Financial Performance and Achievements - The company improved its balance sheet by eliminating $5.4 million in convertible notes and increasing shareholder equity by $23 million [2] - 5,846,627 dilutive shares related to warrants and convertible securities were canceled [2] - Gross profit margin increased to 22% in the first half of 2024, up from 12% in the prior year period [2] - SG&A expenses were reduced to $6.9 million, a 23% decrease from $9.0 million in the prior year period [2] - The company regained compliance with two NASDAQ requirements [2] 2025 Growth Strategy - The primary focus is on growing Forever 8 Fund LLC, which operates in inventory solutions for e-commerce sellers and refurbished Apple products in the US, UK, and Europe [3] - Forever 8 buys existing inventory and commits to purchasing future inventory directly from suppliers, maintaining specific inventory levels to enhance sales [3] - The company plans to seek non-dilutive senior debt financing to replace capital used for convertible notes repayment in Q1 2024 [4] - The company aims to achieve $100 million in revenue and positive EBITDA at the public company level in 2025 [4] - Forever 8's scalable platform is expected to deploy significant additional capital due to high inbound demand [4] Management and Future Outlook - The CEO emphasized the focus on prioritizing Forever 8 to deliver growth and shareholder value in 2025 [5] - The company is actively seeking new opportunities to expand its portfolio of technology solutions in the e-commerce ecosystem through strategic acquisitions [5] - Eightco aims to create significant value and growth for its portfolio companies and stockholders through innovative strategies and focused execution [5]

Core Viewpoint - Eightco Holdings Inc. has regained compliance with Nasdaq's minimum bid price and stockholders' equity requirements, allowing its common stock to continue trading on the Nasdaq Capital Market under the symbol "OCTO" [1][3]. Group 1: Compliance with Nasdaq Requirements - The Company received formal notice from Nasdaq confirming compliance with the minimum bid price requirement, having maintained a closing bid price above $1.00 for the last 20 consecutive trading days [1][2]. - Eightco reported stockholders' equity of $13,428,553 in its Quarterly Report for the quarter ended June 30, 2024, exceeding the required minimum of $2,500,000 [3]. Group 2: Company Overview - Eightco Holdings Inc. focuses on the growth of its subsidiaries, including Forever 8 and Ferguson Containers, through strategic management and investment [4]. - The Company is actively seeking new opportunities to enhance its portfolio of technology solutions within the e-commerce ecosystem through strategic acquisitions [4].

Financial Performance - Second quarter 2024 net income of $4.4 million compared to a net loss of ($8.9) million in the prior year quarter[1] - Second quarter 2024 revenues of $7.0 million, down 65.9% from $20.5 million in the prior year quarter, due to reduced capital for cell phone sales[1][3] - Second quarter 2024 gross profit of $1.8 million, with a gross profit margin of 25.3%, up from 12.3% in the prior year quarter[3] - EBITDA for the second quarter 2024 was $6.4 million, compared to a loss of ($5.5) million in the prior year quarter[3][5] - Adjusted EBITDA for the second quarter 2024 was a loss of ($0.8) million, an improvement from a loss of ($1.9) million in the prior year quarter[3][5] Expenses and Liabilities - Selling, general and administrative expenses decreased by 26.6% to $3.5 million from $4.7 million in the prior year quarter[3] - Shareholder equity improved through the cancellation of $7.4 million in liabilities and $15.6 million in additional liabilities related to Forever 8[2] - The repayment of convertible notes eliminated 5,846,627 dilutive shares related to warrants and convertible securities[2] Strategic Focus - The company aims to expand its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions[8] - The company continues to prioritize the Forever 8 business, providing inventory capital for e-commerce sellers and refurbished Apple product sellers[2]

