Eightco Holdings Inc. — financial distress indicators
Financial-health summary
Eightco Holdings Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 66/100). The main indicators are operations consume cash, share price down >80% from 52-week high and ohlson o-score signals likely failure. Independently, the Ohlson accounting model puts its 1-year failure probability at 62% and the market-implied (Merton) default probability is 1.5%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -92% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 0.51 → model probability 62%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Share count up +8194% in a year.
Survival financing: repeated equity raises at depressed prices.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Revenue changed -17% year over year.
Falling sales reduce cash available for debt service.
Last price $0.91.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Operating margin fell from -13% to -71% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (12.27).
- High insider/promoter ownership (52%) aligns management with survival.
📰 Recent news scan
- GH,ORBS,LAZ,ECHO,BRT,WCC,SMMT,PWP,BHB | stock prices | quote comparison - Yahoo Finance UKGoogle News · 2026-10-08
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- ORBS Stock Price, Quote & Chart - ChartMillGoogle News · 2026-09-29
- Eightco Shares Jump 11.67% on $125M Institutional Raise - CoinMarketCapGoogle News · 2026-09-28
- Eightco Holdings (ORBS) CEO buys 50,000 open-market shares - Stock TitanGoogle News · 2026-08-31
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Eightco Holdings Inc.'s financial-health indicators show?
As of 2026-10-08, Eightco Holdings Inc.'s public financial data places it in the 'Weak' band with a distress score of 66/100, driven by operations consume cash, share price down >80% from 52-week high and ohlson o-score signals likely failure. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Eightco Holdings Inc.'s financial distress score?
66/100 ('Weak'). Ohlson O-score 0.51 (model 1-year failure probability 62%). Merton distance-to-default 2.18 σ (model default probability 1.5%).
What works in Eightco Holdings Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (12.27). High insider/promoter ownership (52%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.