SRM Entertainment Reports Third Quarter 2023 Financial Results

Completed NASDAQ listing

Launched Smurfs & Zoonicorn Sip with Me cups

Multi-year license agreements

JUPITER, FL, Nov. 14, 2023 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc. (Nasdaq: SRM) (the “Company” or “SRM”) is a trusted toy and souvenir designer and developer, selling into the world’s largest theme parks and entertainment venues, announced its fiscal results for the third quarter ended September 30, 2023.

SRM had sales of $1,128,062 and $1,517,546 for the three months ended September 30, 2023 and 2022. The decrease in sales can be attributed to certain theme parks rebalancing and adjusting inventory balances post COVID-19. Cost of goods sold varies directly with sales with only a difference in margins. Due to a 2022 one-time adjustment in VAT tax for goods sold in Beijing, our overall gross margins were increased to approximately 26%. Our normalized gross margins of approximately 20% were reflected for the quarter ended September 30, 2023.

Operating expenses for the three months ended September 30, 2023 and 2022 were $1,717,777 and $159,375, respectively. The increase was due to new expenses primarily related to the Company’s initial public offering including legal fees, audit and accounting fees, insurance, investor and public relations, regulatory and exchange fees.

		Nine Months Ended September 30
Income statements		2023				2022
Revenue
Sales		$	4,556,905			$	5,199,807
Cost of Sales			3,583,713				4,195,629
Gross profit			973,192				1,004,178
Operating expense			2,227,433				470,673
Net Income (loss)			(1,296,729	)		$	533,520

Throughout Q3 2023, SRM focused on its business plan to allow the Company to deliver future growth. Our management team is building strong relationships with content providers, retailers, and third-party manufacturers as we move innovative products from concept to design.