Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 4

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 4
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 facilities have established human resource departments with formal hiring processes
and controls in place to ensure ethical and fair hiring practices. We compensate employees competitively relative to the industry and
local labor market, and in accordance with all applicable federal, state and local wage, work hour, overtime and benefit laws.

Supply
Chain and Production

Our
Corrugated Packaging Business does not have long-term contractual arrangements with any of our suppliers that guarantee us
production capacity, prices, lead times, or delivery schedules. Our reliance on independent party suppliers exposes us to
vulnerability because of our dependence on a few sources of supply. We believe, however, that other sources of supply are available.
In addition, we continually strive to develop relationships with other sources of supply in order to reduce our dependence on any
one source of supply. As a result, we believe that our current and other available suppliers will ensure that we obtain a sufficient
supply of goods built to our specifications in a timely manner and on satisfactory economic terms. The main raw material used by our
Corrugated Packaging Business is corrugated cardboard. Our main suppliers of corrugated cardboard are Corrugated Supplies Company,
Georgia Pacific, and Freedom Corrugated. We also purchased certain finished products from Delta Packaging for resale to end
users.

Our
Inventory Solutions Business purchases finished products from its suppliers and does not have long-term contractual arrangements that
guarantee production capacity, prices, lead times, or delivery schedules. Our reliance on independent party suppliers exposes us to vulnerability
because of our dependence on a few sources of supply. We believe, however, that other sources of supply are available. In addition, we
continually strive to develop relationships with other sources of supply in order to reduce our dependence on any one source of supply.
As a result, we believe that our current and other available suppliers will ensure that we obtain a sufficient supply of goods built
to our specifications in a timely manner and on satisfactory economic terms.

8

Backlog

We
currently do not have a material backlog of orders through our Corrugated Packaging Business. A backlog consists of orders for which
purchase orders have been received and which are generally scheduled for shipment within six months or subject to capacity
constraints, including lack of available products. We allow orders received that have not yet shipped to be cancelled; therefore,
our backlog may not be indicative of future sales.

Segment
Information

The
Company uses “the management approach” in determining reportable operating segments. The management approach considers the
internal