Eightco Announces Third Quarter 2024 Financial Results
Eightco Holdings (NASDAQ: OCTO) reported Q3 2024 financial results with net revenues of $7.7 million, down from $23.3 million in Q3 2023, primarily due to reduced capital for cell phone sales after convertible note repayment. The company posted a net loss of $3.2 million, slightly improved from a $3.5 million loss year-over-year. Gross profit margin increased to 26.7% from 11.8%, while SG&A expenses rose 14.65% to $3.7 million. The company successfully met NASDAQ compliance requirements and raised $2.2 million through ATM sales at an average price of $3.52 per share.
Eightco Holdings (NASDAQ: OCTO) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi netti pari a 7,7 milioni di dollari, in calo rispetto ai 23,3 milioni di dollari del terzo trimestre 2023, principalmente a causa della riduzione del capitale per le vendite di telefoni cellulari dopo il rimborso dei prestiti convertibili. La società ha registrato una perdita netta di 3,2 milioni di dollari, leggermente migliorata rispetto alla perdita di 3,5 milioni di dollari dell'anno precedente. Il margine di profitto lordo è aumentato al 26,7% rispetto all'11,8%, mentre le spese SG&A sono aumentate del 14,65%, raggiungendo i 3,7 milioni di dollari. La società ha soddisfatto con successo i requisiti di conformità di NASDAQ e ha raccolto 2,2 milioni di dollari tramite vendite ATM a un prezzo medio di 3,52 dollari per azione.
Eightco Holdings (NASDAQ: OCTO) reportó los resultados financieros del tercer trimestre de 2024, con ingresos netos de 7,7 millones de dólares, en comparación con los 23,3 millones de dólares del tercer trimestre de 2023, principalmente debido a la reducción de capital para las ventas de teléfonos móviles tras el reembolso de las notas convertibles. La compañía registró una pérdida neta de 3,2 millones de dólares, ligeramente mejor que la pérdida de 3,5 millones de dólares del año anterior. El margen de beneficio bruto aumentó al 26,7% desde el 11,8%, mientras que los gastos SG&A aumentaron un 14,65% a 3,7 millones de dólares. La compañía cumplió con los requisitos de conformidad de NASDAQ y recaudó 2,2 millones de dólares a través de ventas en cajeros automáticos a un precio promedio de 3,52 dólares por acción.
Eightco Holdings (NASDAQ: OCTO)는 2024년 3분기 재무 결과를 보고하며 순수익이 770만 달러로, 2023년 3분기 2330만 달러에서 감소했다고 발표했습니다. 이는 변환 사채 상환 후 휴대전화 판매를 위한 자본이 줄어들었기 때문입니다. 회사는 320만 달러의 순손실을 기록했으며, 이는 전년 동기 대비 350만 달러의 손실에서 약간 개선된 수치입니다. 총 이익률은 11.8%에서 26.7%로 증가했으며, SG&A 비용은 14.65% 증가하여 370만 달러에 달했습니다. 회사는 NASDAQ의 준수 요건을 성공적으로 충족했고, 주당 평균 가격 3.52달러로 ATM 판매를 통해 220만 달러를 모금했습니다.
Eightco Holdings (NASDAQ: OCTO) a publié les résultats financiers du troisième trimestre 2024, avec des revenus nets de 7,7 millions de dollars, en baisse par rapport à 23,3 millions de dollars au troisième trimestre 2023, principalement en raison de la réduction de capital pour les ventes de téléphones cellulaires après le remboursement des obligations convertibles. L'entreprise a affiché une perte nette de 3,2 millions de dollars, légèrement améliorée par rapport à une perte de 3,5 millions de dollars d'une année sur l'autre. La marge bénéficiaire brute a augmenté à 26,7 % contre 11,8 %, tandis que les dépenses SG&A ont augmenté de 14,65 % pour atteindre 3,7 millions de dollars. L'entreprise a réussi à répondre aux exigences de conformité de NASDAQ et a levé 2,2 millions de dollars par le biais de ventes ATM à un prix moyen de 3,52 dollars par action.
Eightco Holdings (NASDAQ: OCTO) berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit Nettoumsätzen von 7,7 Millionen US-Dollar, ein Rückgang von 23,3 Millionen US-Dollar im 3. Quartal 2023, hauptsächlich aufgrund von reduziertem Kapital für den Verkauf von Mobiltelefonen nach der Rückzahlung von wandelbaren Anleihen. Das Unternehmen verzeichnete einen Nettoverlust von 3,2 Millionen US-Dollar, leicht verbessert im Vergleich zu einem Verlust von 3,5 Millionen US-Dollar im Vorjahr. Die Bruttogewinnmarge stieg von 11,8 % auf 26,7 %, während die SG&A-Ausgaben um 14,65 % auf 3,7 Millionen US-Dollar anstiegen. Das Unternehmen erfüllte erfolgreich die NASDAQ-Compliance-Anforderungen und sammelte 2,2 Millionen US-Dollar durch ATM-Verkäufe zu einem Durchschnittspreis von 3,52 US-Dollar pro Aktie.
