RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

3 Months Ended

Mar. 31, 2024

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

In connection with the Company’s review of its unaudited financial statements for the quarter ended June 30, 2024, the Company identified an error in the accounting treatment of the forgiveness of accrued interest on convertible promissory notes issued to certain sellers in connection with the previously disclosed Membership Interest Purchase Agreement dated September 14, 2022 with Forever 8 Fund LLC. The forgiveness of accrued interest, amounting to an aggregate of $3,006,896, was previously recognized as other income in the Company’s unaudited consolidated statement of operations for the quarter ended March 31, 2024. As a result, the Company has restated the following to correct the classification of this transaction as follows:

● The $3,006,896 previously recognized as other income has been reclassified as an adjustment to Additional Paid-In Capital in the equity section of the balance sheet, reflecting the capital nature of the transaction.

● The reclassification reduced the previously reported net income for the quarter ended March 31, 2024 by $3,006,896.

● Correspondingly, total stockholders' equity was unaffected by the reclassification, as the adjustment was made within the equity section of the balance sheet.

Restated Financial Information: As a result of the restatement, the affected financial statement line items for the quarter ended March 31, 2024, are as follows:

Line Item	As Previously Reported			As Restated
Gain on forgiveness of interest	$	3,006,896		$	-
Total non-operating income (expense)	$	7,938,894		$	4,931,998
Net income (loss) before income tax expense	$	4,947,859		$	1,940,963
Net income (loss)	$	4,947,859		$	1,940,963
Net income (loss) attributable to Eightco Holdings Inc.	$	4,947,871		$	1,940,975
Net income (loss) per share basic	$	0.99		$	0.39
Net income (loss) per share diluted	$	0.72		$	0.28
Comprehensive income (loss)	$	4,770,382		$	1,763,486
Additional paid in capital	$	111,626,872		$	114,633,768
Accumulated deficit	$	(108,330,717	)	$	(111,337,613	)

Prior Year Reclassifications: In the current period, the Company made certain reclassifications to the current period and prior year’s financial statements to conform to the current presentation. These reclassifications had no effect on previously reported net income, cash flows, or shareholders’ equity. The reclassifications are made to better reflect the nature of the items in the financial statements.