10-K: Safety Shot Inc. Reports Financial Results for Fiscal Year 2024, Highlights Strategic Developments

Safety Shot Inc. releases its 2024 annual report, detailing financial performance and key strategic initiatives, including the focus on its Sure Shot Dietary Supplement and recent corporate transactions.

Summary

• Safety Shot Inc., formerly Jupiter Wellness Inc., released its annual report for the fiscal year ended December 31, 2024.
• The company successfully completed the asset purchase of the Safety Shot Dietary Supplement in August 2023 and launched e-commerce sales in December 2023.
• The company changed the name of the Safety Shot Dietary Supplement to the Sure Shot Dietary Supplement on October 9, 2024.
• The Sure Shot Dietary Supplement contains 28 active ingredients and is manufactured in a GMP-compliant facility.
• The company discontinued historical product lines of Jupiter Wellness and will focus on the commercialization of the Sure Shot Dietary Supplement.
• The company entered into a Separation and Exchange Agreement with Caring Brands, Inc. on September 24, 2024, to commercialize the historical product line.
• The company is advancing several product formats and formulations to continue to offer a wide array of products that can be purchased at various locations that coincide with consumer shopping habits.
• The company intends to perform additional research studies in Q2 and Q3 of 2025.
• The company completed clinical trials of the Sure Shot Dietary Supplement, which showed a statistically significant reduction in BAC of the participants.
• The company incurred research and development expenses of $100,591 and $1,637,117 for the years ended December 31, 2022, and 2023, respectively.
• The company launched the Sure Shot Dietary Supplement in stores such as BevMo! in the second quarter of 2024.
• The company entered into the Bigger Settlement Agreement on January 20, 2025, and the Intracoastal Settlement Agreement on January 14, 2025, to resolve legal claims.
• The company entered into a Consulting Agreement with Blue Capital S.A., LLC on January 18, 2025.
• The company entered into a Securities Purchase Agreement with one accredited investor for the purchase of 2,277,389 shares for gross proceeds of $1,000,000 on January 17, 2025.
• The company received a notice from Nasdaq on January 2, 2025, regarding non-compliance with the minimum bid price requirement.
• The company entered into a definitive Arrangement Agreement with Yerbae Brands Corp. on January 7, 2025.
• The company entered into an Equity Disbursement Agreement with Maxim Group LLC on December 6, 2024.
• The company entered into a Separation and Exchange Agreement with Caring Brands, Inc. on September 24, 2024.
• The company entered into a Consulting Agreement with Core 4 Capital Corp. on September 23, 2024.
• The company entered into employment agreements with John Gulyas, Jordon Schur, Jarrett Boon, and Danielle De Rosa.
• The company owns five patents, including patents for the composition of the Sure Shot Dietary Supplement.
• The company rents office space at 1061 E. Indiantown Rd., Ste. 110, Jupiter, FL 33477 for $15,038 per month.

Sentiment

Score: 4

Explanation: The document presents a mixed sentiment. While there are positive developments such as the acquisition of Safety Shot and ongoing research, the significant increase in net loss and the going concern warning from the auditors raise concerns.

Positives

• Successful asset purchase of the Safety Shot Dietary Supplement.
• Launch of e-commerce sales of the Sure Shot Dietary Supplement.
• Clinical trials showed a statistically significant reduction in BAC of the participants.
• Settlement agreements reached to resolve legal claims.
• Definitive agreement to acquire Yerbae Brands Corp.
• Equity Disbursement Agreement established for potential capital raising.
• Employment agreements secured with key management personnel.
• The company owns five patents, including patents for the composition of the Sure Shot Dietary Supplement.

Negatives

• The company received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement.
• The company has incurred and expects to continue to incur significant costs in pursuit of its expansion and development plans.
• The company's auditors have included a going concern opinion in the annual report.

Risks

• The company may not be able to regain compliance with Nasdaq listing rules.
• The company's future success depends on its ability to compete effectively and generate revenue.
• The company's products may not meet health and safety standards or could become contaminated.
• The company is subject to government regulation, and unfavorable changes could substantially harm its business and results of operations.
• The company depends heavily on key personnel, and turnover of key senior management could harm its business.
• The company's accountant has indicated doubt about its ability to continue as a going concern.

Future Outlook

The company plans to develop new flavors and dosages for its Sure Shot Dietary Supplement and conduct additional research studies in Q2 and Q3 of 2025.

Industry Context

The company operates in the competitive consumer packaged goods industry, focusing on the health and wellness market with its Sure Shot Dietary Supplement.

Comparison to Industry Standards

• The document does not contain enough information to make a detailed comparison to industry standards.
• A full comparison would require detailed financial metrics from direct competitors, such as revenue growth, profitability, and market share, which are not provided in the document.
• Without this information, it is difficult to assess whether Safety Shot's performance is above, below, or in line with industry benchmarks.

Management Changes

Legal Proceedings

• The company is involved in several legal proceedings, including lawsuits with Intracoastal Capital, Sabby Volatility Warrant Master Fund Ltd., 3i LP, Bigger Capital Fund, L.P., and Coachella Music Festival, LLC.

Related Party Transactions

• The company entered into a Consulting Agreement with Core 4 Capital Corp. on September 23, 2024, where the company's President, Jordan Schur, is a 15% owner.
• The company entered into a Securities Purchase Agreement with Core 4 Capital Corp. on August 30, 2024, where the company's President, Jordan Schur, is a 15% owner.
• The company entered into a Securities Purchase Agreement with Core 4 Capital Corp. on June 27, 2024, where the company's President, Jordan Schur, is a 15% owner.
• The company entered into a Securities Purchase Agreement with Core 4 Capital Corp. on April 4, 2024, where the company's President, Jordan Schur, is a 15% owner.

Stakeholder Impact

• Shareholders: Potential dilution from equity offerings and the Yerbae Brands Corp. acquisition.
• Employees: Changes in management and potential impact on compensation and benefits.
• Customers: Continued availability of Sure Shot Dietary Supplement and potential new product offerings.
• Creditors: Potential impact from convertible notes and settlement agreements.

Next Steps

• The company intends to perform additional research studies in Q2 and Q3 of 2025.
• The company intends to actively monitor the minimum bid price of its common stock and may consider available options to regain compliance with Rule 5550(a)(2), including undertaking a reverse stock split.
• The company shall promptly file a registration statement for shares of the Companys Common Stock equal to 150% of the shares initially issuable upon exercise of the Bigger Notes, which filing shall be no later than ten (10) business days after the execution of the Settlement Agreement.

Key Dates

Keywords

Safety Shot, Sure Shot Dietary Supplement, Yerbae Brands Corp, Financial Results, Annual Report, Bigger Capital, Intracoastal Capital, Clinical Trials, Nasdaq, Asset Purchase, Convertible Notes, Warrants, Legal Proceedings, Management, Patents, E-commerce, Dietary Supplement, Beverage, SHOT