- Improved gross profit margin to 26.7% from 11.8% YoY
- Reduced net loss to $3.2M from $3.5M YoY
- Maintained NASDAQ listing compliance
- Raised $2.2M through ATM sales
- Revenue declined 67% to $7.7M from $23.3M YoY
- Increased SG&A expenses by 14.65% to $3.7M
- Adjusted EBITDA loss widened to $0.9M from $0.1M YoY
- Operating loss increased to $1.7M from $0.7M YoY
Insights
The Q3 2024 results reveal significant challenges.
The company's
Quarter Driven by Corporate Actions for NASDAQ Compliance and Building Operational Foundation for Long Term Growth
- Third quarter 2024 net loss of (
$3.2) million compared to net loss of ($3.5) million for the prior year quarter, due to better gross margins - Third quarter 2024 revenues of
$7.7 million compared to$23.3 million for the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the previously outstanding convertible note - Successfully Met NASDAQ Compliance requirements to maintain NASDAQ listing
Easton, PA, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Eightco Holdings Inc. (NASDAQ: OCTO) (the “Company” or “Eightco”) today announced financial results for the three months ended September 30, 2024.
Paul Vassilakos, CEO of Eightco and President of Forever 8 Fund, LLC (“Forever 8”), the Company’s largest subsidiary, said “The Company continues to focus on prioritizing the Forever 8 business in providing inventory capital for e-commerce sellers and refurbished Apple product sellers. The Company was pleased to regain compliance with Nasdaq listing requirements at the end of September 2024, and believes it is now in a strong position to replace the capital used to repay the
Financial Highlights and Commentary
During the nine months ended September 30, 2024, Eightco took significant steps to resolve certain deficiencies with its Nasdaq Listing, as well as raise equity capital at attractive levels:
- As of September 30, 2024, the Company had sold 627,390 shares of common stock for net proceeds of
$2,207,933 under its At-The-Market Issuance Sales Agreement (average price of$3.52 per share)As of November 14, 2024, there are 2,441,363 shares of common stock outstanding
Repayment of the convertible note reduced the Company’s capital base by
- Third quarter 2024 net loss of (
$3.2) million compared to net loss of ($3.5) million for the prior year quarter, due to better gross margins - Third quarter 2024 revenues of
$7.7 million compared to$23.3 million in the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the previously outstanding convertible note - Third quarter 2024 gross profit of
$2.0 million compared to$2.7 million in the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the previously outstanding convertible note - Third quarter 2024 gross profit margin of
26.7% , compared to11.8% in the prior year quarter, due to a decrease in cell phone sales which typically have lower margins - Third quarter 2024 SG&A of
$3.7 million , up14.65% from$3.2 million in the prior year quarter, driven by an increase in professional expenses - Third quarter 2024 EBITDA loss of (
$1.0) million compared to an EBITDA loss of ($0.0) million in the prior year quarter, driven by an increase in professional expenses and decrease in gross profit - Third quarter 2024 Adjusted EBITDA loss of (
$0.9) million compared to an Adjusted EBITDA loss of ($0.1) million in the prior year quarter, driven by an increase in professional expenses and decrease in gross profit
| For the Three Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Revenues, net | $ | 7,672,395 | $ | 23,334,588 | ||||
| Cost of revenues | 5,625,524 | 20,587,284 | ||||||
| Gross profit | 2,046,871 | 2,747,304 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expenses | $ | 3,723,191 | $ | 3,247,561 | ||||
| Restructuring and severance | - | 187,286 | ||||||
| Impairment | - | - | ||||||
| Total operating expenses | 3,723,191 | 3,434,847 | ||||||
| Operating loss | (1,676,320 | ) | (687,543 | ) | ||||
| Net income (loss) | (3,177,373 | ) | (3,453,150 | ) | ||||
| For the Three Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Net income (loss) | (3,177,373 | ) | (3,453,150 | ) | ||||
| Interest (income) expense, net | 1,525,274 | 2,795,169 | ||||||
| Income tax expense | - | - | ||||||
| Depreciation and amortization | 612,634 | 644,250 | ||||||
| EBITDA | (1,039,465 | ) | (13,731 | ) | ||||
| Stock-based compensation | 128,480 | (46,875 | ) | |||||
| Loss on issuance of warrants | - | - | ||||||
| Gain on extinguishment of liabilities | - | - | ||||||
| Adjusted EBITDA | (910,985 | ) | (60,606 | ) | ||||
Reconciliation of EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP performance measures. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that are not directly related to the Company’s core operating performance. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP.
Reconciliations of the non-GAAP measures used in this press release are included in the table above. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results.
A reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G is set forth above.
About Eightco
Eightco (NASDAQ: OCTO) is committed to growth of its subsidiaries, made up of Forever 8, 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 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 and achieve its 2025 revenue goal; Eightco’s inability to innovate and attract users for Eightco’s 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. 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
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