Company: ORBS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001493152-25-012159
Chunk: 13

Company: Eightco Holdings Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 13
---
expense was $2,565,530, for the six months ended June 30, 2025, versus $2,522,365 for the six months ended June 30, 2024. The increase
in interest expense was largely attributable to higher average borrowings under the lines of credit.

Gain
on forgiveness of earnout

Gain
on forgiveness of earnout was $0 for the six months ended June 30, 2025 versus $6,100,000 for the six months ended June 30, 2024. The
full amount of the earnout rights were forgiven in 2024.

Gain
on extinguishment of liabilities

Gain
on extinguishment of liabilities was $0 for the six months ended June 30, 2025 versus $6,497,193 for the six months ended June 30, 2024.

Income
tax expense

Income
tax (benefit) expense was $(28,793) and $0 for the six months ended June 30, 2025 and 2024, respectively. The Company has significant
net operating loss carryforwards and is able to apply for R&D credits.

Net
income (loss)

Net
income (loss) was $(3,718,245) for the six months ended June 30, 2025, versus $6,389,855 for the six months ended June 30, 2024. The
decrease in net income was largely attributable the Company’s prior recognition of the gain on extinguishment of liabilities and
gain on forgiveness of earnout.

Liquidity
and Capital Resources

As
reflected in the accompany financial statements for the six months ended June 30, 2025, the Company had net loss of $3.6 million and
as of June 30, 2025, had stockholders’ equity of $8.6 million and approximately $0.7 million in cash and cash equivalents as compared
to $0.2 million at December 31, 2024. The Company expects that its current cash and cash equivalents are not sufficient to support its
projected operating requirements for at least the next 12 months from this date. These factors, among others, raise substantial doubt
about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued.

35

The
Company expects to need additional capital in order to maintain revenues at current levels. Any additional equity financing, if available