Filed
pursuant to Rule 424(b)(5)
Registration
No. 333-286951
PROSPECTUS
SUPPLEMENT
(To
the Prospectus dated May 30, 2025)
108,333
shares of Series C Convertible Preferred Stock
(1,083,333
shares of Common Stock issuable upon the
conversion of such Series C Convertible Preferred Stock)
Placement
Agent Warrants to purchase up to 65,000 shares of our Common Stock
Up
to 65,000 shares of Common Stock issuable upon the full exercise of the Placement Agent Warrants

Thumzup
Media Corporation
We
are offering 108,333 shares of Series C Convertible Preferred Stock, par value $0.001 per share (the “Series C”) (together with
1,083,333 shares of our common stock (the “Common Stock”) issuable upon conversion of such Series C) at $60.00
per share (each share of Series C is convertible into 10 shares of Common Stock) on a best efforts basis. In no event will
the number of shares of Common Stock sold and issuable upon conversion of the Series C exceed 1,083,333 shares of Common Stock. There is currently no established public market for the Series C, and we
do not expect a market to develop. The
Series C contains a beneficial ownership limitation, pursuant to which a Holder may not convert Series C into Common Stock to the
extent that, after such conversion, the Holder (together with its affiliates) would beneficially own more than either 4.99% or 9.99%
of the Company’s outstanding Common Stock, as initially elected by the Holder. The terms of the Series C are described on
page S-15. We refer to our Common Stock and Series C as “Securities.” We refer to the sale of the Securities as
the “Offering.”
Simultaneously
with the consummation of the Offering, Mr. Robert Steele, the Company’s Chief Executive Officer, has agreed to sell 2,500,000
shares of Common Stock (the “Private Transaction Shares”) to certain accredited investors who are anticipated to be purchasers
in the Offering. The purchase price of the Private Transaction Shares is $0.50 per share and Mr. Steele will receive $1,250,000.
The Company has agreed to register the Private Transaction Shares with the Securities and Exchange Commission (the “SEC”)
within 30 days of the closing of the Private Transaction Shares.
Simultaneously
with the consummation of the Offering, pursuant to an option assignment agreement dated June 19, 2025 (the “Option Agreement”),
Hampton Growth Resources, LLC (the “Assignor’) will sell an option to purchase 750,000 shares of the Company’s Common
Stock at an exercise price of $0.30 per share(the “Option”) to certain accredited investors who are anticipated to be purchasers
in the Offering (the “Assignees”). The sale price of the Option is $150,000. Mr. Andrew Haag, the brother of Mr. Robert Haag,
a member of the Company’s Board of Directors, is a stockholder of the Company and the Managing Member of the Assignor. The Assignor
had previously purchased the Option for $125,000 from Mr. Daniel Lupinelli, a principal stockholder of the Company beneficially owing
14.47% of the outstanding Common Stock of the Company as of June 16, 2025. Within 30 days of the closing of the Option sale, the Company
has agreed to register the public sale of the underlying Common Stock issuable upon the full exercise of such Option within 30 days.
Dominari
Securities LLC (the “Placement Agent”) has agreed to act on a reasonable best-efforts basis and we acknowledge that there
is no guarantee of the successful placement of the Securities, or any portion thereof, in this Offering. As compensation for the services
rendered, we will pay the Placement Agent (i) a transaction fee equal to six percent (6%) of the gross proceeds of the aggregate amount
of the Series C sold in the Offering payable at closing and (ii) warrants to purchase shares of our Common Stock equal to six
percent (6%) of the shares of Common Stock sold in the Offering, and number of shares of Common Stock issuable upon conversion
of the Series C sold in this Offering (the “Placement Agent Warrants”). The Placement Agent Warrants shall have an exercise
price of $6.00 per warrant, be non-tradeable and expire five (5) years from the issuance date. For more information on the Placement
Agent Warrants see, “Description of the “Placement Agent Warrants” and “Plan
of Distribution .”
Our
Common Stock is currently traded on the Nasdaq Capital Market under the symbol “TZUP.” On June 30, 2025, the closing
sales price for our Common Stock was $7.01 per share.
Investing
in our securities involves risks. You should read carefully and consider “Risk Factors” included in this prospectus supplement
on page S-5 and in our accompanying prospectus beginning on page 15 before investing in our securities.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
whether this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal
offense.
| |
Per
Share | | |
Total | |
Public offering price | |
$ | 60.00 | | |
$ | 6,500,000 | |
Placement Agent fees(1) | |
$ | (4.20 | ) | |
$ | (460,000 | ) |
Proceeds, before expenses, to us | |
$ | 55.8 | | |
$ | 6,040,000 | |
(1) |
Consists
of a cash fee of six percent (6.0%) of the aggregate gross proceeds in this Offering. In addition, we have agreed to pay expenses
of the Placement Agent’s legal counsel and other out-of-pocket expenses in an amount not to exceed $70,000. See “Plan
of Distribution” on page S-16 for a description of compensation payable to the Placement Agent. |
The
Placement Agent expects to deliver the shares of Series C on or about July 2, 2025.
Exclusive
Placement Agent
Dominari
Securities LLC
The
date of this prospectus supplement is June 30, 2025.
TABLE
OF CONTENTS
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Page |
PROSPECTUS
SUPPLEMENT |
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|
|
|
ABOUT
THIS PROSPECTUS SUPPLEMENT |
|
S-1 |
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING INFORMATION |
|
S-2 |
PROSPECTUS
SUPPLEMENT SUMMARY |
|
S-3 |
RISK
FACTORS |
|
S-5 |
USE
OF PROCEEDS |
|
S-11 |
DIVIDEND
POLICY |
|
S-11 |
CAPITALIZATION |
|
S-12 |
DILUTION |
|
S-13 |
DESCRIPTION
OF THE PLACEMENT AGENT WARRANTS |
|
S-14 |
DESCRIPTION
OF THE SERIES C PREFERRED STOCK |
|
S-15 |
PLAN
OF DISTRIBUTION |
|
S-16 |
LEGAL
MATTERS |
|
S-19 |
EXPERTS |
|
S-19 |
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE |
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S-19 |
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Page |
PROSPECTUS |
|
|
|
|
|
ABOUT
THIS PROSPECTUS |
|
4 |
DISCLOSURE
REGARDING FORWARD-LOOKING STATEMENTS |
|
4 |
RISK
FACTORS |
|
15 |
THE
COMPANY |
|
5 |
USE
OF PROCEEDS |
|
16 |
DESCRIPTION
OF SECURITIES |
|
16 |
DESCRIPTION
OF COMMON STOCK |
|
16 |
DESCRIPTION
OF WARRANTS |
|
19 |
DESCRIPTION
OF UNITS |
|
21 |
DESCRIPTION
OF RIGHTS |
|
21 |
PLAN
OF DISTRIBUTION |
|
24 |
LEGAL
MATTERS |
|
26 |
EXPERTS |
|
26 |
INCORPORATION
OF INFORMATION BY REFERENCE |
|
26 |
WHERE
YOU CAN FIND MORE INFORMATION |
|
27 |
ABOUT
THIS PROSPECTUS SUPPLEMENT
This
document is in two parts. The first part is this prospectus supplement, which describes the terms of the Offering and also adds to and
updates information contained in the accompanying prospectus and the documents incorporated by reference into this prospectus supplement
and the accompanying prospectus. The second part consists of a prospectus, included in the registration statement on Form S-3 (No. 333-286951).
Since the accompanying prospectus provides general information about us, some of the information may not apply to this Offering. This
prospectus supplement describes the specific details regarding this Offering. Generally, when we refer to the “prospectus,”
we are referring to both parts of this document. Additional information is incorporated by reference in this prospectus supplement. If
information in this prospectus supplement is inconsistent with the accompanying prospectus, you should rely on this prospectus supplement.
You should read this prospectus supplement, the accompanying prospectus and any information incorporated by reference before you make
any investment decision.
Neither
we nor the Placement Agent are making an offer to sell the Securities in jurisdictions where the offer or sale is not permitted. The
distribution of this prospectus supplement and the accompanying prospectus and the offer and sale of our Securities in certain jurisdictions
may be restricted by law. Persons outside the United States who come into possession of this prospectus supplement and the accompanying
prospectus must inform themselves about and observe any restrictions relating to the Offering of the Securities and the distribution
of this prospectus supplement and the accompanying prospectus outside the United States. This prospectus supplement and the accompanying
prospectus do not constitute an offer of, or an invitation to purchase, any shares of Common Stock in any jurisdiction in which such
offer or invitation would be unlawful.
You
should rely only on information contained in this prospectus supplement, the accompanying prospectus and the documents we incorporate
by reference in this prospectus supplement. We have not authorized anyone to provide you with information that is different from that
contained in this prospectus supplement. We are not Offering to sell or seeking offers to buy shares of our Securities in jurisdictions
where offers and sales are not permitted. The information contained in this prospectus supplement and the accompanying prospectus supplement
is accurate only as of their respective dates, regardless of the time of delivery of this prospectus supplement or of any sale of our
Securities.
Unless
otherwise mentioned or unless the context requires otherwise, all references in this prospectus supplement to the “Company,”
“we,” “us,” “our” and “Thumzup” refer to Thumzup Media Corporation, a Nevada corporation,
and its consolidated subsidiaries. Thumzup® operates in a single business segment which is social media marketing. Thumzup® has
a mobile iPhone and Android applications called “Thumzup®” that connects brands and people who use and love these brands.
For the advertiser, Thumzup® incentivizes ordinary everyday people to become paid content creators and post authentic valuable posts
on social media about the advertiser and its products.
This
prospectus supplement contains summaries of certain provisions contained in some of the documents described herein, but reference is
made to the actual documents for complete information. All of the summaries are qualified in their entirety by the actual documents.
Copies of some of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to
the registration statement of which this prospectus supplement is a part, and you may obtain copies of those documents as described below
under the section entitled “Where You Can Find More Information.”
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This
prospectus supplement and the accompanying prospectus, including documents incorporated by reference into this prospectus supplement
and the accompanying prospectus, contains forward-looking statements. All statements other than statements of historical facts, including
statements regarding our future financial position, liquidity, business strategy and plans and objectives of management for future operations,
are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,”
“intend,” “should,” “plan,” “could,” “target,” “potential,” “is
likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking
statements. We have based these forward-looking statements largely on our current expectations and projections about future events and
financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.
These
forward-looking statements may include, but are not limited to, statements related to our expected business, new product introductions,
future results of operations, future financial position, our ability to generate revenues, our financing plans and future capital requirements,
our anticipated cash flows, our liquidity , and statements based on current expectations, estimates, forecasts, and projections about
the economies and markets in which we operate and intend to operate and our beliefs and assumptions regarding these economies and markets.
Forward-looking
statements are not guarantees of future performance and are subject to risks and uncertainties. We have based these forward-looking statements
on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current
conditions, expected future developments, and other factors they believe to be appropriate. Important factors that could cause actual
results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include,
among others, those factors referred to in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on March
11, 2025, which is incorporated by reference herein and the Risk Factors at page S-5 of this prospectus supplement.
These
statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our
or our industry’s actual results, levels of activity, performance, or achievements to be materially different from those anticipated
by the forward-looking statements. We discuss many of these risks in the documents incorporated by reference herein. You should not rely
upon forward-looking statements as predictions of future events.
Although
we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels
of activity, performance, or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking
statements, whether as a result of new information, future events or otherwise, after the date of this prospectus supplement.
For
more information regarding some of the ongoing risks and uncertainties of our business, see the risk factors that follow and or that
are disclosed in this prospectus supplement and our incorporated documents.
PROSPECTUS
SUPPLEMENT SUMMARY
The
following summary highlights information contained elsewhere or incorporated by reference in this prospectus supplement. This summary
is not complete and does not contain all of the information that should be considered before investing in our Securities. Before making
an investment decision, investors should carefully read the entire prospectus supplement and the accompanying prospectus, including the
information incorporated by reference in this prospectus supplement and the accompanying prospectus, paying particular attention to the
risks referred to under the headings “Cautionary Statement Regarding Forward-Looking Information,” “Risk Factors”
and our financial statements and the notes to those financial statements incorporated by reference herein.
Our
Company
Thumzup
Media Corporation is a Nevada corporation with our principal place of business in Culver City, California. The Company operates in a
single business segment which is social media marketing and advertising. The Thumzup® App works on both iPhone and Android mobile
operating systems and connects brands and people who use and love these brands. For the Advertiser, Thumzup® incentivizes ordinary
people to become paid content Creators and post authentic valuable posts on social media about the Advertiser and its products. Thumzup®
advertisers are charged a “Per Post Fee.”
Thumzup
also invests in bitcoin and have adopted bitcoin as our primary treasury reserve asset. As an operating business, we have primarily utilized
proceeds from the financing in conjunction with our listing on the Nasdaq Capital Market (“Nasdaq”) in October
2024 to purchase bitcoin.
The
Company has also tapped into the artificial intelligence (AI) space with its patent-pending Lifestyle AI Agent Marketplace. The filing
of trademark applications for Gibberlink Advertising™ and GibberAds ™, an innovative AI platform is set to redefine lifestyle
planning with specialized AI agents for personalized experiences in areas like travel, dining, and wellness. The platform leverages proprietary
AI to deliver hyper-personalized consumer experiences and monetization for influencers and local businesses, offering a premium “swarm”
subscription for collaborative planning based on user preferences and real-time market insights.
Corporate
Information
Our
principal executive offices are located at 10557-B Jefferson Blvd. Culver City, CA 90232 and our telephone number is (800) 403-6150.
Our Internet website address is www.ThumzupMedia.com. The information on our website is not incorporated into this prospectus supplement
or the prospectus.
The
Offering
Issuer |
|
Thumzup
Media Corporation. |
|
|
|
Securities
offered by us |
|
108,333
shares of Series C at $60.00 per share, with each share of Series C convertible into 10 shares of Common Stock.
In no event will we raise more than $6.5 million, nor shall we issue more than 1,083,333 shares
of Common Stock issuable upon conversion of the Series C.
|
|
|
|
Placement
Agent Warrants
|
|
Upon
the closing of this Offering, we have agreed to issue to the Placement Agent, or its respective designees, the Placement Agent Warrants
to purchase a number of shares of Common Stock equal to an aggregate of six percent (6%) of the shares of Common Stock sold in
the Offering, and the number of shares of Common Stock issuable upon conversion of the Series C sold in this Offering as partial
compensation for the Placement Agent’s services in connection with this Offering. The Placement Agent Warrants will be exercisable
at $6.00 per share. The Placement Agent Warrants are exercisable commencing December 29,
2025, and will be exercisable for a period of
five (5) years from the issuance date. See “Plan of Distribution — Placement Agent Warrants”
on page S-16 of this prospectus supplement. |
Underlying
Shares of Common Stock |
|
65,000 shares of Common Stock issuable upon the full exercise of the Placement Agent Warrants. |
|
|
|
Common
Stock Outstanding prior to Offering |
|
9,677,720
shares of Common Stock. |
|
|
|
Common
Stock Outstanding after this Offering |
|
10,761,053
shares of Common Stock. No effect is given to the exercise of
the Placement Agent Warrants and assumes full conversion of the Series C and additional shares of Common Stock issued subsequent
to March 31, 2025. |
|
|
|
Related
Party Transactions |
|
Simultaneously
with the consummation of the Offering, Robert Steele, the Company’s Chief Executive Officer, in one or more private transactions,
has agreed to sell 2,500,000 shares of Common Stock to certain accredited investors who are anticipated to be purchasers in the Offering.
The purchase price of the Private Transaction Shares is $0.50 per share and Mr. Steele will receive $1,250.000. The Company has agreed
to register with the SEC the public sale of the Private Transaction Shares within 30 days of the closing of the Private Transaction
Shares.
Simultaneously
with the consummation of the Offering, pursuant to the Option Agreement, Assignor will sell for $375,000 an option to purchase 750,000
shares of the Company’s Common Stock at an exercise price of $0.30 per share to certain accredited investors who are anticipated
to be purchasers in the Offering. Mr. Andrew Haag, the brother of Mr. Robert Haag, a member of the Company’s Board of Directors,
is a stockholder of the Company and the Managing Member of the Assignor. The Assignor had previously purchased the Option from Mr.
