Eightco Holdings Inc. Amends 2023 10-K Filing

TL;DR

Eightco (fka Cryptyde) filed 10-K/A for 2023, check financials!

AI Summary

Eightco Holdings Inc. filed an amendment to its 2023 10-K on June 6, 2024, reporting financial data as of December 31, 2023. The company, formerly known as Cryptyde, Inc., is classified under Short-Term Business Credit Institutions. The filing details financial positions for fiscal years ending December 31, 2023, 2022, and 2021, including common stock, additional paid-in capital, and retained earnings.

Why It Matters

This amendment provides updated financial information for Eightco Holdings Inc., crucial for investors and stakeholders to assess the company's performance and financial health as of the end of the 2023 fiscal year.

Risk Assessment

Risk Level: medium — The filing is an amendment to a 10-K, indicating potential corrections or updates to previously reported financial information, which could signal underlying issues.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the amended 10-K)
• 2022-12-31 — Prior Fiscal Year End (Comparative financial data)
• 2021-12-31 — Earlier Fiscal Year End (Comparative financial data)

Key Players & Entities

• Eightco Holdings Inc. (company) — Filer
• Cryptyde, Inc. (company) — Former company name
• 20231231 (date) — Fiscal year end
• 20240606 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share OCTO Nasdaq Cap
• $67,568,353 — 2023 and 2022, Forever 8 had revenue of $67,568,353 and $23,785,070, respectively. Packagi
• $23,785,070 — orever 8 had revenue of $67,568,353 and $23,785,070, respectively. Packaging Business Th
• $7,729,131 — , the Packaging Business had revenue of $7,729,131 and $8,035,709, respectively. Web3 Bu
• $8,035,709 — Business had revenue of $7,729,131 and $8,035,709, respectively. Web3 Business BlockH
• $1,759 — pany's Web3 business incurred losses of $1,759 and $842,197, respectively. 3 BTC Mi
• $842,197 — business incurred losses of $1,759 and $842,197, respectively. 3 BTC Mining Hardware
• $0 — 2022, CW Machines, LLC had revenues of $0 and $9,590,100, respectively, and a net
• $9,590,100 — CW Machines, LLC had revenues of $0 and $9,590,100, respectively, and a net loss of $50 an
• $50 — 90,100, respectively, and a net loss of $50 and $382,957, respectively. The net los
• $382,957 — respectively, and a net loss of $50 and $382,957, respectively. The net loss was due to
• $964,111 — d other BTC Mining business expenses of $964,111 and $2,115,026, respectively. The costs
• $2,115,026 — ining business expenses of $964,111 and $2,115,026, respectively. The costs included rent,

Filing Documents

• form10-ka.htm (10-K/A) — 1600KB
• ex31-1.htm (EX-31.1) — 13KB
• ex31-2.htm (EX-31.2) — 13KB
• ex32-1.htm (EX-32.1) — 8KB
• 0001493152-24-022942.txt ( ) — 8598KB
• octo-20231231.xsd (EX-101.SCH) — 70KB
• octo-20231231_cal.xml (EX-101.CAL) — 100KB
• octo-20231231_def.xml (EX-101.DEF) — 337KB
• octo-20231231_lab.xml (EX-101.LAB) — 517KB
• octo-20231231_pre.xml (EX-101.PRE) — 453KB
• form10-ka_htm.xml (XML) — 1225KB

Business

Item 1. Business Part II

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data Additionally, the Company is filing new certifications required by the Sarbanes-Oxley Act of 2002. Other than as set forth above, this Amendment does not reflect events occurring after the filing of the Amended 10-K, and no other information in the Amended 10-K is amended hereby. Other events or circumstances occurring after the date of the Amended 10-K or other disclosures necessary to reflect subsequent events have not been updated subsequent to the date of the Amended 10-K. Accordingly, this Amendment should be read in conjunction with the Amended 10-K and our filings with the SEC subsequent thereto. EIGHTCO HOLDINGS INC. TABLE OF CONTENTS Page Number PART I 3 Item 1.

Business

Business 3 PART II Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 8. Financial Statements and Supplementary Data 24 PART IV 25 Item 15 Exhibits and Financial Statement Schedules 25

