Acquisition and Product Development - Safety Shot Inc. completed the acquisition 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[158]. - Safety Shot Inc. acquired Yerbaé, a premium energy beverage company, on June 27, 2025, to enhance its strategic growth in the functional beverage market[171]. - The company plans to expand its product offerings with a powdered stick pack version of the Sure Shot Dietary Supplement to cater to evolving consumer demands[161]. - 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)[159]. - The company owns five patents related to the Sure Shot Dietary Supplement, with the most recent patent granted on December 3, 2024, covering the current version of the product[197]. Financial Performance - For the three months ended June 30, 2025, the company generated revenues of $44,948, a decrease of 93.7% compared to $710,240 for the same period in 2024[205]. - Revenues for the six months ended June 30, 2025 were $87,049, a significant decrease from $880,972 for the same period in 2024, attributed to a shift in focus towards the acquisition of Yerbaé and a new marketing strategy[211]. - The company reported a net income of $13,374,947 for the three months ended June 30, 2025, compared to a net loss of $8,274,094 in the same period of 2024[204]. - Net income for the six months ended June 30, 2025 was $8,048,014, a turnaround from a net loss of $23,948,765 in 2024, showcasing improved financial performance[210]. - Other income for the six months ended June 30, 2025 included an unrealized gain on equity investment of $18,190,351, contributing positively to overall income[215]. Expenses and Cost Management - Total operating expenses for the three months ended June 30, 2025 were $4,363,514, a reduction of 49.3% compared to $8,618,618 for the same period in 2024[206]. - Total operating expenses for the six months ended June 30, 2025 were $9,774,838, a reduction from $21,575,170 in 2024[212]. - Cost of sales for the three months ended June 30, 2025 was $21,070, down 95.8% from $504,528 in the prior year[205]. - Cost of sales for the six months ended June 30, 2025 was $42,182, down from $2,887,813 in 2024, primarily due to decreased revenues and a one-time inventory write-off of $1,649,473 in 2024[211]. - Marketing expenses for the three months ended June 30, 2025 were $863,620, significantly lower than $2,593,322 in the same period of 2024[207][208]. - Marketing expenses for the six months ended June 30, 2025 were $1,220,051, compared to $4,044,095 in 2024, reflecting a strategic reduction in marketing spend[213][214]. - Research and development expenses increased from $100,591 in 2022 to $1,637,117 in 2023, reflecting the company's commitment to product development[167]. - Research and development expenses for the three months ended June 30, 2025 were $6,517, down from $119,911 in the prior year[207][208]. - Research and development expenses for the six months ended June 30, 2025 were $15,522, significantly lower than $261,404 in 2024, indicating a shift in resource allocation[213][214]. - Legal and professional expenses for the three months ended June 30, 2025 were $1,413,402, compared to $1,879,774 in the same period of 2024[207][208]. - Legal and professional expenses for the six months ended June 30, 2025 were $3,563,638, down from $4,252,724 in 2024, reflecting cost management efforts[213][214]. - Stock-based compensation for the six months ended June 30, 2025 was $2,897,107, a significant decrease from $11,045,669 in 2024, indicating a reduction in equity compensation[213][214]. Future Strategies - The company is focusing on closing the acquisition of Yerbaé and implementing a new marketing strategy expected to increase revenues in Q3 2025[205]. - The company plans to implement a new marketing strategy in Q3 2025, which is expected to drive revenue growth moving forward[211]. - Manufacturing is outsourced to contract manufacturers in India and the US, with products shipped to third-party warehouses for distribution[169]. - The company primarily sells products through e-commerce platforms, including Amazon, focusing on customer experience and relationship management to drive loyalty[168]. Clinical Trials - Clinical trials conducted from January 29, 2024, to June 10, 2024, with 36 participants showed a statistically significant reduction in Blood Alcohol Content (BAC) with a p-value of 0.002[166]. Legal Matters - The Bigger Settlement Agreement, entered on January 20, 2025, involves payments totaling $375,000 and the issuance of convertible notes amounting to $5.25 million[172].
JUPITER WELLNESS(JUPW) - 2025 Q2 - Quarterly Report