EX-99.2 5 ex99-2.htm EX-99.2

 

Exhibit 99.2

 

Safety Shot Inc. and Yerbae Brands Corp.

Unaudited Pro Forma Condensed Combined Balance Sheet

As of March 31, 2025

 

  

As of

March 31, 2025

      

As of

March 31, 2025

 
  

Safety Shot, Inc.

(Historical)

   Yerbae Brands Corp. (Historical)   Transaction Accounting Adjustments   Pro Forma
Combined		 
                 
ASSETS                    
Current assets:                    
Cash and cash equivalents  $329,285   $526,187   $(526,187)A  $329,285 
Marketable Securities   54,720    241,863         296,583 
Inventory   338,995    -         338,995 
Accounts Receivable   28,704    751,863         780,567 
Prepaid expenses   2,230,285    406,261         2,636,546 
Investment in SRM & Affiliates   3,000    -         3,000 
Investment in Yerbae Brands   525,000              525,000 
Notes Receivable   521,444    -         521,444 
Other current assets   -    150,000         150,000 
Total current assets   4,031,433    2,076,174    (526,187)   5,581,420 
Non-current assets:                    
Right of Use assets   252,435    95,137         347,572 
Goodwill   -    -    12,858,429B   12,858,429 
Intangible assets, net of amortization   4,325,859    -    2,728,000C   7,053,859 
Fixed assets, net of depreciation   85,064    11,628         96,692 
Total non-current assets   4,663,358    106,765    15,586,429     20,356,552 
TOTAL ASSETS  $8,694,791   $2,182,939   $15,060,242    $25,937,972 
                     
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ DEFICIT                    
Accounts payable  $2,841,666   $3,109,753        $5,951,419 
Convertible note payable   5,341,875    -         5,341,875 
Current portion of lease liability   223,835    121,025         344,860 
Accrued liabilities   729,768    1,298,186    500,000D   2,527,954 
Covid-19 SBA Loan   48,132    -         48,132 
Notes payable, current portion   -    4,635,989         4,635,989 
Notes payable, related party   -    346,500         346,500 
Advances   -    525,000         525,000 
Total current liabilities   9,185,276    10,036,453    500,000     19,721,729 
Non-current liabilities:                    
Long term portion of lease liability   52,153    4,422    -     56,575 
Notes payable, non-current portion   -    2,306         2,306 
Total non-current liabilities   52,153    6,728    -     58,881 
Total liabilities   9,237,429    10,043,181    500,000     19,780,610 
                     
COMMITMENTS AND CONTINGENCIES                    
                     
Stockholders’ equity (deficit):                    
Preferred stock, $0.001 par value, 100,000 shares authorized, of which none are issued and outstanding   -    -    -     - 
Common stock, $0.001 par value, 100,000,000 shares authorized, of which 75,176,604 shares were issued and outstanding as of March 31, 2025   75,177    -    20,000E   95,177 
Preferred shares - 100,000,000 authorized, zero issued and outstanding as of December 31, 2024   -    -         - 
Common shares - without par value, 65,922,869 shares issued and outstanding at March 31, 2025   -    -         - 
Additional paid-in capital   117,854,689    40,577,864    7,180,000E   125,034,689 
              (40,577,864)F     
Common stock payable   1,944,776    -         1,944,776 
Accumulated deficit   (120,417,280)   (48,438,106)   48,438,106F   (120,917,280)
              (500,000)D     
Total stockholders’ equity (deficit)   (542,638)   (7,860,242)   14,560,242     6,157,362 
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)  $8,694,791   $2,182,939   $15,060,242    $25,937,972 
                     
Check   -    -    -     - 

 

Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet

 

The pro forma adjustments included in the unaudited pro forma condensed combined balance sheet as of March 31, 2025 are as follows:

 

(A) Reflects the removal of Yerbae’s cash and cash that will not be acquired as part of the transaction.

(B) Represents goodwill recognized as part of the transaction.

(C) Represents the fair value of intangible asset recognized as part of the transaction.

(D) Represents estimated transaction costs incurred related to the transactions subsequent to March 31, 2025. The transactions costs have been expensed in accordance with ASC 805.

