What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2022-03-31 compared with 2021-04-12 · 82 added, 554 removed, 2 unchanged (100% of the section changed)

MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER

MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s common stock is traded on the

NASDAQ Stock Market LLC under the symbol JUPW and its warrants are traded under the symbol JUPWW.

The following table sets forth

the range of high and low bid prices for our common stock for each of the periods indicated as reported by such marketplaces.

These quotations

reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

2021 Fiscal Year:

First Quarter Ended March 31, 2021

2020 Fiscal Year:

Fourth Quarter Ended December 31, 2020*

MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Company’s common stock is traded on the NASDAQ Stock Market LLC under the symbol JUPW and its warrants are traded under the symbol

following table sets forth the range of high and low bid prices for our common stock for each of the periods indicated as reported by

such marketplaces.

These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent

actual transactions.

Quarter Ended December 31, 2021

Quarter Ended September 30, 2021

Quarter Ended December 31, 2021

Quarter Ended December 31, 2021*

Quarter Ended March 31, 2022*

The Company began trading on October 30, 2020.

April 1, 2021, the common stock closed at $4.75.

We consider our common stock to

be thinly traded and, accordingly, reported sales prices or quotations may not be a true market-based valuation of our common stock.

As of April 5, 2021, there were 58 shareholders of

We do not anticipate paying any

cash dividends on our common stock in the foreseeable future and we intend to retain all of our earnings, if any, to finance our growth

and operations and to fund the expansion of our business.

Payment of any dividends will be made in the discretion of our Board of Directors,

after our taking into account various factors, including our financial condition, operating results, current and anticipated cash needs

and plans for expansion.

No dividends may be declared or paid on our common shares, unless a dividend, payable in the same consideration

or manner, is simultaneously declared or paid, as the case may be, on our shares of preferred stock, if any.

Issuance of Securities

On November 16, 2020, the Company entered into an

endorsement agreement (the “

Endorsement Agreement ”) with Tee-2-Green Enterprises Limited (“

Tee-2-Green ”),

pursuant to which the Company received the exclusive right and license to utilize Ernie Els’

Player ”) name,

likeness, photographs, and endorsements in the advertising, promotion, distribution and sale of the Company’s products, including

products in the CaniSun, CaniSkin and CaniDermRX lines.

The Endorsement Agreement has a term of three (3) years (the “

Period ”), which commenced on November 10, 2020, unless extended by mutual agreement of the parties or sooner terminated.

one (1) year prior to the end of the Contract Period, and for a period of six (6) months thereafter (the “

Exclusive Negotiating

Period ”), the parties shall negotiate exclusively with one another as regards to extension of the Endorsement Agreement.

the event that the parties are unable to conclude a binding agreement as regards to an extension of the Endorsement Agreement during the

Exclusive Negotiating Period, either party shall be entitled to enter into negotiations with any third party as regards the subject matter

of the Endorsement Agreement and conclude any agreement with any third party for the period following the Contract Period.

Pursuant to the Endorsement Agreement, the Company

issued to Tee-2-Green 50,000 shares of the Company’s common stock and warrants to purchase 50,000 shares of the Company’s

common stock at a purchase price of $3.90 per share, which was the trading price of the common stock at such time.

The warrants are exercisable

at any time within five (5) years from the date of issuance thereof.

On November 30, 2020, the Company entered into and

closed on a share exchange agreement (the “

Exchange Agreement ”) with SRM Entertainment, LTD, a Hong Kong Special Administrative

Region of the People's Republic of China limited company (“

SRM ”) and wholly owned subsidiary of Vinco Ventures, Inc.,

a Nevada corporation formerly known as Edison Nation, Inc.

Vinco ”), and the shareholders of SRM set forth in the

Exchange Agreement (the “

SRM Shareholders ”), pursuant to which the Company acquired 100% of the shares of SRM’s

common stock (the “

SRM Common Stock ”) from the SRM Shareholders in exchange for 200,000 shares of the Company’s

common stock, subject to a leak out provision and escrow of 50,000 shares of the Company’s common stock.

SRM is involved in the

sale of merchandise at amusement parks and has licenses which allow the Company to sell its other products in these amusement parks.

a result, the Company is currently developing a new line of non-CDB infused suncare products for sale in these parks.

