ended Dec 31) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($4,900,057) | ($3,807,623) | | Net cash used in investing activities | ($400,000) | ($113,559) | | Net cash provided by financing activities | $5,036,358 | $6,708,328 | | **Net change in cash** | **($263,699)** | **$2,787,146** | | **Cash at end of year** | **$2,660,624** | **$2,924,323** | - The company completed a two-part private placement of Series A Preferred Stock in May and July 2024, raising gross proceeds of **$3.0 million**[256](index=256&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk) - An "at the market" (ATM) financing program commenced in September 2024 has raised net proceeds of **$4,830,648 as of March 31, 2025**[256](index=256&type=chunk) [Critical Accounting Estimates](index=61&type=section&id=Critical%20Accounting%20Estimates) Key accounting estimates involve significant judgment in valuing intangible assets, recognizing revenue, and expensing stock-based compensation - **Intangible Assets:** Acquired intangible assets are recorded at fair value and tested for impairment, with **no impairment charges recorded in 2023 or 2024**[320](index=320&type=chunk) - **Revenue Recognition:** Subscription revenue is recognized over the service period, while marketing and AE.360.DDM revenues are recognized upon completion of short-duration contracts[330](index=330&type=chunk)[331](index=331&type=chunk)[332](index=332&type=chunk)[333](index=333&type=chunk) - **Stock-Based Compensation:** Awards are measured at grant-date fair value and expensed on a straight-line basis over the requisite service period[327](index=327&type=chunk) Key Expense Policies | Expense Type | 2024 Expense | 2023 Expense | Accounting Policy | | :--- | :--- | :--- | :--- | | Advertising | $944,635 | $436,066 | Expensed as incurred | | Research & Development | $423,299 | $18,935 | Expensed as incurred | [Financial Statements and Supplementary Data](index=64&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) This section contains the company's audited consolidated financial statements and accompanying notes for fiscal years 2024 and 2023 [Financial Statements](index=94&type=section&id=Financial%20Statements) Audited statements show total assets of $3.22 million, a net loss of $6.39 million, and a net loss per share of ($1.70) for 2024 Consolidated Balance Sheet Highlights (as of Dec 31, 2024) | Metric | Value (USD) | | :--- | :--- | | Total Assets | $3,217,466 | | Total Liabilities | $430,895 | | Total Stockholders' Equity | $2,786,571 | Consolidated Statement of Operations Highlights (Year Ended Dec 31, 2024) | Metric | Value (USD) | | :--- | :--- | | Revenue | $633,489 | | Loss from operations | ($6,404,028) | | Net loss | ($6,393,932) | | Net loss attributable to common stockholders | ($6,448,042) | | Loss per share (basic and diluted) | ($1.70) | Consolidated Statement of Cash Flows Highlights (Year Ended Dec 31, 2024) | Metric | Value (USD) | | :--- | :--- | | Net cash used in operating activities | ($4,900,057) | | Net cash provided by financing activities | $5,036,358 | | Net change in cash | ($263,699) | [Controls and Procedures](index=65&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2024 - Management concluded that as of December 31, 2024, the company's **disclosure controls and procedures were effective**[347](index=347&type=chunk) - Based on the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2024[349](index=349&type=chunk)[350](index=350&type=chunk) - An attestation report on internal control from the independent auditor is not included, as the company is not an "accelerated filer" or "large accelerated filer"[351](index=351&type=chunk) [Other Information](index=66&type=section&id=Item%209B.%20Other%20Information.) The company entered into new two-year employment and consulting agreements with its key executives in March 2025 - On March 27, 2025, new two-year employment agreements were executed for CEO Arshia Sarkhani (annual salary $240,000), CFO Matthew Krueger ($180,000), and CMO Kyle Fairbanks ($240,000)[356](index=356&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk) - A new two-year consulting agreement was executed for Executive Chairman Michael Gaubert with a monthly fee of $20,000 (annualized to $240,000)[359](index=359&type=chunk) - The agreements include immediate cash bonuses and eligibility for future restricted stock awards, which are subject to shareholder approval of an increase to the 2022 Equity Incentive Plan[356](index=356&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=68&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance.) The company details its board and executive team, committee structures, and governance policies, noting one late insider filing - The company's board consists of seven directors, and the executive team includes key co-founders Arshia Sarkhani (CEO) and Kyle Fairbanks (CMO)[363](index=363&type=chunk) - The Board has established Audit, Compensation, and Nominating and Corporate Governance Committees, with charters available on the company website[377](index=377&type=chunk) - A Code of Ethics and Business Conduct has been adopted and applies to all directors, officers, and employees[381](index=381&type=chunk) - There was one instance of delinquent Section 16(a) filings by AEH and several officers and directors, who filed a late Form 4 on September 16, 2024[385](index=385&type=chunk) [Executive Compensation](index=72&type=section&id=Item%2011.