Company: ORBS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011052
Chunk: 19

Company: Eightco Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 increase was primarily due to higher order volume from customers.

Cost
of Revenues

Cost
of revenues was $1,276,685 for the three months ended March 31, 2025, compared to $1,164,371 for the same period in 2024, representing
an increase of $112,314, or 9.65%. The increase was primarily driven by a shift in product mix toward lower-margin corrugated materials.

Gross
Profit

Gross
profit was relatively flat at $497,244 for the three months ended March 31, 2025, compared to $496,752 in the prior-year period, reflecting
a nominal increase of $492, or 0.10%. The stability in gross profit reflects the offsetting impact of higher revenues and increased cost
of revenues tied to lower-margin product sales.

Operating
Expenses

Selling,
general and administrative expenses were $393,013 for the three months ended March 31, 2025, compared to $334,016 for the three months
ended March 31, 2024, representing an increase of $58,997, or 17.66%. The increase was primarily due to higher payroll-related costs
and a $23,013 bad debt charge recorded during the current period. There were no restructuring or severance expenses in either period.

Net
income

Net
income was $105,553 for the three months ended March 31, 2025, compared to $166,828 for the same period in 2024, a decrease of $61,275,
or 36.73%. The decline was primarily driven by increased operating expenses.

Liquidity
and Capital Resources

As
reflected in the accompany financial statements for the three months ended March 31, 2025, the Company had net loss of $2.5 million
and as of March 31, 2025, had stockholders’ equity of $9.3 million and approximately $0.4 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.

37

The
Company expects