Safety Shot, Inc. (SHOT) - Q2 2025 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2025. Safety Shot, Inc. (formerly Jupiter Wellness Inc.) operates as a single segment focused on functional beverages, primarily the "Sure Shot" dietary supplement and, following a recent acquisition, Yerbae's plant-based energy beverages. The Company is classified as a smaller reporting company and an emerging growth company.
Key Financial Metrics
| Metric | Q2 2025 (3 Months) | YTD 2025 (6 Months) | Q2 2024 (3 Months) | YTD 2024 (6 Months) |
|---|---|---|---|---|
| Sales Revenue | $44,948 | $87,049 | $710,240 | $880,972 |
| Gross Profit | $23,878 | $44,867 | $205,712 | $(2,006,841) |
| Net Income (Loss) | $13,374,947 | $8,048,014 | $(8,274,094) | $(23,948,765) |
| EPS (Diluted) | $0.09 | $0.06 | $(0.16) | $(0.48) |
| Cash and Equivalents | $466,791 | $466,791 | $3,223,783 | $3,223,783 |
| Total Assets | $42,067,222 | $42,067,222 | $7,338,403 | $7,338,403 |
| Total Liabilities | $18,978,853 | $18,978,853 | $9,511,455 | $9,511,455 |
| Working Capital | $(3,016,005) | $(3,016,005) | $(6,816,954) | $(6,816,954) |
Note: Net income for Q2 2025 is driven primarily by a non-cash unrealized gain of $18.19 million on an equity investment in SRM Entertainment, Inc. Operating cash flow for the six months ended June 30, 2025, was negative $6.28 million.
Material Changes vs. Prior Period
- Acquisition of Yerbae Brands: On June 27, 2025, the Company acquired Yerbae Brands Corp. for approximately $6.0 million in stock. This resulted in the recognition of $12.6 million in goodwill and $7.2 million in intangible assets.
- Revenue Decline: Organic sales revenue decreased significantly compared to the prior year (down ~94% YTD), attributed to a strategic pivot toward the Yerbae acquisition and a new marketing strategy planned for Q3 2025.
- Investment Valuation: The Company holds 2,347,142 shares of SRM Entertainment, Inc., valued at $18.2 million as of June 30, 2025. This valuation created a substantial unrealized gain, reversing the net loss position seen in 2024.
- Debt and Settlements: The Company settled significant litigation with Bigger Capital in January 2025, issuing $5.25 million in convertible notes and warrants. Additional settlements with 3i LP and Iroquois Master Fund occurred in 2025.
Outlook, Risks, and Unusual Items
- Going Concern: The Company has negative working capital and cash balances of approximately $467,000. Management has raised substantial doubt about the Company's ability to continue as a going concern without additional financing.
- Nasdaq Compliance: The Company received notice of non-compliance with Nasdaq's minimum bid price requirement ($1.00). An extension was granted until December 29, 2025, to regain compliance, potentially via a reverse stock split.
- Subsequent Financing (August 2025): Post-period, the Company entered into a significant agreement to issue Series C Preferred Stock in exchange for $25 million in BONK tokens and a 10% revenue share of "LetsBonk.fun" in perpetuity. This transaction grants the investor 50% of the Board of Directors.
- Legal Proceedings: Pending litigation includes an appeal by "Sabby" Volatility Warrant Master Fund Ltd. regarding a breach of contract claim, where the Company has offered a $1.5 million settlement.
- Unusual Items: The reported net income is heavily influenced by non-operating items, specifically the unrealized gain on SRM stock and stock-based compensation used to settle liabilities.
Investor Verification Checklist
- SRM Investment Liquidity: Verify the lock-up agreement terms preventing the sale of SRM Entertainment stock until January 2026 and the volatility of the $18.2 million asset valuation.
- Going Concern Status: Assess the sufficiency of the $467k cash balance against current liabilities of nearly $19 million and the timeline for the August 2025 BONK token financing.
- August 2025 PIPE Terms: Review the implications of the Series C Preferred Stock issuance, specifically the 50% board control granted to the investor and the revenue-sharing obligation for LetsBonk.fun.
- Nasdaq Delisting Risk: Monitor the Company's progress in meeting the $1.00 minimum bid price requirement by December 29, 2025.
- Revenue Sustainability: Evaluate the projected revenue impact of the Yerbae acquisition and the new marketing strategy, given the sharp decline in historical sales.