Tron Inc. 10-K

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Since August 15, 2023, the Company’s common stock has traded on the Nasdaq Capital Market under the symbol SRM. As of March 21, 2024, there were 28 shareholders of record. Since certain shares of our common stock are held by brokers and other institutions on behalf of stockholders, the foregoing number of holders of our common stock is not representative of the number of beneficial holders of our common stock. The last reported sales price for our common stock as reported on the Nasdaq Capital Market on March 29, 2024 was $1.59. Dividends 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 Unregistered Securities During the period from the date of the Company’s IPO (August 14, 2023) to December 31, 2023, the Company issued 315,500 shares of its restricted common stock, valued at a total of $612,800 (based on the date of the respective agreements), to three companies. Additionally, at December 31, 2023, the Company has stock payable for services due one company for $676,000 representing 400,000 shares of the Company’s restricted common stock. Purchases of Equity Securities by the Issuer and Affiliated Purchasers There were no issuer purchases of equity securities during the year ended December 31, 2023. Securities Authorized for Issuance under Equity Compensation Plans On March 21, 2023, our Board of Directors and majority shareholders, respectively, approved the SRM Entertainment, Inc. 2023 Equity Incentive Plan (the “2023 Plan”), to be administered by our Compensation Committee. Pursuant to the 2023 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 2023 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 2023 Plan, a maximum of 1,500,000 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 2022 Plan. At December 31, 2023 the Company had issued a 100,000 stock grant to one of the company’s consultants and a total of 90,000 stock options to three of our Directors. 19 Table of Contents ITEM 6. [RESERVED] Not applicable to a smaller reporting company.