Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 422

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 422
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 amendment to the Purchase Agreement, the Sellers waived their contractual right
                                            to receive 215,000 Preferred Units, eliminating a significant future equity obligation.

On
December 19, 2024, the Company entered into a final amendment, under which:

●Approximately
                                            $1.6 million in accrued interest was converted into 485,381 shares of common stock, and

●The
                                            payment deferral period under the Promissory Notes was extended through October 30, 2025.

In
total, these amendments resulted in the forgiveness or conversion of approximately $5.7 million in accrued interest. The related-party
forgiveness and equity conversions generated a combined non-cash gain of $3.86 million, which was recorded directly to APIC as a capital
transaction. In addition, the forgiveness of $5.4 million was recorded directly to APIC as a capital transaction.

Series
A Preferred Stock Designation and Dividend

On
January 17, 2023, the board of directors of the Company declared a dividend of one one-thousandth of a share of Series A Preferred Stock,
par value $0.001 per share, for each outstanding share of the Company’s common stock, par value $0.001 per share to stockholders
of record at 5:00 p.m. Eastern Time on January 27, 2023 (the “Record Date”).

On
January 19, 2023, the Company filed a Certificate of Designation with the Delaware Secretary of State for its Series A Preferred Stock.
The number of shares designated is three hundred thousand (300,000). All shares of Series A Preferred Stock issued have been since redeemed.

32

Critical
Accounting Policies and Significant Judgments and Estimates

Our
management’s discussion and analysis of our financial condition and results of operations are based on our consolidated financial
statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America, or
GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial
statements as well as the reported expenses during the reporting periods. The accounting estimates that require our most significant,
difficult and subjective judgments have an impact on revenue recognition, the determination of share-based compensation and financial
instruments. We evaluate our estimates and judgments on an ongoing basis. Actual results may differ materially from