Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 1019

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1019
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 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 with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the
reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial
statements.

The
Company’s significant estimates used in these financial statements include, but are not limited to, accounts receivable reserves,
the valuation allowance related to the Company’s deferred tax assets, the recoverability and useful lives of long-lived assets,
debt conversion features, stock-based compensation, certain assumptions related to the valuation of the reserved shares and the assets
acquired and liabilities assumed related to the Company’s acquisitions. Certain of the Company’s estimates could be affected
by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external
factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates.

Long-Lived
Assets

We
record intangible assets based on their fair value on the date of acquisition. Intangible assets include the cost of developed technology,
customer relationships, trademarks and identifiable media and influencer platforms. Intangible assets are amortized utilizing the straight-line
method over their remaining economic useful lives. A significant percentage of the Company’s’ long term assets are intangibles
assets and therefore, estimates regarding the fair value of these assets have a material impact on our financial statements.

33

Goodwill

Goodwill
is recorded for the difference between the fair value of the purchase consideration over the fair value of the net identifiable tangible
and intangible assets acquired. We perform an impairment assessment of goodwill on an annual basis, or whenever impairment indicators
exist. 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.

We
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