Upon closing, and

pursuant to the Exchange Agreement, the Company delivered 150,000 shares of its common stock to SRM and placed 50,000 shares in escrow

Escrow Shares ”).

Pursuant to the Exchange Agreement, the Company shall release the Escrow Shares upon SRM generating

$200,000 in cash receipts and revenue prior to January 15, 2021.

Pursuant to the Exchange Agreement, the Company assumed all of the financial

obligations of SRM, as well as its four employees and offices in Hong Kong.

We expect to close the office in Hong Kong over the next few

months as the employees are largely working remotely.

As a result of the Exchange Agreement, SRM became a wholly-owned subsidiary of the

Securities Authorized for Issuance under Equity

Compensation Plans

On April 22, 2020, our Board of

Directors and majority shareholders approved the Jupiter Wellness, Inc.

2020 Equity Incentive Plan (the “Plan”), to be administered

by our Compensation Committee.

Pursuant to the Plan, we are authorized to grant options and other equity awards to officers, directors,

employees and consultants.

The purchase price of each share of common stock purchasable under an award issued pursuant to the Plan, shall

be determined by our Compensation Committee, in its sole discretion, at the time of grant, but shall not be less than 100% of the fair

market of such share of common stock on the date the award is granted, subject to adjustment.

Our Compensation Committee shall also have

sole authority to set the terms of all awards at the time of grant.

Pursuant to the Plan, a maximum of 1,183,950 shares of our common

stock shall be set aside and reserved for issuance, subject to adjustments as may be required in accordance with the terms of the Plan.

On March 30, 2022, the common stock closed at $24,146,001.

consider our common stock to be thinly traded and, accordingly, reported sales prices or quotations may not be a true market-based valuation

of our common stock.

of March 30, 2022, there were 28 shareholders of record.

do not anticipate paying any cash dividends on our common stock in the foreseeable future and we intend to retain all of our earnings,

if any, to finance our growth and operations and to fund the expansion of our business.

Payment of any dividends will be made in the

discretion of our Board of Directors, after our taking into account various factors, including our financial condition, operating results,

current and anticipated cash needs and plans for expansion.

No dividends may be declared or paid on our common shares, unless a dividend,

payable in the same consideration or manner, is simultaneously declared or paid, as the case may be, on our shares of preferred stock,

of Securities

November 16, 2020, the Company entered into an endorsement agreement (the “ Endorsement Agreement ”) with Tee-2-Green

Enterprises Limited (“ Tee-2-Green ”), pursuant to which the Company received the exclusive right and license to utilize

Ernie Els’ (the “ Player ”) name, likeness, photographs, and endorsements in the advertising, promotion, distribution

and sale of the Company’s products, including products in the CaniSun, CaniSkin and CaniDermRX lines.

The Endorsement Agreement

has a term of three (3) years (the “ Contract Period ”), which commenced on November 10, 2020, unless extended by mutual

agreement of the parties or sooner terminated.

Beginning one (1) year prior to the end of the Contract Period, and for a period of six

(6) months thereafter (the “ Exclusive Negotiating Period ”), the parties shall negotiate exclusively with one another

as regards to extension of the Endorsement Agreement.

In the event that the parties are unable to conclude a binding agreement as regards

to an extension of the Endorsement Agreement during the Exclusive Negotiating Period, either party shall be entitled to enter into negotiations

with any third party as regards the subject matter of the Endorsement Agreement and conclude any agreement with any third party for the

period following the Contract Period.

to the Endorsement Agreement, the Company issued to Tee-2-Green 50,000 shares of the Company’s common stock and warrants to purchase

50,000 shares of the Company’s common stock at a purchase price of $3.90 per share, which was the trading price of the common stock

at such time.

The warrants are exercisable at any time within five (5) years from the date of issuance thereof.

September 3, 2021, the Company and Tee-2-Green entered into an Addendum to Endorsement Agreement (the “Addendum”), pursuant

to which the original contract term has been extended by two years and now terminates at midnight on November 25, 2025.

As consideration

for the extension, the Company will issue Tee-2-Green an additional 60,000 shares of the Company’s restricted common stock (“the

Restricted Stock”).