Daniel Lupinelli, a principal stockholder of the Company beneficially owing 14.47% of the outstanding Common Stock of the Company
as of June 30, 2025, for an aggregate purchase price of approximately $125,000. Within 30 days of the closing of the Option
sale, the Company has agreed to register with the SEC the underlying Common Stock issuable upon the full exercise of such Option. |
|
|
|
Use
of proceeds |
|
We
expect the net proceeds from this Offering will be approximately $6.04 million after deducting Placement Agent fees, as described
in “Plan of Distribution,” and estimated Offering expenses payable by us. We intend to use the net proceeds from this
Offering for, general corporate purposes and working capital, or for other purposes. See “Use of Proceeds”
on page S-11 of this prospectus supplement. |
|
|
|
Nasdaq
Capital Market trading symbol |
|
“TZUP”. |
The
number of shares of our Common Stock to be outstanding immediately after the closing of this is based on 9,677,720 shares of Common Stock
outstanding as of July 1, 2025 and excludes, as of that date:
|
● |
1,223,000
shares issuable upon the exercise of stock options issued under our 2024 Equity Incentive Plan;
|
|
|
|
|
● |
71,250 shares issuable upon the exercise of underwriter warrants issued in October 2024; |
|
|
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|
● |
2,379,480
shares issuable upon the conversion of our Series A Convertible Preferred Stock (the “Series A”); |
|
|
|
|
● |
12,500
shares issuable upon the conversion of our Series B Convertible Preferred Stock (the “Series B”); and |
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|
● |
Future
equity grants to our officers, employees, and independent directors. |
RISK
FACTORS
Investing
in our Securities involves risks. Before purchasing the Common Stock, offered by this prospectus supplement you should consider carefully
the risk factors described in this prospectus supplement, the accompanying prospectus, as well as the risks, uncertainties and additional
information set forth in our reports on Forms 10-K, 10-Q and 8-K that we file with the Securities and Exchange Commission (the “SEC”)
after the date of this prospectus supplement and which are deemed incorporated by reference in this prospectus supplement. For a description
of these reports and documents, and information about where you can find them, see “Incorporation of Certain Information By Reference”
in this prospectus supplement. The risks and uncertainties we discuss in this prospectus supplement, the accompanying prospectus and
in the documents incorporated by reference herein and therein are those that we currently believe may materially affect our company.
Additional risks not presently known, or currently deemed immaterial, also could materially and adversely affect our financial condition,
results of operations, business and prospects.
Risks
Related to our Business and Company
Because
our auditors have qualified their report on a going concern basis and with our history of losses, we may not be able to continue operating
as a going concern.
As
of March 31, 2025, the Company had cash of $1,035,179 and working capital of $905,928. The Company utilized $1,262,389 in cash for operating
activities during the three months ended March 31, 2025. These conditions raise substantial doubt about the Company’s ability to
continue as a going concern for one year from the issuance of the March 31, 2025 financial statements. These loses have continued to
date without considering the performance of our bitcoin investments.
Under
the Company’s Treasury Reserve Policy and bitcoin strategy, it has used a significant portion of its cash, including cash generated
from capital raising transactions, to acquire bitcoins, which are classified as indefinite-lived intangible assets. As of March 31, 2025,
the Company held approximately 19.106 bitcoins, all of which are unencumbered. The Company believes its substantial bitcoin holdings
can serve as a source of liquidity, if necessary.
The
bitcoin market historically has been characterized by significant volatility in its price, limited liquidity and trading volumes compared
to sovereign currencies markets, relative anonymity, a developing regulatory landscape, susceptibility to market abuse and manipulation,
compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic, virtual form and
decentralized network. During times of instability in the bitcoin market, we may not be able to sell our bitcoins at reasonable prices
or at all. As a result, our bitcoins are less liquid than our existing cash and cash equivalents and may not be able to serve as a source
of liquidity for us to the same extent as cash and cash equivalents. In addition, upon sale of our bitcoin, we may incur additional taxes
related to any realized gains or we may incur capital losses as to which the tax deduction may be limited.
If
the Company raises additional funds by issuing equity securities, its stockholders would experience dilution. Additional debt financing,
if available, may involve covenants restricting the Company’s operations or its ability to incur additional debt. Any additional
debt financing or additional equity that the Company raises may contain terms that are not favorable to it or its stockholders and require
significant debt service payments, which diverts resources from other activities. The Company’s ability to raise additional capital
will be impacted by market conditions and the price of the Company’s Common Stock.
Because
we have an unproven business model and have only generated nominal revenue to date, it is possible investors may lose all of their investment.
To
date, we have generated only nominal revenue from our business model. While we believe that the widespread use of mobile phones and social
media particularly by younger people demonstrates the vast potential for our advertising revenue model, if we are unable to generate
material revenue, we may not remain in operation. In that case, investors could lose all or substantially all of their investment.
Our
business, affairs, prospects, assets, financial condition, results of operations and cash flows could be materially and adversely affected
by these risks. For more information about our SEC filings, please see “Where You Can Find More Information.”
Unless we raise material funds from our proposed
public offering or otherwise raise equity capital, we may not meet the Nasdaq stockholder equity requirement and as a result we could
be delisted.
Our Common Stock trades on Nasdaq. In order to
remain listed we have to meet the continued listing requirements of Nasdaq, we are required to have at least $2.5 million of stockholders
equity. At March 31, 2025, we reported stockholders’ equity of $2,796,223 and generated nominal revenue. We expect to close on
all $6.5 million in this Offering on July 2, 2025. If we fail to raise substantial money in this Offering or otherwise obtain sufficient
equity financing, Nasdaq may delist our Common Stock in the future.
Our indebtedness could adversely affect our
financial health and prevent us from fulfilling our debt obligations.
In May 2025, we entered into the Master Loan Agreement
(the “MLA”) with Coinbase and Coinbase, Inc. pursuant to which Coinbase may lend us certain digital assets or cash. As of
June 16, 2025, we have received $500,000 under the MLA and the principal amount outstanding as of June 16, 2025 is $500,000. Any borrowings
under the Master Loan are collateralized by approximately $1.25 million of bitcoin as June 16, 2025.
Our indebtedness could, among others:
● increase our vulnerability to general
adverse economic and industry conditions;
● require us to dedicate a substantial portion
of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working
capital, capital expenditures, acquisitions, research and development efforts and other general corporate purposes;
● limit our flexibility in planning for,
or reacting to, changes in our business and the industry in which we operate;
● place us at a competitive disadvantage
compared to our competitors that have less debt;
● result in greater interest rate risk and
volatility;
● limit our ability to borrow additional
funds; and
● make it more difficult for us to satisfy
our obligations with respect to our debt, including our obligation to repay the MLA under certain circumstances, or refinance our indebtedness
on favorable terms or at all.
In addition, if the value of bitcoin declines
precipitously, the value of our collateral under the MLA would also decline. In such case, we could be required to provide Coinbase with
additional collateral. If we are unable to do so, we could default under the MLA, which could have a material adverse effect on our operations,
liquidity, financial condition, and results of operations.
Our ability to meet our expenses and debt obligations
will depend on our future performance, which will be affected by financial, business, economic, regulatory, and other factors. We will
be unable to control many of these factors, such as economic conditions. We cannot be certain that we will continue to have sufficient
capital to allow us to pay the principal and interest on our outstanding debt and meet any other obligations. If we do not have enough
money to service our debt, we may be required, but unable to refinance all or part of our existing debt, sell assets, borrow money, or
raise equity on terms acceptable to us, if at all, and Coinbase could sell any collateral in a commercially reasonable manner and freeze
certain of our accounts, among other measures.
Risks
Related to this Offering
The
Company is reliant on the directors and officers for key operations. Officers and directors currently own a majority of common shares
outstanding. The Board, therefore, has complete control as to the direction of the Company. There is a disproportionate reliance on the
directors and officers for the operation of the Company, and therefore a risk that the direction of the Company may change if the Board
or officers are unable to perform their duties as directors and officers.
The
Company’s Common Stock price may be volatile, which could result in substantial losses to investors and litigation.
In
addition to changes to market prices based on the Company’s results of operations and the factors discussed elsewhere in this “Risk
Factors” section, the market price of and trading volume for the Common Stock may change for a variety of other reasons, not necessarily
related to the Company’s actual operating performance. The capital markets have experienced extreme volatility that has often been
unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price
of the Company’s Common Stock. In addition, the average daily trading volume of the securities of small companies can be very low,
which may contribute to future volatility. Factors that could cause the market price of the Common Stock to fluctuate significantly include:
|
● |
the
results of operating and financial performance and prospects of other companies in the same industry; |
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● |
Any
downturn in the economy which adversely affects consumer spending; |
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● |
strategic
actions by the Company or its competitors, such as acquisitions or restructurings; |
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● |
announcements
of innovations, increased service capabilities, new or terminated customers or new, amended or terminated contracts by competitors; |
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● |
the
public’s reaction to Company press releases, other public announcements, and filings with the Securities and Exchange Commission; |
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● |
lack
of securities analyst coverage or speculation in the press or investment community about the Company or market opportunities in the
social media marketing industry; |
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● |
changes
in government policies in the United States and, as the Company’s international business increases, in other foreign countries; |
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● |
changes
in earnings estimates or recommendations by securities or research analysts who track the Company’s Common Stock or failure
of the Company’s actual results of operations to meet those expectations; |
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● |
market
and industry perception of the Company’s success, or lack thereof, in pursuing its growth strategy; |
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● |
changes
in accounting standards, policies, guidance, interpretations or principles; |
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any
lawsuit involving the Company, its services or its products; |
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● |
arrival
and departure of key personnel; |
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sales
of Common Stock by the Company, its investors or members of its management team; and |
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● |
changes
in general market, economic and political conditions in the United States and global economies or financial markets, including those
resulting from natural or man-made disasters. |
Any
of these factors, as well as broader market and industry factors, may result in large and sudden changes in the trading volume of the
Company’s Common Stock and could seriously harm the market price of the Common Stock, regardless of the Company’s operating
performance. This may prevent an Investor from being able to sell its shares at or above the price the investor paid for its shares of
Common Stock, if at all. In addition, following periods of volatility in the market price of a company’s securities, shareholders
often institute securities class action litigation against that company. The Company’s involvement in any class action suit or
other legal proceeding could divert its senior management’s attention and could adversely affect the Company’s business,
financial condition, results of operations and prospects.
The
sale or availability for sale of substantial amounts of the Company’s Common Stock could adversely affect the market price of the
Common Stock.
Sales
of substantial amounts of shares of the Company’s Common Stock, or the perception that these sales could occur, could adversely
affect the market price of the Common Stock and could impair the Company’s future ability to raise capital through Common Stock
offerings. The Company’s officers and directors still beneficially own, collectively, a substantial percentage of the outstanding
Common Stock. If one or more of them were to sell a substantial portion of the shares they hold, it could cause the Company’s stock
price to decline. The public sale of the 2,500,000 Private Transaction shares and 750,000 Option shares will involve almost 30% of our
outstanding Common Stock assuming exercise in full of the Series C following this Offering may depress the future market price of our
Common Stock.
The
Company is controlled by a small group of existing shareholders, whose interests may differ from other shareholders. The Company’s
officers and directors will significantly influence its activities, and their interests may differ from an investor’s interests
as a shareholder.
The
Company’s officers and directors still beneficially own, collectively, a substantial percentage of the outstanding Common Stock.
Accordingly, these shareholders have had, and will continue to have, significant influence in determining the outcome of any corporate
transaction or any other matter submitted for approval to the Company’s shareholders, including mergers, consolidations and the
sale of assets, director elections and other significant corporate actions. They will also have significant influence in preventing or
causing a change in control of the Company. In addition, without the consent of these shareholders, the Company could be prevented from
entering into transactions that could be beneficial to it. The interests of these shareholders may differ from an investor’s interests
as a shareholder, and they may act in a manner that advances their best interests and not necessarily those of other shareholders.
The
Company is an “emerging growth company” under the JOBS Act and it cannot be certain if the reduced disclosure requirements
applicable to emerging growth companies will make the Company’s Common Stock less attractive to investors.
The
Company is an “emerging growth company,” as defined in the JOBS Act, and it is taking advantage of certain exemptions from
various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including,
but not limited to, (i) being required to present only two years of audited financial statements and related financial disclosure, (ii)
not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (iii) extended transition
periods for complying with new or revised accounting standards, (iv) reduced disclosure obligations regarding executive compensation
in periodic reports and proxy statements and (v) exemptions from the requirements of holding a nonbinding advisory vote on executive
compensation and stockholder approval of any golden parachute payments not previously approved. The Company has taken, and in the future
may take, advantage of these exemptions until such time that it is no longer an “emerging growth company. As a result, the Company’s
financial statements may not be comparable to companies that comply with public company effective dates. The Company cannot predict if
investors will find its Common Stock less attractive because it relies on these exemptions. If some investors find the Company’s
Common Stock less attractive as a result, there may be a less active trading market for the Common Stock and the price of the Common
Stock may be more volatile.
The
Company will remain an “emerging growth company” for up to five years, although it will lose that status sooner if its annual
revenues exceed $1.07 billion, if it issues more than $1 billion in non-convertible debt in a three-year period, or if the market value
of the Common Stock that is held by non-affiliates exceeds $700 million as of any June 30.
The
Company’s disclosure controls and procedures may not prevent or detect all errors or acts of fraud.
The
Company is subject to the periodic reporting requirements of the Securities and Exchange Act of 1934, as amended (the “Exchange
Act”), and will be required to maintain disclosure controls and procedures that are designed to reasonably assure that information
required to be disclosed by the Company in reports it files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified by the rules and forms of the SEC, and that such information is accumulated and communicated
to management to allow timely decisions regarding required disclosure.
As
a public company, the Company is also required to maintain internal control over financial reporting and to report any material weaknesses
in those internal controls. Such internal controls are designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is
a reasonable possibility that a material mis-statement of a company’s annual or interim financial statements will not be prevented
or detected on a timely basis.
If
the material weaknesses in the Company’s internal controls are not fully remediated or if additional material weaknesses are identified,
those material weaknesses could cause the Company to fail to meet its future reporting obligations, reduce the market’s confidence
in its financial statements, harm the stock price and subject the Company to sanctions or investigations by the SEC or other regulatory
authorities. In addition, the Company’s Common Stock may not be able to remain quoted on Nasdaq or any other securities quotation
service or exchange.
For
as long as the Company is an “emerging growth company,” as defined in the JOBS Act, or a non-accelerated filer, as defined
in Rule 12b-2 under the Exchange Act, the Company’s auditors will not be required to attest as to its internal control over financial
reporting. If the Company continues to identify material weaknesses in its internal control over financial reporting, are unable to comply
with the requirements of Section 404 in a timely manner, are unable to assert that its internal control over financial reporting is effective
or, once required, the Company’s independent registered public accounting firm is unable to attest that its internal control over
financial reporting is effective, investors may lose confidence in the accuracy and completeness of its financial reports and the market
price of the Company’s Common Stock could decrease. The Company could also become subject to stockholder or other third-party litigation
as well as investigations by the securities exchange on which the Company’s securities are listed, the SEC or other regulatory
authorities, which could require additional financial and management resources and could result in fines, trading suspensions or other
remedies.
If
equity research analysts do not publish research or reports about the company, or if they issue unfavorable commentary or downgrade its
Common Stock, the market price of its Common Stock will likely decline.
The
trading market for the Company’s Common Stock will rely in part on the research and reports that equity research analysts, over
whom it has no control, publish about the Company and its business. The Company may never obtain research coverage by securities and
industry analysts. If no securities or industry analysts commence coverage of the Company, the market price for its Common Stock could
decline. In the event the Company obtains securities or industry analyst coverage, the market price of the Common Stock could decline
if one or more equity analysts downgrade the Common Stock or if those analysts issue unfavorable commentary, even if it is inaccurate,
or cease publishing reports about the Company or its business.
Management
will have broad discretion as to the use of the proceeds from this Offering, and we may not use the proceeds effectively.
Our
management will have broad discretion with respect to the use of proceeds of this Offering, including for any of the purposes described
in the section of this prospectus supplement entitled “Use of Proceeds.” You will be relying on the judgment of our management
regarding the application of the proceeds of this Offering. The results and effectiveness of the use of proceeds are uncertain, and we
could spend the proceeds in ways that you do not agree with or that do not improve our results of operations or enhance the value of
our Common Stock. Our failure to apply these funds effectively could have a material adverse effect on our business and cause the price
of our Common Stock to decline.
You
will experience immediate and substantial dilution in the net tangible book value per share of the Common Stock that you purchase.
Since
the public offering price for our Common Stock is substantially higher than the net tangible book value per share of our Common Stock
outstanding prior to this Offering, you will suffer immediate and substantial dilution in the net tangible book value of the Common Stock
that you purchase in this Offering. See the section entitled “Dilution” in this prospectus supplement.
Moreover,
to the extent that we issue options or warrants to purchase, or securities convertible into or exchangeable for, shares of our Common
Stock in the future and those options, warrants or other securities are exercised, converted or exchanged our stockholders may experience
further dilution.
USE
OF PROCEEDS
We
expect the net proceeds from this Offering to be approximately $6.04 million, after deducting Placement Agent fees, as described in “Plan
of Distribution,” and estimated Offering expenses payable by us.
We
intend to use the net proceeds from this Offering for general corporate purposes and working capital. Our Adtech subsidiary, Quantum
Reach Corporation, may utilize up to $1.5 million of our cash or bitcoin or other crypto on hand for operations in accordance with a
budget approved by our Board of Directors. We may also use the net proceeds from this Offering to further our Bitcoin Accumulation
Strategy.
As
of the date of this prospectus supplement, we cannot specify with certainty all of the particular uses of the proceeds from this Offering.
Accordingly, we will retain broad discretion over the use of such proceeds. Pending the use of the net proceeds from this Offering as
described above, we intend to invest the net proceeds in short-term, investment-grade securities.
DIVIDEND
POLICY
We
have not declared or paid any cash dividends on our Common Stock and do not currently anticipate paying cash dividends in the foreseeable
future.