Corporate Actions - The Company announced a 1-for-5 reverse stock split effective August 16, 2024[103]. - Paul Vassilakos was appointed as Executive Chairman and CEO with a base salary of $300,000 per year and an annual cash bonus opportunity of up to 75% of his base salary[112]. - The Company entered into a Series D Loan and Security Agreement for an amount of up to $5,000,000 on March 15, 2024[118]. - The Company granted fully vested stock options totaling 1,099,670 shares of Common Stock to certain officers, employees, and consultants on March 17, 2024[116]. - The Company entered into a Vroman Severance Agreement, providing Mr. Vroman with back pay of $151,615.46 and 24 months of severance based on his base salary[124]. - The Company has agreed to compensate Mr. Vroman $10,000 per month under a Consulting Agreement, effective January 1, 2024[125]. - The Company has committed $3,425,000 from lenders under a Series A Loan and Security Agreement, with a 15% annual interest rate[131]. - The Company has committed $2,900,000 from lenders under a Series C Loan and Security Agreement, with an 18% annual interest rate[139]. - The Company entered into a Series D Loan and Security Agreement for an amount of up to $5,000,000[140]. Financial Performance - For the three months ended June 30, 2024, revenues decreased by $13,530,140 or 65.85% compared to the same period in 2023, primarily due to reduced sales from the inventory management solutions business[152]. - Cost of revenues for the three months ended June 30, 2024, decreased by $12,778,057 or 70.92%, attributed to the decline in total revenues from the inventory management solutions business[153]. - Gross profit for the three months ended June 30, 2024, decreased by $752,083 or 29.73%, mainly due to lower margin sales in the inventory management solutions business[154]. - Selling, general and administrative expenses decreased by $1,256,335 or 26.63% for the three months ended June 30, 2024, largely due to reductions in professional fees and payroll costs[155]. - Interest expense decreased to $1,323,594 for the three months ended June 30, 2024, from $2,736,333 in the same period of 2023, primarily due to the repayment of convertible notes[156]. - Gain on extinguishment of liabilities was $7,427,193 for the three months ended June 30, 2024, compared to $0 for the same period in 2023, resulting from the settlement of liabilities with the former parent company[158]. - For the six months ended June 30, 2024, revenues decreased by $19,800,035 or 54.34% compared to the same period in 2023, primarily due to decreased sales from the inventory management solutions business[162]. - Cost of revenues for the six months ended June 30, 2024, decreased by $19,114,622 or 59.57%, reflecting the decline in total revenues from the inventory management solutions business[163]. - Net income for the three months ended June 30, 2024, was $4,448,892, a significant improvement from a net loss of ($8,853,248) in the same period of 2023, largely due to other income of $6,132,302[159]. - Gain on forgiveness of earnout was $6,100,000 for the six months ended June 30, 2024, compared to $0 for the same period in 2023, related to the forfeiture of earnout shares by the sellers of Forever 8[168]. - Net income for the six months ended June 30, 2024, was $6,389,855, a significant increase from a net loss of ($58,704,388) for the same period in 2023[173]. - Total other income for the six months ended June 30, 2024, was $11,064,300, compared to a total other loss of $(52,409,953) for the six months ended June 30, 2023[173]. Cash Flow and Equity - The company had stockholders' equity of $13.4 million and approximately $0.3 million in cash and cash equivalents as of June 30, 2024, compared to $5.2 million at December 31, 2023[174]. - Net cash used in operating activities was ($1,163,566) for the six months ended June 30, 2024, an improvement from ($5,672,358) for the same period in 2023[176]. - Net cash used in investing activities was ($5,881) for the six months ended June 30, 2024, compared to ($92,278) for the same period in 2023[177]. - Net cash used in financing activities was ($3,715,313) for the six months ended June 30, 2024, compared to cash provided of $4,559,110 for the same period in 2023[179]. Business Strategy and Market Conditions - The Company has ceased revenue generation from its Web3 Business, focusing instead on its Inventory Solution and Packaging Business[104]. - The Company has a plan for market expansion through its Forever 8 Inventory Cash Flow Solution and Packaging Business[104]. - The Company separated from Vinco Ventures Inc. on June 29, 2022, and is now an independent publicly traded entity[105]. - The Company has entered into various agreements with Vinco to govern the relationship post-separation, including a Tax Matters Agreement[106]. - The company expects to need additional capital to maintain revenues at current levels, with potential equity financing likely to be dilutive to current stockholders[175]. - The company reported a substantial doubt about its ability to continue as a going concern within one year from the date the financial statements are issued[174]. - The impact of general economic conditions, including inflation and rising interest rates, may affect future operations[180]. Compliance and Regulatory Matters - The Company received a Nasdaq deficiency notice for not meeting the minimum bid price requirement of $1.00 per share[143]. - The Company was granted an appeal for continued listing on Nasdaq after not meeting the minimum equity requirement of $2,500,000[144]. - The company has no debt covenants that require certain financial information to be met[181].

