BONK, INC. (BNKK) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the three-month period ended March 31, 2026. BONK, Inc. (formerly Safety Shot, Inc. and Jupiter Wellness, Inc.) operates in two primary segments: the sale of dietary and energy beverages (specifically the "Sure Shot" supplement) and digital asset investments, primarily holding BONK tokens. The company is classified as a smaller reporting company and an emerging growth company. As of May 13, 2026, there were 8,000,940 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $4,337,057 | $42,101 |
| Gross Profit | $3,593,044 | $20,989 |
| Net Loss | $(1,828,643) | $(5,326,933) |
| Net Loss Per Share (Basic) | $(0.23) | $(2.69) |
| Cash and Cash Equivalents | $728,907 | $329,285 |
| Total Assets | $38,387,759 | $N/A (Not provided in text) |
| Total Liabilities | $5,104,257 | $N/A (Not provided in text) |
| Accumulated Deficit | $(185,320,822) | $(120,417,280) |
Revenue Composition: Revenue was driven by $3,550,726 in "Related party revenue share" from the LetsBonk.fun platform and $786,331 in beverage sales. Cost of sales was $744,013, primarily related to beverage production.
Digital Assets: The company holds significant digital assets (BONK tokens) valued at $16,420,525 ($1.9M current, $14.5M non-current). This segment incurred an unrealized loss of $3,831,935 during the quarter due to market fluctuations.
Material Changes vs. Prior Period
- Revenue Surge: Total revenue increased from $42,101 in Q1 2025 to $4.34 million in Q1 2026. This is primarily attributable to the new revenue-sharing agreement with LetsBonk.fun, which contributed over $3.5 million.
- Reduced Net Loss: Net loss improved significantly from $5.33 million in Q1 2025 to $1.83 million in Q1 2026. This improvement is largely due to a reduction in operating expenses (from $5.41M to $2.22M) and a realized gain on the sale of marketable securities ($796,404), partially offset by the unrealized loss on digital assets.
- Operating Expenses: General and administrative expenses decreased substantially, driven by lower legal and professional fees and reduced stock-based compensation compared to the prior year.
- Cash Flow: Net cash used in operating activities was $1.94 million, compared to $4.63 million in the prior year period. The company sold digital assets for cash ($392,259) during the quarter.
Guidance, Outlook, Risks, and Contingencies
Going Concern: The company's auditors have raised substantial doubt about its ability to continue as a going concern. This is due to an accumulated deficit of over $185 million and a history of operating losses. The company expects to continue incurring significant costs for expansion.
Legal Proceedings:
- Sabby Litigation: The company settled one Sabby Volatility Warrant Master Fund Ltd. lawsuit for $250,000 in May 2026. A second Sabby lawsuit regarding warrant exercise is pending; the company has accrued a $1.5 million settlement offer as of March 31, 2026, and is awaiting a court ruling on damages.
- Other Settlements: The company settled a class action regarding employee misclassification for $75,000 and a dispute with Iroquois Master Fund for $2.5 million (paid in July 2025).
Regulatory Risks: The company faces risks related to FDA regulation of its "Sure Shot" dietary supplement, specifically regarding claims about reducing blood alcohol content. If the FDA classifies the product as a drug rather than a supplement, the company would face significant compliance hurdles and potential recalls.
Digital Asset Volatility: A significant portion of the company's assets and income volatility is tied to the fair value of BONK tokens. The company voluntarily holds these tokens to support ecosystem value, but they are subject to market risk.
Investor Verification Checklist
- Going Concern Status: Verify the company's ability to fund operations given the $185M accumulated deficit and reliance on future financing or revenue sharing.
- Revenue Sustainability: Assess the durability of the $3.55M revenue share from LetsBonk.fun and the terms of the related party agreement.
- Digital Asset Valuation: Confirm the fair value methodology for the $16.4M in digital assets and the impact of crypto-market volatility on future earnings.
- Legal Accruals: Monitor the outcome of the pending Sabby litigation and whether the accrued $1.5M settlement is sufficient.
- Regulatory Compliance: Review any FDA communications regarding the "Sure Shot" product claims and potential reclassification as a drug.