The
holders of Series A shall be entitled to receive dividends, in cash or in-kind at the Company’s election, in an amount equal to
$0.875 per share per quarter. If paid in kind, the dividend shall be in shares of Series A (the “Dividend Shares”)
valued at the $45.00 per share of Series A (the “Purchase Price”) unless the closing price of the Common Stock
on the Trading Day prior to the issuance of the dividend is below the Reference Rate, in which case the Dividend Shares shall be valued
at the Purchase Price adjusted pursuant to the formula set forth in Section 3 of the Certificate of Designations.
The
holders of Series B are entitled to receive dividends, in cash or in Common Stock at the Company’s election, in an amount equal
to $1.25 per share per quarter. If paid in kind, the number of shares of Common Stock issued for the dividend shall be equal to the quotient
of the dividend payable divided by the volume weighted average price on the dividend date.
CAPITALIZATION
The
following table sets forth our capitalization as of March 31, 2025:
|
● |
on
an actual basis; |
|
|
|
|
● |
on
a pro forma basis to give effect to (i) the issuance of 1,980 common shares granted to non-executive employees under our 2024 Equity
Incentive Plan issued after March 31, 2025, (ii) the issuance of 12,105 common shares upon the conversion of Series A Preferred Shares
issued after March 31, 2025, (iii) the issuance of 183,750 common shares upon the conversion of Series B Preferred Shares issued
after March 31, 2025, (iv) the issuance of 176 common shares for dividends on Series B Preferred Shares issued after March 31, 2025,
(v) the issuance of 3,057 Series A shares for dividends on Series A Preferred Shares issued after March 31, 2025, (vi) our issuance
and sale of the Common Stock including the shares issuable upon conversion of the Series C , after deducting estimated Placement
Agent fees and estimated Offering expenses payable by us and application of the net proceeds of approximately $6.04 million. |
You should read this table in conjunction
with the information contained in this prospectus and any accompanying prospectus supplement and the information incorporated by reference
from our Quarterly Report on Form 10-Q for the year ended March 31, 2025, including the historical financial statements and related notes
included in the report.
|
|
As of March 31, 2025
(Presented in $ except for share numbers) |
|
|
|
Actual |
|
|
Pro Forma |
|
Cash |
|
$ |
3,757,323 |
|
|
$ |
9,797,323 |
|
|
|
|
|
|
|
|
|
|
Preferred Stock, $0.01 par value, 25,000,000 authorized |
|
|
|
|
|
|
|
|
Series A Convertible Preferred Stock, 1,000,000 shares authorized
156,393 outstanding as of March 31, 2025 and 156,963 shares pro forma |
|
|
156 |
|
|
|
156 |
|
Series B Convertible Preferred Stock, 40,000 shares authorized and
15,700 shares outstanding as of March 31, 2025 and 1,000 shares pro forma |
|
|
16 |
|
|
|
1 |
|
Series C Convertible Preferred Stock, No shares designated as of
March 31, 2025; 200,000 shares authorized and 108,333 shares outstanding pro forma |
|
|
0 |
|
|
|
108 |
|
|
|
|
|
|
|
|
|
|
Common Stock, $0.001 par value, 250,000,000 authorized and 9,479,709
shares outstanding as of March 31, 2025 and 9,677,720 pro forma
Treasury stock, at cost, 79,377 shares of Common Stock outstanding
at March 31, 2025 |
|
|
9,480 |
|
|
|
9,678 |
|
|
|
|
(298,207 |
) |
|
|
(298,207 |
) |
|
|
|
|
|
|
|
|
|
Additional paid in capital |
|
|
14,931,573 |
|
|
|
20,971,218 |
|
Accumulated deficit |
|
|
(11,846,795 |
) |
|
|
(11,846,795 |
) |
Total stockholders’ equity |
|
$ |
2,796,223 |
|
|
$ |
8,836,223 |
|
|
|
|
|
|
|
|
|
|
Total capitalization |
|
$ |
3,179,967 |
|
|
$ |
9,219,967 |
|
The number of shares of our Common Stock in the
table above excludes, as of March 31, 2025:
|
● |
1,223,000 shares issuable upon the exercise of stock options issued
under our 2024 Equity Incentive Plan; |
|
|
|
|
● |
71,250 shares issuable upon the exercise of underwriter warrants issued in October 2024; |
|
|
|
|
● |
2,345,880 shares issuable upon the conversion of our Series A Preferred Shares; |
|
|
|
|
● |
196,250 shares issuable upon the conversion of our Series B Preferred Shares; and |
|
|
|
|
● |
Future equity grants to our officers, employees and independent
directors. |
|
|
|
|
● |
The pro forma amounts give effect to the gross proceeds of
$6,500,000 raised in the Public Offering. |
The
pro forma column gives effect to the sale of all Securities offered by this prospectus supplement. Reflects 108,333
shares of Series C will be sold in the Public Offering.
DILUTION
If
you purchase shares in this Offering, your interest will be diluted to the extent of the difference between the Offering price per share
and the net tangible book value per share of our Common Stock after this Offering. Our net tangible book value as of March 31, 2025,
was approximately $0.9 million, or $0.10 per share of Common Stock. “Net tangible book value” is total assets minus the sum
of liabilities, capitalized software, and intangible assets. “Net tangible book value per share” is net tangible book value
divided by the total number of shares of Common Stock outstanding.
After
giving effect to the sale by us of 1,083,333 shares of Common Stock in this Offering at the public offering price of $6.00 per share
(or any Series C at $60 per share), and after deducting Placement Agent fees, and other estimated Offering expenses payable by us of
approximately $6.04 million, our net tangible book value as of March 31, 2025, would have been approximately $6.96 million, or $0.65
per share of Common Stock. This amount represents an immediate increase in net tangible book value of $0.55 per share to existing stockholders
and an immediate dilution of $5.35 per share to purchasers in this Offering. No effect is given to the exercise of the Placement Agent
Warrants.
Offering price per share of
Common Stock | |
| | | |
$ | 6.00 | |
| |
| | | |
| | |
Net tangible book value per share of Common
Stock as of March 31, 2025 | |
$ | 0.10 | | |
| | |
| |
| | | |
| | |
Increase in net tangible
book value per share of Common Stock attributable to this Offering | |
| 0.55 | | |
| | |
| |
| | | |
| | |
Net tangible book value
per share of Common Stock as of March 31, 2025 as adjusted after this Offering | |
| | | |
| 0.65 | |
| |
| | | |
| | |
Dilution per share
to new investors in this Offering | |
| | | |
$ | (5.35 | ) |
The
above discussion and tables are based on 9,479,709 shares of Common Stock outstanding as of March 31, 2025 and assumes no exercise by
the Placement Agent of the Placement Agent Warrants and excludes, as of that date:
● |
1,223,000
shares issuable upon the exercise of stock options issued under our 2024 Equity Incentive Plan; |
|
|
● |
71,250
shares issuable upon the exercise of underwriter warrants issued in October 2024; |
|
|
● |
2,345,880
shares issuable upon the conversion of our Series A Convertible Preferred Stock; |
|
|
● |
196,250
shares issuable upon the conversion of our Series B Convertible Preferred Stock; and |
|
|
● |
Future
equity grants to our officers, employees and independent directors. |
To
the extent that any outstanding options or warrants are exercised, new options are issued under the plans, restricted stock awards vest,
or we otherwise issue additional shares of Common Stock in the future, at a price less than the public Offering price, there will be
further dilution to the investors.
DESCRIPTION
OF THE PLACEMENT AGENT WARRANTS
The
following is a summary of the material terms and provisions of the Placement Agent Warrants that are being issued to the Placement Agent.
This summary is subject to and qualified in its entirety by the form of Placement Agent Warrants which will be filed with the SEC as
an exhibit to a Current Report on Form 8-K in connection with this Offering and incorporated by reference into the registration statement
of which this prospectus supplement forms a part.
General.
The Placement Agent, as part of its compensation for the services rendered, will receive Placement Agent Warrants to purchase shares
of our Common Stock equal to six percent (6%) of the shares of Common Stock sold in the Offering, and the number of shares
of Common Stock issuable upon conversion of the Series C sold in this Offering. The Placement Agent Warrants shall be non-tradeable.
Duration
and Exercise Price. The Placement Agent Warrants issued to the Placement Agent will have an exercise price of $6.00 per share. The
Placement Agent Warrants will be exercisable any time commencing December 29, 2025 and will be exercisable for a period of five
(5) years expiring July 2, 2030. The exercise price and number of shares of Common Stock issuable upon exercise are subject
to appropriate adjustment in the event of stock splits, combinations, reorganizations or similar events affecting our shares of Common
Stock. We shall reserve with our transfer agent 100% of the shares of Common Stock underlying the Placement Agent Warrants.
Exercise
Procedure. The Placement Agent Warrants will be exercisable, at the option of each holder, in whole or in part, by delivering
to us a duly executed exercise notice accompanied by payment of the exercise price (except in the case of a cashless exercise as discussed
below).
Cashless
Exercise. If at the time of exercise hereof the Form S-3 and this prospectus supplement are not available in order to permit
us to issue free trading shares, the Placement Agent Warrants will also be exercisable on a “cashless exercise” basis under
which the holder will receive upon such exercise a net number of shares of Common Stock determined according to a formula set forth in
the Placement Agent Warrants.
Transferability.
Subject to applicable laws, the Placement Agent Warrants may be transferred at the option of the holder upon surrender of such Warrants
to us together with the appropriate instruments of transfer, but may not be traded.
Exchange
Listing. There will be no trading market available for the Placement Agent Warrants. We do not intend to list or quote the Placement
Agent Warrants on any securities exchange or nationally recognized trading system.
Right
as a Stockholder. Except as otherwise provided in the Placement Agent Warrants or by virtue of such holder’s ownership of shares
of our Common Stock, the holders of the Placement Agent Warrants do not have the rights or privileges of holders of our Common Stock,
including any voting rights, until they exercise their Warrants.
Fundamental
Transaction. In the event of a fundamental transaction, as described in the Placement Agent Warrants and generally including any
reorganization, recapitalization or reclassification of our Common Stock, the sale, transfer or other disposition of all or substantially
all of our assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding voting
securities, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding Common Stock,
the holders of the Placement Agent Warrants will be entitled to receive upon exercise of the Placement Agent Warrants the kind and amount
of securities, cash or other property that the holders would have received had they exercised the Placement Agent Warrants immediately
prior to such fundamental transaction.
DESCRIPTION
OF THE SERIES C
You
should read the following description of the Series C along with the description “Preferred Stock” beginning on
page 16. This description of the Series C is qualified by the Certificate of Designations, Preferences, Rights and Limitations of
the Series C Convertible Preferred Stock (the “Certificate of Designations”), which will be filed in a Current Report on
Form 8-K, and where this description is inconsistent with the description of the Series C in the Certificate of Designations, the Certificate
of Designations will control.
The
Series C is functionally the same as our Common Stock except for the inclusion of either, at the election of the holder, a 4.99% or
9.99% beneficial ownership equity blocker and a liquidation preference in the event of a Liquidation Event(as defined in the Certificate
of Designation) so that before any amount shall be paid to the holders of any of shares of junior stock, the holders of the Series C
shall receive an amount per Series C equal to the amount per share such holder would receive if such holder converted such Series C into
Common Stock immediately prior to the date of such payment.
General.
The Certificate of Designation for the Series C authorizes 200,000 shares of Series C, par value of $0.001. Each share of Series
C has a stated value of $60.00. Each share of Series C is convertible into 10 shares of our Common Stock, subject to certain adjustments.
The initial Series C Conversion price is $6.00 per share of Common Stock.
Exchange
Listing. There is no trading market available for the Series C. We do not intend to list or quote the Series C on any securities
exchange or nationally recognized trading system.
Ranking.
The Series C ranks junior to the Company’s Series A Convertible Preferred Stock and Series B Convertible Preferred Stock, but
ranks senior to the Company’s Common Stock and any preferred stock issued after the Series C. In the event of the merger or consolidation
of the Company with or into another entity, the Series C shall maintain its relative rights, powers, designations, privileges and preferences
provided for in the Certificate of Designations. In the event of a liquidation of the Company, the holders of Series C will share in
the distribution of our net assets on an as-converted basis.
Voting.
Except as otherwise required by the Nevada Revised Statutes, the holders of Series C shall have no voting rights with respect
to such shares.
PLAN
OF DISTRIBUTION
We
have engaged Dominari Securities LLC to act as our exclusive placement agent, on a reasonable best efforts basis, in connection with
this Offering pursuant to this prospectus supplement and accompanying prospectus. The terms of this Offering are subject to market conditions
and negotiations between us, the Placement Agent, and prospective investors. The placement agency agreement does not give rise to any
commitment by the Placement Agent to purchase any of the Series C offered, and the Placement Agent will have no authority to bind
us by virtue of the placement agency agreement. The Placement Agent has no commitment to buy any of the Series C offered pursuant
to this prospectus supplement and accompanying prospectus. There is currently no established trading market for the Series C, and
we do not expect a market to develop.
The
Placement Agent is not purchasing the Series C offered by us in this Offering and is not required to sell any specific number
or dollar amount of Series C but will assist us in this Offering on a reasonable best efforts basis. Further, the Placement Agent
does not guarantee that it will be able to raise new capital in any prospective Offering. The Placement Agent may engage sub-agents or
selected dealers to assist with the Offering.
We
expect to deliver the Series C pursuant to this prospectus supplement on or about July 2, 2025, subject to satisfaction
of customary closing conditions.
Fees
and Expenses
The
following table shows, on a per share and total basis, the public offering price, Placement Agent fees and proceeds, before expenses
to us.
| |
Per
Share | | |
Total | |
Offering price | |
$ | 6.00 | | |
$ | 6,500,000 | |
Placement agent fees(1) | |
$ | (0.42 | ) | |
$ | (460,000 | ) |
Proceeds to us before expenses | |
$ | 5.58 | | |
$ | 6,040,000 | |
(1) |
We
have agreed to pay the Placement Agent in connection with this Offering a cash fee equal to six percent (6.0%) of the aggregate gross
proceeds from the sale of the Series C in this Offering. In addition, we have agreed to pay expenses of the Placement Agent’s
legal counsel and other out-of-pocket expenses in an amount not to exceed $70,000. |
We
estimate that the total expenses payable by us in connection with this Offering, excluding the Placement Agent fees and expenses referred
to above, will be approximately an additional $125,000.
Placement
Agent Warrants
Upon
the closing of this Offering, we have agreed to issue to the Placement Agent, or its respective designees, Placement Agent Warrants to
purchase 65,000 shares of Common Stock equal to an aggregate of 6% of the total number of shares of Common Stock sold in the Offering,
and the number of shares of Common Stock issuable upon the conversion of the Series C sold in this Offering as partial compensation
for the Placement Agent’s services in connection with this Offering. The Placement Agent Warrants will be exercisable at $6.00
per share. The Placement Agent Warrants are exercisable commencing December 29, 2025 sales and will be exercisable for a period
of five (5) years from issuance.
The
Placement Agent Warrants and the shares of Common Stock underlying the Placement Agent Warrants have been deemed compensation by FINRA
and are therefore subject to a 180-day lock-up pursuant to Rule 5110(e)(1) of FINRA. Neither the Placement Agent nor its respective permitted
assignees under such rule, may sell, transfer, assign, pledge, or hypothecate the Placement Agent Warrants or the Common Stock underlying
the Placement Agent Warrants, nor will the Placement Agent engage in any hedging, short sale, derivative, put, or call transaction that
would result in the effective economic disposition of the Placement Agent Warrants or the underlying shares for a period of 180 days
from the date of commencement of sales in this Offering. See the form of Placement Agent Warrants to be filed as an exhibit on a Current
Report on Form 8-K for a complete description of the terms of the Placement Agent Warrants.
Determination
of Price
The
public offering price per share we are offering was negotiated between us and the investors, in consultation with the Placement Agent
based on the trading of our Common Stock prior to this Offering, among other things. Other factors considered in determining the public
offering price of the Series C we are offering include the history and prospects of our Company, our business plans for the future
and the extent to which they have been implemented, an assessment of our management, general conditions of the securities markets at
the time of the offering and such other factors as were deemed relevant.
Right
of First Refusal
If
the Offering results in gross proceeds of at least $6,000,000, then for
a period of twelve (12) months from the closing of the Offering, we shall grant a right of first refusal to the Placement Agent to act
as lead underwriter or book- running manager or placement agent for each and every future public and private equity, equity-linked, convertible
or debt (excluding commercial bank debt or the exchange or conversion of existing indebtedness of us as of the date hereof) offerings
of us, or any successor to or any subsidiary of us during such period. If the Placement Agent fails to accept an offer within ten (10)
Business Days after the receipt of a notice containing the material terms of a proposed financing by registered mail or overnight courier
service addressed to the Placement Agent, then the Placement Agent shall have no further claim or right with respect to the financing
proposal contained in such notice. If, however, the terms of such financing proposal are subsequently modified in any material respect,
the preferential right referred to herein shall apply to such modified proposal as if the original proposal had not been made. The Placement
Agent’s failure to exercise its preferential right with respect to any particular proposal shall not affect its preferential rights
relative to future proposals.
