Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 28

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 a discontinued operations. These reclassifications had no impact on previously
reported net income or stockholders’ equity.

    16

EIGHTCO
HOLDINGS INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3.
GOING CONCERN

In
prior periods, the Company had experienced operating losses, limited liquidity, and negative cash flows from operations, which raised
substantial doubt regarding its ability to continue as a going concern.

During
the nine months ended September 30, 2025, the Company completed significant capital-raising activities, including a $270 million private
placement and additional issuances through its at-the-market program. A substantial portion of the proceeds was allocated to digital
assets, which are measured at fair value under ASU 2023-08 and include highly liquid assets such as U.S. dollar-denominated stablecoins.

As
of September 30, 2025, the Company held $23.7 million in cash and cash equivalents and $286.7 million in digital assets, resulting in
total current assets of $316.5 million and working capital of approximately $299.7 million. Forever 8, the Company’s sole operating
business, following the divestiture of the Packaging Business, continues to generate stable operating margins and predictable cash flows.
The Company also maintains access to revolving credit facilities used to support Forever 8 inventory financing activities.

Based
on its current liquidity position, expected operating cash flows, access to financing facilities, and the highly liquid nature of its
digital asset holdings, management believes the Company has sufficient resources to meet its obligations as they become due for at least
twelve months from the date these condensed consolidated financial statements are issued. Accordingly, management has concluded that
substantial doubt regarding the Company’s ability to continue as a going concern is alleviated, and these financial statements
have been prepared on a going-concern basis.

4.
ACQUISITIONS AND DIVESTITURES

Discontinued
Operations

On
November 22, 2024, Eightco Holdings Inc. (the “Company”) entered into an Asset Purchase Agreement (the “APA”)
to sell substantially all of the assets of its wholly owned subsidiary, Ferguson Containers, Inc., to a New Jersey limited liability
company controlled by certain management employees of the Corrugated Packaging Business (the “Buyers”). This sale was completed
on April 7, 2025 with an effective date of April