Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 41

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 for income tax purposes and are owned 100% by Eightco Holdings Inc. and Ferguson Containers, Inc., respectively. The Company
pays corporate federal, state and local taxes on income allocated to it from BlockHiro, LLC and 8co Holdings Shared Services, LLC.

CW
Machines, LLC is a limited liability company for income tax purposes and is owned 51% by Eightco Holdings Inc. The Company pays corporate
federal, state and local taxes on income allocated to it from CW Machines, LLC.

Ferguson
Containers is taxed as a corporation and pays corporate federal, state and local taxes on income.

Forever
8 UK Ltd. is taxed as a corporation and pays foreign taxes on income.

F8
Fund EU Holdings BV is taxed as a corporation and pays foreign taxes on income.

For
the three and nine months ended September 30, 2025, income tax (benefit) expense was $0 and $(28,793), respectively. For the three and
nine months ended September 30, 2024, income tax (benefit) expense was $0 and $0, respectively. The Company has sufficient net operating
losses to reduce taxable income for future periods. The Company has recorded a full valuation allowance against its deferred tax assets
associated with its net operating losses.

There
are no unrecognized tax benefits and no accruals for uncertain tax positions.

The
Company files U.S. income tax returns and a state income tax return. With few exceptions, the U.S. and state income tax returns filed
for the tax years ending on December 31, 2021 and thereafter are subject to examination by the relevant taxing authorities.

As
of September 30, 2025, the Company had a net operating loss carryforward for federal income
tax purposes of approximately $10,667,381. These carryforwards were generated in 2022 and later, and therefore do not expire, but are
subject to annual limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions, and may
be utilized to offset up to 80% of taxable income in any future period.

On July 2, 2025, U.S. Congress enacted the Taxpayer
Fairness and Growth Act of 2025, which includes significant amendments to the Internal Revenue Code. Key provisions include:

    ●
    Limitations on the deductibility of certain interest and R&D expenses;

    ●
    Modifications to