Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 779

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 779
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 being subject to a conversion price
floor of $2.00 per share of common stock. If the VWAP is less than $2.00 and the holder converts all or part of the Note at $2.00 per
share, then the holder shall be entitled to receive an additional Promissory Note with the same economic terms as the original Promissory
Note in a principal amount equal to (A) $2.00 minus the VWAP multiplied by (B) the number of Conversion Shares issued upon the conversion.

During
fiscal year 2024, the Company entered into a series of amendments with the Sellers to restructure obligations related to the Promissory
Notes issued in connection with the Forever 8 acquisition.

On
March 17, 2024, the Company entered into an initial amendment pursuant to which:

●Approximately
                                            $3.0 million in accrued interest was forgiven with no additional consideration,

●An
                                            additional $1.1 million in accrued interest was converted into 1.4 million shares of common
                                            stock, and

●All
                                            remaining payments under the Promissory Notes were deferred to October 30, 2024.

On
March 27, 2024, the Company issued 120,974 shares of common stock which retired a portion of the Promissory Notes.

On
June 14, 2024, the Company executed further amendments to accomplish the following:

●The
                                            Company recorded a gain of $6.1 million related to the full release of contingent consideration,
                                            originally recognized at the time of acquisition. This was recorded as other income in the
                                            consolidated statement of operations.

●The
                                            Sellers also forgave $5.4 million of principal outstanding under the related-party Promissory
                                            Notes. Due to the related-party nature of the transaction, the forgiveness was recorded as
                                            a non-cash gain directly to additional paid-in capital (APIC) in accordance with ASC 470-50
                                            and ASC 850-10.

●In
                                            a concurrent amendment to the Purchase Agreement, the Sellers waived their contractual right
                                            to receive 215,000 Preferred Units, eliminating a significant future equity obligation.

On
December 19, 2024, the Company entered into a final amendment, under which:

●Approximately
                                            $1.6 million in accrued interest was converted into 485,381 shares of common stock, and

●The
                                            payment deferral period under