SEGMENTING REPORTING

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

SEGMENTING REPORTING

22. SEGMENTING REPORTING

The Company follows ASC 280, Segment Reporting, and determines its reportable segments based on the internal financial information reviewed by the Chief Executive Officer, who serves as the Company’s Chief Operating Decision Maker (“CODM”). The CODM evaluates the business on a consolidated basis for purposes of assessing performance, making operating decisions, allocating resources, and planning for future periods.

Historically, the Company operated two reportable segments: (i) Forever 8, its Inventory Management Solutions business, and (ii) the Corrugated Packaging Business. On April 7, 2025, the Company completed the sale of the assets comprising the Corrugated Packaging Business. Following the divestiture, the Company operates as one business segment, consistent with how the CODM evaluates financial performance and manages resources.

On September 8, 2025, the Company initiated digital asset treasury management activities (“DAT Strategy”) as part of its broader corporate strategy to diversify its cash and liquidity management. These digital asset activities do not constitute a separate operating segment under ASC 280 because:

● They are not managed as a distinct business unit.

● No discrete financial information is prepared or reviewed by the CODM for purposes of performance assessment.

● The CODM reviews digital asset activity only as part of consolidated corporate treasury management.

Accordingly, digital asset treasury management activities are included within Corporate and do not represent a separate operating or reportable segment.

The Company therefore reports as one operating and reportable segment:

● Forever 8 (Inventory Management Solutions) — the Company’s sole revenue-generating business.

Corporate-level activities including digital asset treasury management, stock-based compensation, board and governance costs, interest expense, taxes, and other non-operating items are managed centrally and not allocated to the operating segment.

The Company had no intersegment revenues during the periods presented. Segment information is presented in accordance with the manner in which the CODM internally evaluates operating performance and allocates resources.

EIGHTCO HOLDINGS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

22. SEGMENTING REPORTING (continued)

Segment information available with respect to these reportable business segments for the three and nine months ended September 30, 2025 and 2024 was as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
Revenues:
Inventory Management Solutions	$	5,300,527		$	6,056,046		$	22,793,160		$	19,298,336
Corrugated – discontinued operations		-			1,616,349			1,773,929			5,010,892
Total segment and consolidated revenues	$	5,300,527		$	7,672,395		$	24,567,089		$	24,309,228
Cost of revenues:
Inventory Management Solutions	$	5,496,377		$	4,451,183		$	20,930,455		$	14,980,680
Corrugated – discontinued operations		-			1,174,341			1,276,685			3,618,104
Total segment and consolidated cost of revenues	$	5,496,377		$	5,625,524		$	22,207,140		$	18,598,784
Gross profit:
Inventory Management Solutions	$	(195,850	)	$	1,604,863		$	1,862,705		$	4,317,656
Corrugated – discontinued operations		-			442,008			497,244			1,392,788
Total segment and consolidated gross profit	$	(195,850	)	$	2,046,871		$	2,359,949		$	5,710,444
Income (loss) from operations:
Inventory Management Solutions	$	(2,529,605	)	$	(501,498	)	$	(4,130,428	)	$	(2,130,509	)
Corrugated – discontinued operations		-			83,610			104,231			361,101
Corporate		(3,668,453	)		(1,258,432	)		(4,690,332	)		(4,581,357	)
Total segment and consolidated loss from operations	$	(6,198,058	)	$	(1,676,320	)	$	(8,716,529	)	$	(6,350,765	)
Depreciation and amortization:
Inventory Management Solutions	$	574,644		$	574,642		$	1,149,286		$	1,793,538
Corrugated – discontinued operations		-			37,992			37,992			125,481
Total segment and consolidated depreciation and amortization	$	574,644		$	612,634		$	1,187,278		$	1,919,019
Revenues by geography:
North America	$	264,704		$	1,403,581		$	2,170,618		$	4,677,210
North America – discontinued operations					1,616,349			1,773,929			5,010,892
Europe		5,035,823			4,652,465			20,622,542			14,621,126
Total geography and consolidated revenues	$	5,300,527		$	7,672,395		$	24,567,089		$	24,309,228
Segment capital expenditures:
Inventory Management Solutions	$	-		$	-		$	-		$	-
Corrugated – discontinued operations		-			4,847			4,847			47,685
Corporate		944			944			944			-
Total segment and consolidated capital expenditures	$	944		$	5,791		$	5,791		$	47,685
Segment total assets:
Inventory Management Solutions	$	40,140,639		$	44,299,825		$	40,140,639		$	44,299,825
Corrugated – discontinued operations		-			1,981,626			-			1,981,626
Corporate		315,387,118			2,958,528			315,387,118			2,958,528
Total segment and consolidated assets	$	355,527,757		$	49,239,979		$	355,527,757		$	49,239,979