Tail
For a period of twelve(12) months after the closing of the Offering, the Placement Agent will receive compensation equal to the cash
fee and the Placement Agent Warrants set forth herein with respect to any public and private equity, equity-linked, convertible or
debt (excluding commercial bank debt) offerings of us, sale, merger, acquisition or other similar transactions occurring with a
party first introduced to us by the Placement Agent or wall-crossed by the Placement Agent in connection with the
Offering.
Regulation
M
The
Placement Agent may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions
received by it and any profit realized on the resale of the shares sold by it while acting as principal might be deemed to be underwriting
discounts or commissions under the Securities Act. As an underwriter, the Placement Agent would be required to comply with the requirements
of the Securities Act and the Exchange Act, including, without limitation, Rule 415(a)(4) under the Securities Act and Rule 10b-5 and
Regulation M under the Exchange Act. These rules and regulations may limit the timing of purchases and sales of shares by the Placement
Agent acting as principal. Under these rules and regulations, the Placement Agent:
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● |
may
not engage in any stabilization activity in connection with our securities; and |
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may
not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted
under the Exchange Act, until they have completed their participation in the distribution. |
Indemnification
Pursuant
to the Placement Agency Agreement, we have agreed to indemnify the Placement Agent against certain liabilities, including liabilities
under the Securities Act, or to contribute to payments that the Placement Agent or such other indemnified parties may be required to
make in respect of those liabilities.
Nasdaq
Capital Market Listing
Our
Common Stock is currently traded on the Nasdaq under the symbol “TZUP.” On June 30, 2025, the closing
sales price for our Common Stock was $7.01 per share.
Other
Relationships
The
Placement Agent and its affiliates may in the future engage in investment banking and other commercial dealings in the ordinary course
of business with us or our affiliates. The Placement Agent may in the future receive customary fees and commissions for these transactions.
In the ordinary course of its various business activities, the Placement Agent and its affiliates may make or hold a broad array of investments
and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for
its own account and for the accounts of its customers, and such investment and securities activities may involve securities and/or instruments
of the issuer. The Placement Agent and its affiliates may also make investment recommendations and/or publish or express independent
research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long
and/or short positions in such securities and instruments.
Discretionary
Accounts
The
Placement Agent does not intend to confirm sales of the securities offered hereby to any accounts over which it has discretionary
authority.
Transfer
Agent and Registrar
The
transfer agent and registrar for our Common Stock is Securitize (Pacific Stock Transfer). Its mailing address is 6725 Via Austi Pkwy
Suite 300, Las Vegas, NV 89119 and its telephone number is (800) 785-7782.
Electronic
Distribution
This
prospectus supplement, the accompanying base prospectus and the documents incorporated herein and therein by reference in electronic
format may be made available on the websites maintained by the Placement Agent. The Placement Agent may distribute prospectuses electronically.
The Placement Agent may agree to allocate a number of shares of Series C for sale to its online brokerage account holders.
Other
than this prospectus supplement, the accompanying base prospectus and the documents incorporated herein and therein by reference in electronic
format, information contained in any website maintained by the Placement Agent is not part of this prospectus supplement, the accompanying
base prospectus or the documents incorporated herein and therein by reference, has not been endorsed by us and should not be relied on
by investors in deciding whether to purchase Series C. The Placement Agent is not responsible for information contained in websites
that they do not maintain.
LEGAL
MATTERS
The
legality of the Series C offered by this prospectus supplement has been passed upon for us by Nason, Yeager, Gerson, Harris &
Fumero, P.A., Palm Beach Gardens, Florida. Sichenzia Ross Ference Carmel LLP, New York, New York, is acting as counsel for the Placement
Agent in connection with this Offering.
EXPERTS
The
consolidated financial statements of the Company as of December 31, 2024 and 2023 incorporated by reference in this prospectus have been
so included in reliance on the report of by Haynie & Company an independent registered public accounting firm, given on the authority
of said firm as experts in auditing and accounting.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The
documents listed below are incorporated by reference into this prospectus:
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our
Annual Report on Form
10-K for the year ended December 31, 2024, filed with the SEC on March 11, 2025, as amended on April 30, 2025; |
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our
Quarterly Report on Form
10-Q for the quarter ended March 31, 2025; |
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our
Current Reports on Form 8-K filed with the SEC on March
20, 2025; March
25, 2025; and June 23, 2025; and |
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All
documents subsequently filed pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination of the offering,
other than information furnished pursuant to Items 2.02 and 7.01 of Form 8-K and any related exhibits, shall be deemed to be incorporated
by reference into the prospectus. |
Any
statement contained in a document incorporated or deemed to be incorporated by reference in this prospectus is modified or superseded
for purposes of the prospectus to the extent that a statement contained in this prospectus or in any other subsequently filed document
that also is or is deemed to be incorporated by reference herein modifies or supersedes such statement.
We
will provide to each person, including any beneficial owner, to whom a prospectus is delivered, a copy of any or all of the information
that has been incorporated by reference in this prospectus but not delivered with the prospectus.
We
are an Exchange Act reporting company and are required to file periodic reports on Form 10-K and 10-Q and current reports on Form 8-K.
The SEC maintains an Internet website that contains reports, proxy and information statements, and other information regarding issuers
that file electronically with the SEC, including Unusual Machines at www.sec.gov/EDGAR. You may also access our reports and proxy statements
free of charge at our website, www.unusualmachines.com, which website is not incorporated inti this prospectus.
You
may obtain a copy of any of our filings, at no cost, by contacting us at:
Robert
Steele
Chief
Executive Officer
10557-B
Jefferson Blvd.
Culver
City, CA 90232
(800)
403-6150
PROSPECTUS

Thumzup
Media Corporation
$500,000,000
Common
Stock
Preferred
Stock
Warrants
Units
We
may from time to time, in one or more offerings at prices and on terms that we will determine at the time of each offering, sell common
stock, preferred stock, warrants, units, or a combination of these securities, for an aggregate amount of up to $500,000,000. This prospectus
describes the general manner in which our securities may be offered using this prospectus. Each time we offer and sell securities, we
will provide you with a prospectus supplement that will contain specific information about the terms of that offering. Any prospectus
supplement may also add, update, or change information contained in this prospectus. You should carefully read this prospectus and the
applicable prospectus supplement as well as the documents incorporated or deemed to be incorporated by reference in this prospectus before
you purchase any of the securities offered hereby.
This
prospectus may not be used to offer and sell securities unless accompanied by a prospectus supplement.
Our
common stock is currently traded on the Nasdaq Capital Market under the symbol “TZUP.” On May 1, 2025, the closing sales
price for our common stock was $5.07 per share. If we decide to seek a listing or qualification for trading of any preferred stock, warrants,
subscriptions rights, depositary shares or units offered by this prospectus, the related prospectus supplement will disclose the exchange
or market on which the securities will be listed or traded, if any, or where we have made an application for listing or trading, if any.
As
of May 15, 2025, our public float, which is equal to the aggregate market value of our outstanding voting and non-voting common stock
held by non-affiliates, was approximately $40,765,146, based on 9,508,794 shares of outstanding common stock, of which approximately
4,564,966 shares were held by non-affiliates, and a closing sale price of our common stock of $8.93 on that date. Pursuant to General
Instruction I.B.6 of Form S-3, in no event will we sell securities in a public primary offering with a value exceeding more than one-third
of our public float in any 12-month period so long as our public float remains below $75.0 million.
The
securities offered by this prospectus involve a high degree of risk. See “Risk Factors” beginning on page 15, in addition
to Risk Factors contained in the applicable prospectus supplement.
Neither
the Securities and Exchange Commission nor any State securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
We
may offer the securities directly or through agents or to or through underwriters or dealers. If any agents or underwriters are involved
in the sale of the securities their names, and any applicable purchase price, fee, commission or discount arrangement between or among
them, will be set forth, or will be calculable from the information set forth, in an accompanying prospectus supplement. We can sell
the securities through agents, underwriters or dealers only with delivery of a prospectus supplement describing the method and terms
of the offering of such securities. See “Plan of Distribution.”
This
prospectus is dated May 19, 2025
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS |
4 |
|
|
DISCLOSURE
REGARDING FORWARD-LOOKING STATEMENTS |
4 |
|
|
RISK
FACTORS |
15 |
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|
THE
COMPANY |
5 |
|
|
USE
OF PROCEEDS |
16 |
|
|
DESCRIPTION
OF SECURITIES |
16 |
|
|
DESCRIPTION
OF COMMON STOCK |
16 |
|
|
DESCRIPTION
OF WARRANTS |
19 |
|
|
DESCRIPTION
OF UNITS |
21 |
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DESCRIPTION
OF RIGHTS |
21 |
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|
PLAN
OF DISTRIBUTION |
24 |
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LEGAL
MATTERS |
26 |
|
|
EXPERTS |
26 |
|
|
INCORPORATION
OF INFORMATION BY REFERENCE |
26 |
|
|
WHERE
YOU CAN FIND MORE INFORMATION |
27 |
You
should rely only on the information contained or incorporated by reference in this prospectus or any prospectus supplement. We have not
authorized anyone to provide you with information different from that contained or incorporated by reference into this prospectus. If
any person does provide you with information that differs from what is contained or incorporated by reference in this prospectus, you
should not rely on it. No dealer, salesperson or other person is authorized to give any information or to represent anything not contained
in this prospectus. You should assume that the information contained in this prospectus or any prospectus supplement is accurate only
as of the date on the front of the document and that any information contained in any document we have incorporated by reference is accurate
only as of the date of the document incorporated by reference, regardless of the time of delivery of this prospectus or any prospectus
supplement or any sale of a security. These documents are not an offer to sell or a solicitation of an offer to buy these securities
in any circumstances under which the offer or solicitation is unlawful.
ABOUT
THIS PROSPECTUS
This
prospectus is part of a shelf registration statement on Form S-3 that we filed with the Securities and Exchange Commission (the “SEC”)
using a “shelf” registration process. Under this shelf registration process, we may sell up to $500,000,000 of our common
stock, warrants, units or rights in one or more offerings from time to time. This prospectus provides you with a general description
of the securities we may offer. Each time we offer securities, we will provide you with a prospectus supplement that describes the specific
amounts, prices and terms of the securities we offer. The prospectus supplement also may add, update or change information contained
in this prospectus.
This
prospectus does not contain all the information provided in the registration statement we filed with the SEC. You should read both this
prospectus, including the section titled “Risk Factors,” and any prospectus supplement, together with the additional information
described under the heading “Where You Can Find More Information.”
You
should rely only on the information contained or incorporated by reference in this prospectus or a prospectus supplement. We have not
authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. This prospectus is not an offer to sell securities, and it is not soliciting an offer to buy securities in
any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus or any
prospectus supplement, as well as information we have previously filed with the SEC and incorporated by reference, is accurate as of
the date on the front of those documents only. Our business, financial condition, results of operations and prospects may have changed
since those dates
DISCLOSURE
REGARDING FORWARD-LOOKING STATEMENTS
Some
of the statements made under “The Company,” “Use of Proceeds,” and elsewhere in this prospectus, as well as the
documents incorporated by reference herein, including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024,
as filed on March 11, 2025 and amended on April 30, 2025, constitute forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,”
“should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “potential,” “intends,” or “continue,” or the negative of these terms or
other comparable terminology.
These
forward-looking statements may include, but are not limited to, statements related to our expected business, new product introductions,
our ability to raise funds for general corporate purposes and operations, future results of operations, future financial position, our
ability to generate revenues, our financing plans and future capital requirements, anticipated costs of revenue, anticipated expenses,
the effect of recent accounting pronouncements, our anticipated cash flows, our ability to finance operations from cash flows or otherwise,
and statements based on current expectations, estimates, forecasts, and projections about the economies and markets in which we operate
and intend to operate and our beliefs and assumptions regarding these economies and markets.
Forward-looking
statements are not guarantees of future performance and are subject to risks and uncertainties. We have based these forward-looking statements
on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current
conditions, expected future developments, and other factors they believe to be appropriate. Important factors that could cause actual
results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include,
among others, those factors referred to in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on March 11, 2025 and amended on April 30, 2025, which
is incorporated by reference herein.
These
statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our
or our industry’s actual results, levels of activity, performance, or achievements to be materially different from those anticipated
by the forward-looking statements. We discuss many of these risks in the documents incorporated by reference herein. You should not rely
upon forward-looking statements as predictions of future events.
Although
we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels
of activity, performance, or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking
statements, whether as a result of new information, future events or otherwise, after the date of this prospectus.
THE
COMPANY
General
As
used herein, “we,” “us,” “our,” the “Company,” “Thumzup®,” means Thumzup®
Media Corporation unless otherwise indicated. Thumzup® operates in a single business segment which is social media marketing. Thumzup®
has a mobile iPhone and Android applications called “Thumzup®” that connects brands and people who use and love these
brands. For the advertiser, Thumzup® incentivizes ordinary everyday people to become paid content creators and post authentic valuable
posts on social media about the advertiser and its products.
The
Company was incorporated on October 27, 2020, under the laws of the State of Nevada. Its headquarters are located in Los Angeles, CA.
The Company has never been the subject of any bankruptcy or receivership. The Company has never engaged in any material reclassification,
merger, or consolidation of the Company. The Company has not acquired or disposed of any material amount of assets except in the normal
course of business.
Our
common stock is currently traded on the Nasdaq Capital Market under the symbol “TZUP.” There
is currently very limited trading of our Common Stock, and an active trading market may never develop.
The
Company is an “emerging growth company” as that term is used in the Jumpstart our Business Startups Act of 2012, and as such,
has elected to comply with certain reduced public company reporting requirements.
Thumzup®
Products and Services
The
Company operates in a single business segment which is social media marketing and advertising. The Thumzup® App works on both iPhone
and Android mobile operating systems and connects brands and people who use and love these brands. For the Advertiser, Thumzup® incentivizes
ordinary people to become paid content Creators and post authentic valuable posts on social media about the Advertiser and its products.
Thumzup
also invests in bitcoin and have adopted bitcoin as our primary treasury reserve asset. As an operating business, we have primarily utilized
proceeds from the financing in conjunction with our listing on Nasdaq in October 2024 to purchase bitcoin.
The
Company has also tapped into the artificial intelligence (AI) space with its patent-pending Lifestyle AI Agent Marketplace. The filing
of trademark applications for Gibberlink Advertising™ and GibberAds ™, an innovative AI platform is set to redefine lifestyle
planning with specialized AI agents for personalized experiences in areas like travel, dining, and wellness. The platform leverages proprietary
AI to deliver hyper-personalized consumer experiences and monetization for influencers and local businesses, offering a premium “swarm”
subscription for collaborative planning based on user preferences and real-time market insights.
The
Company seeks to capitalize on nationwide-wide gig economy and business democratization trends. Immense value and opportunity have been
created through the democratization of ride sharing, hospitality, finance and other industries. The Thumzup® tools are designed to
facilitate this democratization trend for the consumer and the Advertiser within the online marketing and advertising space.
The
Company has built the technology to support the influencer and “gig” economy communities, as well as everyday customers around
its Thumzup® App. The technology and communities are designed to generate scalable authentic product posts and recommendations for
advertisers on social media. It is designed to connect advertisers with individuals who are willing to tell their friends about the advertisers’
products online and offline.
Social
Media Marketing Software Technology
The
Thumzup® mobile App enables Creators, to select from brands advertising on the App and get paid to post about the advertiser on social
media. Once the Thumzup® Creator selects the brand and takes a photo using the Thumzup® App, the Thumzup® App posts the photo
and a caption to the Creator’s social media accounts. The advertiser then reviews and approves the post for payment and the Creator
can cash out whenever they choose through popular digital payment systems. Beyond connecting brands with creators for social media posts,
Thumzup is also developing an AI Lifestyle Agent Marketplace to offer users personalized AI assistance for various lifestyle needs. For
the advertiser, the Thumzup® system enables brands to get real people to promote their products to their friends. In 2023, $148 billion
was spent on digital display ads in the United States and while 43% of marketers consider display ads to be the least effective channel,
84% of marketers were still investing in them(1). We feel this demonstrates a significant need among advertisers for new methods
of messaging to potential customers. We believe Thumzup’s ability to scale brand messages from the general population on social
media could be part of addressing this substantial need in the market.
|
(1) |
https://meetanshi.com/blog/display-advertising-statistics/) |
A
recent Nielsen report found 81% of consumers believe friends and family are the most reliable sources of information about products(2).
According to a Emplifi article, 64% of millennials recommend a product at least once a month(3), and according to a
2019 Morning Consult survey, 86% of Gen Z and millennials would post content for monetary compensation(4). Further, according
to a 2020 IZEA Insights Study, 67% of social media consumers aspire to be paid social media influencers(5). According to a
2023 Bankrate, 48% of social media users have impulsively purchased a product seen on social media(6). Lastly, 85% of Gen
Z says social media impacts purchase decisions according to a 2023 Retail Dive Survey(7).
The
average American adult spent 7 hours and 58 minutes per day using digital media in 2020 according to a 2020 eMarketer Report(8).