(E) Represents increase to equity based on the 20 million shares to be issued by the acquirer.

(F) Represents reversal of Yerbae’s additional-paid-in-capital and accumulated deficit balance due to the acquisition.

 

On August 14, 2023, SRM Entertainment, Inc. (“SRM”), completed its purchase of SRM Entertainment, Ltd, previously a wholly owned subsidiary of the Company and consummated its Initial Public Offering (“IPO”). Pursuant to the sale, the Company received 4,500,000 shares of SRM’s common stock. At June 23, 2025, the Company held 1,847,142 of SRM ‘s common stock, which are considered marketable securities. SRM has a lock-up agreement with the Company covering 1,847,142 shares, under the terms of which the Company has agreed not to sell any shares until January 2026. As of March 31, 2025, the shares of SRM were valued at $0.41 per share, or approximately $1.0 million. As of June 26, 2025 the shares of SRM were valued at $7.96 per share, or approximately $14.7 million, resulting in an increase of equity of approximately $13.7 million.

 

 

 

 

Safety Shot Inc. and Yerbae Brands Corp.

Unaudited Pro Forma Condensed Combined Detailed Adjusted Statement of Operations

Three Months Ended March 31, 2025

 

  

Three Months Ended

March 31, 2025

      

Three Months Ended

March 31, 2025

 
  

Safety Shot, Inc.

(Historical)

   Yerbae Brands Corp. (Historical)   Transaction Accounting Adjustments   Pro Forma Combined 
                 
Sales  $42,101   $1,213,883        $1,255,984 
Cost of sales   21,112    703,684    -    724,796 
Gross profit   20,989    510,199    -    531,188 
                     
Operating expenses:                    
General and administrative   5,411,324    3,192,573         8,603,897 
Amortization             41,515AA     
Sales and marketing   -    213,443         213,443 
Total operating costs and expenses   5,411,324    3,406,016    41,515    8,817,340 
                   - 
Income (loss) from operations   (5,390,335)   (2,895,817)   (41,515)   (8,327,667)
Other income (expense):                    
Interest income   11,376    68,240         79,616 
Interest expense   (103,450)   (504,205)        (607,655)
Other income / (expense)   (25,080)   -         (25,080)
Gain (loss) on sale of Mkt Sec   180,556    -         180,556 
Total other income (expense)   63,402    (435,965)   -    (372,563)
Net loss from continuing operations   (5,326,933)   (3,331,782)   (41,515)   (8,700,230)
    -    -           
Historical and pro forma shares outstanding   69,258,402              89,258,402 
.                    
Historical and pro forma net loss per share based on continuing operations:                    
Basic and diluted  $(0.08)            $(0.10)

 

Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations

 

The pro forma adjustments included in the unaudited pro forma condensed combined statements of operations for the three months ended March 31, 2025 are as follows:

 

(AA) Represents amortization of intangible assets stemming from tradenames-trade secrets and non-compete agreements. The non-compete agreements were fully amortized during the proforma period ending December 31, 2023.

 

 

 

 

Safety Shot Inc. and Yerbae Brands Corp.

Unaudited Pro Forma Condensed Combined Detailed Adjusted Statement of Operations

Year Ended December 31, 2024

 

   Year Ended December 31, 2024       Year Ended
December 31, 2024		 
  

Safety Shot, Inc.

(Historical)

   Yerbae Brands Corp. (Historical)   Transaction Accounting Adjustments   Pro Forma
Combined		 
                 
Sales  $701,967   $5,905,541        $6,607,508 
Cost of sales   3,147,724    2,891,334    -    6,039,058 
Gross profit   (2,445,757)   3,014,207    -    568,450 
                     