The Company will also pay Tee-2-Green $75,000 in year four and $75,000 in year five of the Endorsement Agreement.

November 30, 2020, the Company entered into and closed on a share exchange agreement (the “ Exchange Agreement ”) with

SRM Entertainment, LTD, a Hong Kong Special Administrative Region of the People’s Republic of China limited company (“ SRM ”)

and wholly owned subsidiary of Vinco Ventures, Inc., a Nevada corporation formerly known as Edison Nation, Inc.

and the shareholders of SRM set forth in the Exchange Agreement (the “ SRM Shareholders ”), pursuant to which the Company

acquired 100% of the shares of SRM’s common stock (the “ SRM Common Stock ”) from the SRM Shareholders in exchange

for 200,000 shares of the Company’s common stock, subject to a leak out provision and escrow of 50,000 shares of the Company’s

common stock.

SRM is involved in the sale of merchandise at amusement parks and has licenses which allow the Company to sell its other

products in these amusement parks.

As a result, the Company is currently developing a new line of non-CDB infused suncare products for

sale in these parks.

Upon closing, and pursuant to the Exchange Agreement, the Company delivered 150,000 shares of its common stock to

SRM and placed 50,000 shares in escrow (“ Escrow Shares ”).

Pursuant to the Exchange Agreement, the Company shall release

the Escrow Shares upon SRM generating $200,000 in cash receipts and revenue prior to January 15, 2021.

Pursuant to the Exchange Agreement,

the Company assumed all of the financial obligations of SRM, as well as its four employees and offices in Hong Kong.

We expect to close

the office in Hong Kong over the next few months as the employees are largely working remotely.

As a result of the Exchange Agreement,

SRM became a wholly-owned subsidiary of the Company.

Authorized for Issuance under Equity Compensation Plans

July 27, 2021, and December 14, 2021, our Board of Directors and majority shareholders, respectively, approved the Jupiter Wellness,

2021 Equity Incentive Plan (the “Plan”), to be administered by our Compensation Committee.

Pursuant to the Plan, we

are authorized to grant options and other equity awards to officers, directors, employees and consultants.

The purchase price of each

share of common stock purchasable under an award issued pursuant to the Plan, shall be determined by our Compensation Committee, in its

sole discretion, at the time of grant, but shall not be less than 100% of the fair market of such share of common stock on the date the

award is granted, subject to adjustment.

Our Compensation Committee shall also have sole authority to set the terms of all awards at

the time of grant.

Pursuant to the Plan, a maximum of 3,500,000 shares of our common stock shall be set aside and reserved for issuance,

subject to adjustments as may be required in accordance with the terms of the Plan.

SELECTED FINANCIAL DATA

Not applicable to a smaller reporting

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following

discussion and analysis of our financial condition and results of our operations together with our consolidated financial statements

and the notes thereto appearing elsewhere in this document.

This discussion contains forward-looking statements reflecting our current

expectations, whose actual outcomes involve risks and uncertainties.

Actual results and the timing of events may differ materially from

those stated in or implied by these forward-looking statements due to a number of factors, including those discussed in the sections

entitled “Risk Factors,”

"Cautionary Statement regarding Forward-Looking Statements"

and elsewhere in this Prospectus.

Please see the notes to our Financial Statements for information about our Significant Accounting Policies and Recent Accounting Pronouncements.

Forward Looking Statements

This annually report

contains forward-looking statements.

These statements relate to future events or our future financial performance.

In some cases, you

can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”,

“anticipates”, “believes”, “estimates”, “predicts”, “potential”

or “continue”

or the negative of these terms or other comparable terminology.

These statements are only predictions and involve known and unknown risks,

uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements

to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee

future results, levels of activity, performance or achievements.

Except as required by applicable law, including the securities laws of

the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited financial

statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this

annually report.

The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.

results could differ materially from those discussed in the forward-looking statements.

Factors that could cause or contribute to such

differences include, but are not limited to, those discussed below and elsewhere in this annually report.

In this annually report,

unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares”

refer to the common shares in our capital stock.

As used in this annually

report and unless otherwise indicated, the terms “we”, “us”, “our”, "JUPW"

and the “Company”

mean Jupiter Wellness, Inc.

Company Overview

We were originally incorporated

in the State of Delaware on October 24, 2018.