%20Executive%20Compensation.) Executive and director compensation for 2024 consisted of base salaries, cash fees, and stock awards from its equity plan 2024 Summary Compensation Table (Named Executive Officers) | Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | All Other Comp. ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Arshia Sarkhani, CEO & President | 2024 | 240,000 | 75,000 | 6,174 | 12,864 | 334,038 | | Michael Gaubert, Executive Chairman | 2024 | 240,000 | 75,000 | 9,549 | 12,864 | 334,038 | | Kyle Fairbanks, Exec. Vice-Chairman & CMO | 2024 | 240,000 | - | 4,658 | 12,864 | 334,038 | 2024 Director Compensation | Name | Fees Earned in Cash ($) | Stock Awards ($) | Total ($) | | :--- | :--- | :--- | :--- | | Richard A. Burton | 49,000 | 6,544 | 55,544 | | John A. Jack II | 44,500 | 6,544 | 51,044 | | Scott K. McDonald | 49,000 | 6,544 | 55,544 | | David Reynolds | 20,000 | 5,231 | 25,231 | - The 2022 Equity Incentive Plan has a maximum of 550,000 shares of Class B Common Stock available for issuance, and **as of March 31, 2025, all 550,000 shares have been granted** as awards[407](index=407&type=chunk)[408](index=408&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=81&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Company insiders collectively control approximately 43.6% of the total voting power through their ownership of Class A and B stock Beneficial Ownership as of March 25, 2025 | Name / Group | Class A Stock (%) | Class B Stock (%) | Total Voting Power (%) | | :--- | :--- | :--- | :--- | | Arshia Sarkhani (CEO) | 100.0% (via AEH) | 2.2% | 42.7% | | Kyle Fairbanks (CMO) | 100.0% (via AEH) | 2.1% | 42.7% | | Michael Gaubert (Exec. Chairman) | 100.0% (via AEH) | 2.2% | 42.8% | | All directors and executive officers as a group (10 persons) | 100.0% | 3.8% | 43.6% | | Asset Entities Holdings, LLC | 100.0% | 1.9% | 41.5% | - The company's 2022 Equity Incentive Plan has 550,000 shares authorized for issuance, and as of December 31, 2024, **all 550,000 shares had been granted** and were outstanding[443](index=443&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=83&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence.) The company discloses several related-party transactions, including an asset purchase and a complex share exchange involving insiders - In November 2023, the company acquired assets from Ternary Inc. and OptionsSwing Inc. for $100,000 cash and 60,000 shares of Class B Common Stock, appointing the seller's principal as CTO[445](index=445&type=chunk) - In February 2024, the company facilitated a series of Cancellation and Exchange Agreements involving Asset Entities Holdings, LLC (AEH) and its members, converting Class A Common Stock into Class B Common Stock[446](index=446&type=chunk) - Executive officers, who are also significant shareholders, received substantial compensation in 2023 and 2024, including salaries, bonuses, and stock awards[446](index=446&type=chunk) - The board has **four independent directors out of seven**, and its key committees are composed entirely of independent directors[449](index=449&type=chunk)[450](index=450&type=chunk)[452](index=452&type=chunk)[453](index=453&type=chunk) [Principal Accountant Fees and Services](index=88&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services.) The principal accountant billed $65,500 in 2024 and $44,500 in 2023, exclusively for audit services pre-approved by the Audit Committee Independent Auditor Fees | Fee Type | 2024 | 2023 | | :--- | :--- | :--- | | Audit Fees | $65,500 | $44,500 | | Audit-Related Fees | $0 | $0 | | Tax Fees | $0 | $0 | | All Other Fees | $0 | $0 | | **Total** | **$65,500** | **$44,500** | - All fees paid to the principal accountant in 2024 and 2023 were for audit services, with no other services provided[454](index=454&type=chunk) - The Audit Committee has pre-approval policies and procedures in place and approved all services and fees provided by the principal accountant[459](index=459&type=chunk)[461](index=461&type=chunk) Part IV [Exhibit and Financial Statement Schedules](index=90&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules.) This section lists the financial statements and all exhibits filed with the Annual Report, including key corporate documents - This section provides an index to the company's financial statements (pages F-2 to F-7) and a list of all exhibits filed with the 10-K[465](index=465&type=chunk)[467](index=467&type=chunk) - Key exhibits filed include the Articles of Incorporation, Bylaws, various warrant agreements, executive employment agreements, the 2022 Equity Incentive Plan, and the Code of Ethics[469](index=469&type=chunk)[470](index=470&type=chunk)[471](index=471&type=chunk)[472](index=472&type=chunk) [Form 10-K Summary](index=93&type=section&id=Item%2016.%20Form%2010-K%20Summary.) This item is not applicable as the company has not provided a Form 10-K summary - None[473](index=473&type=chunk)

