Eightco (US:OCTO)2023-05-16 01:58Revenue and Profitability - For the three months ended March 31, 2023, revenues increased by $12,170,068 or 327.18% compared to the same period in 2022, primarily due to the acquisition of Forever 8[176]. - Gross profit rose by $1,273,828 or 233.62% for the three months ended March 31, 2023, largely driven by revenue growth from Forever 8[178]. Costs and Expenses - Cost of revenues for the same period increased by $10,896,240 or 343.26%, attributed to higher revenues from inventory management solutions and increased material and production costs[177]. - Selling, general and administrative expenses increased by $3,427,636 or 178.36%, due to higher professional fees, payroll, insurance, rent, and operational costs as a standalone public company[179]. - Interest expense surged to $2,813,227 for the three months ended March 31, 2023, compared to $129 in the same period of 2022, mainly due to the amortization of debt issuance costs related to convertible notes[180]. Net Loss and Operating Performance - The company reported a net loss of $49,851,140 for the three months ended March 31, 2023, compared to a net loss of $1,137,144 in the same period of 2022, reflecting an increase of 4,283.89%[175]. - Operating loss for the three months ended March 31, 2023, was $3,530,339, compared to an operating loss of $1,376,531 in the same period of 2022, representing a change of 156.47%[175]. - The company’s total other expense, net, was $46,320,801 for the three months ended March 31, 2023, compared to other income of $49,390 in the same period of 2022, indicating a significant decline[175]. - Total other (expense) income was ($46,320,801) for Q1 2023, compared to $49,390 in Q1 2022, primarily due to a loss on issuance of warrants of ($43,541,211) and interest expense of ($2,813,227)[181]. - Net loss for Q1 2023 was $49,851,140, significantly higher than the net loss of $1,137,144 in Q1 2022, largely driven by the loss on issuance of warrants[183]. Cash Flow and Financial Position - Operating activities resulted in net cash used of ($4,937,282) in Q1 2023, compared to ($1,551,911) in Q1 2022, reflecting a substantial increase in net loss[186]. - Net cash provided by investing activities was $67,202 in Q1 2023, a positive shift from ($6,595) in Q1 2022, mainly due to the sale of capital expenditures amounting to $181,000[187]. - Net cash provided by financing activities was $2,383,909 in Q1 2023, up from $1,660,247 in Q1 2022, attributed to proceeds from the issuance of convertible notes payable of $3,150,000[188]. - The company has approximately $3.0 million in cash and believes it will have sufficient funds for the next 12 months to execute its strategic plan[184]. Tax and Debt Obligations - Income tax expense was $0 for Q1 2023, compared to an income tax benefit of $189,997 in Q1 2022, due to an increase in loss before income taxes[182]. - The company has no significant debt obligations other than approximately $9.7 million related to the Note Private Placement[184]. - There were no off-balance sheet arrangements as of March 31, 2023[191]. - The company has no debt covenants requiring certain financial information to be met[190]. Corporate Actions - The company’s stock underwent a 1-for-50 reverse stock split effective April 3, 2023, and changed its name from Cryptyde, Inc. to Eightco Holdings Inc.[159]. - The company regained compliance with Nasdaq Listing Rule 5550(a)(2) after its common stock closed above $1 from April 4, 2023, to April 18, 2023[167].