Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 1350

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1350
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 first-out basis. The Company reduces the carrying value
of inventories for those items that are potentially excess, obsolete, or slow moving based on a review of recent sales trends and expected future demand.

Property
and Equipment. Property and equipment are stated at cost, net of accumulated depreciation and amortization, which is recorded commencing
at the in-service date using the straight-line method over the estimated useful lives of the assets, as follows: 3 to 5 years for office
equipment, 5 to 7 years for furniture and fixtures, 6 to 10 years for machinery and equipment, 10 to 15 years for building improvements,
5 years for software, 5 years for molds, 5 to 7 years for vehicles and 40 years for buildings. When fixed assets are retired or otherwise
disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the statements
of comprehensive loss for the respective period. Minor additions and repairs are expensed in the period incurred. Major additions and
repairs which extend the useful life of existing assets are capitalized and depreciated using the straight-line method over their remaining
estimated useful lives.

Intangible
Assets and Long-lived Assets. The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable. The Company assesses the recoverability of its long-lived assets using
undiscounted cash flows. If an asset is found to be impaired, the amount recognized for impairment is equal to the difference between
the carrying value and the asset’s fair value. During the years ended December 31, 2024 and 2023, the Company recorded impairment
charges to long lived assets in the amounts of $0 and $292,748, respectively. The impaired asset was fully written off in 2023. The Company records intangible assets based on their fair value on
the date of acquisition. Intangible assets include the cost of developed technology, customer relationships, trademarks and tradenames.
Intangible assets are amortized utilizing the straight-line method over their remaining economic useful lives, as follows: 10 years for
developed technology, 7 years for customer relationships and 7 years for trademarks and tradenames. The Company reviews long-lived assets
and intangible assets for potential impairment annually and when events or changes in circumstances indicate the carrying amount of an
asset may not be recoverable. In