Core Points - Asset Entities Inc. has regained compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders' equity of $2.5 million [1][2] - The company was previously notified on August 21, 2024, that it did not meet the minimum stockholders' equity requirement, prompting immediate actions to improve financial strength [3] - CEO Arshia Sarkhani expressed satisfaction with the company's compliance efforts and ongoing plans for expansion in social media services, particularly on Discord and TikTok [4] Financial Compliance - Nasdaq's Listing Qualifications department confirmed compliance based on the company's Current Report filed on February 14, 2025 [2] - The company expects to maintain stockholders' equity of at least $2.5 million as of March 31, 2025, to avoid potential delisting [2] Company Overview - Asset Entities Inc. specializes in digital marketing and content delivery across various social media platforms, including Discord and TikTok [5] - The company is recognized as the first publicly traded entity based on the Discord platform, hosting significant community-based servers [5] - The AE.360.DDM suite of services is designed for the design, development, and management of Discord community servers, catering to businesses and celebrities [5]

Core Insights - Asset Entities Inc. has surpassed 9,000 members in its TikTok Shop Creator Discord community, enhancing its position in digital marketing and content delivery services [1][2][3] Group 1: Company Achievements - The company became an official TikTok Shop partner on December 11, 2024, which has significantly boosted its creator sign-ups and brand collaborations [2] - The growth of the TikTok Shop creator community is directly linked to increased Gross Merchandise Value (GMV) for brands, leading to higher potential revenue for Asset Entities [2][4] - A notable member, Kimberly, generated over $195,000 in GMV for brands, earning a commission of over $35,000, showcasing the success of the creator community [3] Group 2: Business Model and Strategy - As a TikTok Affiliate Partner (TAP), Asset Entities earns a fixed commission on sales made by creators, which aligns the company's interests with those of the brands [2] - The company is focused on expanding its marketing efforts to attract more brands, leveraging the growing importance of User-Generated Content (UGC) [4] - Asset Entities offers a suite of services for social media marketing, including the AE.360.DDM platform, which is designed for managing Discord community servers [7]

Core Insights - Asset Entities Inc. has been approved as an official TikTok Shop Partner, enhancing its position in the digital marketing and content delivery sector [1][2][4] - TikTok has approximately 1.2 billion users, with around 38% having made purchases directly through its shop feature, indicating a significant market opportunity for Asset Entities [3] Company Overview - Asset Entities Inc. specializes in digital marketing and content delivery services across various social media platforms, including Discord, TikTok, Instagram, and YouTube [6] - The company is recognized as the first publicly traded entity based on the Discord platform, hosting large community-based education and entertainment servers [6] - Asset Entities offers a suite of services known as AE.360.DDM, which focuses on the design, development, and management of Discord community servers [6] Market Context - TikTok's shop features have generated over $20 billion in revenue as of 2024, showcasing the platform's potential for affiliate marketing and brand collaborations [3] - The partnership with TikTok allows Asset Entities to connect brands with creators, facilitating collaborations in the affiliate marketing space [2][4]

Core Insights - Asset Entities Inc. has acquired the TikTok Money Machine assets, which includes a Discord community focused on teaching content creators how to sell products on TikTok Shop [1][2] - The acquisition is expected to generate an additional $300,000 in annual revenue and expand the company's presence in the rapidly growing TikTok Shop market [3] - TikTok Shop has generated over $4.6 billion in domestic revenue since its U.S. launch in September 2023, with more than half of U.S.-based marketers utilizing the platform [4] Company Developments - The Discord community associated with the acquisition connects content creators with major consumer product brands, allowing creators to earn commissions on sales made through their TikTok accounts [2] - Asset Entities has secured consulting agreements with TikTok influencers who collectively have 4.7 million followers on TikTok and 280,000 on Instagram [2] - CEO Arshia Sarkhani emphasized that this acquisition aligns with the company's strategic plan to increase gross revenues, following previous acquisitions in the Discord community and payment processing sectors [6] Industry Context - TikTok Shop enables merchants to sell directly to users through various in-app shopping features, including shoppable videos and live shopping experiences [4] - Recent partnerships, such as with Amazon and Walmart Connect, enhance TikTok's capabilities for product promotion and sales [5] - The growth of TikTok Shop reflects a significant trend in social commerce, with a notable increase in marketers leveraging the platform for direct sales [4]

