Eightco (US:OCTO)2025-11-14 21:31Financial Performance - Revenues for the three months ended September 30, 2025, were $5,300,527, a decrease of $755,519 or 12.48% compared to $6,056,046 for the same period in 2024[228] - Cost of revenues increased to $5,496,377 for the three months ended September 30, 2025, compared to $4,451,185 in 2024, reflecting a rise of $1,045,192 or 23.49%[229] - Gross profit for the quarter ended September 30, 2025, was a loss of $195,850, down from a profit of $1,604,861 in the prior year, a decline of $1,800,711[230] - Selling, general and administrative expenses rose to $6,002,208 for the three months ended September 30, 2025, an increase of $2,637,415 or 78.40% compared to $3,364,793 in 2024[232] - Net loss from continuing operations was $25,844,216 for the three months ended September 30, 2025, compared to a loss of $3,177,373 for the same period in 2024, reflecting an increase in losses of $22,666,843[239] - Revenues for the nine months ended September 30, 2025, were $22,793,160, an increase of $3,494,824 or 18.11% compared to the same period in 2024[243] - Cost of revenues increased to $20,930,455, reflecting a rise of $5,949,773 or 39.71% from $14,980,682 in 2024[244] - Gross profit decreased to $1,862,705, a decline of $2,454,949 or 56.85% compared to $4,317,654 in 2024[245] - Operating expenses were $10,683,465, an increase of $1,068,781 or 11.11% from $9,614,684 in 2024[248] - Net loss was $(29,562,461) for the nine months ended September 30, 2025, compared to net income of $3,212,482 in 2024[257] Digital Assets - The Company recognized a loss of $18,639,017 related to changes in the fair value of digital assets during the three months ended September 30, 2025, with no digital assets held in the comparable 2024 period[235] - The Company recorded a loss of $(18,639,017) related to the change in fair value of its digital asset holdings for the nine months ended September 30, 2025[252] - The Company acquired digital assets with an aggregate fair value of approximately $287 million as of September 30, 2025[208] Financing Activities - The PIPE financing generated $270 million in gross proceeds, representing a significant source of liquidity during the period[261] - Net cash provided by financing activities was $329,618,207, largely attributable to PIPE and ATM transactions[276] - As of September 30, 2025, the Company had approximately $10.1 million outstanding under its secured inventory financing facilities[263] Market and Regulatory Environment - The company faces digital asset market volatility, including price, volume, and spreads for WLD/WCWLD and other tokens[279] - Regulatory developments are impacting custody, stablecoins, and exchange operations, affecting access, withdrawals, and pricing[279] - There are concerns regarding custodian concentration and counterparty risk, including operational incidents and cybersecurity[279] - Capital market conditions are influencing the company's ability to raise additional equity through PIPE or ATM transactions[279] - Interest rate levels are affecting borrowing costs under the Forever 8 Facilities and customer demand for inventory financing[279] - Macro factors such as consumer demand, e-commerce trends, geopolitics, inflation, and credit availability are significant[279] Accounting and Estimates - The company bases its financial estimates on historical experience and reasonable assumptions, which may differ from actual results[280] - Significant accounting policies are detailed in Note 2 of the Quarterly Report[282]