Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 815

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 4
Chunk 815
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to reverse. The Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement
of a tax position taken or expected to be taken in a tax return. Management has evaluated and concluded that there were no material uncertain
tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2024 and 2023.
The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date. The
Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and
administrative expenses in the consolidated statements of comprehensive income. The Company is subject to routine audits by taxing jurisdictions;
however, there are currently no audits for any tax periods in progress.

Fair
Value Measurements. The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair
Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair
value, and expands disclosures about fair value measurements.

ASC
820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement
date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

Level
1 — quoted prices in active markets for identical assets or liabilities

Level
2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level
3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions)

The
carrying amounts of the Company’s financial instruments, such as cash, accounts receivable, accounts payable and other current
liabilities approximate fair values due to the short-term nature of these instruments. The Company’s long-term debt consists
of $21,021,155 at December 31, 2024. The
estimated fair value of this debt approximates the carrying value of these instruments, due to the interest rates on this debt
approximating current market interest rates.

Concentration
of Credit Risks. Financial instruments that potentially subject the Company to concentrations of credit risk are cash equivalents
and accounts receivable. Cash and cash equivalents are invested in deposits