What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2025-03-31 compared with 2024-04-01 · 87 added, 70 removed, 242 unchanged (39% of the section changed)

23 unchanged sentences

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.

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

stock” refer to the common stock in our capital stock.

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

and the “Company” mean SRM Entertainment, Inc.

and its consolidated subsidiary unless the context dictates otherwise.

of Presentation

32 unchanged sentences

We have licensing relationships with many established content providers, and our products appear in venues

such as Walt Disney Parks and Resorts, Universal Studios, SeaWorld, Six Flags, Great Wolf Lodge, Dollywood and Merlin Entertainment.

We currently have licenses with Smurfs and Zoonicorn LLC, from which we can create multiple products based on each character within.

Content providers trust us to create unique, stylized extensions of their intellectual property that extend the relevance of their content

with consumers through ongoing engagement, helping to maximize the lifetime value of their content.

We have licensing relationships with many established content providers, and our products appear in venues such as

Walt Disney Parks and Resorts, Universal Studios, SeaWorld, Six Flags, Great Wolf Lodge, Dollywood and Merlin Entertainment.

have licenses with Smurfs and Zoonicorn LLC, from which we can create multiple products based on each character within.

Content providers

trust us to create unique, stylized extensions of their intellectual property that extend the relevance of their content with consumers

through ongoing engagement, helping to maximize the lifetime value of their content.

such as Walt Disney, United Parks and Resorts (f/k/a SeaWorld), Universal Studios, Six Flags, Herschend Family Entertainment and

Merlin Entertainment.

We currently have licenses with Smurfs and Zoonicorn LLC, from which we can create multiple products based on

each character within.

Content providers trust us to create unique, stylized extensions of their intellectual property that extend

the relevance of their content with consumers through ongoing engagement, helping to maximize the lifetime value of their

Fans are increasingly looking for ways to express their affinity for and engage with their favorite pop culture content.

61 unchanged sentences

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

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 years ended December 31, 2023 and 2022, as the impact of the potential common

shares would be to decrease the loss per share.

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 years ended December 31, 2024 and 2023, as the

impact of the potential shares of common stock would be to decrease the loss per share.

For the Years Ended December 31,

Net income (loss)

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

$ (4,339,345 )

$ (2,053,859 )

Denominator for basic earnings per share - Weighted-average

shares of common stock issued and outstanding during the period

Denominator for diluted earnings per share

60 unchanged sentences

Issued Accounting Pronouncements

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,

The adoption of this standard did not have a significant impact on our results of operations, financial condition, cash flows,

and financial statement disclosures.

February 2016, Topic 842, “Leases” was issued to replace the leases requirements in Topic 840, “Leases”.

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 GAAP.

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.

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.

November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, enhancing segment reporting

requirements under ASC 280.

This ASU aims to provide investors with more detailed information about a public entity’s reportable

segments, including those with a single reportable segment.

The Key Provisions include :

Expense Disclosures:

Public entities must now disclose significant segment expenses that are regularly provided to the chief

operating decision maker (CODM) and included in each reported measure of segment profit or loss.

of Other Segment Items:

Entities are required to disclose an amount for “other segment items” by reportable segment,

representing the difference between reported segment revenues and the sum of significant segment expenses and the reported measure

of segment profit or loss.

A qualitative description of the composition of these other segment items is also required.

Reporting Requirements:

All annual disclosures about a reportable segment’s profit or loss and assets, including the new

disclosures introduced by ASU 2023-07, must now be provided in interim periods as well.

Reportable Segment Entities:

Public entities with a single reportable segment are explicitly required to provide all segment

disclosures mandated by ASC 280, including those introduced by ASU 2023-07.

This clarification ensures that users receive comprehensive

information about the entity’s operations and performance.

of CODM Information:

Entities must disclose the title and position of the CODM and explain how the CODM uses the reported measure(s)

of segment profit or loss in assessing performance and allocating resources.

amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after

December 15, 2024.

The Company adopted the ASU for the year ended December 31, 2024.

does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect

10 unchanged sentences

$ (4,339,345 )

$ (2,053,859 )

generated $4,311,382 in revenues for the year ended December 31, 2024 compared to $5,760,533 revenues for the year ended December 31,

The decrease can be attributed to industry conditions, even though attendance and revenue were up on the West Coast, the summer

season was a bit milder in Orlando, Florida, as there was a year-over-year decline in revenue for Orlando resorts.

However, while demand

has tapered off from the initial post COVID rebound in 2022, attendance in Orlando is still for the most part in line with pre-pandemic

We believe with the new theme park opening in Orlando right around the corner, our business

should benefit from the publicity and enthusiasm that typically surrounds new theme park openings.

Expenses and other income/expense

The decrease can be attributed to our largest theme park orders were down due to major expansion resulting

in a decrease in attendance at their Ordando facility, timing delays for orders from another theme park operator and an election year

in which retailers were very cautious in buying.