Operating expenses:                    
General and administrative   39,611,915    11,058,479    500,000CC   51,170,394 
Amortization             403,160BB     
Sales and marketing   -    1,239,443         1,239,443 
Total operating costs and expenses   39,611,915    12,297,922    903,160    52,409,837 
                   - 
Income (loss) from operations   (42,057,672)   (9,283,715)   (903,160)   (52,244,547)
Other income (expense):                    
Interest income   57,602    -         57,602 
Interest expense   (175,927)   (1,334,972)        (1,510,899)
Other income / (expense)   (5,373,426)   -         (5,373,426)
Unrecognized loss on equity investment   (862,407)   -         (862,407)
Realized Gain/Loss on sale of stock   -    -         - 
Gain (loss) on sale of Mkt Sec   -    -         - 
Total other income (expense)   (6,354,158)   (1,334,972)   -    (7,689,130)
Net loss from continuing operations   (48,411,830)   (10,618,687)   (903,160)   (59,933,677)
    -    -           
Historical and pro forma shares outstanding   54,441,190    62,258,734         74,441,190 
                     
Historical and pro forma net loss per share based on continuing operations:                    
Basic and diluted  $(0.91)  $(0.17)       $(0.81)

 

Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations

 

The pro forma adjustments included in the unaudited pro forma condensed combined statements of operations for the year ended December 31, 2024 are as follows:

 

(BB) Represents amortization of intangible assets stemming from tradenames-trade secrets and non-compete agreements. The non-compete agreements were fully amortized during the proforma period ending December 31, 2023.

 

(CC) Represents estimated transaction costs incurred related to the transactions subsequent to December 31, 2024.

 

 

 

 

Safety Shot Inc. and Yerbae Brands Corp.

EPS

All periods

 

  

Three Months Ended

March 31, 2025

 
     
Pro forma net loss from continuing operations  $(8,700,230)
Weighted average shares outstanding of common stock - basic and diluted   89,258,402 
Net income per share attributable to common stockholders - basic and diluted  $(0.10)

 

  

Three Months Ended

March 31, 2025

 
Safety Shot historical weighted average shares outstanding   69,258,402 
Shares issued as consideration   20,000,000 
Pro forma shares outstanding   89,258,402 

 

  

Year Ended

December 31, 2024

 
     
Pro forma net loss from continuing operations  $(59,933,677)
Weighted average shares outstanding of common stock - basic and diluted   74,441,190 
Net income per share attributable to common stockholders - basic and diluted  $(0.81)

 

  

Year Ended

December 31, 2024

 
Safety Shot historical weighted average shares outstanding   54,441,190 
Shares issued as consideration   20,000,000 
Pro forma shares outstanding   74,441,190 

 

 

 

 

 

 

 

 

Safety Shot Inc.

Historical Balance Sheet

As of March 31, 2025

(Quantities as stated)

 

Safety Shot Inc.        
   March 31, 2025   March 31, 2025 
   (in dollars)   (in thousands) 
         
Assets:          
Current assets:          
Cash  $329,285   $329 
Marketable Securities   54,720    55 
Inventory   338,995    339 
Accounts Receivable   28,704    29 
Prepaid expenses and deposits   2,230,285    2,230 
Investment in SRM & Affiliates   3,000    3 
Investment in Yerbae Brands   525,000    525 
Notes Receivable   521,444    521 
Total current assets   4,031,433    4,031 
           
Right of Use assets   252,435    252 
Intangible assets, net of amortization   4,325,859    4,326 
Fixed assets, net of depreciation   85,064    85 
Total assets   8,694,791    8,694 
           
Liabilities and Stockholders’ Equity:          
Current liabilities:          
Accounts payable   2,841,666    2,842 
Convertible note payable   5,341,875    5,342 
Current portion of lease liability   223,835    224 
Accrued liabilities   729,768    730 
Covid-19 SBA Loan   48,132    48 
Total current liabilities   9,185,276    9,186 
           
Long term portion of lease liability   52,153    52 
Total liabilities   9,237,429    9,238 
           
Preferred stock, $0.001 par value, 100,000 shares authorized, of which none are issued and outstanding   -    - 
Common stock, $0.001 par value, 100,000,000 shares authorized, of which 75,176,604 shares were issued and outstanding as of March 31, 2025   75,177    75 
Additional paid-in capital   117,854,689    117,855 
Common stock payable   1,944,776    1,945 
Accumulated deficit   (120,417,280)   (120,417)
Total Stockholders’ Equity   (542,638)   (542)
           
Total Liabilities and Stockholders’ Equity   8,694,791    8,696 
           
Check   -    (2)

 

 

 

 

Safety Shot Inc.

