Company: ORBS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011052
Chunk: 17

Company: Eightco Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 17
---
,414,838 for the three months
ended March 31, 2025 and 2024, respectively, representing a decrease of $1,414,838, or 100.00%. The decrease was largely attributable
to the completion of the restructuring plan.

Interest
Expense

Interest expense was $1,288,803, for the three months ended March 31, 2025,
versus $1,198,771 for the three months ended March 31, 2024. The increase in interest expense was largely attributable to the additional
borrowings under the lines of credit.

Gain
on forgiveness of earnout

Gain on forgiveness of earnout was $0 for the three months ended March
31, 2025 versus $6,100,000 for the three months ended March 31, 2024. The full amount of the earnout rights were forgiven in 2024.

Income
tax expense

Income tax (benefit) expense was $(28,793) and $0 for the three months
ended March 31, 2025 and 2024, respectively. The benefit relates to foreign income tax credits earned.

Net
income (loss)

Net income (loss) was $(2,654,279) for the three months ended March 31,
2025, versus $1,774,135 for the three months ended March 31, 2024. The decrease in net income was largely attributable the Company’s
prior recognition of the gain on forgiveness of earnout.

36

Discontinued
Operations

On
November 22, 2024, the Company entered into an Asset Purchase Agreement to sell substantially all of the assets of Ferguson Containers,
Inc., the Company’s Corrugated Packaging Business. As a result of this agreement, Ferguson Containers has been classified as a
discontinued operation for all periods presented in the consolidated financial statements.

Revenue
and operating results from Ferguson Containers are excluded from continuing operations and presented as a single line item in the consolidated
statements of operations. Ferguson Containers generated revenues of $6.8 million and $7.7 million and operating income of $0.4 million
and $0.7 million for the years ended December 31, 2024 and 2023, respectively.

The
Company closed on the transaction on April 7, 2025.

The
following table sets forth information comparing the components of net (loss) income from discontinued operations for the three months
ended March 31, 202