Jupiter, FL, Dec. 12, 2024 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc. (Nasdaq: SRM) (the “Company,” or “SRM”), a leading provider of licensed merchandise and souvenirs, today announced a significant reorder of its popular Sip With Me cups from a premier marine life theme park in Abu Dhabi and the development of exclusive products for a groundbreaking year-round horror attraction in Las Vegas. These developments underscore SRM's growth and strategic expansion into new markets and product categories. The reo ...

Jupiter, FL, Dec. 05, 2024 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc. (Nasdaq: SRM) (the “Company,” or “SRM”, a leading provider of creative and high-quality licensed media-themed merchandise, today announced that it entered into a securities purchase agreement with a certain institutional investor to purchase approximately $1.7 million shares of its common stock (or common stock equivalents in lieu thereof) in a registered direct offering at a purchase price of $0.7385 per share. The gross proceeds to the ...

Jupiter, FL, Dec. 04, 2024 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc. (Nasdaq: SRM) (the “Company,” or “SRM”, a leading provider of creative and high-quality licensed media-themed merchandise, today announced that its online sales on Amazon have surged by over 417% since September. This exceptional growth is driven by strong customer demand for the company's high-margin products and is expected to have a significant positive impact on its financial performance. "Amazon offers a tremendous platform for us t ...

Jupiter, FL, Nov. 14, 2024 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc., (Nasdaq: SRM) (the “Company” or “SRM”) today announced the launch of its new media division, SRM Media, marking a significant expansion of the company's entertainment offerings. This strategic move builds upon SRM's existing media relationship with Suretone Pictures and underscores SRM’s commitment to delivering high-quality entertainment content across various platforms. SRM Media's first acquisition, courtesy of its new Suretone Pictu ...

JUPITER, FL, Sept. 24, 2024 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc., (Nasdaq: SRM) (the "Company" or "SRM") SRM and Suretone Entertainment's Suretone Pictures are in negotiations to form an alliance capitalizing on Suretone Pictures' film productions, tv content creation, existing library and distribution strength alongside SRM's ongoing merchandise, manufacturing and distribution businesses as engaged in providing its services to the major film studios. The initial transaction was closed on September 3 ...

Core Insights - SRM Entertainment, Inc. has announced a new order for custom designed, nostalgic movie character key chains to be sold online and in theaters of a major movie theater chain, enhancing the merchandising experience for moviegoers [1] Company Overview - SRM Entertainment designs, develops, and manufactures custom products, toys, and souvenirs for major theme parks and entertainment venues globally, including Walt Disney Parks and Resorts and Universal Parks and Destinations [6] - The company focuses on creating brand-themed products that resonate with customers, similar to the merchandise experience in theme parks [5] Product Offering - The new key chains will serve as memorabilia and gifts, promoting an enhanced purchasing experience for theater audiences [1] - SRM's product line includes specialty dolls, plush toys, and exclusive-patented Sip With Me cups featuring various characters, including licensed ones from popular franchises [6]

JUPITER, FL, June 10, 2024 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc., (Nasdaq: SRM) (the "Company" or "SRM") is pleased to announce a new order for SRM custom designed, nostalgic movie character key chains which will be available online and in shops at one of the world's largest movie theater chain. The intial order will help theaters promote the enhanced merchandising experience which allows movie goers to purchase memorabilla, souveniers and gifts in theater. SRM Entertainment designs, develops, and man ...

