Eightco Announces $100 million Revenue Forecast – Releases 2025 Strategic Plan

Rhea-AI Summary

Eightco Holdings Inc. (NASDAQ: OCTO) has announced its 2025 Strategic Plan and a $100 million revenue forecast. The company reported significant improvements in 2024, including:

- Elimination of $5.4 million in convertible notes
- Increase in shareholder equity by $23 million
- Cancellation of 5,846,627 dilutive shares
- Gross profit margin increase to 22% (vs 12% in prior year)
- SG&A reduction to $6.9 million (23% decrease)

These improvements helped Eightco regain compliance with NASDAQ requirements. The company's 2025 plan focuses on growing its subsidiary, Forever 8 Fund , which provides inventory solutions for e-commerce sellers and supplies refurbished Apple products. Eightco aims to secure non-dilutive senior debt financing to support its growth targets and achieve positive EBITDA at the public company level in 2025.

Positive

• Elimination of $5.4 million in convertible notes
• Increase in shareholder equity by $23 million
• Gross profit margin increased to 22% from 12% in the prior year period
• SG&A reduced by 23% to $6.9 million
• Regained compliance with two NASDAQ requirements
• $100 million revenue forecast for 2025
• Aim to achieve positive EBITDA at the public company level in 2025

Negative

• Seeking additional non-dilutive senior debt financing to replace capital used for repaying convertible notes

Insights

Financial Analyst

The announcement of a $100 million revenue forecast for 2025 is a significant milestone for Eightco Holdings. This projection, coupled with the company's improved financial condition, signals a potential turnaround. Key points to consider:

• Elimination of $5.4 million in convertible notes and a $23 million increase in shareholder equity strengthen the balance sheet.
• Cancellation of 5,846,627 dilutive shares reduces potential dilution, benefiting existing shareholders.
• Gross profit margin improvement from 12% to 22% and a 23% reduction in SG&A expenses indicate better operational efficiency.
• Regaining NASDAQ compliance removes a significant risk factor.
• The focus on Forever 8's inventory solutions and refurbished Apple products presents a clear growth strategy.

However, the plan to seek additional non-dilutive senior debt financing to replace capital used for convertible note repayment warrants careful consideration of the company's debt structure and interest expenses. The ambitious revenue target and aim for positive EBITDA in 2025 are encouraging, but investors should monitor execution closely given the company's current market cap of about $4.57 million relative to the $100 million revenue goal.

Market Research Analyst

Eightco's strategic focus on Forever 8 Fund taps into two growing markets: e-commerce inventory solutions and refurbished electronics. The business model addresses critical pain points for small to mid-sized e-commerce sellers:

• Inventory management and cash flow challenges
• Access to capital for growth
• Streamlined supply chain operations

The UK and European markets for refurbished Apple products present significant opportunities, given increasing consumer interest in sustainable and cost-effective tech options. The scalable tech platform facilitating Forever 8's operations is a key competitive advantage, enabling rapid growth without proportional increases in operational costs. The high inbound demand mentioned suggests strong market validation.

However, the company's ability to capture a significant market share and achieve the projected $100 million revenue will depend on factors such as:

• Competitive landscape and potential new entrants
• Macroeconomic conditions affecting e-commerce and consumer spending
• Ability to secure and efficiently deploy additional capital

Investors should monitor customer acquisition costs, retention rates and the company's ability to expand its service offerings to gauge long-term growth potential.

Improved Financial Condition Allows Focus on Revenue Growth & Profitability

Easton, PA, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) is pleased to provide an update to its shareholders regarding its achievements year to date and 2025 initiatives.

2024 Achievements

The Company has made significant progress in 2024 by improving its balance sheet, most notably through the elimination of $5.4 million in convertible notes and increasing shareholder equity by $23 million. An aggregate of 5,846,627 dilutive shares related to warrants and convertible securities were cancelled in connection therewith, as well as several one-time accounting events.

Operationally, during the 6 months ended June 30, 2024:

• Gross profit margin was increased to 22%, versus 12% in the prior year period; and
• SG&A was reduced to $6.9 million, down 23% from $9.0 million in the prior year period

These improvements helped the Company regain compliance with two NASDAQ requirements, as was announced yesterday.

