Wed, Aug 14, 9:35 PM (153 days ago)
For the quarter ending June 30, 2024, Eightco Holdings Inc. reported a significant decline in revenue, totaling $7,017,013, down 65.85% from $20,547,153 in the same period last year. This drop is attributed to reduced sales from the inventory management solutions segment, as the company redirected capital to repay convertible notes. Cost of revenues also decreased by 70.92%, leading to a gross profit of $1,777,811, a 29.73% decline year-over-year. Operating expenses fell to $3,461,221 from $4,717,556, primarily due to lower professional fees and payroll costs. Notably, the company recorded a net income of $4,448,892, contrasting with a net loss of $8,853,248 in the prior year, largely driven by other income, including a $7,427,193 gain from extinguishing liabilities. As of June 30, 2024, Eightco's cash reserves dwindled to $363,076 compared to $5.2 million at year-end 2023, raising concerns about liquidity and the ability to sustain operations without additional capital. The company is also undergoing a reverse stock split to comply with Nasdaq listing rules, reflecting ongoing financial challenges and the need for strategic restructuring.