Our principal business address is 725 N.

Hwy A1A, Suite C-106, Jupiter, FL 33477.

Jupiter Wellness,

is a cutting-edge developer of cannabidiol (CBD) based medical therapeutics and wellness products.

The Company’s clinical

pipeline of prescription CBD-enhanced skin care therapeutics address indications including eczema, burns, herpes cold sores, and skin

We are in the early stage of manufacturing, distributing, and marketing a diverse line of consumer products infused with CBD.

We have a proprietary, line of products:

CaniSun, CaniSkin and CaniDermRX.

Under the CaniSun brand, we are marketing patent pending CBD-infused

sun care lotion formulas containing various sun protection factors, or SPFs.

In addition, we are exploring the use of CBD with other

prescription and/or over-the-counter, or OTC, consumer products that have potentially therapeutic and medical applications.

Specifically,

we are exploring the use of such topical solutions for the treatment of eczema, dermatitis (JW-100), and actinic keratosis (JW-_100),

a non-prescription lotion/lip balm (JW-200) for the treatment of symptoms of cold sores, and a prescription product for the treatment

of burns (JW-101).

The CaniDermRX (JW-100) topical solution for the treatment of eczema dermatitis is the lead product candidate and

will be further tested in humans as an investigational cosmetic ingredient followed by clinical trials subject to the regulations of

the United States Food and Drug Administration (“FDA”) under an investigational new drug, or IND, application.

2021, we announced the results of our novel Cannabidiol-Aspartame combination treatment JW-100 clinical trial which has shown it significantly

Reduces ISGA Score in Eczema patients.

A double blinded placebo controlled interventional study was conducted.

Subjects were assigned

to apply, at home, one of three treatments:

JW-100 (a CBD and aspartame combination topical formulation), a CBD only topical formulation,

or a placebo topical formulation.

After 14 days, the average reduction in the Investigators Static Global Assessment (ISGA) score was

calculated for each group.

Additionally, the proportion of subjects achieving (ISGA) score 0 (clear) or 1 (almost clear) with at least

2 grade improvement from baseline was recorded for each arm of the study.

50% of subjects in the JW-100 arm achieved ISGA clear or almost

clear (1 or 2) with at least a 2-grade improvement from baseline after treatment versus 20% and 15% in the CBD-only and placebo arms,

respectively.

The percentage of subjects achieving clear or almost clear with at least a 2-grade improvement from baseline was found

to be statistically significant (p=0.028).

JW-100, a novel topical formulation containing CBD and aspartame, was shown to significantly

reduce ISGA score in atopic dermatitis patients after two weeks of use.

The combination of CBD and aspartame was more effective at reducing

ISGA scores than CBD alone.

we plan to initiate the development of other products.

We originally anticipated developmental studies to be completed in 2020, however,

these studies were delayed due to COVID-19.

We are also actively seeking to acquire or license products in the OTC skin care market that

can be infused with CBD and marketed under our CaniSkin and CaniDermRX brand names.

There can be no assurances that we will acquire or

enter into such partnership or licensing agreements.

The endocannabinoid

system, which is a body system affected by CBD, plays a pivotal role in maintaining a healthy skin through modulating pain sensation,

cell proliferation and inflammation.

Our strategy for treatment of skin indications is, therefore, to focus on the use of CBD containing

topical formulations and to explore potential combinations of CBD and other agents that may augment and act synergistically with CBD.

We will explore this strategy by conducting controlled clinical trials to try to ultimately gain FDA approval for specific indications.

CaniSun Brand

We developed a CBD-infused sunscreen

with broad-spectrum SPF protection.

We have completed lab testing for CBD solubility-infusing clear, colorless, odorless, and 99.5% pure

CBD isolated with three different sun care active ingredients, homosalate, octisalate and octocrylene, which have already been approved

The CBD-infused sun care market is fairly nascent in the United States;

we believe that there are currently no major competitors

in the category.

We see an opportunity to become the leading manufacturer of CBD-infused sun care products, marketing the CaniSun brand

through an extensive digital and social media awareness campaign.

We announced the launch of our CaniSun sun care line of SPF 30, SPF

50 and SPF 55 face lotion on June 6, 2019.

