Quarter Driven by Capital Restructuring to Prioritize Financial Stability for Long-Term Revenue Growth.
- First quarter 2024 net income of
$4.9mn versus net loss of$49.9mn for the prior year quarter, due to better operating performance and elimination of warrant losses related to a retired convertible note - First quarter 2024 revenues of
$9.6mn versus$15.9mn for the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the convertible note
Financial Highlights and Commentary
Repayment of the convertible note reduced the Company’s capital base by
- First quarter 2024 net income of
$4.9mn versus a net loss of$49.9mn in the prior year quarter - First quarter 2024 revenues of
$9.6mn versus$15.9mn in the prior year quarter, driven by reduction in capital available for cell phone sales after repayment of the convertible note - First quarter 2024 gross profit of
$1.9mn (or 3.7% increase) from$1.8mn in the prior year quarter - First quarter 2024 gross profit margin of 19.6%, versus 11.4% in the prior year quarter
- First quarter 2024 SG&A of
$3.5mn , down 35.3% from$5.3mn in the prior year quarter - First quarter 2024 EBITDA of
$3.7mn compared to a loss of$46.4mn in the prior year quarter - First quarter 2024 Adjusted EBITDA of
($0.8)mn , from a loss of($2.9)mn in the prior year quarter - First quarter 2024 balance sheet improvements of over
$10mn due to:- Cancellation of
$3.0mn in interest - Conversion of
$1.1mn of interest into 1.4mn shares of common stock, of which 87.6% went to the founding members of Forever 8 - Cancellation of earnout consideration with a fair value of
$6.1mn
- Cancellation of
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues, net | $ | 9,619,820 | $ | 15,889,715 | ||||
Cost of revenues | 7,734,058 | 14,070,623 | ||||||
Gross profit | 1,885,762 | 1,819,092 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | $ | 3,461,959 | $ | 5,349,431 | ||||
Restructuring and severance | 1,414,838 | - | ||||||
Total operating expenses | 4,876,797 | 5,349,431 | ||||||
Operating loss | (2,991,035 | ) | (3,530,339 | ) | ||||
Net income (loss) | 4,947,871 | (49,851,140 | ) |
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net income (loss) | 4,947,871 | (49,851,140 | ) | |||||
Interest (income) expense, net | 1,198,771 | 2,813,227 | ||||||
Gain on forgiveness of interest | (3,006,896 | ) | - | |||||
Income tax expense | - | - | ||||||
Depreciation and amortization | 605,796 | 626,077 | ||||||
EBITDA | 3,745,542 | (46,411,836 | ) | |||||
Stock-based compensation | 144,938 | - | ||||||
Loss on issuance of warrants | 43,541,211 | |||||||
Gain on forgiveness of earnout | (6,100,000 | ) | - | |||||
Restructuring and severance costs | 1,414,838 | - | ||||||
Adjusted EBITDA | (794,682 | ) | (2,870,625 | ) |
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 below. 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 as 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
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; 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
For further information, please contact:
Investor Relations
investors@8co.holdings
Source:
2024 GlobeNewswire, Inc., source