SEC Filing Summary: Safety Shot, Inc. (SHOT)
Business Context and Reporting Period
Company: Safety Shot, Inc. (formerly Jupiter Wellness, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2024
Business Overview: The Company focuses on the commercialization of the "Sure Shot Dietary Supplement" (formerly Safety Shot), a beverage formulated to reduce blood alcohol content. In August 2023, the Company acquired the assets of GBB Drink Lab, Inc. and rebranded. In September 2024, the Company separated its legacy wellness product lines (hair loss, vitiligo, sexual wellness) into a subsidiary, Caring Brands, Inc., to focus exclusively on the Sure Shot product. The Company operates as a single reportable segment and is classified as an Emerging Growth Company and Smaller Reporting Company.
Key Financial Metrics (Year Ended Dec 31, 2024)
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue (Sales) | $701,967 | $202,670 |
| Cost of Sales | $3,147,724 | $277,127 |
| Gross Profit (Loss) | $(2,445,757) | $(74,457) |
| Total Operating Expenses | $39,611,915 | $12,524,869 |
| Net Loss | $(49,409,632) | $(15,083,041) |
| Cash and Cash Equivalents (End of Period) | $348,816 | $3,833,349 |
| Operating Cash Flow | $(18,089,748) | $(10,715,314) |
| Convertible Notes Payable | $5,250,000 | $1,500,000 |
| Accumulated Deficit | $(115,090,347) | $(65,680,715) |
Note: The 2024 Net Loss includes a $2,293,301 deemed dividend related to warrant settlements.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 246% to $701,967, driven by the December 2023 launch of the Sure Shot beverage. However, the Company incurred a significant gross loss due to a $2.27 million inventory write-off related to rebranding and packaging changes (12oz to 4oz cans).
- Expense Surge: Operating expenses tripled to $39.6 million. This was primarily driven by $20.5 million in stock-based compensation (issuance of stock for services and settlements) and $8.1 million in legal and professional fees related to litigation and merger activities.
- Liquidity Decline: Cash reserves decreased by approximately $3.5 million to $348,816. The Company reported a negative working capital of $6.8 million.
- Debt Increase: Convertible notes payable increased to $5.25 million following the settlement of the Bigger Capital litigation, which resulted in the issuance of $5.25 million in new notes (Secured and Unsecured) rather than cash payment.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: The Company's auditors have issued a "Going Concern" opinion due to significant accumulated deficits and operating losses. Management states that additional capital will be required to continue operations.
- Nasdaq Compliance: The Company received a deficiency notice from Nasdaq on January 2, 2025, for failing to maintain a $1.00 minimum bid price for 30 consecutive days. The Company has 180 days (until July 1, 2025) to regain compliance, potentially via a reverse stock split.
- Legal Settlements:
- Bigger Capital: Settled for $375,000 cash, $5.25 million in convertible notes, and 5.3 million warrants.
- Intracoastal Capital: Settled for $175,000 cash and shares valued at $875,000.
- Alta Partners: Settled for $350,000 cash.
- Acquisition: Entered into an Arrangement Agreement on January 7, 2025, to acquire Yerbae Brands Corp. for 20 million shares of Company common stock.
- Regulatory Risk: The product is marketed as a dietary supplement. There is a risk the FDA could classify it as a drug, requiring costly clinical trials and approval processes. The Company completed a clinical trial in 2024 showing statistically significant BAC reduction.
- Management Changes: New employment agreements were executed in late 2024 for the CEO, President, and Chairman, including significant stock-based incentives tied to 2025 revenue targets ($500k and $1M milestones).
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $348,816 cash balance against the $39.6M annual burn rate and the timeline for the proposed Yerbae Brands acquisition.
- Inventory Valuation: Confirm the rationale and accounting treatment for the $2.27M inventory write-off and the current state of the 4oz product line.
- Dilution Impact: Assess the dilution from the $5.25M convertible notes (Bigger Capital), the 20M shares for the Yerbae acquisition, and the 18.8M outstanding warrants.
- Nasdaq Status: Monitor the Company's progress in regaining the $1.00 minimum bid price to avoid delisting.
- Revenue Sustainability: Evaluate whether the $701k revenue run rate is sustainable given the high cost of sales and marketing expenses.