We also sell our CBD-infused lip balm and CBD-infused SPF 30 sunscreen spray on our website

We currently have additional CaniSun products

in various stages of development as follows:

CBD-infused SPF 30 Lip Balm;

CBD-infused SPF 15 sunscreen lotion;

Mineral-based sunscreen lotions (SPF 30 and 50).

All of the products listed above

are in the developmental stage, whereby we are finalizing the formula to be used in each product, respectively.

For CBD-infused product

candidates in development, such as our CBD-infused SPF 30 Lip Balm and CBD-infused SPF 15 sunscreen lotion, we have already identified

the sun care active ingredient formula (which has already been FDA approved) to be infused with CBD.

Once the respective formulas for

each of our products are created, the product candidates will undergo three months of stability testing.

Provided that the product candidates

pass the stability testing, we intend to sell the products on our CaniSun website.

The formula for our mineral-based sunscreen lotion

(SPF 30 and 50) (product iii) above) includes certain minerals instead of chemicals typically used in sunscreen lotions.

Overall, we believe that our currently

offered sunscreen products comply with the FDA Final Rule for sunscreen products under 21 CFR 352 Sunscreen products for Over-the-Counter

Therefore, we believe that our sunscreen products fall within the FDA monograph and that premarket approval and testing is

not required.

Our products have been tested for SPF Evaluation (SPF rating), Critical Wave Length (Broad Spectrum claim) and Water Resistance,

each of which is defined within the monograph and labeled accordingly.

All of the test on these products

is standard testing for suncare products.

Such testing protocols are not intended to test for any effects of adding CBD.

In addition to

these tests that were conducted to support the claims on the package, each batch is also tested for appearance, color, odor, pH, viscosity,

specific gravity, analytical for the sunscreen active ingredients, and microbial content testing.

Our products are tested each time

they are manufactured.

DCR Labs manufactures our products and has represented to us that it is compliant with the FDA’s Current

Good Manufacturing Practice, or “CGMP”, regulations in accordance with 21 CFR 210/211 required for Over-the-Counter drug products.

DCR Labs has self-imposed health and safety standards to ensure compliance with the FDA’s CGMPs.

We expect to continually update

and expand upon our corporate website and further refine our online retail strategies on an ongoing basis.

Jupiterwellness.com is our primary

corporate website, which will serve as the primary source of information about us for investors and contain press releases, clinical trial

pipeline, lab reports, blog posts, and additional information about each of our brands.

We anticipate that each brand will have its own

front-facing website dedicated to retail sales and brand specific information.

For example, our line of sun care products, CaniSun, has

its own website at CaniSun.com and allows for online retail purchase of the entire product line.

As we expand our brands (CaniSkin and

CaniDermRX), we anticipate utilizing the same strategy and dedicating a new e-commerce website to each brand moving forward.

building a website dedicated to servicing our wholesale and larger distributor clients.

This website will have more information about

each product and provide a central location for larger retailers to find more in-depth information about all of our brands in one place.

We plan to leverage our websites with a social media presence across multiple platforms designed to utilize product reviews to increase

brand loyalty, brand recognition and sales.

The references to our website in this prospectus are inactive textual references only.

information on our website is neither incorporated by reference into this prospectus nor intended to be used in connection with this offering.

We also see growth potential in developing retail locations.

We intend to utilize cross-promotion marketing campaigns with our products

and product category expansion that leverages our existing distribution channels.

We have built an e-commerce platform designed to connect

us directly to consumers.

We use the platform to sell products, educate customers and build brand loyalty.

CaniSkin Brand and CaniDermRX Brand

We are currently developing other

products such as CBD-infused skin care lotion under the CaniSkin brand.

Specifically, a CBD-infused moisturizing face serum is under development.

We must first finalize the formula to be used in the face serum, and, once approved, the product candidate will undergo stability testing.

We intend to sell the product, provided it first passes stability testing, on our website for CaniSkin products.

Additionally, we are

developing innovative dermatological treatments under the CaniDermRX brand that are specialized to treat atopic dermatitis and other dermatological

conditions such as burns, skin cancer and herpes cold sores, respectively.