Financial Performance - The Company reported a net loss of $1,710,004 for the three months ended September 30, 2024, compared to a net loss of $38,002 for the same period in 2023, resulting in a basic loss per share of $0.17[104] - For the three months ended March 31, 2024, the Company reported sales of $1,006,357, a decrease from $1,086,888 in the same period of 2023, reflecting a decline of approximately 7.4%[118] - Gross profit for the three months ended March 31, 2024, was $163,547, down from $235,822 in 2023, indicating a decrease of about 30.6%[118] - The Company incurred a net loss of $1,710,004 for the three months ended March 31, 2024, compared to a net loss of $38,002 in 2023, representing a significant increase in losses[122] - Gross margins decreased by 5.4% due to increased manufacturing costs without a corresponding increase in product pricing[119] - Interest income for the three months ended March 31, 2024, was $5,002, while interest expense was $22,240, indicating a net interest expense of $17,238[121] IPO and Share Issuance - The Company completed an IPO, selling 1,250,000 shares at $5.00 per share, generating gross proceeds of approximately $6.25 million and net proceeds of approximately $5.3 million after expenses[97] - Following the separation from Jupiter Wellness, Inc., the Company issued 6,500,000 shares of common stock, representing 79.3% of the outstanding shares post-issuance[96] - The weighted average number of common shares outstanding increased from 6,500,000 in 2023 to 10,043,522 in 2024[104] Operating Expenses - Total operating expenses surged to $1,878,553 for the three months ended March 31, 2024, compared to $251,584 in 2023, marking an increase of approximately 646.5%[120] - The increase in operating expenses was primarily due to costs associated with being a public company, including $443,274 in fees and $536,000 in stock-based compensation[120] Company Structure and Ownership - As of March 31, 2024, Jupiter owns approximately 35% of the Company's common stock[86] - The Company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions[99] Product and Market Strategy - The Company has a diverse product range priced between $2.50 and $50.00, catering to a broad consumer demographic[94] - The Company has established licensing relationships with major content providers, including Walt Disney Parks and Resorts and Universal Studios, enhancing its product offerings[93] - The Company aims to leverage its low-fixed cost production model to dynamically manage product releases and capitalize on pop culture trends[95] Tax and Accounting - The deferred tax asset as of March 31, 2024, was approximately $847,803, fully offset by a valuation allowance due to the Company's lack of earnings history[111] - The Company has not identified any recent accounting pronouncements that apply to its operations[116]

