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Intangible Assets and Secured Note – Related Party
3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Secured Note – Related Party

Note 8 – Intangible Assets and Secured Note – Related Party

 

On September 3, 2024, the Company entered into an Asset Purchase Agreement with Suretone Entertainment, Inc. (“Suretone” or “Seller”) pursuant to which the Company agreed to acquire the 2019 movie titled “The Kid” (directed by Vincent D’Onofrio and starring Ethan Hawke and Chris Pratt) and certain other assets (the “Assets”) related to “The Kid” from the Seller, for an aggregate purchase price of $2,893,000 (the “Purchase Price”). Jordan Schur, the owner and Chief Executive Officer of Suretone, is a board member and President of Safety Shot. At March 31, 2025, Safety Shot held 13.6% of the Company’s common stock.

 

In consideration for the purchased Assets, the Company paid the Purchase Price which consisted of: (i) payment of $250,000 in cash on September 3, 2024; (ii) issuance of 1,500,000 restricted shares of the Company’s common stock, par value $0.0001 per share (valued at $0.762 per share which, was the market per share value of the Company’s common stock); and (iii) issuance of a secured promissory note in the original amount of $1,500,000 (the “Secured Note”). The Secured Note’s term is one year with an interest rate of 8%. On October 21, 2024, the Company paid $500,000 and on December 13, 2024, the Company paid an additional $500,000 of the principal balance of the Secured Note leaving a principal balance of $500,000 at December 31, 2024. On January 2, 2025, the Company paid $250,000 of the principal leaving a balance of $250,000 leaving a balance of $250,000 at March 31, 2025. During the three months ended March 31, 2025 and year ended December 31, 2024, the Company recorded interest expense of $5,111 and $31,655, respectively.

 

The Assets are being amortized over a ten-year10 period. Amortization expense totaled $72,325 and $96,433, respectively, for the three months ended March 31, 2025 and year ended December 31, 2024.