Eightco Holdings (ORBS) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $7.7M, down 67% year-over-year, mainly due to reduced sales in inventory management solutions as capital was redirected to repay convertible notes.

• Net loss for Q3 2024 was $3.2M, a slight improvement from a $3.5M loss in Q3 2023.

• For the nine months ended September 30, 2024, net income was $3.2M, compared to a net loss of $62.2M in the prior year period, driven by significant gains from extinguishment of liabilities and forgiveness of earnout.

• The company completed a 1-for-5 reverse stock split in August 2024 to maintain Nasdaq listing compliance.

Financial highlights

• Q3 2024 revenue: $7.7M (down 67% YoY); nine-month revenue: $24.3M (down 59% YoY).

• Q3 2024 gross profit: $2.0M (down 25% YoY); nine-month gross profit: $5.7M (down 20% YoY).

• Q3 2024 operating loss: $1.7M; nine-month operating loss: $6.4M.

• Q3 2024 net loss: $3.2M; nine-month net income: $3.2M (vs. $62.2M loss prior year), reflecting $7.4M gain on extinguishment of liabilities and $6.1M gain on forgiveness of earnout.

• Cash and cash equivalents at September 30, 2024: $2.4M (down from $5.2M at year-end 2023).

Outlook and guidance

• Management expects current cash is insufficient to support operations for the next 12 months and additional capital will be required.

• The company continues to seek cost reductions and capital raises but warns of substantial doubt about its ability to continue as a going concern.