BNKK

Business Context and Reporting Period

Company: BONK, INC. (formerly Safety Shot, Inc. and Jupiter Wellness, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Reporting Status: Smaller Reporting Company; Emerging Growth Company

Bonk, Inc. operates in two primary segments: (1) dietary and energy beverages (Sure Shot Dietary Supplement and Yerbaé plant-based beverages) and (2) digital assets. In 2025, the Company executed a strategic pivot, acquiring Yerbaé Brands in June and entering the digital asset space in August via a revenue-sharing agreement with the BONK ecosystem. The Company changed its name and trading symbol to "BNKK" in October 2025. A 1-for-35 reverse stock split was effected in December 2025.

Key Financial Metrics

Note: Revenue includes $1.81 million from digital asset revenue sharing. The Net Loss includes a $35.37 million unrealized loss on digital assets and a $4.95 million impairment of intangible assets.

Material Changes vs. Prior Period

• Revenue Growth: Total revenue increased 461% to $3.93 million, driven by the acquisition of Yerbaé Brands and the initiation of digital asset revenue sharing (10% to 51% of gross revenue from LetsBonk.fun).
• Asset Composition: Total assets increased to $41.0 million, primarily due to the addition of digital assets (BONK tokens) valued at approximately $18.0 million and goodwill of $14.1 million from the Yerbaé acquisition.
• Loss Expansion: Net loss widened by $18.8 million. While operating expenses remained relatively flat ($40.7M vs $39.6M), the loss was significantly impacted by a $35.4 million unrealized loss on digital assets and a $6.1 million loss on legal settlements.
• Capital Structure: The Company issued significant equity, including Series C Preferred Stock and common stock, often in exchange for BONK tokens or to settle liabilities. A 1-for-35 reverse stock split reduced outstanding shares from ~185 million to ~5.3 million.

Guidance, Outlook, Risks, and Unusual Items

Management Commentary and Outlook

Management is transitioning the business model from a traditional beverage company to a "BONK strategy company." The outlook relies heavily on the appreciation of BONK token holdings and revenue sharing from the LetsBonk.fun platform. The Company expects to continue incurring significant costs for expansion and development.

Going Concern Warning

The Company's auditors have issued a going concern opinion. As of December 31, 2025, the Company had an accumulated deficit of $183.5 million and negative operating cash flow of $25.3 million. Management's ability to continue as a going concern is dependent on raising additional capital and the performance of its digital asset strategy.

Material Risks

• Digital Asset Volatility: The Company holds a concentrated position in BONK tokens. Fluctuations in the token's price directly impact financial results and liquidity. A significant decrease could impair the ability to meet financial obligations.
• Regulatory Uncertainty: Risks include potential classification of BONK tokens as securities, which could subject the Company to the Investment Company Act of 1940, and evolving regulations regarding digital assets and dietary supplements.
• Liquidity: The Company relies on equity and debt financing to fund operations. There is no assurance that financing will be available on favorable terms.

Unusual Items

• Unrealized Loss on Digital Assets: $35.37 million loss recognized due to the remeasurement of BONK tokens to fair value.
• Intangible Asset Impairment: $4.95 million impairment charge related to patents for the Sure Shot Dietary Supplement.
• Legal Settlements: Significant losses recognized on settlements with Bigger Capital and other parties, often settled via equity issuance.

Investor Verification Checklist

• Going Concern Status: Verify the Company's ability to secure additional financing given the $25M operating cash burn and $183M accumulated deficit.
• Digital Asset Valuation: Confirm the fair value methodology for BONK tokens and the liquidity of these assets to cover liabilities.
• Revenue Sharing Terms: Review the amended agreement with LetsBonk.fun (increased from 10% to 51% revenue share) and the sustainability of this revenue stream.
• Equity Dilution: Assess the impact of recent equity issuances (Series C Preferred, PIPE offerings) and the 1-for-35 reverse split on existing shareholder ownership.
• Legal Contingencies: Monitor the status of pending litigation, including the Sabby Volatility Warrant Master Fund appeal and the Yerbaé class action regarding employee classification.
• Internal Controls: Note that management concluded disclosure controls and procedures were ineffective as of December 31, 2025.