Company: ORBS
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004802
Chunk: 214

Company: Eightco Holdings Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 214
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 litigation services were provided.

Warrants.
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 warrant is initially recorded within equity at the date of grant, net of issuance costs, and is not subsequently re-measured. Changes
in the fair value of the warrant are not recognized after the initial measurement. The warrants will remain classified in equity until
they are exercised or expire.

Revenue
Recognition. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
606, Revenue from Contracts with Customers, the Company recognizes revenue when it satisfies performance obligations, by transferring
promised goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in
exchange for fulfilling those performance obligations. Revenue for product sales is recognized upon receipt by the customer. There are
no contract assets or contract liabilities and therefore no unsatisfied performance obligations. One customer represented 75% of total
revenues for the year ended December 31, 2024.

Disaggregation
of Revenue. The Company’s primary revenue streams include the sale of consumer goods through our inventory management solutions
business and the sale of corrugated packaging materials. There are no other material operations that were separately disaggregated for
segment purposes.

    F-11

EIGHTCO
HOLDINGS INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

For
the Years ended December 31, 2024 and 2023

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Cost
of Revenues. Cost of revenues includes freight charges, purchasing and receiving costs, depreciation and inspection costs.

Comprehensive
income. The Company follows Accounting Standards Codification (“ASC”) 220 in reporting comprehensive income. Comprehensive
income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically
has not been recognized in the calculation of net income. Other comprehensive income is limited to foreign currency translation adjustments.
Therefore, total comprehensive income includes net income (loss) and foreign currency translation adjustments.

Foreign
Currency Transactions and Translation. Eightco’s functional currency is the United States Dollar (“USD”) and the
Forever 8 functional currency in which it operates is the Euro (“EUR”).

For
the purpose of presenting these consolidated financial statements the reporting currency is USD