The amount of daily usage has increased significantly since 2019, again according to an eMarketer Report(8),, and the
Company believes such usage will continue to accelerate. The Company empowers businesses that want to interact with these Creators and
provides tools and data so they can increase consumer awareness and expand their customer bases.
In
the past decade, social media platforms like Instagram, Facebook, Twitter, Pinterest, and TikTok have achieved mass worldwide consumer
acceptance and created hundreds of billions of dollars in shareholder value. This worldwide viral growth demonstrates that compelling
new social media platforms which present the right combination of experience and value, will attract Creators who will invest significant
amounts of time on the platforms.
For
this reason, Thumzup recently announced its integration with X and TikTok into its proprietary platform(9). Thumzup’s
launch on X Corp signifies a quantum leap in Thumzup’s mission to revolutionize advertising. By merging Thumzup’s innovative
tools with X’s massive audience, the Company believes they can deliver strong opportunities for brands to scale their visibility
and engagement at new levels.
With
over 1.5 billion monthly active users, TikTok’s explosive engagement metrics position it as a premier venue for impactful brand
visibility and customer connection. These statistics illustrate TikTok’s effectiveness in brand discovery and user action, with
61% of users reporting discovering new brands and products, and 92% taking action such as sharing, commenting, following, or liking content.
Once implemented, Thumzup’s integration with TikTok is poised to significantly broaden its addressable market, leveraging TikTok’s
unparalleled reach and engagement to drive enhanced advertiser access(10),.
Additionally,
Thumzup announced the beta launch of its highly anticipated video capabilities, including integration
with Instagram Reels11),.The addition of the Company’s new video posting
feature provides users with multiple ways to engage and share content, building upon its successful track record with single-photo posts.
The
Company is an early-stage entity building a new real-time platform which enables Advertisers to pay their customers and fans cash for
their positive social media posts about their products and services, which in turn supports those people who earn money from various
gig economy opportunities. The Company believes that acceptance of its App and subsequent revenue growth can be driven by empowering
everyday people to make money by posting about brands and services that they already find enjoyable and attractive on social media. Expanding
beyond this core functionality, the Company is also developing an AI Lifestyle Agent Marketplace that aims to create new engagement opportunities
for users and businesses within a personalized AI ecosystem. The Company believes that the Thumzup® App is a conduit for Advertisers
to connect directly with consumers. The Company will need to secure enough advertisers to make the App an attractive platform for adoption
and scalability, and to ensure that the platform is interesting enough for the Creators to return to on a regular basis. No assurance
can be given that the Company will be able to achieve these results.
(2) |
https://www.nielsen.com/news-center/2015/still-recommended-by-friends-and-relatives-the-most-
authentic-advertising-according-to-consumers-the-most-trusted-on-brand-websites/ |
(3) |
https://emplifi.io/resources/blog/the-user-generated-content-stats-you-need-to-know?utm_source=pixlee.com |
(4) |
https://morningconsult.com/wp-content/uploads/2019/11/The-Influencer-Report-Engaging-Gen-Z-and-Millennials.pdf |
(5) |
https://www.cnn.com/business/newsfeeds/globenewswire/7812666.html |
(6) |
https://www.bankrate.com/personal-finance/social-media-survey/ |
(7) |
https://www.retaildive.com/news/generation-z-social-media-influence-shopping-behavior-purchases-tiktok-
instagram/652576/ |
(8) |
https://www.emarketer.com/content/us-time-spent-with-media-2021-update |
(9) |
https://www.businesswire.com/news/home/20241205736116/en/Thumzup-Plans-Integration-of-Proprietary-Advertising-Platform-with-TikTok-to-Significantly-Expand-Potential-Social-Media-Market-Reach
& |
(10) |
https://www.businesswire.com/news/home/20241211121196/en/Thumzup-Launches-on-X-Corp-Transforming-Social-Media-Advertising-Potential-with-Access-to-Over-535M-Active-Users |
(11) |
https://www.globenewswire.com/news-release/2024/11/12/2979217/0/en/Thumzup-Launches-Video-Capabilities-and-Integration-with-Instagram-Reels.html |
(12) |
https://www.globenewswire.com/news-release/2024/11/22/2986012/0/en/Thumzup-Achieves-202-Growth-in-Advertisers-on-Proprietary-Technology-Platform-Through-October-2024.html |
The
Industry - Social Media Marketing and Advertising
The
Company believes that it is developing a new form of social media marketing that does not currently exist, therefore existing descriptions
of market size and penetration are not directly applicable. As Thumzup® matures, the Company believes there will be other competitors
in this new market of paying non-professional advocates to tell their friends about products they love on social media at the point-of-sale.
The closest existing market that is similar to Thumzup’s market is the rapidly growing subset of online advertising called “influencer
marketing.” More than 75% of brands have a dedicated budget for influencer marketing according to a 2022 Harvard Business Review
Study (9). As social media influencers become more plentiful and proven, advertising spending has increased in this space.
According to Allied Research, the influencer marketing market generated $16.5 billion in 2022 and is estimated to reach $199.6 billion
by 2032, exhibiting a CAGR of 28.6% from 2023 to 2032(10). Influencer marketing is new but it is here to stay, Harvard Business
Review did a study to prove this and stated “the strategy can in fact yield positive ROI(9).” Additionally, the
industry is undergoing a significant transformation with the accelerating adoption of AI, which is being strategically leveraged to achieve
more precise audience targeting, deliver deeply personalized content experiences, automate campaign workflows, and ultimately enhance
the overall effectiveness and return on investment of marketing initiatives. This technological shift is enabling advertisers to gain
deeper insights into consumer behavior, predict future trends, and create more engaging and relevant interactions across various digital
channels.
Most
existing paid influencer marketing platforms were designed for professional and semi-professional online personalities. Some of these
platforms have expanded to accommodate “micro-influencers” - people with 5,000 to 30,000 social media followers. In the Company’s
opinion, none of these influencer platforms has entered the public consciousness and found mass adoption. As the industry also increasingly
integrates AI, Thumzup is strategically positioned to leverage these advancements in its own platform development.
The
Company has designed Thumzup® “from the ground up” to make it easy for brands and service providers to activate people
who are not professional influencers but who are passionate about the products, services, or establishments they enjoy or frequent and
then are willing to relate those experiences to their friends and other social media followers. The Company has designed the Thumzup
App and Advertiser dashboard with “Apple-style” simplicity and intuitive features to make participation by all individuals
seamless with their existing use of social media.
The
Company’s first product-Thumzup® App
The
Company operates in a single business segment, which is social media marketing. The Company’s mobile iPhone and Android applications
called “Thumzup®” connects brands, products, and services to the people who use and love these brands, products,
and services. For Advertisers, Thumzup® activates real people to post real product reviews and testimonials on social media with
the intention of enhancing brand awareness and reaching targeted consumers more directly and effectively while driving profitable traffic
to the Advertisers’ products and services.
The
Company is building an influencer and gig economy community around the Thumzup® mobile App that will generate scalable authentic
product posts and recommendations for Advertisers on social media and create a technology platform making person-to-person advertising
easy, cost-effective, and scalable. The App and Advertiser dashboard are designed to connect Advertisers with individuals who are willing
to promote their products and services online and offline.
|
(9) |
https://hbr.org/2022/11/does-influencer-marketing-really-pay-off |
|
(10) |
https://www.prnewswire.com/news-releases/influencer-marketing-market-to-reach-199-6-billion-globally-
by-2032-at-28-6-cagr-allied-market-research-301987451.html |
Social
Media Marketing Software Technology
The
Company’s Services
The
Thumzup® mobile App enables Creators to select from brands advertising on the App and get paid to post about the Advertiser on social
media. Once the Thumzup® Creator selects the brand and takes a photo using the Thumzup® App, the Thumzup® App posts the photo
and a caption to the Creator’s social media accounts. The Advertiser then reviews and approves the post for payment and the Creator
can cash out whenever they choose through popular digital payment systems. For the Advertiser, the Thumzup® system enables brands
to get the general public who are not professional influencers to promote their products and services to their friends, rather than display
ads which marketers realize are less effective. Beyond its current marketing services, the Company is developing a patent-pending AI
Lifestyle Agent Marketplace which aims to offer users personalized assistance for various aspects of daily life, creating new avenues
for user engagement and potential partnerships.
With
the Thumzup® App, the Company is targeting and signing up the general public and gig economy workers who like specific brands and
present them with opportunities to be paid for posting about the brands on social media. The Company believes that its management team
has the sales relationships, legal, and technology expertise for its current level of development. The Company will need to add additional
staff to rapidly grow the business. All source code, development work, and intellectual property performed under independent development
or employment contracts paid for by the Company are assigned to and owned by Thumzup®.
Intellectual
Property
The
Company owns the copyrights to the source code for the Thumzup® App on the iPhone iOS and Android operating mobile operating systems
as used on the majority of mobile phone and tablet devices. The Company also owns the source code for the “backend” system
that administrates the Thumzup® App, tracks payments and advertising campaigns.
The
Thumzup® thumb logo “
” is a registered trademark owned by Thumzup® Media Corporation,
Reg. No. 6,842,424, registered Sep. 13, 2022. On April 13, 2021, the Company filed a trademark application ser. No. 90642789 with the
U.S. Patent and Trademark Office (“USPTO”) for the word mark THUMZUP, which was granted registration on June 21, 2022, resulting
in reg. no. 6764158. Also on April 13, 2021, the Company filed a trademark application ser. No. 90642848 for the Thumzup® logo, featuring
a stylized hand with an upwardly extended thumb. Meta Platforms, Inc. (which owns and operates Facebook and Instagram) initially filed
opposition to the logo on June 30, 2022. Thumzup® agreed to not use the logo as a reaction to a post and Meta Platforms, Inc. subsequently
withdrew their opposition on August 5, 2022 and it was dismissed without prejudice.
Business
Model
Advertisers
purchase an ad campaign on the Thumzup® advertiser dashboard website. Once the Advertiser approves a post for payment, the platform
facilitates the payment to Creators’ a monetary amount per screened post which may range from $1.00 to $1,000.00. The Thumzup®
platform enables the Advertiser to screen posts so that the Advertiser only pays for posts that are commercially valuable and rewards
Creators for posts that have images and text that represent the Advertiser in a positive manner.
Per
Post Fee. Thumzup® Advertisers are charged a “Per Post Fee.” By way of illustration, an Advertiser that buys 100,000
posts from Thumzup®, to pay out $10 per post to Thumzup® Creators, would purchase the posts for $13.00 each or $1,300,000. The
Creators in this illustration would receive a total of $1,000,000 and Thumzup® would retain $300,000 for its services. The Thumzup®
platform would facilitate 100,000 posts for the Advertiser from Thumzup® Creators sharing with their friends about their endorsed
products on social media.
Value
Proposition
The
Thumzup® App is designed to generate scalable social media authentic social media content for Advertisers. It is designed to connect
Advertisers with individuals who are willing to authentically promote their products online. The Company envisions that many gig economy
workers will be ideal candidates to become Creators posting on Thumzup®. Imagine a gig economy driver waiting for their next fare
who takes a moment to post about the good experience they had at their lunch spot where they are waiting. Imagine a gig economy worker
on a laptop at a coffee shop doing a graphic design project from a gig economy site who takes a moment to post about the coffee shop
where they are working on Thumzup®. The Company believes that Thumzup® can readily provide extra income for this existing pool
of gig economy workers. The Company believes these gig economy workers will be able to provide quality Thumzup® posts on social media
for which Advertisers will be willing to pay.
This
past year, Thumzup announced it will soon offer payments in Bitcoin to its gig economy workforce
through its recently launched Account Specialist Program (ASP)(1). This move
reflects Thumzup’s commitment to innovative compensation solutions and its recognition of the growing demand for cryptocurrency
payments among gig workers.
The
Thumzup® App can also facilitate digital word of mouth recommendations of products and services from people who do not need to make
extra money doing gigs, who are in fact quite affluent. The Company believes that many people who are well off may also use the App to
recommend products and services to their network of friends on social media, many of whom may also be affluent.
(1) |
https://www.globenewswire.com/news-release/2024/11/19/2983475/0/en/Thumzup-to-Use-Bitcoin-for-Payments-to-Gig-Economy-Workers.html |
Key
Metrics as of April 25, 2025
Thumzup
has paid out on 29,805 approved posts to 1,680 Thumzup users regarding 884 advertisers since inception.
Thumzup
advertisers have grown by a 226% CAGR since April 25, 2024
Regulatory
Compliance
The
Federal Trade Commission regulates and requires certain disclosures by social media influencers, specifying when disclosure is required,
and how the disclosure should be presented. These rules are codified in the Code of Federal Regulations, 16 CFR Part 255. Specifically,
the FTC requires that influencers disclose any financial, employment, personal, or family relationship with a brand. Influencers must
disclose financial relationships and consideration paid including any money, discounted products or other benefits paid to the influencer.
Creators on the Thumzup® platform are being paid to post about Thumzup® advertisers. Thumzup® puts #ad in each post made
on its platform to disclose that the creator has been paid to make the post.
The
Company does not believe its compliance with existing FTC regulations will have a material effect on capital expenditures, earnings and
competitive position of the Company and its subsidiaries, for the current fiscal year and any other material future period.
Competition
The
Company has competitors in influencer marketing software companies as GRIN, #paid, CreatorIQ, Mavrck, Popular Pays, Tribe Dynamics, Aspire,
Influenster, Traackr, and Skeepers. All of the above-named competitor influencer marketing software is focused on influencers who see
themselves as professional influencers. To the best of the Company’s knowledge, these competitors are not building platforms designed
to turn social media creators into micro-influencers in the manner that the Company seeks to accomplish. Rep is also an app that connects
brands with influencers who are interesting in promoting brands. Rep’s app is different from Thumzup® because it is targeting
people who consider themselves influencers.
The
Company does not currently know of another business that is seeking to build a community of everyday people and empowering them to post
about brands that they love.
Nevertheless,
the influencer marketing industry segments are rapidly evolving and competitive, and the Company expects competition to intensify in
the future with the emergence of new technologies and market entrants. The Company’s competitors may enjoy competitive advantages,
such as greater name recognition, longer operating histories, substantially greater market share, established marketing relationships
with, and access to, large existing advertisers and user bases, and substantially greater financial, technical and other resources. These
competitors may use these advantages to offer apps or other products similar to the Company’s at a lower price, develop different
products to compete with the Company’s current solutions and respond more quickly and effectively than the Company does to new
or changing opportunities, technologies, standards or client requirements particularly across different cities and geographical regions.
Certain competitors could also use strong or dominant positions in one or more markets to gain competitive advantage against the Company
in markets in which it operates in the future. The Company believes its ability to compete successfully for users, content, and advertising
and other customers depends upon many factors both within and beyond the Company’s control, including:
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the
popularity, usefulness, ease of use, performance and reliability of the Thumzup® App and services compared to those of competitors; |
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the
ability, in and of itself as well as in comparison to the ability of competitors, to develop new apps, other products and services
and enhancements to then existing apps, products and services; |
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the
Company’s ad targeting and measurement capabilities, and those of its competitors; |
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the
size, composition and level of engagement of the Thumzup® App user communities relative to those of the Company’s competitors; |
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the
Company’s marketing and selling efforts, and those of its competitors; |
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the
pricing of the Thumzup® Apps and services relative to those of its competitors; |
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the
actual or perceived return the Company’s customers receive from the deployment of the Thumzup® Apps within the user communities
relative to returns from the Company’s competitors; and |
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the
Company’s reputation and brand strength relative to its competitors. |
As
of April 30, 2025, The Company has nine (9) full-time employees, as well as eighteen (18) marketing, sales, and operations independent
contractors. The Company also utilizes the services of approximately eight (8) contract software developers. Seven (7) of these software
developers are third-party contractors and are located outside the United States.
WE
ARE NOT REGISTERED AS AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 AND STOCKHOLDERS DO NOT HAVE THE PROTECTIONS ASSOCIATED
WITH OWNERSHIP OF SHARES IN A REGISTERED INVESTMENT COMPANY NOR THE PROTECTIONS AFFORDED BY THE COMMODITIES EXCHANGE ACT.
Our
Bitcoin Treasury Strategy
In
November 2024, we adopted bitcoin as our primary treasury reserve asset on an ongoing basis, subject to market conditions and our anticipated
cash needs. Our strategy includes acquiring and holding bitcoin using cash flows, subject to market conditions, generated by issuing
equity or debt securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase bitcoin.
We view our bitcoin holdings as long term holdings. We have not set any specific target for the amount of bitcoin we seek to hold, and
we will continue to monitor market conditions in determining whether to engage in additional bitcoin purchases. This overall strategy
also contemplates that we may periodically sell bitcoin for general corporate purposes or in connection with strategies that generate
tax benefits in accordance with applicable law, enter into additional capital raising transactions, including those that could be collateralized
by our bitcoin holdings, and consider pursuing strategies to create income streams or otherwise generate funds using our bitcoin holdings.