 

Condensed Statement of Operations

For the Three Months Ended March 31, 2025

(Quantities as stated)

 

Safety Shot Inc.        
  

For the Three Months Ended

March 31, 2025

 
   (in dollars)   (in thousands) 
Revenue          
Sales   42,101    42 
Cost of sales   21,112    21 
Gross profit   20,989    21 
           
Operating expenses          
General and administrative expenses   5,411,324    5,411 
Total operating expenses   (5,411,324)   (5,411)
           
Other income (expense)          
Interest income   11,376    11 
Interest expense   (103,450)   (103)
Other income / (expense)   (25,080)   (25)
Gain (loss) on sale of Mkt Sec   180,556    181 
Total other income (expense)   63,402    64 
           
Loss from continuing operations   (5,326,933)   (5,327)
           
Loss from discontinued operations   -    - 
           
Net loss   (5,326,933)   (5,327)
           
Basic and diluted net loss per common share  $(0.08)     
Weighted average shares outstanding, basic and diluted, non-redeemable shares   69,258,402      

 

Statement of Cash Flows
   For the Three Months Ended
March 31, 2025
    
Net cash used in continuing operating activities  $(4,628,114)
Net cash used in investing activities   (363,388)
Net cash provided by financing activities   4,971,971 

 

 

 

 

Safety Shot Inc.

Condensed Statement of Operations

For the Year Ended December 31, 2024

(Quantities as stated)

 

Safety Shot Inc.        
  

For the Year Ended

December 31, 2024

 
   (in dollars)   (in thousands) 
Revenue          
Sales   701,967    702 
Cost of sales   3,147,724    3,148 
Gross profit   (2,445,757)   (2,446)
           
Operating expenses          
General and administrative expenses   39,611,915    39,612 
Total operating expenses   (39,611,915)   (39,612)
           
Other income (expense)          
Interest income   57,602    58 
Interest expense   (175,927)   (176)
Other income (expense)   (5,373,426)   (5,373)
Unrecognized gain / (loss) on equity investment   (862,407)   (862)
Total other income (expense)   (6,354,158)   (6,353)
           
Loss from continuing operations   (48,411,830)   (48,412)
           
           
Basic and diluted net loss per common share  $(0.91)     
Weighted average shares outstanding, basic and diluted, non-redeemable shares   54,441,190      

 

Statement of Cash Flows
   For the Year Ended
December 31, 2024		 
     
Net cash used in operating activities  $(18,089,748)
Net cash used in investing activities   (4,939)
Net cash provided by financing activities   15,607,955 

 

 

 

 

Yerbae Brands Corp.

Historical Balance Sheet

As of March 31, 2205

(Quantities as stated)

 

Safety Shot Inc.    
  

As of

March 31, 2205

  

As of

March 31, 2205

 
         
Assets          
Current Assets:          
Cash and cash equivalents  $526,187   $526 
Accounts receivable   241,863    243 
Inventory   751,863    752 
Prepaid expenses   406,261    406 
Other current assets   150,000    150 
Total current assets   2,076,174    2,077 
Non-current assets:          
Property, plant and equipment, net   11,628    12 
Right of use asset   95,137    95 
Total non-current assets   106,765    107 
           
Total Assets   2,182,939    2,184 
           
Liabilities and stockholders’ equity          
Current liabilities:          
Accounts payable   3,109,753    3,110 
Accrued expenses   1,298,186    1,298 
Notes payable, current portion   4,635,989    4,636 
Notes payable, related party   346,500    347 
Lease liability, current portion   121,025    121 
Advances   525,000    525 
Total current liabilities   10,036,453    10,037 
           
Non-current liabilities:          
Notes payable, non-current portion   4,422    4 
Lease liability, non-current portion   2,306    2 
Total non-current liabilities   6,728    6 
           
Total liabilities   10,043,181    10,043 
           
Commitments and Contingencies          
           
Stockholders’ equity:          
Preferred shares - 100,000,000 authorized, zero issued and outstanding as of March 31, 2025   -    - 
Common shares - without par value, 65,922,869 shares issued and outstanding at March 31, 2025   -    - 
Additional paid-in capital   40,577,864    40,578 
Accumulated deficit   (48,438,106)   (48,438)
Total stockholders’ equity (deficit)   (7,860,242)   (7,860)
Total liabilities, redeemable preferred stock and stockholders’ (deficit)   2,182,939    2,183 
           
Check   -    1 

 

 

 

 

Yerbae Brands Corp.

