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Item 7. Management’s Discussion and Analysis

2026-03-31 compared with 2025-03-28 · 78 added, 75 removed, 307 unchanged (33% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

annually report contains forward-looking statements.

annual report contains forward-looking statements.

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

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

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

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

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these statements to actual results.

audited 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.

audited 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 annual report.

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

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

could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this annually report.

this annually report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common

Factors that could cause

or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this annual report.

this annual 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.

used in this annually report and unless otherwise indicated, the terms “we”, “us”, “our”, “SHOT”

and the “Company” mean Safety Shot, Inc.

SHOT) was formerly known as Jupiter Wellness Inc.

In August 2023, the Company successfully completed the asset purchase

of the functional beverage Safety Shot from GBB Drink Lab, Inc.

(“GBB”), thereby gaining ownership of various assets, including

the intellectual property, trade secrets, and trademarks associated with its dietary supplement Safety Shot Beverage (the “Safety

Shot Beverage”).

Concurrently with the asset purchase, the Company changed its name to Safety Shot, Inc.

and changed its NASDAQ

trading symbol to SHOT.

The Company launched its e- commerce sale of the Safety Shot Beverage in December 2023.

used in this annually report and unless otherwise indicated, the terms “we”, “us”, “our”, “Bonk”

and the “Company” mean Bonk, Inc.

BNNK) was formerly known as Safety Shot, Inc.

August 2023, the Company successfully completed the asset purchase of the functional beverage Safety Shot from GBB Drink Lab, Inc.

thereby gaining ownership of various assets, including the intellectual property, trade secrets, and trademarks associated with its dietary

supplement Safety Shot Beverage (the “Safety Shot Beverage”).

Concurrently with the asset purchase, the Company changed its

name to Safety Shot, Inc.

and changed its NASDAQ trading symbol to SHOT.

The Company launched its e- commerce sale of the Safety Shot

Beverage in December 2023.

Safety Shot Beverage has been formulated to reduce the accumulation of blood alcohol.

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shares would be to decrease the loss per share.

For the Years Ended

For the Twelve Months Ended December 31,

Net (loss) from continuing operations

$ (68,185,762 )

$ (48,411,830 )

Income (loss) from discontinued operations

$ (68,185,762 )

$ (49,409,632 )

Deemed Dividend

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Diluted (loss) per share

Loss per share attributed to common shareholders

Loss per shares attributed to common shareholders

consider all short-term investments with a maturity of three months or less when purchased to be cash and equivalents for purposes of

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There were no cash equivalents as December 31, 2025 and 2024.

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, 2024 and 2023 and the cumulative

translation gains and losses as of December 31, 2024 and 2023 were not material.

receivable are generated from sales of the Company’s products.

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interest and penalties associated with audits is to record such items as a component of income tax expense.

Company’s deferred tax asset at December 31, 2024 and 2023 consists of net operating loss carry forwards calculated using

federal and state effective tax rates equating to approximately $14,660,582 and $8,658,484, respectively.

Due to the Company’s

lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance of $14,660,582 and $8,658,484 for the

years ended December 31, 2024 and 2023.

The Company’s deferred tax asset at December 31, 2025 and 2024 consists

of net operating loss carry forwards calculated using federal and state effective tax rates equating to approximately $8,957,037 and $14,660,582,

respectively.

Due to the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance

of $8,957,037 and $14,660,582 for the years ended December 31, 2025 and 2024.

On August 8, 2025, the Company experienced a change in control

due to the revenue sharing agreement and as a result the historical net operating loss carryforwards were eliminated.

and Development

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option grant.

For options granted to employes, we use a plain vanilla Black-Scholes

calculation to calculate fair value with standard market inputs.

October 24, 2018, the inception date (“Inception”), we adopted ASU No.

2018-07 “Compensation - Stock Compensation (Topic

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 non-employees

for goods or services.

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

For options granted to employes, we use a plain vanilla Black-Scholes calculation to calculate fair value with standard

market inputs.

Issued Accounting Pronouncements

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following table provides selected financial data about us for the year ended December 31, 2025 and 2024, respectively.

December 31, 2024

December 31, 2023

Twelve Months Ended December 31,

Beverage sales

Related party income from digital assets

Cost of sales

Gross Profit (Loss)

Total operating expenses

Other (income) expenses

Net Loss from continuing operations

Operating expenses:

General and administrative

Impairment expense

Total operating costs and expenses

Total other income (expense)

(28,747,360 )

Loss from operations

$ (68,185,762 )

Income (loss) from discontinued operations

$ (48,411,830 )

Loss from discontinued operations

$ (68,185,762 )

$ (49,409,632 )

Deemed dividend

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$ (69,049,162 )

$ (51,702,933 )

generated $3,929,661 in revenues for the year ended December 31, 2025 compared to $701,967 revenues for the year ended December 31,

The increase is due to the Company the commencement of marketing and selling its Safety Shot beverage in December 2023.

