Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 191

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 191
---
5.89%. The decrease was largely attributable to a decrease in salaries.

Interest
Expense

Interest
expense was $0 for the year ended December 31, 2024, versus $112 for the year ended December 31, 2023.

Total
other  income

Total
other  income was 6,613 for the year ended December 31, 2024 versus 34,056 for the year ended December 31, 2023. The decrease
in total other income (expense) was largely attributable to insurance reimbursements.

Income
tax benefit

Income
tax benefit was $(9,128) for the year ended December 31, 2024, versus an income tax expense benefit of $0 for the year ended
December 31, 2023, respectively.

Net
income from discontinued operations

Net
income from discontinued operations was $418,716 for the year ended December 31, 2024, versus  net income of $736,701 for the year ended
December 31, 2023. The decrease in net income was largely attributable to the loss on of 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