Historical Consolidated Income Statement

Three Months Ended March 31, 2025

(Quantities as stated)

 

Yerbae Brands Corp.        
  

Three Months Ended

March 31, 2025

  

Three Months Ended

March 31, 2025

 
         
Revenues   1,213,883    1,214 
Costs of sales   703,684    704 
Gross profit   510,199    510 
           
Operating expenses:          
General and administrative   3,192,573    3,193 
Sales and marketing   213,443    213 
Total operating costs and expenses   3,406,016    3,406 
           
Income (loss) from operations   (2,895,817)   (2,896)
           
Other income (expense):          
Interest income   68,240    68 
Interest expense   (504,205)   (504)
Total other (expense) income   (435,965)   (436)
           
Net loss before income taxes   (3,331,782)   (3,332)
Income tax expense   -    - 
Net loss   (3,331,782)   (3,332)
           
Weighted average Common shares outstanding - basic   64,314,872      
           
Basic and diluted loss per share  $(0.05)     

 

Statement of Cash Flows
     
Net cash used in Operating Activities  $(212,062)
Net cash used in Investing Activities   16,000 
Net cash provided by Financing Activities   598,035 

 

 

 

 

Yerbae Brands Corp.

Historical Consolidated Income Statement

Three Months Ended March 31, 2025

(Quantities as stated)

 

Yerbae Brands Corp.        
  

Three Months Ended

March 31, 2025

  

Three Months Ended

March 31, 2025

 
         
Revenues   5,905,541    5,906 
Costs of sales   2,891,334    2,891 
Gross profit   3,014,207    3,015 
           
Operating expenses:          
General and administrative   11,058,479    11,058 
Sales and marketing   1,239,443    1,239 
Total operating costs and expenses   12,297,922    12,297 
           
Income (loss) from operations   (9,283,715)   (9,282)
           
Other income (expense):          
Interest and accretion expense   (1,334,972)   (1,335)
           
Net loss before income taxes   (10,618,687)   (10,617)
Income tax expense   -    - 
Net loss   (10,618,687)   (10,617)
           
Weighted average Common shares outstanding - basic   62,258,734      
           
Basic and diluted loss per share  $(0.17)     

 

Statement of Cash Flows
  

For the Year Ended

 
   December 31, 2024 
Net cash used in Operating Activities  $(3,656,779)
Net cash used in Investing Activities   - 
Net cash provided by Financing Activities   2,803,620 

 

 

 

 

Date Inputs

Safety Shot Inc. and Yerbae Brands Corp.

As of March 31, 2025

(As stated)

 

Purpose:

 

To list the entities involved, periods presented, and financial statement characteristics of the acquisition.

 

Entities

 

Combined Entities:   Safety Shot Inc. and Yerbae Brands Corp.
Legal Acquirer:   Safety Shot Inc.
Legal Acquiree:   Yerbae Brands Corp.
Accounting Acquirer:   Safety Shot Inc.
Accounting Acquiree:   Yerbae Brands Corp.

 

Periods presented

 

Acquisition Date

 

Balance Sheet

 

Safety Shot Inc.   As of March 31, 2025   March 31, 2025   March 31, 2025 10-Q
Yerbae Brands Corp.   As of March 31, 2025   March 31, 2205   March 31, 2025 10-Q

 

Income Statement

 

Safety Shot Inc.   Three Months Ended March 31, 2025   March 31, 2025   March 31, 2025 Financials
Yerbae Brands Corp.   Three Months Ended March 31, 2025   March 31, 2025   March 31, 2025 10-Q
Safety Shot Inc.   Year Ended December 31, 2024   December 31, 2024   December 31, 2024 Financials
Yerbae Brands Corp.   Year Ended December 31, 2024   December 31, 2024   December 31, 2024 10-K