Part I [Business](index=5&type=section&id=ITEM%201.%20BUSINESS) SRM Entertainment designs and sells toys and souvenirs to theme parks, completed its IPO in August 2023, and operates on a low-fixed-cost model - The company specializes in designing and developing toys and souvenirs for major theme parks including **Walt Disney Parks and Resorts** and **Universal Studios**[19](index=19&type=chunk)[23](index=23&type=chunk) - SRM Entertainment became a separate entity from **Jupiter Wellness, Inc.** following a Share Exchange on **August 14, 2023**, treated as a Reverse Acquisition[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - The company completed its IPO on **August 14, 2023**, raising approximately **$5.3 million** in net proceeds from selling **1,250,000 shares** at **$5.00 per share**[28](index=28&type=chunk) - SRM utilizes a nimble, **low-fixed-cost production model** by leveraging third-party manufacturers to respond to pop culture trends effectively[25](index=25&type=chunk) [Risk Factors](index=7&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces diverse risks including operational fluctuations, reliance on third-party manufacturers, intense competition, and business seasonality [Risks Related to Our Business](index=7&type=section&id=Risks%20Related%20to%20Our%20Business) Key business risks include fluctuating results, reliance on third-party manufacturers, high seasonality, and intellectual property challenges - The company's results are expected to fluctuate quarterly and annually due to changes in pricing, consumer preferences, and supply constraints[29](index=29&type=chunk)[30](index=30&type=chunk) - SRM relies entirely on **third-party manufacturers**, primarily in **China**, exposing the business to production loss, delays, and compliance failures[35](index=35&type=chunk)[38](index=38&type=chunk) - The business is highly seasonal, with significant sales during the **traditional holiday season**, making it vulnerable to peak period disruptions[48](index=48&type=chunk)[49](index=49&type=chunk) - The company depends on large, recurring purchases from a few significant retailers without binding long-term commitments, leading to potentially volatile revenue streams[60](index=60&type=chunk)[61](index=61&type=chunk) - SRM faces risks protecting its **intellectual property** and is subject to potential third-party infringement claims, which could be costly[63](index=63&type=chunk)[64](index=64&type=chunk) [Risks Related to Our Securities and Other Risks](index=19&type=section&id=Risks%20Related%20to%20Our%20Securities%20and%20Other%20Risks) Risks related to the company's securities include reduced disclosure requirements as an 'emerging growth company,' potentially impacting investor attractiveness - As an **'emerging growth company'** under the JOBS Act, SRM's reduced disclosure requirements may make its common stock less attractive to some investors[85](index=85&type=chunk)[86](index=86&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) This section is not applicable as the company has no unresolved comments from the SEC staff - Not applicable [Cybersecurity](index=20&type=section&id=ITEM%201C.%20CYBERSECURITY) SRM maintains a cybersecurity risk management program with Board oversight, and has not identified any material threats to date - The company maintains a cybersecurity risk management methodology including risk assessments, security measures, and an incident response plan, often engaging third-party providers[90](index=90&type=chunk)[91](index=91&type=chunk) - The Board of Directors, through its **Audit Committee**, provides strategic oversight on cybersecurity matters and receives periodic management updates[92](index=92&type=chunk)[93](index=93&type=chunk) - The company has not identified any known cybersecurity threats that have materially affected its business, operations, or financial condition[91](index=91&type=chunk) [Properties](index=21&type=section&id=ITEM%202.%20PROPERTIES) The company does not own real estate, leasing its principal executive office in Jupiter, Florida on a month-to-month basis - SRM's principal executive office is located in **Jupiter, Florida**[94](index=94&type=chunk) - The office space is leased on a **month-to-month basis** and is considered adequate for current needs[94](index=94&type=chunk) [Legal Proceedings](index=21&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any material legal proceedings that could significantly affect its business or financial condition - There are no pending or threatened legal actions that could have a material adverse effect on the Company[95](index=95&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) This section is not applicable to the company's business - Not applicable Part II [Market for Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=21&type=section&id=ITEM%205.%20MARKET%20FOR%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) SRM's common stock began trading on Nasdaq in August 2023, with no anticipated cash dividends and an authorized 2023 Equity Incentive Plan - The company's common stock trades on the **Nasdaq Capital Market** under the symbol **'SRM'**[98](index=98&type=chunk) - SRM does not anticipate paying cash dividends on its common stock, intending to retain earnings for growth[101](index=101&type=chunk) - The **2023 Equity Incentive Plan** authorizes issuing up to **1,500,000 shares** of common stock for equity awards[104](index=104&type=chunk) - No issuer purchases of equity securities were made during the year ended **December 31, 2023**[103](index=103&type=chunk) [Reserved](index=23&type=section&id=ITEM%206.%20RESERVED) This item is not applicable as SRM is a smaller reporting company - Not applicable to a smaller reporting company [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) SRM reported a **net loss of $2.05 million** in 2023, primarily due to increased operating expenses, with cash significantly improving from IPO proceeds [Results of Operations](index=29&type=section&id=Results%20of%20Operations) The company experienced a slight revenue decrease in 2023, while operating expenses significantly increased, leading to a net loss Financial Performance Comparison (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $5,760,533 | $6,076,116 | | Gross Profit | $1,317,450 | $1,230,899 | | Total Expenses | $3,371,309 | $902,198 | | Net Income (Loss) | $(2,053,859) | $328,701 | - Revenues decreased slightly in **2023**, attributed to milder summer season conditions in Orlando, though attendance remains in line with pre-pandemic levels[147](index=147&type=chunk) - Operating expenses increased significantly in **2023** primarily due to **IPO costs**, public company expenses, and increased marketing efforts[148](index=148&type=chunk)[151](index=151&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position significantly improved in 2023, primarily due to net proceeds from its IPO, despite cash used in operating activities - As of **December 31, 2023**, cash and cash equivalents significantly increased to **$2,980,741** from **$453,516** at year-end 2022[156](index=156&type=chunk) - Net cash provided by financing activities was **$3,679,359** in **2023**, primarily from **IPO net proceeds of $5,168,325**, offset by promissory note repayment[158](index=158&type=chunk) - Net cash used in operating activities was **$769,764** for the year