BONK's Q3 Loss Widens to $33.6M Amid Digital Asset Hit, Yerba Integration

Ticker: BNKK · Form: 10-Q · Filed: Nov 19, 2025 · CIK: 1760903

Sentiment: bearish

Topics: Beverage Industry, Digital Assets, Acquisition, Net Loss, Shareholder Equity, SEC Filing, 10-Q

Related Tickers: BNKK, BNKKW

TL;DR

**BONK's Q3 is a mixed bag: beverage sales are up, but a massive digital asset loss and acquisition costs mean more red ink, making it a risky bet for now.**

AI Summary

BONK, INC. (BNKK) reported a net loss of $33,581,216 for the three months ended September 30, 2025, a significant increase from the $11,929,277 net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $25,533,204, an improvement from the $35,878,042 net loss in 2024. Revenue from beverage sales saw substantial growth, reaching $1,514,817 for the three months ended September 30, 2025, up from $110,213 in 2024, and $1,601,865 for the nine months, compared to $519,793 in 2024. The company also recognized $509,085 in related party income from digital assets for both the three and nine months ended September 30, 2025, a new revenue stream. Key business changes include the acquisition of Yerba Brands Corp. on June 27, 2025, and a corporate name change from Safety Shot, Inc. to Bonk, Inc. on October 10, 2025. Risks include a substantial unrealized loss on digital assets of $7,213,473 and a loss on settlement of $4,278,036 for the three months ended September 30, 2025. Strategic outlook involves leveraging the Yerba acquisition and digital asset initiatives, despite significant operating expenses of $17,215,566 for the quarter.

Why It Matters

BONK's widening net loss to $33.6 million in Q3 2025, despite revenue growth, signals significant operational challenges and integration costs from the Yerba Brands acquisition. The substantial unrealized loss on digital assets of $7.2 million introduces a new layer of volatility and risk for investors, contrasting with the beverage sales growth. For employees, the company's aggressive expansion and strategic shifts, including the name change, could mean both opportunities and uncertainties. Customers might see an expanded product portfolio with the Yerba acquisition, intensifying competition in the beverage market against established players. The broader market will watch how BONK manages its digital asset exposure and integrates its new beverage segment, potentially influencing investor sentiment towards similar diversified growth strategies.

Risk Assessment

Risk Level: high — The risk level is high due to the significant net loss of $33,581,216 for the three months ended September 30, 2025, and a substantial unrealized loss on digital assets of $7,213,473. Additionally, the company incurred a loss on settlement of $4,278,036, indicating ongoing financial liabilities and operational hurdles.

Analyst Insight

Investors should exercise extreme caution and thoroughly evaluate BONK's ability to monetize its digital assets and successfully integrate Yerba Brands. Monitor future filings for improved profitability and reduced losses, especially concerning digital asset valuations and operational efficiencies post-acquisition.

Financial Highlights

debt To Equity
N/A
revenue
$1,514,817
operating Margin
N/A
total Assets
$81,041,676
total Debt
N/A
net Income
-$33,581,216
eps
N/A
gross Margin
N/A
cash Position
N/A
revenue Growth
+1274.4%

Revenue Breakdown

SegmentRevenueGrowth
Beverage Sales$1,514,817+1274.4%
Related Party Income - Digital Assets$509,085N/A

Key Numbers

Key Players & Entities

FAQ

What were BONK, INC.'s net losses for Q3 2025 and the first nine months of 2025?

BONK, INC. reported a net loss of $33,581,216 for the three months ended September 30, 2025. For the nine months ended September 30, 2025, the net loss was $25,533,204.

How did BONK, INC.'s beverage sales perform in Q3 2025?

Beverage sales for BONK, INC. were $1,514,817 for the three months ended September 30, 2025, a substantial increase from $110,213 in the same period of 2024.

What new revenue stream did BONK, INC. report in 2025?

BONK, INC. reported $509,085 in related party income from digital assets for both the three and nine months ended September 30, 2025, a new revenue stream not present in 2024.

What was the impact of digital assets on BONK, INC.'s Q3 2025 financial results?

BONK, INC. recorded an unrealized loss on digital assets of $7,213,473 for the three months ended September 30, 2025, significantly impacting its net loss.

What major corporate changes did BONK, INC. undergo in 2025?

BONK, INC. acquired Yerba Brands Corp. on June 27, 2025, and changed its corporate name from Safety Shot, Inc. to Bonk, Inc. on October 10, 2025.

What were BONK, INC.'s total assets as of September 30, 2025?

As of September 30, 2025, BONK, INC.'s total assets were $81,041,676, a significant increase from $7,338,403 as of December 31, 2024.

How many shares of common stock did BONK, INC. have outstanding as of November 15, 2025?

As of November 15, 2025, BONK, INC. had 183,976,283 shares of its common stock outstanding.

What was BONK, INC.'s accumulated deficit as of September 30, 2025?

BONK, INC.'s accumulated deficit as of September 30, 2025, was $(140,839,619), worsening from $(115,090,347) as of December 31, 2024.

What was the value of BONK, INC.'s digital assets as of September 30, 2025?