2025 Plan

The Company’s primary focus is the growth of its primary operating subsidiary, Forever 8 Fund LLC (“Forever 8”), which operates in two main areas: providing inventory solutions for small to mid-sized e-commerce sellers in the US & UK, as well as supplying refurbished Apple products for sellers in the UK and Europe. Forever 8 buys existing inventory from e-commerce sellers and commits to purchasing future inventory directly from their suppliers, maintaining specific inventory levels to enhance sales and growth. The sellers are invoiced after sales occur on a monthly basis, at which point Forever 8 charges them its cost plus a markup. Forever 8’s tech platform facilitates this entire process end-to-end, making it seamless and scalable.

In the short term, the Company intends to seek additional non-dilutive senior debt financing to replace the capital used to repay its dilutive convertible notes in the first quarter of 2024. The Company currently has approximately 1.8 million shares outstanding. By deploying this capital, the Company aims to deliver 2025 revenues of $100 million, with the Company achieving positive EBITDA at the public company level. Such funding would also support further growth in 2025. Forever 8 believes it can deploy significant additional capital via its scalable platforms due to high inbound demand for its services from existing and new customers.

Paul Vassilakos, CEO of Eightco and President of Forever 8, said “The Company is excited to focus on prioritizing the Forever 8 business to deliver growth and shareholder value through 2025. With regaining compliance with the NASDAQ rules behind us and a significantly improved balance sheet, we believe 2025 has the potential to be our best year since our inception in 2020."

About Eightco

Eightco (NASDAQ: OCTO) is committed to growth of its subsidiaries, made up of Forever 8 Fund LLC, an inventory capital and management platform for e-commerce sellers, and Ferguson Containers, Inc., a provider of complete manufacturing and logistical solutions for product and packaging needs, through strategic management and investment. In addition, the Company is actively seeking new opportunities to add to its portfolio of technology solutions focused on the e-commerce ecosystem through strategic acquisitions. Through a combination of innovative strategies and focused execution, Eightco aims to create significant value and growth for its portfolio companies and stockholders.

For additional information, please visit www.8co.holdings

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact could be deemed forward looking. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “expand,” “advance,” “develop” “believes,” “guidance,” “target,” “may,” “remain,” “project,” “outlook,” “intend,” “estimate,” “could,” “should,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: Eightco’s ability to regain and maintain compliance with the Nasdaq’s continued listing requirements; unexpected costs, charges or expenses that reduce Eightco’s capital resources; Eightco’s inability to raise adequate capital to fund its business; the inability to innovate and attract users for Eightco’s and its subsidiaries’ products; future legislation and rulemaking negatively impacting digital assets; and shifting public and governmental positions on digital asset mining activity. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Eightco’s actual results to differ from those contained in forward-looking statements, see Eightco’s filings with the Securities and Exchange Commission (the “SEC”), including in its Annual Report on Form 10-K filed with the SEC on April 1, 2024, as amended. All information in this press release is as of the date of the release, and Eightco undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.

For further information, please contact:
Investor Relations
investors@8co.holdings

FAQ

What is Eightco Holdings Inc.'s (OCTO) revenue forecast for 2025?

Eightco Holdings Inc. (OCTO) has announced a revenue forecast of $100 million for 2025.

How much did Eightco Holdings Inc. (OCTO) reduce its SG&A expenses in the first half of 2024?

Eightco Holdings Inc. (OCTO) reduced its SG&A expenses by 23%, from $9.0 million to $6.9 million, during the 6 months ended June 30, 2024.

What is the main focus of Eightco Holdings Inc.'s (OCTO) 2025 strategic plan?

The main focus of Eightco Holdings Inc.'s (OCTO) 2025 strategic plan is the growth of its primary operating subsidiary, Forever 8 Fund , which provides inventory solutions for e-commerce sellers and supplies refurbished Apple products.

How many dilutive shares did Eightco Holdings Inc. (OCTO) cancel in 2024?

Eightco Holdings Inc. (OCTO) cancelled 5,846,627 dilutive shares related to warrants and convertible securities in 2024.