Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 64

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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, and corporate overhead compared to 2024, when restructuring
                                            actions elevated SG&A; and

●Increased
                                            share-based compensation

Restructuring
and severance

Restructuring
and severance expenses were $0 for the nine months ended September 30, 2025 compared to $1,414,838 for the same period in 2024. The decrease
reflects the completion of headcount rationalization and cost-reduction programs executed in 2024.

Interest
Expense

Interest
expense was $(3,660,662) for the nine months ended September 30, 2025, compared to $(4,047,639) for the prior-year period, reflecting
lower average outstanding balances under the Company’s financing facilities.

35

Change
in fair value of digital assets

The
Company recorded a loss of $(18,639,017) related to the change in fair value of its digital asset holdings for the nine months ended
September 30, 2025. The Company did not hold digital assets in 2024.

Gain
on divestiture

The
Company recognized a $1,231,774 gain during the nine months ended September 30, 2025 related to the sale of assets of the Corrugated
Packaging Business. There was no comparable gain in 2024.

Gain
on forgiveness of earnout

Gain
on forgiveness of earnout was $0 for the nine months ended September 30, 2025 versus $6,100,000 for the nine months ended September 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 nine months ended September 30, 2025 versus $7,427,193 for the nine months ended September
30, 2024.

Income
(Loss) Before Income Taxes

Loss
before income taxes was $(19,696,807) for the nine months ended September 30, 2025, compared to income before income taxes of $2,845,330
for the nine months ended September 30, 2024. The variance is primarily attributable to:

●The
                                            absence of significant nonrecurring 2024 gains;

●Gross
                                            profit pressures related to inventory and A/R write-downs; and

●Fair
                                            value losses on digital assets in 2025.

Income
tax expense