Financial Performance - Asset Entities Inc. reported selected financial results for the three months ended September 30, 2024[3]. - The financial results will not be deemed "filed" under the Exchange Act, limiting liability[4]. Company Classification and Structure - The company is classified as an emerging growth company under the Securities Act[2]. - The trading symbol for the company's Class B Common Stock is ASST, listed on The Nasdaq Stock Market[2]. - The company is headquartered in Dallas, TX, with a principal executive office address at 100 Crescent Ct, 7th Floor[1]. Future Outlook and Risks - Forward-looking statements indicate expectations regarding future financial performance and market opportunities[5]. - The company aims to raise additional capital and complete acquisitions to generate net revenues[5]. - There are substantial risks and uncertainties associated with the company's future performance[5]. - The press release includes a cautionary note regarding the potential variance of actual results from projections[5]. Leadership - The report was signed by Arshia Sarkhani, the Chief Executive Officer and President[7].

Core Insights - Asset Entities Inc. reported a revenue of $202,921 for the quarter ended September 30, 2024, which is a 237% increase compared to $60,135 for the same quarter in 2023 [1] - The CEO expressed optimism regarding future growth driven by strategic acquisitions and partnerships [2] Company Overview - Asset Entities Inc. is a technology company specializing in digital marketing and content delivery services across various social media platforms, including Discord, TikTok, Instagram, X (formerly Twitter), and YouTube [4] - The company is recognized as the first publicly traded entity based on the Discord platform, hosting significant community-based education and entertainment servers [4] - The AE.360.DDM suite of services is noted as a pioneering offering for the design, development, and management of Discord community servers [4] - The company also operates a Ternary payment platform, which is a Stripe-verified partner and CRM for Discord communities [4] - Asset Entities provides a Social Influencer Network (SiN) service that includes white-label marketing, content creation, and TikTok promotions, aimed at enhancing the social media reach of client Discord servers [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission File Number: 001-41612 ASSET ENTITIES INC. | --- | --- | |------------------------------------------------------ ...

Core Insights - Asset Entities Inc. has partnered with Grammy Award-winning artist Macy Gray to design, develop, and manage her server on the Discord platform, aiming to enhance fan engagement and support new artists [1][3][4] Company Overview - Asset Entities Inc. is a technology company specializing in social media marketing, management, and content delivery across various platforms including Discord, TikTok, Instagram, X (formerly Twitter), and YouTube [4] - The company claims to be the first publicly traded entity based on the Discord platform, hosting significant community-based education and entertainment servers [4] - Asset Entities offers a suite of services called AE.360.DDM, which is designed for the design, development, and management of Discord community servers [4] - The company also operates a Ternary payment platform, which is a Stripe-verified partner and CRM for Discord communities [4] Artist Collaboration - Macy Gray, known for her unique sound and significant contributions to music and film, has chosen to collaborate with Asset Entities to create a digital platform for emerging artists [2][3] - Gray expressed enthusiasm about working with Asset Entities, highlighting their role in future fan engagement through Discord [3] Leadership Commentary - Jeff Blue, the Head of Entertainment at Asset Entities, emphasized the importance of Macy Gray's integrity and experience in helping discover and develop new talent in the music industry [3]

Core Insights - Asset Entities Inc. has partnered with fitness influencer Scott Mathison to design, develop, and manage his digital fitness community server on Discord, marking a significant client agreement for the company [1][2]. Group 1: Company Overview - Asset Entities Inc. is a technology company specializing in social media marketing, management, and content delivery across various platforms including Discord, TikTok, and Instagram [4]. - The company is recognized as the first publicly traded entity based on the Discord platform, hosting some of the largest community-based education and entertainment servers [4]. - Asset Entities offers a unique suite of services called AE.360.DDM for the design, development, and management of Discord community servers, catering to businesses and celebrities [4]. Group 2: Partnership Details - Scott Mathison, a prominent fitness influencer with over 1.5 million Instagram followers and 2.1 million TikTok followers, will collaborate with Asset Entities to create a subscription-based digital fitness community [2]. - The community will feature various resources such as workout routines, meal prep plans, and workout challenges aimed at helping members achieve their fitness goals [2]. Group 3: Leadership Commentary - CEO Arshia Sarkhani expressed enthusiasm about the partnership, highlighting the importance of fan engagement through Discord and the potential for community growth [3].