Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 65

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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Income
tax benefit was $(28,793) for the nine months ended September 30, 2025, compared to $0 for the nine months ended September 30, 2024.
The Company continues to maintain a full valuation allowance on its net deferred tax assets.

Net
income (loss)

Net
loss was $(29,562,461) for the nine months ended September 30, 2025, compared to net income of $3,212,482 for the nine months ended September
30, 2024.

Liquidity
and Capital Resources

Overview

Our
liquidity position changed significantly during the quarter as a result of (i) the PIPE and ATM capital raises, (ii) the deployment of
capital into digital assets as part of the DAT Strategy, and (iii) the ongoing financing needs of the Forever 8 operating business. We
believe our current liquidity, including cash, cash equivalents, stablecoins, and other liquid digital assets, is sufficient to meet
anticipated operating needs for at least the next twelve months.

Liquidity
Profile

As
of September 30, 2025, our immediate liquidity consisted of cash and cash equivalents, stablecoins, and other liquid digital assets.
We actively manage working capital by converting stablecoins and other digital assets to U.S. dollars to meet operating needs. We believe
our cash and stablecoins provide sufficient liquidity for at least the next 12 months.

36

Sources
of Liquidity

PIPE
Financing

The
PIPE generated $270 million in gross proceeds, representing the most significant source of liquidity during the period.

ATM
Program

We
raised additional capital during the quarter under our ATM program. Proceeds were used to acquire digital assets and fund working capital
needs.

Forever
8 Credit Facilities (Series A, B, C, and D)

Forever
8 continues to rely on its secured inventory financing facilities (the “Forever 8 Facilities”), which remain active and available.

In
the aggregate, these facilities provide:

●Interest
                                            rates ranging from 15% to 18% per annum

●Unused
                                            commitment fees of approximately 5% per annum

●A
                                            revolving draw structure through “Initial Loan Advances” and “Subsequent
                                            Draws” from lender-controlled escrows

●Collateral
                                            in the form of Forever 8 inventory, equipment, and related proceeds

As
of September 30, 2025, Forever 8 had approximately $10.