We believe with the new theme park opening in Orlando in 2025, our business should benefit from the publicity

and enthusiasm that typically surrounds new theme park openings.

Expenses and other income/expenses

had total operating expenses and other income/expense of $5,194,576 for the year ended December 31, 2024 compared to $3,371,309 for the

11 unchanged sentences

normal office and administration expenses;

(vi) stock based compensation of $1,861,743 consisting primarily of investor relations and

public awareness campaign and the fair value of stock options granted to officers, directors and employees.

Other expenses consisted

of net interest expense of $4,548.

expenses for the year ended December 31, 2023 totaled $3,371,309 were in connection with our daily operations as follows:

(i) marketing

expenses of $38,694;

(ii) legal and professional expenses of $1,598,179 including board of director fees, auditing and accounting fees,

investor relations and public awareness campaigns, legal services, corporate advisory services, registration statement preparation fees,

general corporate governance fees;

(iii) rent of $12,475;

(iv) depreciation and amortization of $6,651;

(v) general and administrative

expenses of $1,270,681, consisting of payroll and related taxes, travel, meals and entertainment, office supplies and expense and other

normal office and administration expenses;

(vi) stock based compensation of $427,702 consisting primarily of investor relations and public

1 unchanged sentence

Other expenses consisted of net interest expense of $16,927.

expenses for the year ended December 31, 2022 totaled $902,198 were in connection with our daily operations as follows:

(i) rent of $4,065;

(ii) depreciation and amortization of $2,333;

and (iii) general and administrative expenses of $866,516, consisting of payroll and related

taxes, travel, meals and entertainment, office supplies and expense and other normal office and administration expenses.

Other expenses

consisted of $754 of other income and net interest expense of $30,038.

during 2023 were higher than the same period in 2022 due primarily to cost associated with our initial public offering and other costs

during 2024 were higher than the same period in 2023 due primarily to increased stock based compensation related to investor relations and public

awareness campaign and the fair value of stock options granted to officers, directors and employees and other costs

associated with our company being listed and traded on Nasdaq.

2 unchanged sentences

Income/Losses

loss for the year ended December 31, 2023 was $2,053,859 and income for the year ended December 31, 2022 was $328,701.

loss for the year ended December 31, 2024 and 2023, was $4,339,345 and $2,053,859, respectively.

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

13 unchanged sentences

any expense obligations as they come due.

of December 31, 2023, we had approximately $2,980,741 in cash and cash equivalents, an increase of $2,527,225 from the $453,516 as

of December 31, 2024, we had approximately $1,352,373 in cash and cash equivalents, a decrease of $1,628,368 from the $2,980,741 as

of December 31, 2023.

During the year ended December 31, 2023, we raised net proceeds of $5,168,325 from the sale of

During the year ended December 31, 2024 and 2023, we raised net proceeds of $2,501,255 and $5,168,325, respectively from the

sale of securities.

cash used in our operating activities of $2,856,359 during the year ended December 31, 2024, was primarily due to our operating loss

of $4,339,345 offset by $1,861,743 of stock-based compensation.

cash used in our operating activities of $766,877 during the year ended December 31, 2023, was primarily due to our operating loss of

$2,053,843 offset by $1,288,800 of stock-based compensation.

cash used in our operating activities of $29,925 during the year ended December 31, 2022, is primarily due to our net income of $328,701

offset by our increase in operation assets (primarily inventory).

the year ended December 31, 2023, net cash provided by financing activities of $3,679,359 was by the proceeds from the sale of our common

stock in our Initial Public Offering ($5,168,325) less the payment of a promissory note to Jupiter Wellness, Inc.

($1,488,966).

the year ended December 31, 2022, net cash provided by financing activities of $19,948 was primarily from proceeds from a promissory

the year ended December 31, 2023, net cash used in investing activities of $382,370 was primarily used in the acquisition of SRM Entertainment

the year ended December 31, 2022, net cash used in investing activities of $11,984 was primarily from purchase of fixed assets and loan

to an affiliate.

the year ended December 31, 2024, the net cash provided by financing activities of $1,501,255 was from the $2,501,255 proceeds of

our sale of common stock in from our registered direct offerings under our Shelf S-3 less the $1,000,000 payment on a

promissory note.

the year ended December 31, 2023, net cash provided by financing activities of $3,687,058 was from the $5,168,325 proceeds from the sale

of our common stock in our initial public offering less the payment of $1,488,966 on a promissory

note to Safety Shot.

the year ended December 31, 2024, net cash used in investing activities of $273,264 consisted of a $250,000 cash payment as part of the

asset purchase agreement related to our purchase of intangible assets and $23,264 paid for fixed assets.

the year ended December 31, 2023, net cash used in investing activities of $392,956 was $350,176 used in the acquisition of SRM Entertainment

Ltd and $42,780 purchase of fixed assets.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

5 unchanged sentences

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