Eightco Announces Third Quarter 2024 Financial Results

Core Insights - Eightco Holdings Inc. reported a net loss of $3.2 million for Q3 2024, an improvement from a net loss of$3.5 million in the same quarter last year, attributed to better gross margins [1][4] - Revenues for Q3 2024 were $7.7 million, significantly down from$23.3 million in the prior year quarter, primarily due to reduced capital for cell phone sales following the repayment of a convertible note [1][4] - The company successfully met NASDAQ compliance requirements, which is expected to strengthen its operational foundation for long-term growth [2][3] Financial Performance - For the nine months ended September 30, 2024, Eightco raised equity capital by selling 627,390 shares for net proceeds of approximately $2.2 million at an average price of$3.52 per share [3] - The repayment of the $5.4 million convertible note led to a decrease in the company's capital base and a corresponding decline in revenues compared to the previous year [3][4] - The gross profit for Q3 2024 was$2.0 million, down from $2.7 million in the prior year quarter, with a gross profit margin of 26.7$3.7 million in Q3 2024, driven by higher professional expenses [4][6] - The company reported an EBITDA loss of $1.0 million for Q3 2024, compared to a break-even EBITDA in the prior year quarter, reflecting increased professional expenses and decreased gross profit [4][8] - Eightco's focus on its Forever 8 subsidiary aims to provide inventory capital for e-commerce sellers, positioning the company for projected revenues of$100 million in 2025 [2][11]