Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 431

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 431
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 revenues related to the decrease in orders from
one customer.

Liquidity
and Capital Resources

Eightco
Holdings Inc. funds its operations primarily through borrowings under lines of credit and the sale of securities, either through private
placements or its At-The-Market (“ATM”) offering program. As of March 31, 2025, the Company has approximately $9.7 million
of outstanding debt obligations related to lines of credit.

As
of April 14, 2025, the Company had approximately $0.2 million in cash. Management expects that additional capital will be required to support
ongoing operations and to scale revenues beyond current levels. The Company intends to continue accessing capital through a combination
of debt financing and equity offerings, as needed.

In November 2024, the
Company entered into an agreement to sell substantially all of the assets of its Corrugated Packaging Business, Ferguson Containers,
for a total purchase price of approximately $3.1 million, consisting of $557,835 in cash, a $2.5 million seller note, and up to
$500,000 in earnout payments contingent on future performance. The buyer will also assume certain liabilities related to the
Corrugated Packaging Business.

The Company expects
the transaction to close in the second quarter of 2025. Upon closing, the Company expects to realize increased liquidity from the
cash proceeds, with future cash flow impacts dependent on collection of the seller note and potential earnout realization. The sale
aligns with the Company’s strategic decision to focus resources on scaling Forever 8, the Company’s inventory
funding platform.

Cash
Flows for the Years Ended December 31, 2024 and 2023

Since
inception, Eightco Holdings Inc. and its subsidiaries have primarily used its available cash to fund its operations. The following table
sets forth a summary of cash flows for the periods presented:

    For the Years Ended December 31, 

    2024  
    2023 
  
    Cash (used in) provided by: 

    Operating Activities 
    $(6,637,101) 
    $(6,399,079)
  
    Investing Activities 
     (70,098) 
     (295,150)
  
    Financing Activities 
     1,698,550  
     6,361,634 
  
    Net increase in cash and restricted cash 
    $(5,008,649) 
    $(