Company: ORBS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011052
Chunk: 16

Company: Eightco Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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266,906
    )

    4,927,906

    (6,194,812
    )

    -125.71
    %
  
    Income (loss) before income taxes

    (2,683,072
    )

    1,774,135

    (4,457,207
    )

    -251.23
    %
  
    Income tax expense (benefit)

    (28,793
    )

    -

    (28,793
    )

    -100.00
    %
  
    Net income (loss)
     
    $
    (2,654,279
    )
     
    $
    1,774,135

    $
    (4,428,414
    )
     
    $
    -249.61
    %

Revenue

For the three months ended March 31, 2025, revenues increased by $1,955,290
or 24.57%, as compared to the three months ended March 31, 2024. The increase was attributable to the increased sale of goods from revenue
derived from the inventory management solutions business due to the Company’s additional access to capital versus the reduction
in capital in 2024 due to the repayment of its outstanding convertible notes payable.

Cost
of Revenues

For the three months ended March 31, 2025, cost of revenues increased by
$2,531,041 or 38.53%, as compared to the three months ended March 31, 2024. The increase was largely attributable to the increase in total
revenues for our inventory management solutions business as well as the mix of products sold being lower margin.

Gross
Profit

For the three months ended March 31, 2025, gross profit decreased by $575,751
or 41.45%, as compared to the three months ended March 31, 2024. The decrease was largely attributable to lower margin product sales in
the inventory management solutions business.

Operating
Expenses

Selling, general and administrative expenses were $2,229,425 and $3,127,943
for the three months ended March 31, 2025 and 2024, respectively, representing a decrease of $898,518, or 28.73%. The decrease was largely
attributable to the decrease in professional fees, payroll costs, insurance expense, and rent expense.

Restructuring and severance were $0 and $1