The increase is due to the Company acquisition of Yerbaé Brands on June 27, 2025 and the Company’s digital asset investment that commenced in August

had total operating expenses of $40,676,508 for the year ended December 31, 2025 compared to $39,611,915 for the year ended December

expenses for the year ended December 31, 2025, totaled $40,676,508 and were in connection with our daily operations as follows:

marketing expenses of $1,747,060;

(ii) research and development of $24,190 which included clinical trials;

(iii) legal and

professional expenses of $1,137,814 primarily for due diligence and legal work on a proposed merger and litigation along with

corporate advisory services, registration statement preparation fees, general corporate governance fees;

(iv) rent and utilities of

(v) depreciation and amortization of $609,575;

(vi) general and administrative expenses of $17,738,882, consisting of

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

(vii) an intangible asset impairment of $4,950,950 and (vii) stock based compensation of $14,266,731 consisting of the

fair value of stock issued in lieu of cash.

expenses for the year ended December 31, 2024, totaled $39,611,915 and were in connection with our daily operations as follows:

(i) marketing

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of $20,456,237 consisting of the fair value of stock issued in lieu of cash.

expenses for the year ended December 31, 2023, totaled $12,524,869 and were in connection with our daily operations as follows:

(i) marketing

expenses of $566,666;

(ii) research and development of $100,591 which included clinical trials;

(iii) legal and professional expenses

primarily for due diligence and legal work on two proposed mergers and litigation along with corporate advisory services, registration

statement preparation fees, general corporate governance fees;

(iv) rent and utilities of $206,871;

(v) depreciation and amortization

(vi) general and administrative expenses of $4,296,899, consisting of payroll and related taxes, travel, meals and entertainment,

office supplies and expense and other normal office and administration expenses;

(vii) stock based compensation of $2,082,081 consisting

of the fair value of stock issued in lieu of cash and (viii) impairment of a $200,000 advance to an affiliate.

income and expense

income and expense for the year ended December 31, 2024, included realized gains of $1,193,666 on the sale of marketable securities and

$862,407 of unrealized losses on unsold marketable securities, net interest expense

of $118,325 and other income of $6,567,092.

Other income and expense for the year ended December 31, 2025, included

realized gains of $13,275,054 on the sale of marketable securities and gain on a settlement of $151,612;

$40,542 of unrealized losses

on unsold marketable securities, $35,372,217 of unrealized losses on digital assets, $120,446 of losses on exchange of common stock to

preferred series A stock, $6,140,411 of losses on settlement, net interest expense of $592,504 and other income of $92,094.

income and expense for the year ended December 31, 2024, included realized gains of $1,193,666 on the sale of marketable securities and

$1,511,488 of unrealized losses on unsold marketable securities, unrealized loss of $864,418 on equity investment, net interest expense

of $114,093 and other income of $23,308.

and loss f rom discontinued operations

$862,407 of unrealized losses on unsold marketable securities, net interest expense of $118,325 and other income of $6,567,092.

and loss from discontinued operations

the year ended December 31, 2025 and 2024, The Company had losses from discontinued operations of $0 and $997,802, respectively.

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losses were $68,185,762 and $49,409,632 for the years ended December 31, 2025 and 2024, respectively.

connection with the settlement with Bigger Capital, Company agreed to cancel 1,656,050 original warrants with an exercise price of $1.40

held by Bigger in exchange for 5,332,889 “exchange” warrants with an exercise price of $0.4348.

The fair value of the exchange

warrants is $2,732,329 which is offset by the fair value of the remaining life of the original warrant of $439,028 and is considered

a deemed dividend attributable to the shareholders in the determination of earnings (loss) per share.

the year ended December 31, 2025, certain warrant holders entered into an agreement for a cashless exercise of warrants resulting in

issuance of 951,067 common shares and recording a deemed dividend of $863,400.

of the FV recalculated using Black-Scholes method over the FV of the shares of common stock over at the date of the agreement November11,

2025 was considered and accounted as deemed dividend.

the year ended December 31, 2025, in connection with the settlement with Bigger Capital, Company agreed to cancel 1,656,050 original

warrants with an exercise price of $1.40 held by Bigger in exchange for 5,332,889 “exchange” warrants with an exercise

price of $0.4348.

The fair value of the exchange warrants is $2,732,329 which is offset by the fair value of the remaining life of

the original warrant of $439,028 and is considered a deemed dividend attributable to the shareholders in the determination of

earnings (loss) per share.

believe that inflation has had a negligible effect on operations since inception.

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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 7. Management’s Discussion and Analysis