Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 16

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 in the Consolidated Balance Sheet,
including the comparative prior year period. Cash flows are reflected as cash flows from discontinued operations within the Company’s
Consolidated Statements of Cash Flows for each period presented.

Cash
and Cash Equivalents. The Company considers all highly liquid, short-term investments with original maturities of nine months or
less when purchased to be cash equivalents.

Digital
Assets. Digital assets primarily consist of cryptocurrencies and other crypto-tokens held for treasury, investment, or operational
purposes. Effective January 1, 2025, the Company adopted ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic
350-60). Under this guidance, eligible crypto assets are measured at fair value at each reporting date, with changes in fair value recognized
in net income in the period in which they occur. Upon adoption, historical impairment-only accounting ceased. Digital assets are presented
on the face of the condensed consolidated balance sheets as “Digital assets, at fair value.” Assets expected to be converted
into cash or otherwise used to fund operations within twelve months are classified as current assets; all other digital assets are classified
as noncurrent assets. The Company determines fair value using quoted prices in its principal market at the measurement time. Digital
assets with quoted prices in active markets are classified as Level 1 in the fair value hierarchy. When observable market inputs other
than quoted prices are used (such as certain wrapped tokens, restricted tokens, or stablecoins whose value is not derived solely from
exchange-traded prices), such assets are classified as Level 2. The Company did not classify any digital assets as Level 3 during the
periods presented. Realized and unrealized gains and losses from changes in the fair value of digital assets are recorded within “(Loss)
income from change in fair value of digital assets” in the condensed consolidated statements of operations. Realized gains and
losses on disposals are determined using the specific identification method. Digital assets are held with third-party custodians and
institutional trading counterparties. These arrangements expose the Company to counterparty, concentration, and safeguarding risks, including
technological, operational, and cyber-security risks. The Company does not hold digital assets on behalf of third parties and therefore
does not apply the guidance in SAB 121. As of the periods presented, the Company does not stake, lend, or pledge its digital assets,
and there are no digital-asset collateral or borrowing arrangements