Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 20

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 to expense in the appropriate period. Litigation expenses
for these types of contingencies are recognized in the period in which the litigation services were provided.

    12

EIGHTCO
HOLDINGS INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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 90% and 86%
of total revenues for the three and nine months ended September 30, 2025, respectively.

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

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. For the three and nine months ended September 30, 2025, the Company recognized other comprehensive gain (loss) for foreign
currency translation of $(6,452) and $546,937, respectively. For the three and nine months ended September 30, 2024, the Company recognized
other comprehensive gain (loss) for foreign currency translation of $157,465 and $(25,349), respectively.

Foreign
Currency Transactions and Translation. Eightco’s functional currency is the United States Dollar (“USD”) and the
Forever 8 subsidiaries have functional currencies in Euro (“EUR”), British Pound Sterling (“GBP”), and USD.

For
the purpose of presenting these condensed consolidated financial statements, the reporting currency is USD. Forever 8 assets and liabilities
are expressed in