Subject to obtaining FDA approval, we intend for our experimental-stage

product for the treatment of atopic dermatitis to compete with Dupixent, an FDA-approved leading treatment for atopic dermatitis, and

for our experimental-stage product for the treatment of herpes cold sores to compete with Silvadene and Abreva, FDA-approved products

for treating herpes cold sores.

These products require more extensive testing to show with safety and efficacy.

Our first clinical indication

is atopic dermatitis (eczema).

We have completed manufacturing of formulations containing CBD and aspartame in an FDA-approved CGMP facility

and will be initiating clinical trials of an experimental cosmetic ingredient in this indication to determine efficacy.

We expect these

studies to be completed in 2021 and cost approximately $120,000.

We will not make any medicinal or therapeutic claims based on this trial.

In parallel, we have initiated development studies to file an investigational new drug (“

IND ”) application for FDA

regulated clinical studies in this indication.

We expect the developmental studies to be completed in the first quarter of 2021 and the

IND filing to be submitted in the second quarter of 2021.

We originally anticipated developmental studies to be completed in the first

quarter of 2020, however, these studies were delayed due to COVID-19.

The cost of the developmental studies are estimated to be approximately

Critical Accounting Policies

management’s discussion and analysis of our financial condition and results of operations is based on our unaudited financial statements

for the year ended December 31, 2020 and audited financial statements for the year ended December 31, 2020, which have been prepared in

accordance with United States generally accepted accounting principles, or U.S.

GAAP, and the rules and regulations of the Securities

and Exchange Commission.

The preparation of the financial statements requires us to make estimates and assumptions that affect the reported

amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well

as the reported revenue generated, and expenses incurred during the reporting periods.

Our estimates are based on our historical experience

and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments

about the carrying value of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these

estimates under different assumptions or conditions and any such differences may be material.

We believe that the accounting policies

discussed below are critical to understanding our historical and future performance, as these policies relate to the more significant

areas involving management’s judgments and estimates .

The financial statements have

been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and

are expressed in United States Dollars.

Significant accounting policies are summarized below:

Revenue Recognition

The Company generates its revenue from the sale of

its products directly to the end user or distributor (collectively the “customer”).

The Company recognizes revenues by applying the following

steps in accordance with FASB Accounting Standards Codification 606 “Revenue from Contracts with Customers”

(“ASC 606”).

Under ASC 606, revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that

reflects the consideration that the Company expects to receive in exchange for those goods or services.

The Company applies the following

five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

identify the contract with a customer;

identify the performance obligations in the contract;

determine the transaction price;

allocate the transaction price to performance obligations in the contract;

recognize revenue as the performance obligation is satisfied.

The Company’s performance obligations are satisfied

when goods or products are shipped on an FOB shipping point basis as title passes when shipped.

Our product is generally paid in advance

of shipment or standard net 30 days and we offer no specific right of return, refund or warranty related to our products except for cases

of defective products of which there have been none to date.

Inventories are stated at the

lower of cost or market.

The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory

based on its assessment of market conditions.

Write-downs and write-offs are charged to cost of goods sold.

Inventory is based upon the

average cost method of accounting.

Use of Estimates

The preparation of financial statements

in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities

and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during

the reporting period.

Actual results could differ from those estimates.

Earnings (Loss) Per Share

Net income (loss) per common share

is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification.

Basic net income (loss) per share is computed

by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.

If applicable, diluted

earnings per share assume the conversion, exercise or issuance of all common stock instruments such as options, warrants, convertible

securities and preferred stock, unless the effect is to reduce a loss or increase earnings per share.

Warrants are not considered in the

calculations for the year ended December 31, 2020 and the year ended December 31, 2019, as the impact of the potential common shares would

be to decrease the loss per share.

Denominator for basic earnings per share - Weighted-average common shares issued and outstanding during the period

Denominator for diluted earnings per share

Basic (loss) per share

Diluted (loss) per share

We consider all short-term investments

with a maturity of three months or less when purchased to be cash and equivalents for purposes of the statement of cash flows.

no cash equivalents as December 31, 2020 and 2019.

Foreign Currency Translation

and liabilities in foreign currencies are translated using the exchange rate at the balance sheet date, while revenue and expense accounts

are translated at the average exchange rates prevailing during the period.

Equity accounts are translated at historical exchange rates.

