Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 60

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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1,800,711.

The
decrease was primarily driven by:

●Write-downs
                                            of inventory associated with our decision to exit the liquidation model and discontinue operating
                                            customer storefronts where loss exposure had increased.

●Write-downs
                                            of certain accounts receivable from customers tied to the liquidation business where collectability
                                            deteriorated following the operational exit.

●Lower
                                            volumes and generally lower-margin product mix during the 2025 period.

These
actions were undertaken to eliminate structurally unprofitable arrangements and are expected to reduce ongoing losses in future periods.

Operating
Expenses

Selling, general and administrative (“SG&A”) expenses were
$6,002,208 for the three months ended September 30, 2025, compared to $3,364,793 for the three months ended September 30, 2024, an increase
of $2,637,415, or 78.40%.

The
increase was attributable to:

●Higher
                                            professional fees and advisory costs incurred in connection with the Company’s capital
                                            raising and the implementation of its Digital Asset Treasury strategy;

●Increased
                                            compensation and corporate overhead required to support expanded operations, including share-based
                                            compensation; and

●Higher
                                            technology, compliance, and custodial-related costs associated with digital asset oversight.

The
Company did not incur restructuring or severance expenses in either period.

Interest
Expense

Net
interest expense totaled $(1,095,132) for the three months ended September 30, 2025, compared to $(1,525,274) for the three months ended
September 30, 2024, reflecting lower average borrowings on the Company’s financing facilities.

Change
in Fair Value of Digital Assets

The
Company recognized a loss of $(18,639,017) related to fair value changes of its digital asset holdings during the three months ended
September 30, 2025. The Company did not hold digital assets during the comparable 2024 period.

Other
Income

Other
income increased to $87,991 for the three months ended September 30, 2025, from $22,830 in the prior-year period, primarily due to addition
of the Reichard Corrugated Note.

Income
(Loss) Before Income Taxes

Loss before income taxes was $(25,844,216) for the three months ended September
30, 2025, compared to $(3,262,376) for the