This
section summarizes our current treasury strategy for bitcoin, including our bitcoin holdings, trading execution, custody, storage, and
accounting considerations. We view bitcoin as a reliable store of value and a compelling investment. We believe it has unique characteristics
as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability. Bitcoin is often
compared to gold, which has been viewed as a dependable store of value throughout history. Gold’s value has appreciated substantially
over time. For example, 25 years ago, the price of gold was approximately $500 per ounce. In 2024, the price of gold traded higher
than $2,900 per ounce. As of April 14, 2025, the total market capitalization of gold was approximately $21.7 trillion compared to approximately
$1.7 trillion for bitcoin. Bitcoin is a highly volatile asset that has traded below $50,000 per bitcoin and above $109,000 per bitcoin
on Coinbase in the 12 months preceding the date of this prospectus. While highly volatile, bitcoin’s price has also appreciated
significantly since bitcoin’s inception in January 2009 (at zero per bitcoin). We believe that a substantial portion of bitcoin’s
appreciation is attributable to the view that bitcoin is or will become a reliable store of value. Like gold, bitcoin is also viewed
as a scarce asset; the ultimate supply of bitcoin is limited to 21 million coins and approximately 95% of its supply already exists.
We believe that bitcoin’s finite, digital and decentralized nature as well as its architectural resilience make it preferable to
gold, which, as noted above, has a market capitalization nearly 13 times higher than the market capitalization of bitcoin as of April
14, 2025. Given our belief that bitcoin is a comparable and possibly
better store of value than gold, we believe that bitcoin has the potential to approach or exceed the value of gold over time. Given the
substantial gap in value between gold and bitcoin based on current market capitalization, we believe that bitcoin has the potential to
generate outsize returns as it gains increasing acceptance as “digital gold.” We believe that the growing global acceptance
and “institutionalization” of bitcoin supports our view that bitcoin is a reliable store of value. We believe that bitcoin’s
unique attributes discussed above not only differentiate it from fiat money, but also from other cryptocurrency assets, and for that
reason, we have no plans to purchase cryptocurrency assets other than bitcoin.
Our
Bitcoin Holdings
As
of December 31, 2024, we did not own any bitcoin. From January 6 to 21, 2025, we purchased a total of approximately 19.106 bitcoins at
an aggregate purchase price of approximately $2.0 million for an average purchase price of approximately $104,744 per bitcoin, inclusive
of fees and expenses. We did not sell any bitcoin during the first quarter of 2025.
As
of March 31, 2025, we held 19.106 bitcoins at an aggregate purchase price of approximately $2.0 million for an average purchase
price of approximately $104,744 per bitcoin. As of March 31, 2025, at 4 p.m. Eastern Time, the market price of one bitcoin reported
on the Coinbase exchange (our principal market) was $82,560.
Execution
of Bitcoin Transactions
We
have purchased bitcoin through multiple bitcoin trade execution, or liquidity, providers, who may also serve as custodians of our bitcoin,
and we expect to continue to do so in the future. We may also in the future acquire or dispose of bitcoin via trade orders executed on
exchanges such as Coinbase. Our liquidity providers and custodians, or our BTC Service Providers, are regulated and licensed entities
that operate under high security, regulatory, audit and governance standards. We transact with multiple BTC Service Providers for both
trade execution and custodial services to spread our risk and to limit our exposure to any single service provider or counterparty.
In
selecting our liquidity providers, we evaluate regulatory status, pricing, annual trading volume, security and customer service. We also
leverage the due diligence we conduct in connection with our custodial arrangements when conducting due diligence on our liquidity providers.
Our current agreements with our liquidity providers are non-exclusive, may be terminated by us at any time, do not impose any requirements
for minimum purchases or volumes with such providers, and generally provide that we are responsible for the costs associated with transfers
of bitcoin.
To
date, our liquidity providers, acting as our agents, have executed trades of bitcoin on our behalf at a set limit price over a prearranged
time period. Going forward, we plan to have our liquidity providers, acting as our agents, have executed trades of bitcoin on our behalf
using time-weighted average price over a prearranged time period, or TWAP, pricing and purchasing methodology. The prearranged periods
over which trades may be executed vary in length depending on the amount of bitcoin to be purchased and other factors, and are selected
because they are expected to have lower price volatility and higher market liquidity, thereby limiting cost and pricing risks. Our liquidity
providers can use TWAP in their trading algorithms to execute large orders of bitcoin, without significantly affecting market price,
by breaking large orders into several smaller orders that are independently traded at different time intervals in a generally linear
fashion across different trading venues selected by our liquidity providers. Our liquidity providers can execute trades based on the
best possible terms reasonably available, taking into consideration all relevant facts and circumstances. As our agents, our liquidity
providers use their discretion to select the counterparties to the transactions as well as the trading venues and platforms on which
they execute trades on our behalf, and they may execute trades via cryptocurrency exchanges or in over-the-counter transactions. Our
liquidity providers may calculate TWAP using any number of resources, including various trading platforms. Our liquidity providers have
policies and procedures pursuant to which they conduct trades with institutions that possess licenses or registrations to the extent
required by their activities and have been AML/KYC approved pursuant to our liquidity providers’ internal programs. We may in the
future utilize TWAP pricing or another pricing methodology in connection with the execution of our bitcoin trades.
Custody
of our Bitcoin
We
currently hold and intend to continue to hold all of our bitcoin in a custodial account at U.S.-based, institutional-grade custodian
(who may hold our bitcoin in the United States or other territories) that has demonstrated records of regulatory compliance and information
security. Our custodian may also serve as a liquidity provider. As of December 31, 2024, we have entered into custodial agreements with
Coinbase Custody Trust Company, LLC, or Coinbase Custody, a subsidiary of Coinbase Global, Inc., or Coinbase, LLC. Our agreement
with our custodian is filed as an exhibit to the registration statement of which this prospectus forms a part. As we further execute
on our strategy, we intend to include additional custodians.
We
carefully selected our custodian after undertaking a due diligence process pursuant to which we evaluated, among other things, the quality
of its security protocols, including the multifactor and other authentication procedures designed to safekeep our bitcoin that they may
employ, as well as other security, regulatory, audit and governance standards. Our custodian is required to hold our bitcoin in trust
for our benefit in a segregated account which is not commingled with their assets or the assets of their affiliates or other clients.
Should we enter into custodial agreements with additional custodians, such agreements may not prohibit such custodians from commingling
our bitcoin with the digital assets of others. Our custodial agreement with Coinbase Custody provides that Coinbase Custody will hold
our bitcoin in an online “hot” wallet until it receives an instruction from us to effectuate a transfer of our bitcoin into
cold storage. Cold storage is designed to mitigate risks that a system may be susceptible to when connected to the internet, including
the risks associated with unauthorized network access and cyberattacks.
Our
custodian has access to the private key information associated with our bitcoin, or private keys, and it deploys security measures to
secure our bitcoin holdings such as advanced encryption technologies, multi-factor identification, and a policy of storing our private
keys in redundant, secure and geographically dispersed facilities. We never store, view or directly access our private keys. All movement
of our bitcoin by our custodian is coordinated, monitored and audited. Our custodian’s procedures to prove control over the digital
assets it holds in custody is also examined by their auditors. Additionally, we periodically verify our bitcoin holdings by reconciling
our custodial service ledgers to the public blockchain. Our custodial agreements are terminable by us at any time, for any or no reason,
upon advance notice given to the custodian.
Risk
Mitigation Practices Related to Our Liquidity and Custodial Arrangements
We
believe that our primary counterparty risk with respect to our bitcoin holdings is performance obligations under our custody arrangement.
We intend to custody our bitcoin with multiple custodians to diversify our potential risk exposure to any one custodian. Our custodial
services contract does not restrict our ability to reallocate our bitcoin among our custodians or require us to hold a minimum amount
of bitcoin with the custodian. Our bitcoin holdings is currently concentrated with a single custodian, Coinbase.
As
a regulated entity, Coinbase has policies, procedures and controls designed to comply with the Bank Secrecy Act, as amended by the USA
PATRIOT Act, the implementing regulations of the U.S. Treasury Department’s FinCEN, the Executive Orders and economic sanctions
regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control, or OFAC, as well as state Anti-Money
Laundering, or AML laws. Pursuant to these policies, procedures and controls, Coinbase uses information systems developed in-house and
by third-party vendors to conduct know your customer, or KYC, identification verification, background checks and other due diligence
on counterparties and customers, and on the affiliates, related persons and authorized representatives of their customers, and to screen
these parties against published sanctions lists. These checks may, where appropriate, assess financial strength, reputation, trading
capabilities and other risks that may be associated with a given customer or counterparty. Coinbase performs these checks and screenings
during initial onboarding or in advance of a transaction, as applicable, and periodically thereafter, particularly when the sanctions
lists that they monitor are updated. Coinbase also utilizes systems that monitor and screen blockchain transactions and digital wallet
addresses in their efforts to detect and report suspicious or unlawful activity.
Our
due diligence process when selecting Coinbase involved giving consideration to its reputation and security level, confirming their internal
compliance with applicable laws and regulations and ensuring their undertakings of contractual obligations on compliance. With respect
to our custodian, we also conduct due diligence reviews during the custodial relationship to monitor the safekeeping of our bitcoin.
Our
current custodian, and intended future custodians, is U.S.-based and is subject to U.S. regulatory regimes intended to protect customers
in the event that it enters bankruptcy, receivership or similar insolvency proceedings. Our custodian is required to comply with the
Bank Secrecy Act, as amended by the USA PATRIOT Act, the implementing regulations of the U.S. Treasury Department’s FinCEN, the
Executive Orders and economic sanctions regulations administered by the OFAC, as well as state AML laws. However, applicable insolvency
law is not fully developed with respect to the holding of digital assets in custodial accounts. If our custodially-held bitcoin were
nevertheless considered to be the property of our custodian’s estate in the event that it were to enter bankruptcy, receivership
or similar insolvency proceedings, we could be treated as a general unsecured creditor of such custodian, inhibiting our ability to exercise
ownership rights with respect to such bitcoin and this may ultimately result in the loss of the value related to some or all of such
bitcoin. Even if we are able to prevent our bitcoin from being considered the property of a custodian’s bankruptcy estate as part
of an insolvency proceeding, it is possible that we would still be delayed or may otherwise experience difficulty in accessing our bitcoin
held by the affected custodian during the pendency of the insolvency proceedings. Additionally, the bitcoin we hold with our custodian
and transact with our trade execution partners does not enjoy the same protections as are available to cash or securities deposited with
or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection
Corporation.
Regardless
of efforts we have made to securely store and safeguard assets, there can be no assurance that our crypto assets will not be subject
to loss or other misappropriation. Although our custodian carries insurance policies with policy limits to cover losses for commercial
crimes such as asset theft and other covered losses, such policy limit would be shared among all of their affected customers and subject
to various limitations and exclusions (such as if a loss arises due to our failure to protect our login credentials and devices). As
such, the insurance that covers losses of our bitcoin holdings may cover only a small fraction of the value of the entirety of our bitcoin
holdings, and there can be no guarantee that our custodians will maintain such insurance policies or that such policies will cover any
or all of our losses with respect to our bitcoin. For a discussion of risks relating to the custody of our bitcoin, see Item 1A.
“Risk Factors — Risks Related to Our Bitcoin Strategy and Holdings” in our Annual Report on Form 10-K
for the fiscal year ended December 31, 2024, which is incorporated by reference into this prospectus.
Legal
Proceedings
From
time to time, the Company may become involved in litigation or other legal proceedings. The Company is not currently a party to any litigation
or legal proceedings. Regardless of outcome, litigation can have an adverse impact on the Company because of defense and settlement costs,
diversion of management resources and other factors.
Available
Information:
Thumzup™
is located at 10557-B Jefferson Blvd., Culver City, CA 90232. Our telephone number is (800) 403-6150 and our Internet website address
is www.ThumzupMedia.com.
We
file or furnish electronically with the U.S. Securities and Exchange Commission (“SEC”) annual reports on Form 10-K, quarterly
reports on Form 10- Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d)
of the Exchange Act. We make copies of these reports available free of charge through our investor relations website as soon as reasonably
practicable after we file or furnish them with the SEC. These reports are also accessible through the SEC website at www.sec.gov. Information
contained on or accessible through our website www.thumzupmedia.com is not incorporated into, and does not form a part of, this Annual
Report or any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references
only Available Information:
Thumzup™
is located at 10557-B Jefferson Blvd., Culver City, CA 90232. Our telephone number is (800) 403-6150 and our Internet website address
is www.ThumzupMedia.com. We file or furnish electronically with the U.S. Securities and Exchange Commission (“SEC”)
annual reports on Form 10-K, quarterly reports on Form 10- Q, current reports on Form 8-K and amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act. We make copies of these reports available free of charge through our investor
relations website as soon as reasonably practicable after we file or furnish them with the SEC. These reports are also accessible through
the SEC website at www.sec.gov. Information contained on or accessible through our website www.thumzupmedia.com is not incorporated into,
and does not form a part of, this Annual Report or any other report or document we file with the SEC, and any references to our websites
are intended to be inactive textual references only.
Financing
Plan
Uplist
Public Offering
On
October 28, 2024, Thumzup Media Corporation (the “Company”), entered into an underwriting agreement (the “Underwriting
Agreement”) with Dawson James Securities, Inc., as representative (the “Representative”) of the underwriters named
therein (the “Underwriters”), pursuant to which the Company agreed to sell to the Underwriters, in a firm commitment public
offering (the “Offering”), an aggregate of 1,425,000 of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), at a public offering price of $5.00 per share. The Common Stock was offered pursuant to a registration statement
on Form S-1, as amended (File No. 333-279828), originally filed with the U.S. Securities and Exchange Commission (the “Commission”)
on May 30, 2024, as amended, and which was declared effective by the Commission on October 28, 2024.
Additionally,
on November 1, 2024, the Representative exercised its overallotment option to purchase an additional 213,750 shares of the Company’s
common stock, at $5.00 per share, increasing the total shares sold to 1,638,750 and gross proceeds to approximately $8,200,000
The
Underwriting Agreement contains customary representations and warranties that the parties thereto made to, and solely for the benefit
of, the other party in the context of all of the terms and conditions of that Underwriting Agreement and in the context of the specific
relationship between the parties. The provisions of the Underwriting Agreement and schedules and exhibits thereto, including the representations
and warranties contained therein respectively, are not for the benefit of any party other than the parties to such documents and agreements
and are not intended as documents for investors and the public to obtain factual information about the current state of affairs of the
parties to those documents and agreements. Rather, investors and the public should look to other disclosures contained in the Company’s
filings with the Commission.
On
October 30, 2024, the Company closed the Offering. The total gross proceeds to the Company from the Offering, not including the exercise
of the underwriter’s over-allotment option, and before deducting discounts and expenses, were approximately $7,125,000. A final
prospectus relating to this Offering was filed with the Commission on October 30, 2024. The Common Stock was previously approved for
listing on The Nasdaq Capital Market and commenced trading under the ticker symbol “TZUP” on October 29, 2024.
The
foregoing summary of the terms of the Underwriting Agreement is subject to, and qualified in its entirety by reference to a copy of the
Underwriting Agreement that is filed as Exhibit 1.1 to our current report on Form 8-K filed on November 1, 2024, and is incorporated
herein by reference.
Our
Corporate Information
Thumzup
Media Corporation is located at 10557-B Jefferson Blvd., Culver City, CA 90232. Our telephone number is (800) 403-6150 and our Internet
website address is www.ThumzupMedia.com. The information contained on, or that can be accessed through, our website is not a part of
this prospectus. We own the source code for the Thumzup applications on the iPhone iOS and the Android. We also own the source code for
the “backend” system that administrates the Thumzup app, tracks payments and advertising campaigns.
Recent
Developments
Uplist
Public Offering
On
October 28, 2024, Thumzup Media Corporation (the “Company”), entered into an underwriting agreement (the “Underwriting
Agreement”) with Dawson James Securities, Inc., as representative (the “Representative”) of the underwriters named
therein (the “Underwriters”), pursuant to which the Company agreed to sell to the Underwriters, in a firm commitment public
offering (the “Offering”), an aggregate of 1,425,000 of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), at a public offering price of $5.00 per share. The Common Stock was offered pursuant to a registration statement
on Form S-1, as amended (File No. 333-279828), originally filed with the U.S. Securities and Exchange Commission (the “Commission”)
on May 30, 2024, as amended, and which was declared effective by the Commission on October 28, 2024.
Additionally,
on November 1, 2024, the Representative exercised its overallotment option to purchase an additional 213,750 shares of the Company’s
common stock, at $5.00 per share, increasing the total shares sold to 1,638,750 and gross proceeds to approximately $8,200,000
The
Underwriting Agreement contains customary representations and warranties that the parties thereto made to, and solely for the benefit
of, the other party in the context of all of the terms and conditions of that Underwriting Agreement and in the context of the specific
relationship between the parties. The provisions of the Underwriting Agreement and schedules and exhibits thereto, including the representations
and warranties contained therein respectively, are not for the benefit of any party other than the parties to such documents and agreements
and are not intended as documents for investors and the public to obtain factual information about the current state of affairs of the
parties to those documents and agreements. Rather, investors and the public should look to other disclosures contained in the Company’s
filings with the Commission.