Gains and losses from foreign currency transactions and translation for the years ended December 31, 2020 and 2019 and the cumulative

translation gains and losses as of December 31, 2020 and 2019 were not material.

Accounts Receivable

Accounts receivable are generated from sales of the

Company’s products.

The Company provides an allowance for doubtful collections, which is based upon a review of outstanding receivables,

historical collection information, and existing economic conditions.

As of December 31, 2020 the Company recorded an allowance of $118,761

against accounts receivable acquired in connection with the acquisition of SRM Entertainment and as of December 31, 2020, the Company

had recognized no allowance for doubtful collections.

Fair Value of Financial Instruments

The fair value of our assets and

liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,”

the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

We account for income taxes under

ASC 740 Income Taxes (“ASC 740”).

ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected

impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit

to be derived from tax loss and tax credit carry forwards.

ASC 740 additionally requires a valuation allowance to be established when

it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting

for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement

process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.

also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

Based on our evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in our financial

Since we were incorporated on October 24, 2018, the evaluation was performed for 2018 tax year, which would be the only period

subject to examination.

We believe that our income tax positions and deductions would be sustained on audit and does not anticipate any

adjustments that would result in a material changes to our financial position.

Our policy for recording interest and penalties associated

with audits is to record such items as a component of income tax expense.

The Company’s deferred tax asset at December 31, 2020 consists of

net operating loss carry forwards calculated using federal and state effective tax rates equating to approximately $936,311 less a valuation

allowance in the amount of approximately $936,311.

Because of the Company’s lack of earnings history, the deferred tax asset has

been fully offset by a valuation allowance in the years ended December 31, 2020 and 2019.

Research and Development

Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research

and Development (“ASC 730-10”).

Under ASC 730-10, all research and development costs must be charged to expense as incurred.

Accordingly, internal research and development costs are expensed as incurred.

Third-party research and developments costs are expensed

when the contracted work has been performed or as milestone results have been achieved.

Company-sponsored research and development costs

related to both present and future products are expensed in the period incurred.

The Company incurred research and development expenses

of $308,367 and $108,957 for the year ended December 31, 2020 and 2019, respectively.

Stock Based Compensation

We recognize compensation costs

to employees under FASB Accounting Standards Codification 718 “Compensation - Stock Compensation”

(“ASC 718”).

Under ASC 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date

fair value and recognize the costs in the financial statements over the period during which employees are required to provide services.

Share based compensation arrangements include stock options and warrants.

As such, compensation cost is measured on the date of grant

at their fair value.

Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant.

On October 24, 2018, the inception

date (“Inception”), we adopted ASU No.

2018-07 “Compensation - Stock Compensation (Topic 718):

Improvements to

Nonemployee Share-Based Payment Accounting.”

These amendments expand the scope of Topic 718, Compensation - Stock Compensation

(which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or

Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned.

The value of common stock issued

or payable from Inception through December 31, 2020 were based upon the last sales price of our common stock to a third party.

through September 2019, we had multiple sales of common stock at $0.25 per share.

From September through the end of 2019, we sold our

stock at $1.00 per share.

Issuances and grants throughout 2019 were all based upon the last sales price for sales of our stock for cash

to third parties.

If and when our shares of common stock are publicly listed, we will use the closing share price on a exchange as a basis

for valuing our stock grants.

Recently Issued Accounting Pronouncements

In June 2018, the FASB issued

ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions.

The amendments specify that Topic 718 applies

to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own

operations by issuing share-based payment awards.

The Company has adopted this standard beginning January 1, 2019.

The adoption of this

standard did not have a significant impact on our results of operations, financial condition, cash flows, and financial statement disclosures.

In May 2014, the FASB issued ASU

2014-09, “Revenue from Contracts with Customers”.

The new standard provides a five-step approach to be applied to all

contracts with customers and also requires expanded disclosures about revenue recognition.

The ASU is effective for annual reporting periods

beginning after December 15, 2017, including interim periods and is to be retrospectively applied.

The adoption of this standard did not

have a significant impact on our results of operations, financial condition, and cash flows.

The adoption of this standard is expected

to result in additional financial statement disclosures.

In February 2016, Topic 842, “Leases”

was issued to replace the leases requirements in Topic 840, “Leases”.

