Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 57

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 employee-related expenses, administrative expenses,
professional fees, insurance, technology and software costs, and other overhead required to support both our Forever 8 operations and
our corporate infrastructure. SG&A also includes expenses associated with supporting the Digital Asset Treasury function, including
custodial fees, compliance costs, and professional services related to digital asset oversight.

Restructuring
and Severance Expenses

Restructuring
and severance expenses consist of costs associated with organizational changes, including employee severance, benefits continuation,
contract termination costs, and costs associated with facility consolidations or other restructuring activities. These expenses vary
depending on management’s strategic initiatives. No restructuring or severance costs were incurred during the periods presented.

Interest
Expense and Income, Net

Interest
expense reflects the cost of borrowings under our lines of credit and other financing arrangements used to support our Forever 8 inventory-financing
activities. Interest income primarily includes earned interest on notes receivable and cash-equivalent investments, as well as yield
earned on short-term instruments.

Change
in Fair Value of Digital Assets

Beginning
in September 2025, following the deployment of our Digital Asset Treasury strategy, the Company holds digital assets measured at fair
value in accordance with ASU 2023-08. Changes in the fair value of digital assets including both realized and unrealized gains and losses
are recognized in earnings in the period in which they occur. Because the DAT is not a revenue-generating activity, changes in fair value
represent a key driver of period-over-period volatility in our results of operations.

Gain
on Divestiture

Gain
on divestiture represents gains recognized in connection with the sale of assets. This includes the gain recognized on the sale of the
Ferguson Containers corrugated packaging business on April 7, 2025.

Gain
on Extinguishment of Liabilities

Gain
on extinguishment of liabilities includes gains recognized when outstanding liabilities are settled for amounts less than their carrying
value, or when obligations are legally extinguished. No such gains were recorded during the periods presented.

Other
Income

Other
income includes the interest income received from the Wattum Note and Reichard Containers Note.

32

Results
of Operations

Three
Months Ended September 30, 2025 versus Three Months Ended September 30, 2024

The
following table sets forth information comparing the components of net (loss) income from continuing operations for the three months
ended September 30, 2025 and 2024:

    Three