Signatures

Signatures 30 2 PART I ITEM 1. BUSINESS Our company was established in 2021, initially composed of three businesses - the Web3 business, the BTC Mining Hardware Business and the Packaging Business, which we acquired from our former parent company, Vinco Ventures, Inc. These businesses had a more extended operating history than ours, and we include information related to their operations before our existence and acquisition in our discussions. On October 1, 2022, the Company completed the acquisition of Forever 8 Fund, LLC ("Forever 8"), an e-commerce fintech company that provides funding solutions for e-commerce businesses. The Company's business has since been focused primarily on the Packaging Business and the business of Forever 8. Our corporate headquarters are located in Easton, Pennsylvania, and our common stock is listed on the Nasdaq Capital Market under the symbol "OCTO." Forever 8 On October 1, 2022, the Company completed the acquisition of Forever 8, an e-commerce fintech company. Forever 8 provides funding solutions for e-commerce businesses which sell on Amazon, Shopify and other leading online platforms. Forever 8 uses proprietary technology to review product sales data and determine funding potential for online retail entrepreneurs around the world. Forever 8's process is automated and does not require a personal guarantee, credit check or traditional lending requirements. Forever 8's unique approach directly purchases inventory on its customers' behalf, applies a mark-up and collects the revenue as the products are sold. The Company assumes the role of supplier and acts as a principal in these transactions, and therefore recognizes revenue on a gross basis. At the time of entering into an agreement with the customer, Forever 8 takes title and assumes control of the inventory when it is purchased from its customers or directly from suppliers. This includes the responsibility for managing the inventory. Forever 8 has full discretion ov

Business

Business The Packaging Business, through Ferguson Containers, manufactures and sells custom packaging for a wide variety of products. In our experience, packaging has the capability to "tell" the products story, generating increased product awareness, promote brand image, and drive unit growth. Senior management has more than 100 years of combined experience marketing, producing and delivering packaging materials. A hallmark of our operation is our quick production cycle. We can often begin a production run within minutes of receipt of an order. Many of our products are manufactured from 100% post-consumer recycled material. When production is complete, we typically ship the product using our own trucks rather than relying on a common carrier. Ferguson Containers does not have long-term agreements with its customers, and instead manufactures and sells its packaging products subject to purchase orders from its customers. In the fiscal years ended December 31, 2023 and 2022, the Packaging Business had revenue of $7,729,131 and $8,035,709, respectively. Web3

Business

Business BlockHiro, LLC was formed in November 2021 to do business as a Web3 company. We had planned to launch a character driven virtual ecosystem, Freescape, comprised of themed interactive environments in 2022. Due to the current entertainment and gaming NFT market, we have decided to halt work on the Freescape project. In the fiscal years ended December 31, 2023 and 2022, the Company's Web3 business did not recognize any revenue. In the fiscal years ended December 31, 2023 and 2022, the Company's Web3 business incurred losses of $1,759 and $842,197, respectively. 3 BTC Mining Hardware Business CW Machines, LLC, a Nevada limited liability company formed on October 2, 2021, was formed to hold the BTC Mining Hardware Business. The BTC Mining Hardware Business, CW Machines, LLC, through a joint venture with Wattum Management Inc. and BBA Technology Inc., is focused on bringing Bitcoin mining to the consumer level by offering Bitcoin mining equipment and co-location services. Eightco holds a 51% interest in CW Machines, LLC. CW Machines, LLC is a reseller of Bitcoin mining equipment and services. The equipment sales primarily focus on Bitcoin mining equipment including Antminer S19s, Antminer S19 Pros, Whatsminer, and Canaan. Our Bitcoin mining services include reselling co-location services, which offer a physical location and ancillary services allowing Bitcoin miners to mine for Bitcoin. These services are provided by third-parties. The BTC Mining Hardware Business does not currently have any material commitments for capital expenditures. As of the date of this Annual Report, the Company is not anticipating any future BTC mining equipment sales. In the fiscal years ended December 31, 2023 and 2022, CW Machines, LLC had revenues of $0 and $9,590,100, respectively, and a net loss of $50 and $382,957, respectively. The net loss was due to consulting fees incurred related to the business. In the fiscal years ended December 31, 2023 and 2022, the Compan

Business

Business Strategy Eightco Holdings Inc. is committed to driving revenue growth through its existing subsidiaries, Forever 8 and Ferguson Containers. The Company intends to expand Forever 8's market reach through strategic expansion while continuing to focus on revenue growth. Forever 8 generates revenue through the purchase and sale of products while the Packaging Business earns revenue from the sale of goods and related services. The Company plans to continually assess its businesses to allocate resources efficiently and maximize growth opportunities. With a diverse range of industries and revenue sources, management believes they are well-positioned to navigate changing economic conditions and customer preferences. Eightco Holdings Inc. plans to expand through a combination of organic growth and strategic acquisitions. While strategic acquisitions may be considered for the Packaging Business and Forever 8 Business, management believes that organic growth is the key to success through continued sales efforts. The company is dedicated to maintaining a close partnership with customers, which will enable them to effectively focus their efforts and respond to changing demands. Management believes that by listening to customers and adapting to their needs and preferences, they can remain relevant in constantly evolving industries. 4 Competition We operate and plan to operate in a competitive market and encounter competition from both domestic and foreign participants. We believe we can effectively compete with our present competitors. We compete, and plan to compete, primarily based upon innovation, performance, price, quality, reliability, durability, consumer brand awareness, and customer service and support. Our competitors include a large number of private companies that directly compete with a number of our brands. Certain of our competitors may have more established brand names and stronger distribution channels than we do and have, or have through t