BONK, INC. held $23,295,649 in digital assets as of September 30, 2025, a new asset class compared to December 31, 2024.

What is the primary risk highlighted by BONK, INC.'s Q3 2025 filing?

The primary risk highlighted is the significant unrealized loss on digital assets of $7,213,473, indicating high volatility and potential for further losses in this new investment area.

Risk Factors

Industry Context

Bonk, Inc. is operating in a dynamic environment, with a recent pivot into the beverage sector through the acquisition of Yerba Brands Corp. This sector is characterized by intense competition, evolving consumer preferences, and significant marketing expenditures. The company is also venturing into digital assets, a highly volatile and speculative market with rapidly changing regulatory landscapes.

Regulatory Implications

The company's foray into digital assets may expose it to evolving regulatory scrutiny from financial authorities. Compliance with securities laws and anti-money laundering regulations will be critical. The acquisition of a beverage company also brings compliance requirements related to food and beverage safety and labeling.

What Investors Should Do

  1. Monitor the integration progress and performance of Yerba Brands Corp. to assess the success of the strategic acquisition.
  2. Analyze the volatility and valuation of digital assets, given the substantial unrealized losses, and understand the company's strategy for managing this risk.
  3. Scrutinize operating expenses to understand the drivers behind the increased net loss despite revenue growth.
  4. Evaluate the sustainability and profitability of the new revenue streams, particularly related party income from digital assets.
  5. Assess the impact of the corporate name change on brand perception and market positioning.

Key Dates

Glossary

ASC 805, Business Combinations
An accounting standard that governs how companies account for the acquisition of other businesses, including how to value assets and liabilities acquired. (Relevant to understanding the accounting treatment of the Yerba Brands Corp. acquisition and any resulting goodwill or intangible assets.)
ASC 820, Fair Value Measurement
An accounting standard that defines fair value and provides a framework for measuring it, used for valuing assets and liabilities on the balance sheet. (Important for understanding how the company values its digital assets and other financial instruments, especially given the unrealized losses.)
Goodwill
An intangible asset that arises when a company acquires another business for a price greater than the fair value of its identifiable net assets. (May be recognized as a result of the Yerba Brands Corp. acquisition, impacting future amortization expenses and asset valuation.)
Unrealized Loss
A loss on an investment that has not yet been sold. The loss is 'paper' until the asset is sold. (Highlights the significant paper loss on the company's digital asset holdings, indicating market volatility and potential future realized losses.)
Related Party Income
Revenue generated from transactions with entities or individuals that have a close relationship with the company, such as parent companies, subsidiaries, or key management. (Indicates income derived from transactions with entities connected to the company, specifically in the digital asset space.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Bonk, Inc. (formerly Safety Shot, Inc.) has experienced a dramatic increase in revenue, primarily driven by the acquisition of Yerba Brands Corp. However, this growth has been overshadowed by a significantly wider net loss in Q3 2025. New risk factors have emerged, including substantial unrealized losses on digital assets and losses on settlement, which were not present in the prior period. Total assets have also seen a substantial increase, largely due to the acquisition and the addition of digital assets.

Filing Stats: 4,689 words · 19 min read · ~16 pages · Grade level 20 · Accepted 2025-11-19 17:01:35

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements F-1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 9 Item 4.

Controls and Procedures

Controls and Procedures 9

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 10 Item 1A.

Risk Factors

Risk Factors 11 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 11 Item 3. Defaults Upon Senior Securities 11 Item 4. Mine Safety Disclosures 11 Item 5. Other Information 11 Item 6. Exhibits 12

SIGNATURES

SIGNATURES 13 PART I - FINANCIAL INFORMATION This Quarterly Report on Form 10-Q includes the accounts of Bonk, Inc., a Delaware corporation ("Bonk"). References in this Report to "we", "our", "us" or the "Company" refer to Bonk, Inc. and its consolidated subsidiaries unless the context dictates otherwise. FORWARD LOOKING STATEMENTS Certain of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect current views about future events and financial performance based on certain assumptions. They include opinions, forecasts, intentions, plans, goals, projections, guidance, expectations, beliefs or other statements that are not statements of historical fact. Words such as "will," "may," "should," "could," "would," "expects," "plans," "believes," "anticipates," "intends," "estimates," "approximates," "predicts," "forecasts," "potential," "continue," or "projects," or the negative or other variation of such words, and similar expressions may identify a statement as a forward-looking statement. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, our goals, strategies, focus and plans, and other characterizations of future events or circumstances, including statements expressing general optimism about future operating results and the development of our products, are forward-looking Although forward-looking statements in this Quarterly Report on Form 10-Q reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual resul

Business

Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations . The purchase price of an acquired business is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net assets acquired is recorded as goodwill. Identifiable intangible assets are recognized separately from goodwill and are amortized over their estimated useful lives. The determination of fair values requires management to make significant estimates and assumptions. These estimates are inherently uncertain and may be refined for up to one year from the acquisition date as additional information becomes available. Transaction costs incurred in connection with business combinations are expensed as incurred. Fair Value Measurements The Company follows ASC 820, Fair Value Measurement , which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Fair value is determined based on

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