The main difference between previous GAAP and Topic

842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous

A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset

representing its right to use the underlying asset for the lease term.

For leases with a term of 12 months or less, a lessee is permitted

to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities.

If a lessee makes

this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.

The accounting

applied by a lessor is largely unchanged from that applied under previous GAAP.

Topic 842 will be effective for annual reporting periods

beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied.

has adopted this standard beginning January 1, 2019.

The adoption of this standard did not have a significant impact on our results of

operations, financial condition, cash flows, and financial statement disclosures.

Management does not believe that

any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on our financial statements.

Results of Operations

For the year ended December 31, 2020

The following table provides selected

financial data about us for the year ended December 31, 2020 and 2019, respectively.

December 31, 2020

December 31, 2019

Cost of Sales

Gross Profit (Loss)

Total expenses

We generated $1,065,665 in revenues

for the year ended December 31, 2020 compared to $6,455 revenues for the year ended December 31, 2019.

The large increase is due to the

Company having only nominal operations during 2019.

In 2019, the Company focused its efforts on formulating, testing and manufacturing

its sunscreen and skin care products.

In 2020, the Company (i) began marketing its skin care and sunscreen products line, (2) acquired

Magical Beasts, LLC, which expanded its product offerings, sales and marketing capabilities (3) added additional product lines to its

skin care product line, (4) added a line of hand sanitizer, for a combined sales total of $834,812 and acquired SRM Entertainment Ltd

which contributed sales of $230,853.

Operating Expenses

We had total operating expenses of $6,730,300 for the year ended December

31, 2020 compared to $913,893 for the year ended December 31, 2019.

Operating expenses for the year ended December 31, 2020 were in connection with

our daily operations as follows:

(i) marketing expenses of $82,367;

(ii) research and development of $308,367;

(iii) legal and professional

expenses of $837,698, consisting of corporate advisory services, registration statement preparation fees, general corporate governance

(iv) rent of $61,797;

(v) depreciation and amortization of $103,392;

(vi) general and administrative expenses of $1,784,456, consisting

of payroll and related taxes, travel, meals and entertainment, office supplies and expense and other normal office and administration

(vii) stock based compensation of $2,398,140;

(viii) an impairment to Goodwill of $308,690;

(ix) an impairment to Intangible

Assets of $731,628 and (x) net interest expense of $113,765.

had total operating expenses of $913,893 for the year ended December 31, 2019.

Operating expenses were in connection with our daily

operations as follows:

(i) marketing expenses of $74,145 consisting of internet awareness costs, website development, trade shows

and promotional displays;

(ii) research and development of $108,957 consisting of product development and formulation and clinical

(iii) legal and professional expenses of $132,318, consisting of corporate advisory services, registration statement

preparation fees, intellectual property fees and general corporate governance fees and trademark fees;

(iv) rent of $17,783;

stock based compensation of $357,904;

(vi) general and administrative expenses of $217,610, consisting of accounting fees,

consulting fees, payroll and related taxes, Board of Director fees, patent filing expenses, travel, charitable contributions, meals

and entertainment, office supplies and expense and other normal office and administration expenses and (vii) net interest expense of $5,176.

Income/Losses

Net losses were $6,289,205 and

$925,462 for the years ended December 31, 2020 and 2019, respectively.

Impact of Inflation

We believe that inflation has

had a negligible effect on operations since inception.

We believe that we can offset inflationary increases in the cost of operations

by increasing sales and improving operating efficiencies.

Off Balance Sheet Arrangements

We do not have off-balance sheet

arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “variable interest

entities.”

Liquidity and Capital Resources

The Company is in commercialization

mode, while continuing to pursue the development of its next generation product as well as new products that are being developed.

We generally require cash to:

launch sales initiatives,

fund our operations and working capital requirements,

develop and execute our product development and market introduction plans,

fund research and development efforts, and

pay any expense obligations as they come due.

QUANTITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK

Not applicable to a smaller reporting

FINANCIAL STATEMENTS AND SUPPLEMENTARY

Our financial statements and corresponding

notes thereto called for by this item may be found beginning on page F-1 of this Annual Report on Form 10-K.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS

ON ACCOUNTING AND FINANCIAL DISCLOSURES

applicable to a smaller reporting company.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity