Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 421

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 421
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, in its sole and absolute discretion, convert
all or part of the Promissory Notes into shares of common stock of the Eightco (the “Conversion Shares”) at a per share conversion
price equal to the VWAP of a OCTO Share for the ten trading days immediately preceding the conversion notice being provided to the Eightco
by the holder of the Promissory Notes (the “Conversion Price”), with the Conversion Price being subject to a conversion price
floor of $2.00 per share of common stock. If the VWAP is less than $2.00 and the holder converts all or part of the Note at $2.00 per
share, then the holder shall be entitled to receive an additional Promissory Note with the same economic terms as the original Promissory
Note in a principal amount equal to (A) $2.00 minus the VWAP multiplied by (B) the number of Conversion Shares issued upon the conversion.

During
fiscal year 2024, the Company entered into a series of amendments with the Sellers to restructure obligations related to the Promissory
Notes issued in connection with the Forever 8 acquisition.

On
March 17, 2024, the Company entered into an initial amendment pursuant to which:

●Approximately
                                            $3.0 million in accrued interest was forgiven with no additional consideration,

●An
                                            additional $1.1 million in accrued interest was converted into 1.4 million shares of common
                                            stock, and

●All
                                            remaining payments under the Promissory Notes were deferred to October 30, 2024.

On
March 27, 2024, the Company issued 120,974 shares of common stock which retired a portion of the Promissory Notes.

On
June 14, 2024, the Company executed further amendments to accomplish the following:

●The
                                            Company recorded a gain of $6.1 million related to the full release of contingent consideration,
                                            originally recognized at the time of acquisition. This was recorded as other income in the
                                            consolidated statement of operations.

●The
                                            Sellers also forgave $5.4 million of principal outstanding under the related-party Promissory
                                            Notes. Due to the related-party nature of the transaction, the forgiveness was recorded as
                                            a non-cash gain directly to additional paid-in capital (APIC) in accordance with ASC 470-50
                                            and ASC 850-10.

●In
                                            a concurrent