Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 780

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 780
---
 the Promissory Notes was extended through October 30, 2025.

In
total, these amendments resulted in the forgiveness or conversion of approximately $5.7 million in accrued interest. The related-party
forgiveness and equity conversions generated a combined non-cash gain of $3.86 million, which was recorded directly to APIC as a capital
transaction. In addition, the forgiveness of $5.4 million was recorded directly to APIC as a capital transaction.

Series
A Preferred Stock Designation and Dividend

On
January 17, 2023, the board of directors of the Company declared a dividend of one one-thousandth of a share of Series A Preferred Stock,
par value $0.001 per share, for each outstanding share of the Company’s common stock, par value $0.001 per share to stockholders
of record at 5:00 p.m. Eastern Time on January 27, 2023 (the “Record Date”).

On
January 19, 2023, the Company filed a Certificate of Designation with the Delaware Secretary of State for its Series A Preferred Stock.
The number of shares designated is three hundred thousand (300,000). All shares of Series A Preferred Stock issued have been since redeemed.

32

Critical
Accounting Policies and Significant Judgments and Estimates

Our
management’s discussion and analysis of our financial condition and results of operations are based on our consolidated financial
statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America, or
GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial
statements as well as the reported expenses during the reporting periods. The accounting estimates that require our most significant,
difficult and subjective judgments have an impact on revenue recognition, the determination of share-based compensation and financial
instruments. We evaluate our estimates and judgments on an ongoing basis. Actual results may differ materially from these estimates under
different assumptions or conditions.

Our
significant accounting policies are more fully described in Note 2 to our consolidated financial statements included elsewhere in this
Annual Report.

Principles
of Consolidation

The
consolidated financial statements include the accounts of Eightco Holdings Inc. and its wholly-owned or majority owned subsidiaries and consolidated variable
interest entities.

Use
of Estimates

Preparation
of financial statements in conformity