Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 79

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 79
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isions about allocating resources and assessing performance for the entire Company. The Company’s primary revenue streams include
inventory management solutions and the sale of corrugated packaging materials. Based on the CODM's evaluation and internal reporting, the Company has
two reportable segments: Inventory Management Solutions and Corrugated Packaging.

Reclassifications.
Certain prior period amounts have been reclassified to conform to the current period presentation, including amounts related to the
Corrugated Packaging Business, which was classified as a discontinued operation as of December 31, 2024. These reclassifications had
no impact on previously reported net income or stockholders’ equity.

3.
GOING CONCERN

The
consolidated financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its
assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has negative cash
flows from operations, incurred a loss since inception resulting in an accumulated deficit of $112,570,049
as of December 31, 2024 and further losses are anticipated in the development of its business. These factors raise substantial
doubts about the Company’s ability to continue as a going concern for a period of 12 months from the date of this annual report.

As
of December 31, 2024, the Company had approximately $0.2
million in cash and cash equivalents as compared to $5.2
million at December 31, 2023. The Company expects that its current cash and cash equivalents, approximately $0.5
million as of the date of this annual report, will not be sufficient to support its projected operating requirements for at least
the next 12 months from this date.

The
Company expects to need additional capital in order to increase revenues above current levels. Any additional equity financing, if available,
may not be on favorable terms and would likely be significantly dilutive to the Company’s current stockholders, and debt financing,
if available, may involve restrictive covenants. The Company’s ability to access capital when needed is not assured and, if not
achieved on a timely basis, will likely have a materially adverse effect on our business, financial condition and results of operations.
In 2023, the Company began reducing headcount to reduce the corporate overhead. The Company raised capital in 2024 and
will continue to look to reduce costs in 2025 and raise capital as required for its operations.

    F-15

E