Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 19

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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. In the absence of any impairment indicators, goodwill is assessed for impairment during
the fourth quarter of each fiscal year. Judgments regarding the existence of impairment indicators are based on market conditions and
operational performance of the business. The Company may assess our goodwill for impairment initially using a qualitative approach to
determine whether it is more likely than not that the fair value of these assets is greater than their carrying value. When performing
a qualitative test, the Company assesses various factors including industry and market conditions, macroeconomic conditions and performance
of our businesses. If the results of the qualitative assessment indicate that it is more likely than not that the goodwill and other
indefinite-lived intangible assets are impaired, a quantitative impairment analysis would be performed to determine if impairment is
required. The Company may also elect to perform a quantitative analysis of goodwill initially rather than using a qualitative approach.
The impairment testing for goodwill is performed at the reporting unit level. The valuation methods used in the quantitative fair value
assessment, discounted cash flow and market multiples method, requires our management to make certain assumptions and estimates regarding
certain industry trends and future profitability of the Company’s reporting units. If the fair value of a reporting unit exceeds
the related carrying value, the reporting unit’s goodwill is considered not to be impaired and no further testing is performed.
If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recorded for the difference. The valuation of
goodwill is affected by, among other things, the Company’s business plan for the future and estimated results of future operations.
Future events could cause the Company to conclude that impairment indicators exist, and, therefore, that goodwill may be impaired.

Contingent
Liabilities. The Company, from time to time, may be involved in certain legal proceedings. Based upon consultation with outside counsel
handling its defense in these matters and the Company’s analysis of potential outcomes, if the Company determines that a loss arising
from such matters is probable and can be reasonably estimated, an estimate of the contingent liability is recorded in its condensed consolidated
financial statements. If only a range of estimated loss can be determined, an amount within the range that, based on estimates, assumptions
and judgments, reflects the most likely outcome, is recorded as a contingent liability in the condensed consolidated financial statements.
In situations where none of the estimates within the estimated range is a better estimate of probable loss than any other amount, the
Company records the low end of the range. Any such accrual would be charged