SEGMENTING REPORTING

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENTING REPORTING

22. SEGMENTING REPORTING

The Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the three months ended March 31, 2025 and 2024 were the Inventory Management Solutions segment and the Corrugated Packaging Business. The Company’s chief operating decision maker has been identified as the Chairman and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company.

Segment information is presented based upon the Company’s management organization structure as of March 31, 2025 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers.

The CODM evaluates segment performance based on net revenues, cost of revenues, gross profit, and selling, general and administrative expenses. These items are reviewed by segment. Depreciation and amortization is also monitored by management and presented below. Certain other costs, such as interest expense, other income (expense), and income taxes, are managed on a consolidated basis and not allocated to segments.

Segment operating profit is determined based upon internal performance measures used by the chief operating decision maker. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes.

Segment operating income excludes certain corporate costs that are not allocated to segments, including corporate-level general and administrative expenses and unallocated shared services. These items are disclosed separately as “Corporate.”

Management measures the performance of each reportable segment based upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments.

The Company does not allocate impairment charges, interest expense, income taxes, or other non-operating income or expenses to segments. Segment asset information is disclosed where reviewed by the CODM.

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 months ended March 31, 2025 and 2024 was as follows:

	For the Three Months Ended March 31,
	2025			2024
Revenues:
Inventory Management Solutions	$	9,913,987		$	7,958,697
Corrugated		1,773,929			1,661,123
Total segment and consolidated revenues	$	11,687,916		$	9,619,820
Cost of revenues:
Inventory Management Solutions	$	9,100,728		$	6,569,687
Corrugated (Discontinued Operations)		1,276,685			1,164,371
Total segment and consolidated cost of revenues	$	10,377,413		$	7,734,058
Gross profit:
Inventory Management Solutions	$	813,259		$	1,389,010
Corrugated (Discontinued Operations)		497,244			496,752
Total segment and consolidated gross profit	$	1,310,503		$	1,885,762
Income (loss) from operations:
Inventory Management Solutions	$	(890,113	)	$	(794,053	)
Corrugated (Discontinued Operations)		104,231			162,736
Corporate		(526,053	)		(2,359,718	)
Total segment and consolidated loss from operations	$	(1,311,935	)	$	(2,991,035	)
Depreciation and amortization:
Inventory Management Solutions	$	574,672		$	556,299
Corrugated (Discontinued Operations)		37,992			49,497
Total segment and consolidated depreciation and amortization	$	612,664		$	605,796
Revenues by geography:
North America	$	2,753,713		$	3,313,122
Europe		8,934,203			6,306,698
Total geography and consolidated revenues	$	11,687,916		$	9,619,820
Segment capital expenditures:
Inventory Management Solutions	$	157		$	-
Corrugated (Discontinued Operations)		44,490			-
Corporate		-			-
Total segment and consolidated capital expenditures	$	-		$	-
Segment total assets:
Inventory Management Solutions	$	43,158,404		$	45,452,208
Corrugated (Discontinued Operations)		1,862,455			1,881,212
Corporate		2,612,856			2,903,451
Total segment and consolidated assets	$	47,633,715		$	50,236,871