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Eightco Holdings Inc (OCTO-2.10%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $7,672,395 from $23,334,588 in the same quarter the previous year. The decrease is attributed to reduced sales in the inventory management solutions business.
Cost of revenues for the quarter was $5,625,524, representing a decrease from $20,587,284 in the same quarter of the previous year. This decrease is due to lower sales volume.
The company reported a gross profit of $2,046,871 for the quarter, compared to $2,747,304 in the previous year, with the decline attributed to reduced sales.
Selling, general, and administrative expenses increased to $3,723,191 from $3,247,561, primarily due to increased professional fees.
Net loss for the quarter was $3,177,373, compared to a net loss of $3,453,150 in the previous year.
Cash used in operating activities was $1,085,865, while cash used in investing and financing activities was $47,685 and $1,707,834, respectively.
Eightco had cash and cash equivalents of $2,406,452 as of September 30, 2024, down from $5,247,836 at the end of 2023. The company acknowledges its need for additional capital to maintain operations.
The filing also details various financial agreements, including a series of loan and security agreements entered into during the quarter.
Eightco does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to limited accounting personnel.
Eightco continues to focus on its inventory management solutions business and highlights its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Eightco Holdings Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.