Eightco Holdings Inc. (NASDAQ:OCTO) shares are trading higher after the company provided an update to shareholders highlighting its 2024 achievements and 2025 initiatives.
In 2024, the company significantly improved its balance sheet, eliminating $5.4 million in convertible notes and increasing shareholder equity by $23 million.
Additionally, 5.8 million dilutive shares related to warrants and convertible securities were canceled, along with several one-time accounting events.
During the six months, the company saw its gross profit margin increase to 22% from 12% in the same period last year, while Selling, General, and Administrative (SG&A) expenses decreased to $6.9 million, down 23% from $9 million in the prior year.
These improvements allowed the company to regain compliance with two NASDAQ requirements, as announced Tuesday.
In the short term, the company plans to seek non-dilutive senior debt financing to replace capital used for repaying dilutive convertible notes in early 2024.
The company aims for $100 million in revenues and positive EBITDA in 2025, supported by strong inbound demand for its services and the scalable nature of Forever 8's operations.
Paul Vassilakos, CEO of Eightco and President of Forever 8, said, "The company is excited to focus on prioritizing the Forever 8 business to deliver growth and shareholder value through 2025."
"With regaining compliance with the NASDAQ rules behind us and a significantly improved balance sheet, we believe 2025 has the potential to be our best year since our inception in 2020."
Price Action: OCTO shares are up 72% at $4.29 at the last check Wednesday.
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