ended **December 31, 2023**[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item is not applicable as SRM is a smaller reporting company - Not applicable to a smaller reporting company [Financial Statements and Supplementary Data](index=31&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements for 2023 and 2022, including balance sheets, statements of operations, and cash flows [Consolidated Balance Sheets](index=52&type=section&id=Consolidated%20Balance%20Sheets) This section provides a summary of the company's consolidated balance sheet data as of December 31, 2023, and 2022 Consolidated Balance Sheet Data (as of Dec 31) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Total Assets** | **$4,543,074** | **$2,079,564** | | Total Current Assets | $4,497,612 | $2,070,231 | | **Total Liabilities** | **$418,876** | **$2,082,158** | | **Total Shareholders' Equity** | **$4,124,198** | **$(2,594)** | [Condensed Consolidated Statement of Operations](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) This section presents the company's condensed consolidated statement of operations for the years ended December 31, 2023, and 2022 Consolidated Statement of Operations (for the year ended Dec 31) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Sales | $5,760,533 | $6,076,116 | | Gross Profit | $1,317,450 | $1,230,899 | | Net Income (Loss) | $(2,053,859) | $328,701 | | Basic and Diluted EPS | $(0.27) | $0.05 | [Condensed Consolidated Statement of Cash Flows](index=55&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section provides the company's condensed consolidated statement of cash flows for the years ended December 31, 2023, and 2022 Consolidated Statement of Cash Flows (for the year ended Dec 31) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash (Used in) Operating Activities | $(766,877) | $(29,925) | | Net Cash (Used in) Investing Activities | $(392,956) | $(4,285) | | Net Cash Provided by (Used in) Financing Activities | $3,687,058 | $(27,647) | | **Net Increase (Decrease) in Cash** | **$2,527,225** | **$(61,857)** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=32&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURES) The company reports no changes or disagreements with its accountants regarding accounting principles, financial disclosures, or auditing scope - None [Controls and Procedures](index=33&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls were ineffective due to team size, but internal control over financial reporting remained effective as of December 31, 2023 - Management concluded that disclosure controls and procedures were **ineffective** due to the small size of the assessment and control team[165](index=165&type=chunk) - Despite ineffective disclosure controls, management believes the company maintained **effective internal control over financial reporting** as of **December 31, 2023**[167](index=167&type=chunk) - No material changes occurred in the company's internal controls over financial reporting during the fiscal year[170](index=170&type=chunk) [Other Information](index=34&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) There is no other information to report in this section - None Part III [Directors and Executive Officers and Corporate Governance](index=34&type=section&id=ITEM%2010.%20DIRECTORS%20AND%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) This section details the company's directors and executive officers, Board composition, and established governance committees and code of ethics - The company's executive team includes **Richard Miller** as CEO and **Douglas O. McKinnon** as CFO[175](index=175&type=chunk) - The Board has determined that **Christopher Marc Melton, Gary Herman, and Hans Haywood** are independent directors under Nasdaq rules[189](index=189&type=chunk) - The Board has established an **Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee**[192](index=192&type=chunk) - The company has adopted a **code of ethics and conduct** applicable to all directors, officers, and employees[198](index=198&type=chunk) [Executive Compensation](index=42&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) This section details compensation for named executive officers and directors for fiscal years 2023 and 2022, including employment agreement terms Summary Executive Compensation (2023) | Name and Principal Position | Salary ($) | Bonus ($) | All Other Comp. ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | Richard Miller, CEO | 175,000 | 50,000 | 25,000 | 250,000 | | Douglas O. McKinnon, CFO | 61,875 | 25,000 | 12,500 | 99,375 | | Taft Flitner, President | 100,000 | 68,717 | - | 168,617 | - CEO **Richard Miller's** employment agreement provides for an annual base salary of **$175,000** with annual **10% increases** for the next two years[207](index=207&type=chunk) Director Compensation (2023) | Director | Compensation ($) | | :--- | :--- | | Richard Miller | 25,000 | | Douglas O. McKinnon | 12,500 | | Christopher Marc Melton | 25,000 | | Gary Herman | 25,000 | | Hans Haywood | 25,000 | [Security Ownership of Certain Beneficial Owners and Management](index=44&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT) This section details beneficial ownership of common stock as of March 29, 2024, for directors, executive officers, and the group collectively - As of **March 29, 2024**, all officers and directors as a group beneficially owned **2,196,388 shares**, representing **19.6%** of common stock[220](index=220&type=chunk) - CEO **Richard Miller** beneficially owned **900,000 shares (8.2%)**, and CFO **Douglas McKinnon** owned **436,388 shares (4.0%)**[220](index=220&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=45&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) The company reports no material related party transactions since 2023 and has established procedures for reviewing such potential transactions - The company did not have any related party transactions exceeding **$120,000** during fiscal year **2023**[228](index=228&type=chunk) - Disinterested Board members are responsible for reviewing and approving potential related person transactions[227](index=227&type=chunk) [Principal Accountant Fees and Services](index=46&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) This section discloses audit fees paid to M&K CPAS for fiscal years 2023 and 2022, totaling $65,000 and $90,000 respectively Audit Fees Paid to M&K CPAS | Year | Audit Fees ($) | | :--- | :--- | | 2023 | 65,000 | | 2022 | 90,000 | Part IV [Exhibits, Financial Statement Schedules](index=47&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section provides a comprehensive index of all exhibits filed with the Form 10-K, including corporate documents and material contracts - The exhibit index lists key corporate documents, including **Articles of Incorporation (Exhibit 3.1)** and the **2023 Equity Incentive Plan (Exhibit 10.9)**[232](index=232&type=chunk) - Material contracts, such as employment agreements and license agreements with **LAFIG Belgium (Smurfs)** and **Zoonicorn, LLC**, are included as exhibits[232](index=232&type=chunk)

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, 2023 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ______________ Commission File Number 001-41768 SRM ENTERTAINMENT, INC. (Exact name of registrant as specified in charter) Nevada 32-0686534 (St ...