On
October 30, 2024, the Company closed the Offering. The total gross proceeds to the Company from the Offering, not including the exercise
of the underwriter’s over-allotment option, and before deducting discounts and expenses, were approximately $7,125,000. A final
prospectus relating to this Offering was filed with the Commission on October 30, 2024. The Common Stock was previously approved for
listing on The Nasdaq Capital Market and commenced trading under the ticker symbol “TZUP” on October 29, 2024.
The
foregoing summary of the terms of the Underwriting Agreement is subject to, and qualified in its entirety by reference to a copy of the
Underwriting Agreement that is filed as Exhibit 1.1 to our current report on Form 8-K filed on November 1, 2024, and is incorporated
herein by reference.
RISK
FACTORS
Investing
in our securities involves a high degree of risk. Before making an investment decision, you should consider carefully the risks, uncertainties
and other factors described in our most recent Annual Report on Form 10-K, as supplemented and updated by subsequent quarterly reports
on Form 10-Q and current reports on Form 8-K that we have filed or will file with the SEC, which are incorporated by reference into this
prospectus.
Our
business, affairs, prospects, assets, financial condition, results of operations and cash flows could be materially and adversely affected
by these risks. For more information about our SEC filings, please see “Where You Can Find More Information”.
USE
OF PROCEEDS
Unless
otherwise indicated in a prospectus supplement, we intend to use the net proceeds from the sale of the securities under this prospectus
for general corporate purposes, including for the purchase of bitcoin as our primary treasury reserve asset, and working capital.
DESCRIPTION
OF SECURITIES
This
prospectus contains a summary of the securities that we may sell. These summaries are not meant to be a complete description of each
security. However, this prospectus and the accompanying prospectus supplement contain the material terms of the securities being offered.
DESCRIPTION
OF COMMON STOCK
General
Our
authorized capital stock consists of 250,000,000 shares of common stock, par value $0.001 per share. As of April 30, 2025, 9,504,314
shares of common stock were issued and outstanding.
Common
Stock
The
Company is authorized to issue 250,000,000 shares of common stock, par value $0.001 per share.
All
outstanding shares of our common stock are fully paid and nonassessable. The following summarizes the rights of holders of our common
stock:
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a
holder of common stock is entitled to one vote per share on all matters to be voted upon generally by the shareholders and are not
entitled to cumulative voting for the election of directors; |
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subject
to preferences that may apply to shares of preferred stock outstanding, the holders of common stock are entitled to receive lawful
dividends as may be declared by our board of directors; |
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upon
our liquidation, dissolution or winding up, the holders of shares of common stock are entitled to receive a pro rata portion of all
our assets remaining for distribution after satisfaction of all our liabilities and the payment of any liquidation preference of
any outstanding preferred stock; |
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there
are no redemption or sinking fund provisions applicable to our common stock; and |
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are no preemptive, subscription or conversion rights applicable to our common stock. |
Preferred
Stock
Our
Amended and Restated Certificate of Incorporation authorizes the issuance of up to 25,000,000 shares of blank check preferred stock,
par value $0.001 per share, of which 1,000,000 have been designated as Series A Preferred Convertible Voting stock. As of April 30, 2025,
155,586 shares of Series A Preferred Convertible Voting stock were issued and outstanding. All outstanding shares of the Company’s
Series A Preferred Convertible Voting Stock are duly authorized, validly issued, fully-paid and non-assessable. Each such series of preferred
stock shall have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges
as shall be determined by our board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences,
conversion rights and preemptive rights.
Our
Amended and Restated Certificate of Designation of Rights, Powers, Preferences, Privileges And Restrictions of Series B Convertible Voting
Stock. Authorizes the issuance of 40,000 shares of Series B Convertible Voting Stock, par value $0.001. As of April 30, 2025, 14,700
shares of the Company’s Series B Convertible Voting stock were issued and outstanding. All outstanding shares of the Company’s
Series B Preferred Convertible Voting Stock are duly authorized, validly issued, fully-paid and non-assessable. Each such series of preferred
stock shall have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges
as shall be determined by our board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences,
conversion rights and preemptive rights.
Warrants
As
of April 30, 2025, warrants to purchase 71,250 shares of common stock at a weighted average exercise price of $6.25 were outstanding.
Options
As
of April 30, 2025, options to purchase 1,223,000 shares of common stock at a weighted average exercise price of $5.06 were outstanding.
Anti-Takeover
Effects of Nevada Law and Our Articles of Incorporation and Bylaws
Some
provisions of Nevada law, our articles of incorporation, and our bylaws contain provisions that could make the following transactions
more difficult: an acquisition of us by means of a tender offer; an acquisition of us by means of a proxy contest or otherwise; or the
removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could
deter transactions that shareholders may otherwise consider to be in their best interest or in our best interests, including transactions
that provide for payment of a premium over the market price for our shares.
These
provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are
also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the
benefits of the increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal
to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could
result in an improvement of their terms. Shareholder Meetings. Our bylaws provide that a special meeting of shareholders may be
called only by our president, by all of the directors provided that there are no more than three directors, or if more than three, by
any three directors, or by the holder of a majority of our capital stock.
Shareholder
Action by Written Consent. Our bylaws allow for any action that may be taken at any annual or special meeting of the shareholders
to be taken without a meeting and without prior notice, if a consent in writing, setting forth the action so taken, is signed by the
holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action
at a meeting at which all shares entitled to vote thereon were present and voted.
Shareholders
Not Entitled to Cumulative Voting. Our bylaws do not permit shareholders to cumulate their votes in the election of directors. Accordingly,
the holders of a majority of the outstanding shares of our common stock entitled to vote in any election of directors can elect all of
the directors standing for election, if they choose, other than any directors that holders of our preferred stock may be entitled to
elect.
Nevada
Business Combination Statutes. The “business combination” provisions of Sections 78.411 to 78.444, inclusive, of the
NRS, generally prohibit a Nevada corporation with at least 200 shareholders from engaging in various “combination” transactions
with any interested shareholder for a period of two years after the date of the transaction in which the person became an interested
shareholder, unless the transaction is approved by the board of directors prior to the date the interested shareholder obtained such
status or the combination is approved by the board of directors and thereafter is approved at a meeting of the shareholders by the affirmative
vote of shareholders representing at least 60% of the outstanding voting power held by disinterested shareholders, and extends beyond
the expiration of the two-year period, unless:
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the
combination was approved by the board of directors prior to the person becoming an interested shareholder or the transaction by which
the person first became an interested shareholder was approved by the board of directors before the person became an interested shareholder
or the combination is later approved by a majority of the voting power held by disinterested shareholders; or |
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if
the consideration to be paid by the interested shareholder is at least equal to the highest of: (a) the highest price per share paid
by the interested shareholder within the two years immediately preceding the date of the announcement of the combination or in the
transaction in which it became an interested shareholder, whichever is higher, (b) the market value per share of common stock on
the date of announcement of the combination and the date the interested shareholder acquired the shares, whichever is higher, or
(c) for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher. |
A
“combination” is generally defined to include mergers or consolidations or any sale, lease exchange, mortgage, pledge, transfer,
or other disposition, in one transaction or a series of transactions, with an “interested shareholder” having: (a) an aggregate
market value equal to 5% or more of the aggregate market value of the assets of the corporation, (b) an aggregate market value equal
to 5% or more of the aggregate market value of all outstanding shares of the corporation, (c) 10% or more of the earning power or net
income of the corporation, and (d) certain other transactions with an interested shareholder or an affiliate or associate of an interested
shareholder. In general, an “interested shareholder” is a person who, together with affiliates and associates, owns (or within
two years, did own) 10% or more of a corporation’s voting stock. The statute could prohibit or delay mergers or other takeover
or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may offer our shareholders
the opportunity to sell their stock at a price above the prevailing market price.
Nevada
Control Share Acquisition Statutes. The “control share” provisions of Sections 78.378 to 78.3793, inclusive, of the NRS
apply to “issuing corporations” that are Nevada corporations with at least 200 shareholders, including at least 100 shareholders
of record who are Nevada residents, and that conduct business directly or indirectly in Nevada. The control share statute prohibits an
acquirer, under certain circumstances, from voting its shares of a target corporation’s stock after crossing certain ownership
threshold percentages, unless the acquirer obtains approval of the target corporation’s disinterested shareholders. The statute
specifies three thresholds: one-fifth or more but less than one-third, one-third but less than a majority, and a majority or more, of
the outstanding voting power. Generally, once an acquirer crosses one of the above thresholds, those shares in an offer or acquisition
and acquired within 90 days thereof become “control shares” and such control shares are deprived of the right to vote until
disinterested shareholders restore the right. These provisions also provide that if control shares are accorded full voting rights and
the acquiring person has acquired a majority or more of all voting power, all other shareholders who do not vote in favor of authorizing
voting rights to the control shares are entitled to demand payment for the fair value of their shares in accordance with statutory procedures
established for dissenters’ rights.
A
corporation may elect to not be governed by, or “opt out” of, the control share provisions by making an election in its articles
of incorporation or bylaws, provided that the opt-out election must be in place on the 10th day following the date an acquiring person
has acquired a controlling interest, that is, crossing any of the three thresholds described above. We have not opted out of the control
share statutes and will be subject to these statutes if we are an “issuing corporation” as defined in such statutes.
The
effect of the Nevada control share statutes is that the acquiring person, and those acting in association with the acquiring person,
will obtain only such voting rights in the control shares as are conferred by a resolution of the shareholders at an annual or special
meeting. The Nevada control share law, if applicable, could have the effect of discouraging takeovers of us.
Amendment
of Charter Provisions. The amendment of any of the above provisions would require approval by holders of at least a majority of the
total voting power of all of our outstanding voting stock.
The
provisions of Nevada law, our articles of incorporation, and our bylaws could have the effect of discouraging others from attempting
hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often
result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in the composition
of our board of directors and management. It is possible that these provisions could make it more difficult to accomplish transactions
that shareholders may otherwise deem to be in their best interests.
DESCRIPTION
OF WARRANTS
The
following description, together with the additional information we may include in any applicable prospectus supplements, summarizes the
material terms and provisions of the warrants that we may offer under this prospectus and the related warrant agreements and warrant
certificates. While the terms summarized below will apply generally to any warrants that we may offer, we will describe the particular
terms of any series of warrants in more detail in the applicable prospectus supplement. If we indicate in the prospectus supplement,
the terms of any warrants offered under that prospectus supplement may differ from the terms described below. If there are differences
between that prospectus supplement and this prospectus, the prospectus supplement will control. Thus, the statements we make in this
section may not apply to a particular series of warrants. Specific warrant agreements will contain additional important terms and provisions
and will be incorporated by reference as an exhibit to the registration statement which includes this prospectus.
General
We
may issue warrants for the purchase of common stock. We may issue warrants independently or together with common stock, and the warrants
may be attached to or separate from these securities.
We
will evidence each series of warrants by warrant certificates that we may issue under a separate agreement. We may enter into the warrant
agreement with a warrant agent. Each warrant agent may be a bank that we select which has its principal office in the United States.
We may also choose to act as our own warrant agent. We will indicate the name and address of any such warrant agent in the applicable
prospectus supplement relating to a particular series of warrants.
We
will describe in the applicable prospectus supplement the terms of the series of warrants, including:
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offering price and aggregate number of warrants offered; |
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currency for which the warrants may be purchased; |
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if
applicable, the designation and terms of the securities with which the warrants are issued and the number of warrants issued with
each such security or each principal amount of such security; |
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if
applicable, the date on and after which the warrants and the related securities will be separately transferable; |
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in
the case of warrants to purchase common stock, the number of shares of common stock, as the case may be, purchasable upon the exercise
of one warrant and the price at which these shares may be purchased upon such exercise; |
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the
warrant agreement under which the warrants will be issued; |
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the
effect of any merger, consolidation, sale or other disposition of our business on the warrant agreement and the warrants; |
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anti-dilution
provisions of the warrants, if any; |
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the
terms of any rights to redeem or call the warrants; |
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any
provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of the warrants; |
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the
dates on which the right to exercise the warrants will commence and expire or, if the warrants are not continuously exercisable during
that period, the specific date or dates on which the warrants will be exercisable; |
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the
manner in which the warrant agreement and warrants may be modified; |
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the
identities of the warrant agent and any calculation or other agent for the warrants; |
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federal
income tax consequences of holding or exercising the warrants; |
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the
terms of the securities issuable upon exercise of the warrants; |
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any
securities exchange or quotation system on which the warrants or any securities deliverable upon exercise of the warrants may be
listed; and |
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any
other specific terms, preferences, rights or limitations of or restrictions on the warrants. |
Before
exercising their warrants, holders of warrants will not have any of the rights of holders of the securities purchasable upon such exercise,
including in the case of warrants to purchase common stock, the right to receive dividends, if any, or, payments upon our liquidation,
dissolution or winding up or to exercise voting rights, if any.
Exercise
of Warrants
Each
warrant will entitle the holder to purchase the securities that we specify in the applicable prospectus supplement at the exercise price
that we describe in the applicable prospectus supplement. Unless we otherwise specify in the applicable prospectus supplement, holders
of the warrants may exercise the warrants at any time up to 5:00 p.m. Eastern Time on the expiration date that we set forth in the applicable
prospectus supplement. After the close of business on the expiration date, unexercised warrants will become void.
Holders
of the warrants may exercise the warrants by delivering the warrant certificate representing the warrants to be exercised together with
specified information, and paying the required amount to the warrant agent in immediately available funds, as provided in the applicable
prospectus supplement. We will set forth on the reverse side of the warrant certificate, and in the applicable prospectus supplement,
the information that the holder of the warrant will be required to deliver to the warrant agent.
Until
the warrant is properly exercised, no holder of any warrant will be entitled to any rights of a holder of the securities purchasable
upon exercise of the warrant.
Upon
receipt of the required payment and the warrant certificate properly completed and duly executed at the corporate trust office of the
warrant agent or any other office indicated in the applicable prospectus supplement, we will issue and deliver the securities purchasable
upon such exercise. If fewer than all of the warrants represented by the warrant certificate are exercised, then we will issue a new
warrant certificate for the remaining amount of warrants. If we so indicate in the applicable prospectus supplement, holders of the warrants
may surrender securities as all or part of the exercise price for warrants.
Enforceability
of Rights by Holders of Warrants
Any
warrant agent will act solely as our agent under the applicable warrant agreement and will not assume any obligation or relationship
of agency or trust with any holder of any warrant. A single bank or trust company may act as warrant agent for more than one issue of
warrants. A warrant agent will have no duty or responsibility in case of any default by us under the applicable warrant agreement or
warrant, including any duty or responsibility to initiate any proceedings at law or otherwise, or to make any demand upon us. Any holder
of a warrant may, without the consent of the related warrant agent or the holder of any other warrant, enforce by appropriate legal action
its right to exercise, and receive the securities purchasable upon exercise of, its warrants in accordance with their terms.
Warrant
Agreement Will Not Be Qualified Under Trust Indenture Act
No
warrant agreement will be qualified as an indenture, and no warrant agent will be required to qualify as a trustee, under the Trust Indenture
Act. Therefore, holders of warrants issued under a warrant agreement will not have the protection of the Trust Indenture Act with respect
to their warrants.
Governing
Law
Each
warrant agreement and any warrants issued under the warrant agreements will be governed by New York law.
Calculation
Agent
Calculations
relating to warrants may be made by a calculation agent, an institution that we appoint as our agent for this purpose. The prospectus
supplement for a particular warrant will name the institution that we have appointed to act as the calculation agent for that warrant
as of the original issue date for that warrant. We may appoint a different institution to serve as calculation agent from time to time
after the original issue date without the consent or notification of the holders.
The
calculation agent’s determination of any amount of money payable or securities deliverable with respect to a warrant will be final
and binding in the absence of manifest error.
DESCRIPTION
OF UNITS
As
specified in the applicable prospectus supplement, we may issue units consisting of shares of common stock or warrants or any combination
of such securities.
The
applicable prospectus supplement will specify the following terms of any units in respect of which this prospectus is being delivered:
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terms of the units and of any of the common stock and warrants comprising the units, including whether and under what circumstances
the securities comprising the units may be traded separately; |
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a
description of the terms of any unit agreement governing the units; and |
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description of the provisions for the payment, settlement, transfer or exchange of the units. |
DESCRIPTION
OF RIGHTS
We
may offer to our shareholders rights to purchase common stock or other securities. Rights may be issued independently or together with
any other offered security and may or may not be transferable by the person purchasing or receiving the rights. In connection with any
rights offering to our shareholders, we may enter into a standby underwriting or other arrangement with one or more underwriters or other
persons pursuant to which such underwriters or other person would purchase any offered securities remaining unsubscribed for after such
rights offering. Each series of rights will be issued under a separate rights agent agreement to be entered into between us and a bank
or trust company, as rights agent, that we will name in the applicable prospectus supplement. The rights agent will act solely as our
agent in connection with the certificates relating to the rights that we may issue and will not assume any obligation or relationship
of agency or trust for or with any holders of rights certificates or beneficial owners of rights.
