Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 43

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 43
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 difference between the fair value of the purchase consideration over the fair value of the net identifiable tangible
and intangible assets acquired. We perform an impairment assessment of goodwill on an annual basis, or whenever impairment indicators
exist. In the absence of any impairment indicators, goodwill is assessed for impairment during the fourth quarter of each fiscal year.
Judgments regarding the existence of impairment indicators are based on market conditions and operational performance of the business.

We
may assess our goodwill for impairment initially using a qualitative approach to determine whether it is more likely than not that the
fair value of these assets is greater than their carrying value. When performing a qualitative test, we assess various factors including
industry and market conditions, macroeconomic conditions and performance of our businesses. If the results of the qualitative assessment
indicate that it is more likely than not that our goodwill and other indefinite-lived intangible assets are impaired, a quantitative
impairment analysis would be performed to determine if impairment is required. We may also elect to perform a quantitative analysis of
goodwill initially rather than using a qualitative approach.

The
impairment testing for goodwill is performed at the reporting unit level. The valuation methods used in the quantitative fair value assessment,
discounted cash flow and market multiples method, requires our management to make certain assumptions and estimates regarding certain
industry trends and future profitability of our reporting units. If the fair value of a reporting unit exceeds the related carrying value,
the reporting unit’s goodwill is considered not to be impaired and no further testing is performed. If the carrying value of a
reporting unit exceeds its fair value, an impairment loss is recorded for the difference. The valuation of goodwill is affected by, among
other things, our business plan for the future and estimated results of future operations. Future events could cause us to conclude that
impairment indicators exist, and, therefore, that goodwill may be impaired. Goodwill is a significant percentage of the Company’s’
long term assets and therefore, estimates regarding the fair value of our goodwill have a material impact on our financial statements.

Warrant
Accounting

The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”.

The
Company classifies a warrant to purchase shares of its common stock as equity on its consolidated balance sheets as this warrant is a
free-standing financial instrument that is indexed to the Company’s own stock and meets the criteria for equity classification.
Each