Business Acquisition and Product Development - Safety Shot Inc. completed the asset purchase of the dietary supplement product Safety Shot from GBB Drink Lab, Inc. in August 2023, gaining ownership of various assets including intellectual property and trademarks [124]. - The Sure Shot Dietary Supplement, launched in December 2023, is formulated to reduce blood alcohol content and contains 28 active ingredients classified as Generally Regarded As Safe (GRAS) [125]. - The company plans to expand its product line with new flavors and a powdered stick pack version of the Sure Shot Dietary Supplement [127]. - The company is focused on continuous improvement through innovation and has developed a substantial portfolio of intellectual property to address unmet market needs [135]. - The company owns five patents related to its Sure Shot Dietary Supplement, with the most recent patent granted on December 3, 2024, which covers the current version of the product [149]. Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $5,326,933 compared to a net loss of $15,674,671 for the same period in 2024, indicating a significant improvement in financial performance [165]. - Basic and diluted loss per share for the three months ended March 31, 2025, was $0.08, compared to $0.33 for the same period in 2024, showing a reduction in loss per share [166]. - The Company generated revenues of $42,101 for the three months ended March 31, 2025, a decrease of 75.3% compared to $170,732 in the same period of 2024 [187]. - Cost of sales for the three months ended March 31, 2025 was $21,112, significantly lower than $2,383,285 for the same period in 2024, reflecting a one-time inventory write-off of $1,744,714 in 2024 [186][187]. - Total operating expenses decreased to $5,411,325 for the three months ended March 31, 2025, down from $12,956,552 in the same period of 2024, indicating a reduction in operational costs [188]. - Research and development expenses were $9,005 for the three months ended March 31, 2025, compared to $141,493 for the same period in 2024, showing a significant reduction in R&D spending [176][189]. - The net loss for the three months ended March 31, 2025 was $5,326,933, a 66.1% improvement from the net loss of $15,674,671 in the same period of 2024 [193]. Legal and Financial Obligations - The company entered into a settlement agreement with Bigger Capital, agreeing to pay $375,000 and issue convertible notes totaling $5.25 million [136]. - The Secured Convertible Bigger Note has a principal amount of $1.75 million, maturing on December 31, 2026, with an interest rate of 9% per annum [137]. - The company is engaged in a liabilities settlement program with Silverback Capital Corporation, aiming to pay down $14,580,395.73 in debts by issuing freely trading securities [147]. - The company has committed to promptly filing a registration statement for shares equal to 150% of the shares initially issuable upon exercise of the Bigger Notes, to be filed within ten business days of the settlement agreement [146]. - The company has reserved approximately 23,000,000 shares as potential settlement shares for the liabilities settlement program, with a maximum of 15,000,000 shares to be issued without shareholder approval [148]. Market and Regulatory Environment - Sales primarily occur through e-commerce platforms, including Amazon, with investments directed towards customer experience and brand promotion [133]. - Manufacturing is outsourced to contract manufacturers in India and the US, ensuring adherence to formulation specifications and Good Manufacturing Practices (GMP) [134]. - The company is subject to various U.S. federal, state, and local regulations affecting the production and sale of its dietary supplement, including compliance with the Federal Food, Drug, and Cosmetic Act [150]. - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements applicable to other public companies [160]. Shareholder and Stock Information - The weighted-average number of common shares outstanding increased from 47,435,503 in 2024 to 69,258,402 in 2025, reflecting a 46% increase in shares [165]. - Stock-based compensation for the three months ended March 31, 2025 was $1,985,376, a significant decrease from $8,090,534 in the same period of 2024 [189][191]. - The Company has not recognized an allowance for doubtful collections as of March 31, 2025, indicating a stable collection environment [170]. - Deferred tax assets as of March 31, 2025 were approximately $15,362,309, fully offset by a valuation allowance due to the lack of earnings history [175]. Future Plans and Strategies - The Company is focusing on the acquisition of Yerbae Brands Inc. and plans to implement a new marketing strategy in the second quarter of 2025 [187]. - Legal and professional expenses for the three months ended March 31, 2025 amounted to $2,150,236, compared to $2,382,950 in the same period of 2024, indicating a decrease in legal costs [189][191].
JUPITER WELLNESS(JUPW) - 2025 Q1 - Quarterly Report