The
prospectus supplement relating to any rights we offer will include specific terms relating to the offering, including, among others,
the date of determining the shareholders entitled to the rights distribution, the aggregated number of rights issued and the aggregate
number of shares of common stock or other securities purchasable upon exercise of the rights, the exercise price, the conditions to completion
of the offering, the date on which the right to exercise the rights will commence and the date on which the right will expire and any
applicable U.S. federal income tax considerations. To the extent that any particular terms of the rights, rights agent agreements or
rights certificates described in a prospectus supplement differ from any of the terms described herein, then the terms described herein
will be deemed to have been superseded by that prospectus supplement.
Each
right would entitle the holder of the rights to purchase for cash the principal amount of shares of common stock or other securities
at the exercise price set forth in the applicable prospectus supplement. Rights may be exercised at any time up to the close of business
on the expiration date for the rights provided in the applicable prospectus supplement. After the close of business on the expiration
date, all unexercised rights would become void and have no further force or effect.
Holders
may exercise rights as described in the applicable prospectus supplement. Upon receipt of payment and the rights certificate properly
completed and duly executed at the corporate trust office of the rights agent or any other office indicated in the prospectus supplement,
we will, as soon as practicable, forward the shares of common stock purchasable upon exercise of the rights. If less than all of the
rights issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than shareholders,
to or through agents, underwriters or dealers or through a combination of such methods, including pursuant to standby arrangements, as
described in the applicable prospectus supplement.
The
description in the applicable prospectus supplement and other offering material of any rights we offer will not necessarily be complete
and will be qualified in its entirety by reference to the applicable rights agent agreement which will be filed with the SEC if we offer
rights. For more information on how you can obtain copies of the applicable rights agent agreement if we offer rights, see the sections
above entitled “Where You can Find More Information” and “Incorporation of Certain Information by Reference”.
We urge you to read the applicable rights agent agreement and the applicable prospectus supplement and any other offering material in
their entirety.
FORMS
OF SECURITIES
Each
warrant, unit and right will be represented either by a certificate issued in definitive form to a particular investor or by one or more
global securities representing the entire issuance of securities. Certificated securities in definitive form and global securities will
be issued in registered form. Definitive securities name you or your nominee as the owner of the security, and in order to transfer or
exchange these securities or to receive payments other than interest or other interim payments, you or your nominee must physically deliver
the securities to the trustee, registrar, paying agent or other agent, as applicable. Global securities name a depositary or its nominee
as the owner of warrants, units or rights represented by these global securities. The depositary maintains a computerized system that
will reflect each investor’s beneficial ownership of the securities through an account maintained by the investor with its broker/dealer,
bank, trust company or other representative, as we explain more fully below.
Registered
Global Securities
We
may issue the registered warrants, units and rights in the form of one or more fully registered global securities that will be deposited
with a depositary or its nominee identified in the applicable prospectus supplement and registered in the name of that depositary or
nominee. In those cases, one or more registered global securities will be issued in a denomination or aggregate denominations equal to
the portion of the aggregate principal or face amount of the securities to be represented by registered global securities. Unless and
until it is exchanged in whole for securities in definitive registered form, a registered global security may not be transferred except
as a whole by and among the depositary for the registered global security, the nominees of the depositary or any successors of the depositary
or those nominees.
If
not described below, any specific terms of the depositary arrangement with respect to any securities to be represented by a registered
global security will be described in the prospectus supplement relating to those securities. We anticipate that the following provisions
will apply to all depositary arrangements.
Ownership
of beneficial interests in a registered global security will be limited to persons, called participants, that have accounts with the
depositary or persons that may hold interests through participants. Upon the issuance of a registered global security, the depositary
will credit, on its book-entry registration and transfer system, the participants’ accounts with the respective principal or face
amounts of the securities beneficially owned by the participants. Any dealers, underwriters or agents participating in the distribution
of the securities will designate the accounts to be credited. Ownership of beneficial interests in a registered global security will
be shown on, and the transfer of ownership interests will be effected only through, records maintained by the depositary, with respect
to interests of participants, and on the records of participants, with respect to interests of persons holding through participants.
The laws of some states may require that some purchasers of securities take physical delivery of these securities in definitive form.
These laws may impair your ability to own, transfer or pledge beneficial interests in registered global securities.
So
long as the depositary, or its nominee, is the registered owner of a registered global security, that depositary or its nominee, as the
case may be, will be considered the sole owner or holder of the securities represented by the registered global security for all purposes
under the applicable indenture, warrant agreement or unit agreement. Except as described below, owners of beneficial interests in a registered
global security will not be entitled to have the securities represented by the registered global security registered in their names,
will not receive or be entitled to receive physical delivery of the securities in definitive form and will not be considered the owners
or holders of the securities under the applicable indenture, warrant agreement or unit agreement. Accordingly, each person owning a beneficial
interest in a registered global security must rely on the procedures of the depositary for that registered global security and, if that
person is not a participant, on the procedures of the participant through which the person owns its interest, to exercise any rights
of a holder under the applicable indenture, warrant agreement or unit agreement. We understand that under existing industry practices,
if we request any action of holders or if an owner of a beneficial interest in a registered global security desires to give or take any
action that a holder is entitled to give or take under the applicable indenture, warrant agreement or unit agreement, the depositary
for the registered global security would authorize the participants holding the relevant beneficial interests to give or take that action,
and the participants would authorize beneficial owners owning through them to give or take that action or would otherwise act upon the
instructions of beneficial owners holding through them.
Any
payments to holders with respect to warrants, units or rights, represented by a registered global security registered in the name of
a depositary or its nominee will be made to the depositary or its nominee, as the case may be, as the registered owner of the registered
global security. None of Thumzup, the trustees, the warrant agents, the unit agents or any other agent of Thumzup, agent of the trustees
or agent of the warrant agents or unit agents will have any responsibility or liability for any aspect of the records relating to payments
made on account of beneficial ownership interests in the registered global security or for maintaining, supervising or reviewing any
records relating to those beneficial ownership interests.
We
expect that the depositary for any of the securities represented by a registered global security, upon receipt of any payment of principal,
premium, interest or other distribution of underlying securities or other property to holders on that registered global security, will
immediately credit participants’ accounts in amounts proportionate to their respective beneficial interests in that registered
global security as shown on the records of the depositary. We also expect that payments by participants to owners of beneficial interests
in a registered global security held through participants will be governed by standing customer instructions and customary practices,
as is now the case with the securities held for the accounts of customers in bearer form or registered in “street name” and
will be the responsibility of those participants.
If
the depositary for any of these securities represented by a registered global security is at any time unwilling or unable to continue
as depositary or ceases to be a clearing agency registered under the Securities and Exchange Act of 1934, as amended (the “Exchange
Act”) and a successor depositary registered as a clearing agency under the Exchange Act is not appointed by us within 90 days,
we will issue securities in definitive form in exchange for the registered global security that had been held by the depositary. Any
securities issued in definitive form in exchange for a registered global security will be registered in the name or names that the depositary
gives to the relevant trustee, warrant agent, unit agent or other relevant agent of ours or theirs. It is expected that the depositary’s
instructions will be based upon directions received by the depositary from participants with respect to ownership of beneficial interests
in the registered global security that had been held by the depositary.
PLAN
OF DISTRIBUTION
We
may sell the securities offered through this prospectus (i) to or through underwriters or dealers, (ii) directly to purchasers, including
our affiliates, (iii) through agents, or (iv) through a combination of any these methods. The securities may be distributed at a fixed
price or prices, which may be changed, market prices prevailing at the time of sale, prices related to the prevailing market prices,
or negotiated prices. The prospectus supplement will include the following information:
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terms of the offering; |
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names of any underwriters or agents; |
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name or names of any managing underwriter or underwriters; |
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purchase price of the securities; |
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any
over-allotment options under which underwriters may purchase additional securities from us; |
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net proceeds from the sale of the securities; |
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delayed delivery arrangements; |
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underwriting discounts, commissions and other items constituting underwriters’ compensation; |
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initial public offering price; |
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discounts or concessions allowed or re-allowed or paid to dealers; |
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commissions paid to agents; and |
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any
securities exchange or market on which the securities may be listed. |
Sale
through Underwriters or Dealers
Only
underwriters named in the prospectus supplement are underwriters of the securities offered by the prospectus supplement.
If
underwriters are used in the sale, the underwriters will acquire the securities for their own account, including through underwriting,
purchase, security lending or repurchase agreements with us. The underwriters may resell the securities from time to time in one or more
transactions, including negotiated transactions. Underwriters may sell the securities in order to facilitate transactions in any of our
other securities (described in this prospectus or otherwise), including other public or private transactions and short sales. Underwriters
may offer securities to the public either through underwriting syndicates represented by one or more managing underwriters or directly
by one or more firms acting as underwriters. Unless otherwise indicated in the prospectus supplement, the obligations of the underwriters
to purchase the securities will be subject to certain conditions, and the underwriters will be obligated to purchase all the offered
securities if they purchase any of them. The underwriters may change from time to time any initial public offering price and any discounts
or concessions allowed or re-allowed or paid to dealers.
If
dealers are used in the sale of securities offered through this prospectus, we will sell the securities to them as principals. They may
then resell those securities to the public at varying prices determined by the dealers at the time of resale. The prospectus supplement
will include the names of the dealers and the terms of the transaction.
Direct
Sales and Sales through Agents
We
may sell the securities offered through this prospectus directly. In this case, no underwriters or agents would be involved. Such securities
may also be sold through agents designated from time to time. The prospectus supplement will name any agent involved in the offer or
sale of the offered securities and will describe any commissions payable to the agent. Unless otherwise indicated in the prospectus supplement,
any agent will agree to use its reasonable best efforts to solicit purchases for the period of its appointment.
We
may sell the securities directly to institutional investors or others who may be deemed to be underwriters within the meaning of the
Securities Act with respect to any sale of those securities. The terms of any such sales will be described in the prospectus supplement.
Delayed
Delivery Contracts
If
the prospectus supplement indicates, we may authorize agents, underwriters or dealers to solicit offers from certain types of institutions
to purchase securities at the public offering price under delayed delivery contracts. These contracts would provide for payment and delivery
on a specified date in the future. The contracts would be subject only to those conditions described in the prospectus supplement. The
applicable prospectus supplement will describe the commission payable for solicitation of those contracts.
Continuous
Offering Program
Without
limiting the generality of the foregoing, we may enter into a continuous offering program equity distribution agreement with a broker-dealer,
under which we may offer and sell shares of our common stock from time to time through a broker-dealer as our sales agent. If we enter
into such a program, sales of the shares of common stock, if any, will be made by means of ordinary brokers’ transactions on the
Nasdaq Capital Market or other market on which are shares may then trade at market prices, block transactions and such other transactions
as agreed upon by us and the broker-dealer. Under the terms of such a program, we also may sell shares of common stock to the broker-dealer,
as principal for its own account at a price agreed upon at the time of sale. If we sell shares of common stock to such broker-dealer
as principal, we will enter into a separate terms agreement with such broker-dealer, and we will describe this agreement in a separate
prospectus supplement or pricing supplement.
Market
Making, Stabilization and Other Transactions
Unless
the applicable prospectus supplement states otherwise, other than our common stock, all securities we offer under this prospectus will
be a new issue and will have no established trading market. We may elect to list offered securities on an exchange or in the over-the-counter
market. Any underwriters that we use in the sale of offered securities may make a market in such securities, but may discontinue such
market making at any time without notice. Therefore, we cannot assure you that the securities will have a liquid trading market.
Any
underwriter may also engage in stabilizing transactions, syndicate covering transactions and penalty bids in accordance with Rule 104
under the Securities Exchange Act. Stabilizing transactions involve bids to purchase the underlying security in the open market for the
purpose of pegging, fixing or maintaining the price of the securities. Syndicate covering transactions involve purchases of the securities
in the open market after the distribution has been completed in order to cover syndicate short positions.
Penalty
bids permit the underwriters to reclaim a selling concession from a syndicate member when the securities originally sold by the syndicate
member are purchased in a syndicate covering transaction to cover syndicate short positions. Stabilizing transactions, syndicate covering
transactions and penalty bids may cause the price of the securities to be higher than it would be in the absence of the transactions.
The underwriters may, if they commence these transactions, discontinue them at any time.
General
Information
Agents,
underwriters, and dealers may be entitled, under agreements entered into with us, to indemnification by us against certain liabilities,
including liabilities under the Securities Act. Our agents, underwriters, and dealers, or their affiliates, may be customers of, engage
in transactions with or perform services for us, in the ordinary course of business.
LEGAL
MATTERS
The
validity of the rights and the shares of common stock offered by this prospectus have been passed upon for us by Sichenzia Ross Ference
Carmel LLP, New York, New York.
EXPERTS
The
financial statements of Thumzup Media Corporation, as of and for the years ended December 31, 2024 and 2023, incorporated in this prospectus
by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, have been audited by Haynie &
Company an independent registered public accounting firm, as stated in its report incorporated by reference herein, and have been so
incorporated in reliance upon such report and upon the authority of such firm as experts in accounting and auditing.
INCORPORATION
OF INFORMATION BY REFERENCE
This
prospectus is part of the registration statement, but the registration statement includes and incorporates by reference additional information
and exhibits. The Securities and Exchange Commission permits us to “incorporate by reference” the information contained in
documents we file with the Securities and Exchange Commission, which means that we can disclose important information to you by referring
you to those documents rather than by including them in this prospectus. Information that is incorporated by reference is considered
to be part of this prospectus and you should read it with the same care that you read this prospectus. Information that we file later
with the Securities and Exchange Commission will automatically update and supersede the information that is either contained, or incorporated
by reference, in this prospectus, and will be considered to be a part of this prospectus from the date those documents are filed.
We
are incorporating by reference the following documents that we have filed with the SEC (other than any filing or portion thereof that
is furnished, rather than filed, under applicable SEC rules):
|
● |
our
Annual Report on Form
10-K for the year ended December 31, 2024, filed with the SEC on March 11, 2025, as amended on April 30, 2025; |
|
|
|
|
● |
our
Quarterly Reports on Form 10-Q for the quarter ended March
31, 2024, filed with the SEC on May 14, 2024, for the quarter ended June
30, 2024, filed with the SEC on August 12, 2024, and for the quarter ended September
30, 2024, filed with the SEC on November 11, 2024, for the quarter ended May
15, 2025, for the quarter ended March 31, 2025; and |
|
|
|
|
● |
our
Current Reports on Form 8-K filed with the SEC on March
20, 2025 and March
25, 2025; and |
We
also incorporate by reference all additional documents that we file with the Securities and Exchange Commission under the terms of Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act that are made after the initial filing date of the registration statement of which this
prospectus is a part until the offering of the particular securities covered by this prospectus has been completed. We are not, however,
incorporating, in each case, any documents or information that we are deemed to furnish and not file in accordance with Securities and
Exchange Commission rules.
You
may request a copy of these filings at no cost, by writing or telephoning us at the following address or telephone number:
Robert
Steele
Chief
Executive Officer
10557-B
Jefferson Blvd.
Culver
City, CA 90232
(800)
403-6150
Except
as expressly provided above, no other information, including none of the information on our website, is incorporated by reference into
this prospectus.
Any
statement contained in a document incorporated or deemed to be incorporated by reference in this prospectus will be deemed modified,
superseded or replaced for purposes of this prospectus to the extent that a statement contained in this prospectus modifies, supersedes
or replaces such statement.
WHERE
YOU CAN FIND MORE INFORMATION
This
prospectus supplement and the accompanying prospectus are part of the registration statement on Form S-3 we filed with the Securities
and Exchange Commission, or SEC, under the Securities Act, and do not contain all the information set forth in the registration statement.
Whenever a reference is made in this prospectus supplement or the accompanying prospectus to any of our contracts, agreements or other
documents, the reference may not be complete, and you should refer to the exhibits that are a part of the registration statement or the
exhibits to the reports or other documents incorporated by reference into this prospectus supplement and the accompanying prospectus
for a copy of such contract, agreement or other document. You may inspect a copy of the registration statement, including the exhibits
and schedules, without charge, at the SEC’s public reference room mentioned below, or obtain a copy from the SEC upon payment of
the fees prescribed by the SEC.
We
file periodic reports, proxy statements and other information with the SEC. Our filings are available to the public over the Internet
at the SEC’s web site at http://www.sec.gov. We will also provide you with a copy of any or all of the reports or documents that
have been incorporated by reference into this prospectus or the registration statement of which it is a part upon written or oral request,
and at no cost to you. If you would like to request any reports or documents from the Company, please contact Thumzup Investor Relations
at +1 (800) 403-6150.
Our
Internet address is www.ThumzupMedia.com. We have not incorporated by reference into this prospectus the information on our website,
and you should not consider it to be a part of this document. Our web address is included in this document as an inactive textual reference
only.
108,333
shares of Series C Convertible Preferred Stock
(1,083,333
shares of Common Stock issuable upon the conversion of such Series C Convertible Preferred Stock)
Placement
Agent Warrants to purchase up to 65,000 shares of our Common Stock
Up
to 65,000 shares of Common Stock issuable upon the full exercise of the Placement Agent Warrants

Thumzup
Media Corporation
PROSPECTUS
SUPPLEMENT
Dominari
Securities LLC
June 30, 2025