Company Overview - Eightco Holdings Inc. operates through its subsidiary Forever 8 Fund LLC, which specializes in the refurbished Apple products market, including iPhones, iPads, AirPods, Apple Watches, and the iPad Pencil in the UK and EU [1][2] - The company utilizes a proprietary data-driven tool to manage inventory levels and capital, optimizing supply chains and marketing strategies for vendors [1] Financial Performance - Forever 8 has achieved $100 million in revenues from its refurbished Apple smartphone division since its launch in April 2021 [2][5] - The growth in the refurbished market for Apple products is a key driver for the company's success, with significant demand from both suppliers and customers [5] Strategic Focus - Eightco is committed to expanding its subsidiaries and is actively seeking new opportunities to enhance its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions [6] - The company aims to create significant value and growth for its portfolio companies and stockholders through innovative strategies and focused execution [6]

Significant Improvement in Financial Condition Allows Renewed Focus on Revenue Growth The Company has made significant progress in the first half of 2024 improving its financial condition, most notably through the elimination of $5.4 million in convertible notes and increasing shareholder equity by over $23 million which allows a renewed focus on the growth of its subsidiary, Forever 8 Fund LLC ("Forever 8".) During 2024, the Company eliminated significant costs and roles related to the management of variou ...

Easton, PA, July 01, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ:OCTO) (the "Company" or "Eightco") is pleased to announce that a Hearings Panel of the Nasdaq Stock Market has granted the Company's request for continued listing on The Nasdaq Capital Market, subject to the Company meeting certain conditions by August 23, 2024. These conditions include requiring the closing bid price of the Company's common stock to equal or exceed $1.00 per share for a minimum of ten (10) consecutive trading sessi ...

Easton, PA, June 04, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ: OCTO) (the "Company" or "Eightco") today announced that Forever 8 Fund, LLC ("Forever 8"), a subsidiary of Eightco, will attend ITC Malta 2024, the premier global networking event for the new and used mobile devices and accessories industry. The conference will be held in Malta from June 4-8, 2024, featuring a variety of keynote speakers, exhibitors and attendees from around the world, including representatives from both Forever 8 ...

Easton, PA, June 04, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ:OCTO) (the "Company" or "Eightco") today announced that Forever 8 Fund, LLC ("Forever 8"), a subsidiary of Eightco, will attend ITC Malta 2024, the premier global networking event for the new and used mobile devices and accessories industry. The conference will be held in Malta from June 4-8, 2024, featuring a variety of keynote speakers, exhibitors and attendees from around the world, including representatives from both Forever 8 a ...

Quarter Driven by Capital Restructuring to Prioritize Financial Stability for Long-Term Revenue Growth. For the Three Months Ended March 31, 2024 2023 Revenues, net $ 9,619,820 $ 15,889,715 Cost of revenues 7,734,058 14,070,623 First quarter 2024 net income of $4.9mn versus net loss of $49.9mn for the prior year quarter, due to better operating performance and elimination of warrant losses related to a retired convertible note First quarter 2024 revenues of $9.6mn versus $15.9mn for the prior year quarter, ...